Econ Unit 2 Review (2025)

The price of Belmont University tuition increases significantly. Analyze Lipscomb University. Which would happen as a result of this tuition increase? (think about how demand or supply would shift)

• price of tuition at Lipscomb would decrease

• price of tuition at Lipscomb would increase

The government sets a price ceiling in the market for green beans. Analyze the market for green beans. Which of the following would be true?

• quantity supplied would increase

• supply would increase

• quantity demanded would increase

• demand would decrease

The price of rubber decreases. Analyze the market for tires. Which of the following would occur?

• the quantity would increase

• the price would increase

The economy is experiencing a recession and many people are unemployed. Analyze the market for automobiles which are considered to be a normal good. Which of the following will happen?

• the quantity will decrease

• the price will increase

New AI software is implemented in several factories that produce electronic devices. Analyze the market for electronic devices. Which will occur?

• quantity will decrease

• price will decrease

The government places a price floor in the market for lawn mowers. Analyze the market for lawn mowers. Which will occur?

• shortage

• surplus

Economists predict that the price for washing machines will increase significantly in 3 months. Analyze the current market for washing machines. Which will happen?

• price will increase

• quantity will decrease

A sale on hotel rooms ends. Analyze the market for hotel rooms. Which will happen?

• quantity demanded will decrease

• demand will increase

• demand will decrease

• quantity demanded will increase

The government gives $1 million to Tesla, a maker of electric vehicles. Analyze the market for electric vehicles. Which will happen?

• the price will decrease

• the quantity will decrease

Many families with kids who play sports move into a city. Analyze the market for youth sports equipment in this city. Which would occur?

• quantity would increase

• price would decrease