Name_____________________________
Date_____________
Supply and Demand Quiz (5 pts each)
1. Demand refers to:
a. a point on a curve.
b. a schedule of prices and amounts supplied.
c. a downsloping curve of prices and quantities.
d. an upsloping curve of prices and quantities.
2. Supply refers to:
a. a point on a curve.
b. a schedule of prices and amounts demanded.
c. a downsloping curve of prices and quantities.
d. an upsloping curve of prices and quantities.
3. If Congress lowers the tax on gasoline the equilibrium
price will fall. Assuming the tax is a supplier cost, this
decline in price can be attributed to:
a. upward movement along the supply curve for
gasoline.
b. rightward shift of the supply curve.
c. downward movement along the supply curve.
d. leftward shift of the supply curve.
4. How could the government cause an increase in the
equilibrium price of milk?
a. Take milk from government storage and sell it.
b. Encourage farmers to produce more milk.
c. Subsidize the purchase of more dairy equipment.
d. Provide subsidies to farmers to produce less milk.
5. An increase in the wage paid to grape pickers will
cause the:
a. demand curve for grapes to shift to the right.
b. demand curve for grapes to shift to the left because
of high prices.
c. supply curve for grapes to shift to the right because
of high prices.
d. supply curve for grapes to shift to the left.
6. If a shortage of oil causes the price of gasoline to
increases:
a. supply will increase to take advantage of higher
prices.
b. the demand will decrease because of higher prices.
c. the quantity demanded will decrease.
d. the quantity supplied will decrease.
7. If a technological breakthrough lowers the cost of
producing DVD players:
a. the supply will increase.
b. the demand will increase.
c. both supply and demand will increase.
d. the quantity supplied will increase.
8. If the price of DVD recorders drops, there should be:
a. a decrease in the supply of DVD recorders.
b. an increase in the demand for DVD recorders.
c. a decrease in the demand for VCRs.
d. a decrease in the quantity demanded for DVD
recorders.
9. If there are shortages of heating oil this winter:
a. demand will exceed supply.
b. supply will exceed demand.
c. the quantity supplied will exceed the quantity
demanded.
d. the equilibrium price will rise.
10. A severe frost in Florida in January would most likely
cause:
a. a decrease in the quantity demanded of orange
juice.
b. an increase in the supply of orange juice.
c. a decrease in the price of orange juice
d. a decrease in the quantity supplied of orange juice.
11. A decline in the price of CD players would most likely
cause:
a. a decrease in the quantity demanded of CD players.
b. an increase in the demand for CD players.
c. an increase in the demand for CDs.
d. a decrease in the demand for digital camcorders.
12. Which one of the following would cause a decrease in
the demand for coffee?
a. Higher prices of coffee beans.
b. Lower prices of coffee cups.
c. Sales at starbucks..
13. Which of the following would cause an increase in the
quantity demanded of automobiles?
a. An increase in automobile prices.
b. An increase in the cost of steel.
c. A decrease in the price of automobiles.
d. An increase in the price of gasoline.
14. An increase in the quantity supplied of sneakers could
be caused by:
a. a decrease in the price of sneakers.
b. a decrease in the demand for sneakers.
c. an increase in the demand for sneakers.
d. an increase in the cost of manufacturing sneakers.
15. An increase in the price of McDonald's hamburgers
might very well result in:
a. an increase in the demand for Burger King
hamburgers.
b. an increase in the quantity supplied of McDonald's
hamburgers.
c. an increase in the demand for McDonalds soft
drinks.
d. a decrease in the demand for McDonald's
hamburgers.
16. Which of the following would definitely NOT change
the demand for Coca Cola?
a. A decrease in the price of Pepsi.
b. The release of a study showing that Coke causes
baldness.
c. A decrease in the price of pizza.
d. An increase in the price of Coke.
17. Which of the following would definitely NOT change
the supply of Coca Cola?
a. A change in the price of Coke.
b. An improvement in bottling technology at Coke
plants.
c. A high tax on Coke bottlers.
d. The arrival of a very hot summer.
18. If the supply of and demand for computers both
increase simultaneously, then we know that:
a. computer prices will rise.
b. the equilibrium quantity of computers will increase.
c. the equilibrium price of computers will drop.
d. Bill Gates will lose money.
19. If the demand for computers declines while supply
remains the same:
a. computer prices will rise.
b. the quantity of computers demanded will decrease.
c. prices will drop.
d. the quantity of computers supplied will increase.
20. If the supply of Twinkies declines while the demand is increasing, we know
that:
a. the equilibrium quantity will decrease.
b. the equilibrium price will decline.
c. the quantity supplied will decrease.
d. the equilibrium price will increase.