Demand
Supply
Equilibrium
Scenarios/graphs
Miscellaneous
100
The law of demand states that
When the price of a product goes up, the demand for the product goes down (inverse relationship)
100
The law of supply states that
When the price of a product goes up, the quantity supplied of the product goes up (direct relationship)
100
What is a surplus?
When quantity supplied is greater than quantity demanded
100
The income of all citizens in the United States goes down by 20% due to COVID 19. Which graph shows the correct shift?
Graph B
100
Which planet is closest to the Earth?
Mercury
200
If the price of spaghetti sauce decreased, what would happen to the demand of pasta? (Must say shift AND factor for full points)
Demand Increase
Factor- Related goods (Complements)
200
The price of paper increases. What will happen to the supply of Textbooks? (Name shift and factor)
Decrease (Input costs)
200
Which letter represents a shortage?
D
200
Apple expands into six new countries. Which graph best represents what would happen?
Graph C
200
How many eyes does a bee have?
5
300
When a customers need for a product is not urgent (they have more time) the demand is________
Elastic
300
Expenses that the owners of a business must incur regardless of production like rent payments and property taxes are considered?
Fixed costs
300
If there is a shortage in the market, the price is likely to _______
Increase
300
Nike increases the price of all their shoes by 25%. Which graph shows what would happen to Adidas shoes?
Graph A
300
Dwayne "The Rock" Johnson played college football before becoming a famous actor. What school did he play for?
Miami Hurricanes
400
Which of the following would not SHIFT the demand curve for Bananas?
A. An increase in the price of a close substitute
B. An increase in the income of consumers
C. Study says that Bananas cause cancer
D. Decrease in the price of Bananas
E. New research shows health benefit of Bananas
D. Decrease in the price of Bananas
400
If the product is hard to find/produce and company needs a lot of CAPITAL to produce it (like cars or planes) then supply is more
Inelastic
400
Define price ceiling and provide an example of one
Legally determined maximum price that sellers may charge
Examples- Rent control policy, others
400
The government DECREASES regulations on company x. Which graph shows what would happen to company x?
Graph C
400
What were the 2 most popular Halloween costumes in 2023? (Can get partial credit)
Witch and Spiderman
500
Give an example of each of the TRIBE Factors of Demand for Pizza Hut. (Can get partial credit)
Tastes-
Related goods (Substitute and Complement)
Income
Number of Buyers
Expectation of future prices
Answers will vary
500
Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to _______?
Increase
500
What would happen to the equilibrium price and quantity if consumers decided apples are now their favorite snack
A. The demand for apples would increase causing the price of cheese to increase.
B. The demand for apples would decrease causing the price of apples to decrease.
C. The supply of apples would increase causing the price of apples to decrease.
D. The supply of apples would decrease causing the price of apples to increase.
A. The demand for apples would increase causing the price of cheese to increase.
500
Producer/seller expectations have decreased. Which graph represents this shift?
Graph D
500
On average, what is the thing that Americans do 22 times a day?
Open the fridge