Question

1. A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of

Use letters in alphabetical order to select options

A

both the supply and demand curves.

B

the demand curve, as consumers try to economize because of the shortage.

C

the supply curve.

D

the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.

2. _________________ refers to the total number of units that are purchased at that price.

Use letters in alphabetical order to select options

A

Supply

B

Quantity demanded

C

Quantity

D

Market quantity

3. Which one of the following statement best describes a price floor?

Use letters in alphabetical order to select options

A

A price floor causes demand to change.

B

A price floor keeps a price from falling below a certain level.

C

A price floor causes supply to change.

D

A price floor keeps a price from rising above a certain level.

Answer 1