Supply and Demand Formative Assessment
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by Stephanie Foy
| 10 Questions
Note from the author:
Economics Supply and Demand
1
1 pt
Which of the following is represented by the graph above?
increase in demand
increase in quantity demanded
decrease in demand
decrease in quantity demanded
2
1 pt
Which of the following is the best example of the law of demand?
a consumer buys more shoes when the price increases
a consumer purchases more shoes when they go on a "buy-one-get-one" sale
a consumer purchases more shoes when his income rises
a consumer purchases more shoes when he finds a style he really likes
3
1 pt
The expectation of a sale on a good/service in the future is most likely to lead to which of the following right now?
increase in quantity demanded
decrease in quantity demanded
increase in demand
decrease in demand
4
1 pt
Which of the following would likely cause the shift shown above in the market for avocados?
Avocado-growing regions experienced a severe drought and crop disease.
New research shows that avocados are good for heart health.
New fertilizer leads to large avocado crop.
American incomes fall for the third month in a row.
5
1 pt
Assume that chips and salsa are COMPLEMENTARY goods, meaning they are used together. How will the market for chips be affected if the price of salsa DECREASES to $1 per bottle?
Demand for chips will be unchanged.
Demand for chips will increase.
Supply of chips will increase.
Demand for chips will decrease.
6
1 pt
Which of following is the best example of the Law of Supply?
a producer supplies a greater quantity of products as the price increases.
a consumer buys fewer products are price increases.
a producer supplies a smaller quantity of products as the price decreases.
a consumer buys less products as the price decreases.
7
1 pt
Which of the following headlines would cause the shift shown on the graph above in the market for cars?
American incomes rise.
New technology makes car production more efficient.
More mass transit replaces the need for personal vehicles.
Steel, a resource used in making cars, doubles in price
8
1 pt
A decrease in taxation on businessess production would most likely lead to
an increase in quantity supplied
a decrease in quantity supplied
an increase in supply
a decrease in supply
9
1 pt
The movement from P1, Q1 to P2, Q2 in the image above is best described as
an increase in quantity supplied
a decrease in quantity supplied
an increase in supply
a decrease in supply
10
1 pt
Claire's Bakery can produce 48 cookies per hour. Claire, the bakery owner, buys a new convection oven. As a result of this new technology, the bakery can now produce 192 cookies per hour.

How would an economist model the change in Claire's businesses>
movement to the right along the supply curve
movement to the left along the supply curve
the entire supply curve shifts to the right
the entire supply curve shifts to the left
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