Chapter 6 Test Review

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

If a price is above equilibrium price, it creates a...

• shortage
• surplus
• market price
• demand

If a price is below the equilibrium price it creates a...

• shortage
• surplus 
• market price 
• supply

A shortage of a good is often a signal for a producer to 

• lower production of that good.
• lower the prices of that good.
• raise the prices of that good.
• shift production to another good.

Any price where the demand and supply are not equal is referred to as?

• surplus
• market equilibirum
• market disequilibrium
• none of the above

How would a decrease in the supply of iPads be shown on a supply and demand model?

• The supply curve would shift right.
• The supply curve would shift left.
• Movement along the supply curve to the right.
• Movement along the supply curve to the left.

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.
• Supply decreases.
• Demand increases.
• Demand decreases

What will happen to the price and quantity of umbrellas if the weather report predicts rain for the next month?

• Price will increase; Quantity will increase.
• Price will increase; Quantity will decrease.
• Price will decrease; Quantity will increase.
• Price will decrease; Quantity will decrease

A government payment made to a business is a

• tax
• regulation
• subsidy
• resource