The Law of Supply and Demand Assignment and Quiz

Look at the graph examining the market for graphic T-shirts. Which option represents equilibrium as it appears on this graph? 5 graphic T-shirts on sale for $6 10 graphic T-shirts on sale for $30 30 graphic T-shirts on sale for $10 55 graphic T-shirts on sale for $6

30 graphic T-shirts on sale for $10

A factor that most directly affects the demand for automobiles is ______. the individual tastes and preferences of buyers. the cost of raw materials and natural resources. the availability of workers in automobile factories. a company's ability to respond to buyers' interest.

the individual tastes and preferences of buyers.

This graph shows the equilibrium point at which price? $6 $9 $12 $15

$9

Match each term with the correct part of the graph. Demand curve: ___ Supply curve: ___ Equilibrium point: ___

B A C

According to the law of demand, price and quantity move _____. along a track in the same direction. along a track in opposite directions. from different points toward one another. from the same point away from one another.

along a track in the same direction. (incorrect??)

Consider this scenario. During the early 2000s, the Midwestern United States experienced a drought, or lack of rainfall. This ruined large amounts of the corn crop. Tortillas, which are made from corn, became more expensive to make. What would tortilla manufacturers have needed to do in order to make the same profit? increase the price of tortillas decrease the price of tortillas decrease the supply of tortillas and keep the price the same decrease the supply of tortillas and decrease the price

increase the price of tortillas

On a supply and demand graph, equilibrium is the point where _______. the two curves meet. the supply curve begins. the supply curve ends. the demand curve ends.

the two curves meet.

As a result of the development shown on this graph, prices will most likely ___

rise

The point where supply and demand meet and prices are set is called ______. coordination. correspondence. equality. equilibrium

equilibrium

How do changing prices affect supply and demand? As price increases, both supply and demand increase. As price decreases, both supply and demand decrease. As price increases, supply decreases, but demand increases. As price decreases, supply decreases, but demand increases.

As price decreases, supply decreases, but demand increases.

Supply and demand are powerful forces in a free market. In four to five sentences, explain some of the factors that cause shifts in supply and demand and what the effects of these shifts are.

Shifts in supply and demand occur when the amount of goods available increases or decreases, or when the demand for a particular good increases or decreases. Shifts in supply can happen when consumers change their spending habits, when competitors produce similar goods, or when the availability of labor or resources changes. Shifts in demand occur when the price changes or when the number of people trying to buy the good changes. It can also happen when people's tastes change.(cr: David_Hughes19)

Which statement best explains the law of demand? The quantity demanded by consumers increases as prices rise, then decreases as prices fall. The quantity demanded by consumers decreases as prices rise, then increases as prices fall. The quantity demanded by producers increases as prices rise, then decreases as prices fall. The quantity demanded by producers decreases as prices rise, then increases as prices fall.

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

Which statement best compares the laws of supply and demand? The two economic laws exist in theory. They have no relation to economics in the real world. The two economic laws exist in theory. They work in practice, but real-world factors can have an effect. The two economic laws work in practice. They apply to real-world economics eighty percent of the time. The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.

The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.

Consider this scenario. In recent years many Americans have started to pay more attention to the amount of sugar and calories in their diet. Some soft drink companies are concerned about consumers' desire to be healthier. They believe that this could result in a drop in demand for their products. Which factor affecting demand does this scenario illustrate? a change in the number of people in the population a change in the price of a substitute good from a rival soft drink company a change in consumer tastes and preferences a change in the price of a complementary good from a potato chip company

a change in consumer tastes and preferences

What change is taking place on this graph? a decrease in supply a decrease in demand an increase in supply an increase in demand

an increase in demand

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply an increase in demand a decrease in demand

an increase in supply

"A" represents the new quantity demanded, while "B" represents the new quantity supplied. What is the result of these changes? Based on this graph, what will prices most likely do?

excess supply fall

As a result of the development shown on this graph, prices should ____

fall

The chart compares the price of graphic T-shirts to the quantity demanded. This chart shows the link between interest in a product and the price a consumer pays. interest in a product and the price a producer pays. amount of a product and the price a consumer pays. amount of a product and the price a producer pays.

interest in a product and the price a consumer pays.

The vertical axis of a demand curve shows the price of a product. the supply of a product. the interest in a product. the production cost of a product.

the price of a product.