Unit 2 -Supply and Demand

If a study came out that showed that steak and shake food improves memory, this would cause the (a)   Curve for steak and shake to shift (b)   .

• Supply

• Demand
• Left
• Right

If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the _____curve for basketball shoes to shift____.

• Demand____left

• Demand ____right

• Supply___left

• Supply___right

When CDs became popular, people stopped listening to tape cassettes. This caused the ______ Curve for tape cassettes to shift ______.

• Supply_____left

• supply_____right

• Demand_____left

• Demand_____right

The price of the nylon used to make umbrellas is cut in half. What will happen to the market for umbrellas?

• Price decreases, quantity decreases

• Price increases, quantity decreases

• Price decreases, quantity increases

• Price increases, quantity increases

The price of the aluminum used to make umbrellas doubles in price. What will happen to the supply of umbrellas?

• Supply stays the same

• Supply decreases

• Supply increases

The weather forecast shows a lot of rain in the next few weeks. What will happen to the demand for umbrellas?

• Increased demand

• Decreased demand

• Demand stays the same

How do you fix a Surplus?

• Lower the price of the item

• Start selling a different product

• Keep the price of the item the same

• Raise the price of the item

How do you fix a Shortage?

• Raise the price of the item

• Keep the price of the item the same

• Lower the price of the item.

• Start selling a different product.

The price of the lawn mowers drops significantly. What will be the effect on Lawn mower oil?

• Decreased Supply

• Increased supply

• Increased Demand

• Decreased Demand

In a market for Tacos, What will happen if the price of beef increases?

• Price will increase and quantity will decrease

• Price will increase and quantity will increase

• Price will decrease and quantity will decrease

• Price will decrease and quantity will increase