Demand Shifts
Thousands of people leave a small town due to a factory closing down. Demand at the local grocery store is reduced. What Non-Price Determinant of Demand causes this change?
Change in the Population
New machines advance the rate at which furniture can be assembled. What is the Non-Price Determinant of Supply?
Technology.
A brand new car is elastic because of 3 of these reasons. Which one is INCORRECT?A. There are no substitutes B. There are substitutes C.It is a luxury D. You can delay its purchase
A. There are no substitutes
The quantity demanded is the same as the quantity supplied: A. Shortage B. Surplus C. Equilibrium D. Price Ceiling E. Price Floor
Equilibrium
What effect does the price seem to have on Demand? As the price increases, the quantity Demanded… A. Increases B. Decreases C. Stays the Same
B. Decreases
Butter is on sale. Which way will the demand curve (for MARGARINE) shift? What is the Non-Price Determinant of Demand?
Left (Decrease) Substitute
Great weather in California helped the fruit farmers crop production. Which way will the supply curve (for AVOCADOS) shift?What is the Non-Price Determinant of Supply for the above example?
Right (Increase) Int'l/Weather
Insulin - Elastic or Inelastic? Why?
inelastic
When the demand exceeds the supply, it is called… a. surplus b. shortage c. equilibrium
shortage
What effect does the price seem to have on Supply? As the price increases, the quantity supplied… A. Increases B. Decreases C. Stays the Same
Increases
Families move out of Anaheim into Orange. Which way will the demand curve (for HOMES IN ORANGE) shift? What is the Non-Price Determinant of Demand?
Right (increase)Population
New tax laws in California on fast food sales have been added. Which way will the supply curve (for MCDONALD’S) shift? Why?
Left (Decrease) Govt.
Steak - Elastic or Inelastic? Why?
elastic
When the supply exceeds the demand, it is called… a. surplus b. shortage c. equilibrium
surplus
Name one non price determinant of Supply
Technology
International Events/Disasters/Weather
Government Intervention
Expectations for Future Price Changes
Resource Costs
Sellers in the Market
The weatherman on the morning news predicts it will be rainy in 2 weeks. Which way will the demand curve (for UMBRELLAS) shift? What is the Non-Price Determinant of Demand?
Right, Future Expectations
Salt is inelastic because of 3 of these reasons. Which one is INCORRECT? a. There are no substitutes b. It is a necessity c. It is a luxury d. You cannot delay its purchase
It is a luxury
Mr Franco tries to buy tickets for a Dodgers game. He is told that the game is sold out and no tickets are available. Which best explains why there are no tickets available? A. The stadium forgot to print enough tickets. B. The supply of tickets was greater than the demand. C. The stadium charged too much money for each ticket. D. The demand for tickets was greater than the supply.
D. The demand for tickets was greater than the supply. (Shortage)
Name one non price determinant of Demand
Consumer Income
Consumer Taste
Price of a Substitute Product
Price of a Complementary Product
Future Expectations
Population & Demographics
High-waisted shorts are now considered back in style. Which way will the demand curve (for HIGH WAISTED SHORTS) shift?What is the Non-Price Determinant of Demand for the above example?
Right (Increase) Consumer Taste
Jordan Basketball Shoes- Elastic or Inelastic? Name all 3 reasons why
Elastic
1. Yes, there are substitutes
2. Yes, you can delay its purchase.
3. It is a Luxury