AP Macroeconomics
Demand/Supply Quiz
1. If hot dogs are an inferior good, an increase in
income will result in
4. If there is an increase in demand for a good,
what will most likely happen to the price and
quantity of the good exchanged?
Price
(A) an increase in the quantity demanded for
hot dogs.
(B) an increase in the demand for hot dogs.
(C) a decrease in the quantity demanded for
hot dogs.
(D) a decrease in the demand for hot dogs.
(E) no change in the quantity demanded for
hot dogs.
2. An increase in the price of gasoline will cause
the demand curve for tires to shift in which
direction?
(A) To the left, because gasoline and tires are
substitutes
(B) To the left, because gasoline and tires are
complements
(C) To the right, because gasoline and tires
are substitutes
(D) To the right, because gasoline and tires
are complements
(E) To the right, because an increase in the
price of gasoline makes consumers
poorer and thus not willing to pay as
much for tires
3. Assuming that Coke and coffee are
substitutable goods, what will happen if the price
of coffee decreases?
(A) There will be an increase in demand for
both coffee and Coke.
(B) There will be a decrease in the demand
for Coke and a movement along the
demand curve for coffee.
(C) There will be an increase in the demand
for coffee and a movement along the
demand curve for Coke.
(D) There will be a decrease in demand for
both coffee and Coke.
(E) No change will happen for coffee or
Coke.
(A) No change
(B) Increase
(C) Increase
(D) Decrease
(E) Decrease
Quantity
No change
Increase
Decrease
Increase
Decrease
5. Which of the following will not cause the
demand curve for athletic shoes to shift?
(A) A change in tastes for athletic shoes
(B) Widespread advertising campaign for
athletic shoes
(C) Increase in money incomes of athleticshoe consumers
(D) Expectations that the price of athletic
shoes will decrease in the future
(E) A decrease in the price of athletic shoes
6. Other things constant, which of the following
would not cause a change in the supply of beef?
(A)
(B)
(C)
(D)
A decrease in the price of beef
A decrease in the price of cattle feed
An increase in the price of cattle feed
An increase in the cost of transporting
cattle to market
7. A multiyear drought in Florida has dried the
land so that rampant wildfires have destroyed
many orange groves. Florida oranges supply
much of the nation’s orange juice. Which
statement below is correct?
(A) The price of orange juice will rise because
of a movement up the supply curve.
(B) The price of orange juice will rise because
the supply curve will shift to the left.
(C) The price of orange juice will fall because
the supply curve will shift to the right.
(D) The price of orange juice will rise because
the supply curve will shift to the right.
8. *A popular movie star wears a certain style of
sunglasses. If her fans want to copy her look,
(A) the price of the movie star’s brand of
sunglasses will rise because of a movement
up the supply curve.
(B) the price of the movie star’s brand of
sunglasses will rise because the supply curve
will shift to the left.
(C) the price of the movie star’s brand of
sunglasses will fall because of a movement
down the supply curve.
(D) the price of the movie star’s brand of
sunglasses will fall because the supply curve
will shift to the right.
9. If the cost of cotton has decreased, what will
happen to the equilibrium price and equilibrium
quantity of Gap jeans.
A.
B.
C.
D.
Price
Increase
Decrease
Increase
Decrease
Quantity
Increase
Decrease
Decrease
Increase
10. Assume that the government increases the
minimum wage for fast food workers. What will
happen?
A. The price will rise because the supply
curve will shift to the left.
B. The price will rise because the supply
curve will shift to the right.
C. The price will rise because of a
movement up the supply curve.
D. The price will decrease because of a
movement down the supply curve.
E. The price will decrease because of a
movement up the supply curve.
Bonus:
11. If the price of coal increases and the quantity
sold increases, which of the following is
consistent with these observations?
(A) The price of oil increased, oil and coal
being substitutes.
(B) A wage increase was given to coal
miners.
(C) New machinery made coal mining more
efficient.
(D) Consumers’ incomes fell.