WORKSHEET
– DEMAND and Supply
Say supply & demand &
you’ll be an economist.
_A_1. Which of the following will not cause the demand curve for good “A” to shift?
a. a change in the price of “A”.
c. an increase in consumer income
b. a change in the price of B, a complement
d. a change in the price of C, a substitute.
_B_2. A surplus of a commodity can be expected whenever:
a. prevailing price of the good is below the equilibrium price[QD>QS].
b. prevailing price of the good is above the equilibrium price[QS>QD].
c. prevailing price of the good is equal to the equilibrium price[QD=QS].
_B_3. If the price of hamburgers increase, the demand for hot dogs[substitute] will:
a. remain unchanged. b. shift to the right(increase). c. shift to the left(decrease).
_B_4. Which of the following statements is correct?
a. A decrease in the price of Hondas will increase the demand for Fords(substitutes).
b. An increase in income will decrease the demand for spam(an inferior good).
c. A decrease in income will decrease the demand for an spam(an inferior good).
d. An increase in the price of C will increase the demand for complementary product D.
_C_5. In moving along a stable demand or supply curve for gasoline,
what is not held constant? [What is changing?]
a. income
b. taste
c. price of gasoline
d. resource cost of gasoline
_B_6. Which of the following will not shift the supply curve?
a. change in resource cost
c. change in the number of producers
b. change in consumer taste
d. an increase in taxes
_C_7. A decrease in product price will cause:
a. QD to decrease
b. QS to increase
c. QD to increase
d. increase in demand
_B_8. If the price of apple pie decreases, the demand curve for ice cream[complement] will:
a. remain unchanged
b. shift to the right(increase)
c. shift to the left(decrease)
_B_9. If rethread tires are inferior goods, an increase in income will:
a. decrease D, decrease P, & increase Q.
c. increase S, decrease P, & increase Q.
b. decrease D, decrease P, & decrease Q.
d. increase D. increase P, & increase Q.
_D_10. An increase in the price of Snickers will result in a(n):
a. increase in the demand for Snickers.
b. decrease in the demand for Snickers.
c. increase in QD for Snickers.
d. decrease in QD for Snickers.
_C_11. A leftward shift of the supply curve might be caused by:
a. decrease in resource cost.
b. more firms entering an industry.
c. decrease in subsidies.
d. a decrease in consumer incomes.
_E_12. Consumer expectations that the price of digital cameras will decrease
sharply in the future will:
c. decrease S, increase P, & increase Q.
a. increase S, increase P, & increase Q.
d. increase D, decrease P, & increase Q.
b. decrease D, increase P, & decrease Q.
e. decrease D, decrease P, & decrease Q.
_B_13. If bologna is an inferior good, an increase in consumer incomes will:
a. not affect the sales of bologna.
b. shift the demand curve for bologna to the left.
c. result in a shortage of bologna.
d. shift the demand curve for bologna to the right.
_A_14. An increase in the price of hamburgers resulted in an increase in the
demand for hotdogs. This indicates that hamburgers and hotdogs are:
a. substitute goods
b. complementary goods.
D. inferior goods.
_B_15. An “increase in the quantity supplied[QS]” suggests a:
a. rightward shift of the supply curve.
b. movement up along the supply curve.[Incr. QS]
c. movement down along the supply curve. d. leftward shift of the supply curve.
_C_16. An increase in the price of corn will shift the (demand/supply) curve for
wheat[alternative output] to the (left/right).
a. demand/left
b. demand/right
c. supply/left[decrease]
d. supply/right[decrease]
_C_17. Which of the following will not cause the supply curve to shift?
a. a change in resource costs.
b. a technological change.
c. a change in the price of the good.
d. change in the prices of alternative outputs.
_D_18. What will cause an increase in demand for Fuzzy Wuzzys?
a. decrease in the price of Fuzzy Wuzzys
b. increase in subsidies for Fuzzy Wuzzys
b. increase in the price of Fuzzy Wuzzys
d. increase in taste for Fuzzy Wuzzys
_C_19. What will cause a decrease in supply for “oranges”?
a. decrease in the price of oranges
b. an increase in the price of oranges
c. increase in the cost of labor producing oranges d. decrease in consumer taste for oranges
_B_20. What will cause an increase in QS for “oil”?
a. decrease in the price of oil
c. increase in taste for oil
b. an increase in the price of oil
d. increase in market size(# of consumers)
_A_21. An increase in the price of hotdogs results in a decrease in demand
for mustard. Therefore, these two products must be:
a. complementary goods
b. substitute goods
c. independent goods
_B_22. If the price of bagels increase, the demand curve for the substitute
bread will:
a. shift to the left.
b. shift to the right(Incr)
c. remain unchanged.
d. decrease.
_C_23. When the price of a product decreases, and consumers are able to buy
more would be an example of the:
a. product effect
b. substitution effect
c. income effect
d. none of these
_C_24. Producer expectations that kangaroo meat(“roo steaks”) will rise
sharply in the near future will:
a. increase D, increase P, increase Q.
c. decrease S, increase P, decrease Q
b. decrease D, decrease P, decrease Q.
d. increase S, decrease P, increase Q.
_B_25. If the price of ostrich burgers increases, the demand for the substitute
emu burgers will:
a. decrease D, decrease P, decrease Q.
c. increase S, decrease P, increase Q.
b. increase D, increase P, increase Q.
d. decrease S, increase P, decrease Q.
_B_26. The reason “talk is so cheap” is that:
a. demand is much greater than supply.
b. supply is much greater than demand.