The quiz

Gas prices plummet and stay low for years

Consider the demand curve for SUVs. What happens?

• Demand would increase

• Demand would decrease

• Demand would extend

• Demand would contract

Price elasticity of supply is the responsiveness of

• Demand to a change in Supply

• Supply to a change in supply

• quantity supplied to a change in price

• Equilibrium

Coffee bean prices increase by $4 per pound

Consider the demand curve for coffee beans. What happens?

• Demand would decrease

• Demand would increases

• demand would extend

• demand would contract

Which of the following best describes the law of demand?

• An increase in price is associated with an increase in quantity demanded

• A decrease in price is associated with a decrease in the quantity supplied

• An increase in price is associated with a decrease in quantity demanded

• An increase in price is associated with a decrease in quantity supplied

The price of electric cars drops because the government subsidizes manufacturers.

Consider the demand curve for electric cars. What happens?

• Demand would increase

• Demand would decrease

• Demand would extend

• Demand would contract

Which of the following does NOT cause a shift in the demand curve?

• changes in the price of related goods

• changes in consumer patterns

• changes in the price of the goods

• changes in the income of buyers

Government provides subsidies to firms involved in vaccine production

Consider the supply curve for COVID-19 vaccines. What happens?

• Supply would increase

• Supply would decrease

• Supply would extend

• Supply would contract

The price of bicycles increases due to a shift in consumer preferences.

Consider the supply curve for bicycles. What happens?

• Supply would increase

• supply would decrease

• supply would contract

• supply would expand

The government imposes on tennis balls producers

Consider the supply curve for tennis balls. What happens?

• Supply would increase

• Supply would decrease

• Supply would contract

• Supply would expand

Law of supply states that:

• As price increases, supply increases

• As price decreases, supply increases

• As price increases, quantity demanded decreases

• As price decreases, quantity demanded decreases