Supply and Demand

Front

The law of demand states that if the price of CD’s rise, consumers will: Buy more CDs, Buy fewer CDs, Quantity demanded will not change

Back

Buy fewer CDs

Front

The law of supply states that if the price of CD’s rise, suppliers will:

Back

Supply more CDs

Front

Which of the following is NOT a direct determinant of the supply of peanut butter?

• The price of peanuts
• The wages of peanut butter factory workers
• The income of peanut butter consumers
• Existing peanut butter making technology

Back

The income of peanut butter consumers

Front

What will cause an increase in demand for snowboards? Options: More costly production methods, A decrease in the price of lift tickets at ski resorts, A decrease in consumer income, A decrease in the population.

Back

A decrease in the price of lift tickets at ski resorts.

Front

A major environmental report highlights the damaging effect of diesel 4x4's. What will happen to the demand for electric vehicles?

Back

Demand for electric vehicles will increase

Front

What will happen to the price of corn if almost no rain falls on corn crops?

Back

The price will increase

Front

What will happen to the price of shoes if shoe producers have to pay higher wages to their workers?

Back

The price will increase

Front

What will happen to the price of new cars if a weak economy causes people to have lower incomes?

Back

The price will decrease

Front

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

Back

The demand will probably go up

Front

According to a recent newspaper story, more Americans own dogs than ever before. As a result, ten new companies start making and selling dog food. What will probably happen to the overall supply of dog food?

Back

The supply will probably go up.