Demand and Supply

A decrease in quantity demanded

• results in a movement downward and to the right along a demand curve.
• results in a movement upward and to the left along a demand curve.
• shifts the demand curve to the left.
• shifts the demand curve to the right.

A movement upward and to the left along a demand curve is called a(n)

• increase in demand.
• decrease in demand.
• decrease in quantity demanded.
• increase in quantity demanded.

Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

• a decrease in the price of DVDs
• a decrease in the price of DVD players
• a change in consumer preferences toward watching movies in movie theaters rather than at home
• a decrease in the number of people in the United States

A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.

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

In a given market, how are the equilibrium price and the market-clearing price related?

• There is no relationship.
• They are the same price.
• The market-clearing price exceeds the equilibrium price.
• The equilibrium price exceeds the market-clearing price.

Equilibrium quantity must decrease when demand
(the graph is not actually part of the question)

• increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.
• increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
• decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
• decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

The law of supply and demand asserts that

• demand curves and supply curves tend to shift to the right as time goes by.
• when the supply curve for a good shifts, the demand curve for that good shifts in response.
• the price of a good will eventually rise in response to an excess demand for that good.
• the equilibrium price of a good will be rising more often than it will be falling.

Graph shows which of the following?
(actually use this graph to answer the question)

• a decrease in demand and a decrease in quantity supplied
• a decrease in demand 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