Supply and Demand

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

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This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

The Law of Supply states:

• as price increases, supply increases
• as prices decrease, supply increases

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

Graph shows which of the following?

(actually use this graph to answer the question)

• a decrease in demand (shift) and a decrease in quantity supplied

• a decrease in demand (shift) and a decrease in supply

• a decrease in quantity demanded and a decrease in quantity supplied

• a decrease in quantity demanded and a decrease in supply (shift)

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

• Pesticides on apples linked to mouth cancer.

• Storms destroy apple orchards.

• An apple a day really does keep the doctor away.

• New genetic strain leads to apple trees that produce twice as many apples.

Which of the following is NOT a 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

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

In an attempt to increase the production of oil and gasoline, Congress and the President have given the okay to drill in the Alaskan Arctic Preserve. What happens to the market for gasoline?

• Supply for gasoline will decrease

• Supply for gasoline will increase

• Supply for gasoline will stay the same

When price increases, quantity supplied

• increases

• decreases