Chapter 02 – Supply and Demand
94) If there is a good that is consumed almost entirely by children, a significant reduction in the
birth rate would
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
95) If there is an expectation that the price of a good will increase in the next month this would
immediately
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
96) If there is an expectation that the price of a good will decrease in the next month this would
immediately
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
97) If a tax (paid by consumers) is levied on a good this would
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
98) If a subsidy (going to consumers) is created for a good this would
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
99)
Chapter 02 – Supply and Demand
If a tax (paid by consumers) on a good is reduced this would
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
100) If a subsidy (going to consumers) on a good is eliminated this would
A) move its demand curve to the right.
B) move its demand curve to the left.
C) cause a movement along the demand curve to a (higher price, lower quantity) point.
D) cause a movement along the demand curve to a (lower price, higher quantity) point.
101) The increase in the price of a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
102) The decrease in the price of a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
103) Which of the following is the best example of the concept of “inferior”?
A) SUV’s
B) Coke and Pepsi
C) Ramen noodles
D) Hot dogs and hot dog buns
104) The quintessential example of a normal good would be
A) steak for someone who liked beef.
B) the substitution of Granny Smith for Golden Delicious apples.
C) Ramen Noodles for a poor college student.
D) peanut butter and jelly for a young boy or girl.
Chapter 02 – Supply and Demand
105) The quintessential example of an inferior good would be
A) steak for someone who liked beef.
B) the substitution of Granny Smith for Golden Delicious apples.
C) Ramen Noodles for a poor college student.
D) peanut butter and jelly for a young boy or girl.
106) The quintessential example of complementary goods would be
A) steak for someone who liked beef.
B) the switching of Granny Smith for Golden Delicious apples.
C) Ramen Noodles for a poor college student.
D) peanut butter and jelly for a young boy or girl.
107) The quintessential example of substitute goods would be
A) steak for someone who liked beef.
B) the switching of Granny Smith for Golden Delicious apples.
C) Ramen Noodles for a poor college student.
D) peanut butter and jelly for a young boy or girl.
108) Which of the following is the best example of the concept of “normal”?
A) SUV’s
B) Coke and Pepsi
C) Ramen noodles
D) Hot dogs and hot dog buns
109) Which of the following is the best example of the concept of “another potential output”?
A) SUV’s
B) Ramen noodles
C) Coke and Pepsi
D) corn and soybeans
110) Which of the following is the best example of the concept of “complement”?
A) SUV’s
B) Coke and Pepsi
C) Ramen noodles
D) Hot dogs and hot dog buns
Chapter 02 – Supply and Demand
111) Which of the following goods are likely to be considered complements?
A) Right and left shoes
B) Coke and Pepsi
C) Peanut butter and jelly
D) (a) and (c)
112) Which of the following goods are likely to be considered complements?
A) Sprite and 7-Up
B) Gasoline and diesel fuel
C) Peanut butter and jelly
D) Coke and Pepsi
113) Which of the following is the best example of the concept of “substitute”?
A) SUV’s
B) Coke and Pepsi
C) Ramen noodles
D) Hot dogs and hot dog buns
114) Which of the following goods are likely to be considered substitutes?
A) Hot dogs and hot dog buns
B) Gasoline and diesel fuel
C) Peanut butter and jelly
D) Coke and Pepsi
115) Which of the following goods should be clearly considered substitutes?
A) Right and left shoes
B) Gasoline and diesel fuel
C) Peanut butter and jelly
D) Coke and Pepsi
116) The quintessential example for the price of an input and its impact on an output is
A) Hotdogs and hotdog buns
B) Crude oil and gasoline
C) Corn and soybeans
D) 7up and Sprite
Chapter 02 – Supply and Demand
117) The quintessential example for the price of another potential output and the impact of the
price of one good on the market for another is
A) Hotdogs and hotdog buns
B) Crude oil and gasoline
C) Corn and soybeans
D) 7up and Sprite
118) If technology increases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left.
