Question

Question

When we put supply and demand together, we have:

equilibrium

a market

a surplus

a shortage

Question

Recall the video "Supply and Demand Shifts: Coffee Negative Supply Shock." The ice-storm causes the ______ curve to shift to the left. Price _______ and so manufacturers spend _______ trying to get everything out of their fields.

demand; increases; more time and labor

supply; increases; less time and labor

supply; decreases; less time and labor

supply; increases; more time and labor

Question

Recall the article titled "Coffee Perk." How would we expect the market to react to the information from the study?

Preferences for coffee would increase and would cause demand to shift outward. This would increase both the price and the quantity at equilibrium.

Preferences for coffee would increase and would cause demand to shift outward. This would increase both the price and decrease quantity at equilibrium.

Preferences for coffee would decrease and would cause demand to shift inward. This would decrease both the price and decrease quantity at equilibrium.

Preferences for coffee would decrease and would cause demand to shift inward. This would increase the price and decrease quantity at equilibrium.

Question

Ramen noodles are an inferior good. A decrease in the income of the buyers shifts the demand to the:

Left (decrease in demand)

Right (increase in demand)

Question

An increase in the minimum wage in the market for fast food will:

Decrease supply; price will increase and quantity decrease.

Increase supply; price will decrease and quantity will increase.

Cause a decrease in demand; price will decrease and quantity will decrease.

Cause an increase in demand; price will increase and quantity will increase.

Question

An increase in the price of Coca-Cola would:

not affect the market for Pepsi

decrease the demand for Pepsi because they are complements

increase the demand for Pepsi because they are substitutes

No answer text provided.

Question

People tend to make more mistakes when shifting demand than they do while shifting supply. When you draw a decrease in supply, the curve will go:

down and out

down and back

up and out

up and back

Question

When the price is too high, what restricts the total number of transactions?

Supply

Demand

Question

When the price is too low, what restricts the total number of transactions?

Group of answer choices

Supply

Demand

Answer 1

1 - Option A

Equlibrium

It is the point where demand and supply are equal

Surplus is when revenue is more than cost , market is where producer and customer interact. Hence option A is correct.

2 - Option D

Supply , increase , more time and labour.

The equlibrium price will increase and hence to reduce this shortage , more time and labor have to be employed.

The demand will not change , lesser time and labor will worsen the condition. Hence option D is correct.

4 - Option B

Right

The inferior goods are inversely related with income. If the income will decrease , the demand for inferior good will increase and demand curve will shift right.

It will shift left when income will increase.

5 - Option A

Decrease supply , price will increase and quantity decrease.

This will happen because of the higher cost of production.

The demand will not be affected and neither will supply increase. It will increase when wages are decreased which does not happen here. Hence option A is correct.