Demand/Supply Determinants and PC/PF

If demand increases the curve shifts to the:

• left

• right

If E. coli breaks out in all fast food restaurants in Valdosta, will that shift the demand curve or the supply curve?

• demand curve

• Supply curve

Why does the government often set a price ceiling?

• because they want to help out businesses

• Because they believe the equilibrium price is too high

• Because they believe the equilibrium price is too low

A new T-shirt is introduced for sale with the number 67 on it. It is wildly popular with teenagers. Which of the following will happen?

• The demand curve will shift to the left

• The demand curve will shift to the right

• The supply curve will shift to the left

• The supply curve will shift to the right

A price floor will result in a

• Surplus

• Shortage

The government may impose price controls to control the amount of money in circulation in the United States.

• true

• False

Hailey Bieber launches a new skin care line on Instagram. Demand for Hailey’s products increase. Which of the following determinants caused the increase?

• Consumer taste and preferences

• Number of consumers in our population

Company X makes tractors. They have recently purchased multiple robots to speed up the production process. Which of the following will happen?

• The demand curve for tractors will decrease because of consumer taste and preferences

• The supply curve for tractors will increase because of the change in technology

• The supply curve for tractors will decrease because there is fewer producers

A price ceiling will be set:

• Above the equilibrium

• Below the equilibrium

A price ceiling will create:

• A surplus

• A shortage