Markets, Equilibrium & Prices - Test

The Law of Demand states that as price decreases _. quantity demanded decreases production increases quantity demanded increases quality decreases Supply depends on the willingness and ability of donors to contribute producers to sell advertisers to promote consumers to purchase According to the law of supply, what happens as price increases? The quantity supplied increases The quantity supplied decreases The supply curve shifts to the left The supply curve shifts to the right The equilibrium price is the price at which consumers demand less producers' make the most money possible demand and supply curves intersect both curves shift to the left In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in the demand for the substitute good, _. buns pickles chicken coleslaw Changes in which of these will cause the demand to move along the demand curve rather than shifting it? price income preferences expectations Which of these is most likely to happen to the demand curve for clothes in a clothing store when blizzards keep customers at home? the demand curve shifts to the left the demand curve becomes flatter the demand curve shifts to the right the demand curve becomes steeper Which of these would most likely increase the supply of soccer balls? a transportation strike a government tax on soccer balls a decrease in the price of leather an increase in the supply of tennis balls Which of these situations best illustrates market equilibrium? the price of soap doesn't change over time soap sales provide a very good profit for producers everyone who wants or needs soap can easily afford to buy it the amount of soap for sale matches the amount that people want to buy What is the usual result of setting a price ceiling on the price of rent for apartments? people can find apartments but can't afford them houses are broken up into apartments to meet the demand more people want to rent apartments but there aren't enough available construction jobs increase with the building of new apartment buildings Super E-Energy Drinks Click on each tag and add the following labels.Demand Price Shortage SurplusSupply Quantity Equilibrium Look at the graph above. At which pricefor this Super E. Drink is equilibrium reached? Using the graph above, at the equilibrium price, how many drinks will be bought? Continue using the graph. If the producer sets the price for one Super E. Drink at $7.50, what will occur? If the producer of Super E. Drink sets the price at $4.00, what will occur? What would the producer of Super E. Drinks, likely do if there weas a shortage of Super E. Drinks? If the government wanted to crack down on energy drink consumption among teens which two of these would make the most sense? price floor price ceiling give the producers or Super E a subsidy put a tax on the producers of Super E drinks A study just came out saying Super E drinks fight the corona virus. Imagine the government wanted to be sure Super E drinks were affordable for everyone and put a price ceiling of $1.50 on the drinks. What would the result be? Be sure to use at least 3 of these economic terms (supply, demand, shortage, surplus, equilibrium) in your answer. How do you feel about price controls? Are they a good idea? In your response, correctly use at least 3 of these terms: equilibrium price, equilibrium quantity, shortage, surplus, price ceiling, price floor. (1 point for each of the 3 terms you use correctly for 3 possible points)