119) If technology decreases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left.
120) If a good is normal and income decreases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left.
121) If a good is normal and income increases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left.
Chapter 02 – Supply and Demand
122) If a good is inferior and income increases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left.
123) If a good is inferior and income decreases then
A) the demand curve will shift to the right.
B) the demand curve will shift to the left.
C) the supply curve will shift to the right.
D) the supply curve will shift to the left..
124) If a firm has two production alternatives and the price of one decreases this will cause the
other good’s
A) demand curve to shift to the right.
B) supply curve to shift to the right.
C) demand curve to shift to the left.
D) supply curve to shift to the left.
125) If a firm has two production alternatives and the price of one increases this will cause the
other good’s
A) demand curve to shift to the right.
B) supply curve to shift to the right.
C) demand curve to shift to the left.
D) supply curve to shift to the left.
126) If the price of a good is expected to fall in the future its
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) b) and c)
Chapter 02 – Supply and Demand
127) If the price of a good is expected to rise in the future its
A) demand curve will shift to the right.
B) supply curve will shift to the left.
C) demand curve will shift to the left.
D) a) and b)
128) In the market for birth control devices, if the number of women of child-bearing age
increases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
129) In the market for birth control devices, if the number of women of child-bearing age
decreases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
130) If the price of inputs increases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right
C) demand curve will shift to the left.
D) supply curve will shift to the left.
131) If the price of inputs decreases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
Chapter 02 – Supply and Demand
132) If the number of sellers increases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
133) If the number of sellers decreases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
134) If the taste for a good increases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
135) If the taste for a good decreases, the
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
136) If two goods are considered complements and the price of one decreases then the other
good’s
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
Chapter 02 – Supply and Demand
137) If two goods are considered substitutes and the price of one decreases, the other good’s
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
138) If two goods are considered complements and the price of one increases, the other good’s
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
139) If two goods are considered substitutes and the price of one increases, the other good’s
A) demand curve will shift to the right.
B) supply curve will shift to the right.
C) demand curve will shift to the left.
D) supply curve will shift to the left.
140) The increase in the price of a good that is used as an input for a second good, would (for the
second good)
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
141) The decrease in the price of a good that is used as an input for a second good, would (for the
second good)
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
Chapter 02 – Supply and Demand
142) The increase in technology used to produce a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
143) The decrease in technology used to produce a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
144) The increase in the price of a good that is another potential output for another good, would
(for the second good)
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
145) The decrease in the price of a good that is another potential output for another good, would
(for the second good)
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
146) The increase in the number of sellers of a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
Chapter 02 – Supply and Demand
147) The decrease in the number of sellers of a good would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
148) If there is an expectation that the price of a good will increase in the next month this would
immediately
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
149) If there is an expectation that the price of a good will decrease in the next month this would
immediately
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
150) If a tax (paid by producers) on a good is reduced this would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
151) If a subsidy (going to producers) is created for a good this would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
Chapter 02 – Supply and Demand
152) If a subsidy (going to producers) on a good is eliminated this would
A) move its supply curve to the right.
B) move its supply curve to the left.
C) cause a movement along the supply curve to a (higher price, higher quantity) point.
D) cause a movement along the supply curve to a (lower price, lower quantity) point.
153) If demand increases and the price doesn’t change, there will be a
A) surplus.
B) both a shortage and a surplus.
C) shortage.
D) neither a shortage nor a surplus.
154) If supply increases and the price doesn’t change, there will be a
A) surplus.
B) both a shortage and a surplus.
C) shortage.
D) neither a shortage nor a surplus.
155) If demand decreases and the price doesn’t change, there will be a
A) surplus.
B) both a shortage and a surplus.
C) shortage
D) neither a shortage nor a surplus.
156) If supply decreases and the price doesn’t change, there will be a
A) surplus.
B) both a shortage and a surplus.
C) shortage.
D) neither a shortage nor a surplus.