Supply & Demand

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

The law of demand states that if the price of Pokemon rise, consumers will

• Buy more Pokemon

• Buy fewer Pokemon

• Quantity demanded will not change

• Invent Spotify

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

• Supply more CDs

• Supply fewer CDs

• Quantity supplied will not change

• Demand more CDs

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

• Demand for gasoline will decrease

• Demand for gasoline will increase

• Demand for gasoline will stay the same

• Supply for oil will increase

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

• Demand for gasoline will decrease

• Demand for gasoline will increase

• Demand for gasoline will stay the same

• Supply for oil doubles

The movement from Point A to Point B represents a(n)

• increase in the price.
• decrease in the quantity supplied.
• shift in the supply curve.
• Both Orange and Blue are correct.

Which of the following would not shift the SUPPLY curve for iphones?

• an increase in the price of iphones

• a decrease in the number of sellers of iphone

• an increase in the price of plastic, an input into the production of iphones

• an improvement in the technology used to produce iphones

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in the weather or season

• Change in the number of buyers

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• There is a change in cost of production.

• The number of producers changes.

• The expectations of consumers changes.

• The output rate declines.