Supply & Demand Refresher

An increase in population increases the demand for food. Which depicts the new demand for food (A or B)?

• A

• B

The price of hot dogs increases. Which graph shows the new demand for hot dog buns (A or B)?

• A

• B

Which graph shows the new demand for normal goods when salaries increase (A or B)?

• A

• B

Demand for a certain shoe increases after a celebrity is seen wearing them. Which graph shows the new demand curve for these shoes (A or B)?

• A

• B

The price of air travel is expected to decrease in the future. Which graph shows the new demand for airplane tickets in the present (A or B)?

• A

• B

When demand decreases, the demand curve

• Shifts to the right

• Shifts to the left

• Does not change

An increase in demand means that quantity demanded is higher and prices will decrease.

• True

• False

A decrease in demand means that quantity demanded is lower and price will decrease.

• True

• False

Why does the supply line slope up and to the right?

• As the price rises the quantity supplied by producers will fall.

• As the price falls the quantity supplied by producers will rise.

• As the price rises the quantity supplied by producers will rises.

Why does the demand line slope down and to the right?

• As the price falls the quantity demanded by consumers will fall.

• As the price rises the quantity demanded by consumers will fall.

• As the price rises the quantity demanded by consumers will rise.