Theory of Demand and Supply

What happened to a supply curve when supply goes down?

• moves left

• moves rights

• moves up

• moves down

The shift in the supply curve from S⁰ to S¹ shows ; _______________.

• an increase in supply.

• a decrease in supply.

• an expansion in supply.

• a contraction in supply.

The definition of demand in an economic perspective is ________________.

• the desire to purchase goods and services at a certain price.

• the desire of all individuals in a market to purchase goods.

• the desire of an individual to obtain goods and services, supported by the ability to pay a certain price.

• he ability of an individual to spend his/her income to purchase goods and services.

Jennifer Lopez is seen wearing a new short and sleek dress. People now want this dress. Which demand determinant is this most likely to fall under?

• Change in Consumer Income
• Change in Consumer Tastes
• Change in Price of Substitute Good
• Change in Consumer Price Expectations

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.
• The price will go down.

Mr Coyote goes to the ticket booth to buy tickets for a Spurs game. Mr. Coyote is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?

• The arena forgot to print enough tickets.

• The supply of tickets was greater than the demand.

• The arena charged too much money for each ticket.

• The demand for tickets was greater than the supply.

If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region?

• Demand would increase

• Demand would decrease

• Demand would be unchanged

• Quantity Demanded would increase

Suppliers will normally offer more for sale at high prices and less for sale at lower prices

• Quantity supplied

• Law of Supply

• total production

• short run

The diagram represents a

• increase in demand
• decrease in demand