Shifts and Equilibrium Formative
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by Stephanie Foy
| 10 Questions
Note from the author:
Determinants of supply and demand, impact on market clearing price and equilibrium quantity
1
1
Examine the image above. Which of the following best describes the impact of a decrease in demand on market clearing price and equilibrium quantity?
Price and quantity will increase.
Price and quantity will decrease.
Price will increase and quantity will decrease.
Price will decrease and quantity will increase.
2
1
Which of the following events could cause the shift shown in the graph above. Assume this is the market for oranges.
Studies show that oranges are good for your heart.
Apples, a close substitute for oranges, fall in price.
Consumers expect the price of oranges to rise next month.
Income rises among orange consumers.
3
1
Examine the image above. Which of the following results from an increase in demand?
Price and quantity increase.
Price and quantity decrease.
Price increases and quantity decreases.
Price decreases and quantity increases.
4
1
Assume that the graph above shows a change in the market for smoothies. Which of the following events could have caused the shift shown?
Smoothie consumer incomes rise.
The price of milkshakes fall. Milkshakes are a close substitute for smoothies.
The government begins to tax smoothie producers.
Producers expect the price of smoothies to fall next month.
5
1
Using the graph above, how does an increase in supply affect market clearing price and equilibrium quantity?
Price and quantity increase.
Price and quantity decrease.
Price increases and quantity decreases.
Price decreases and quantity increases.
6
1
Assume that the graph above shows a change in the market for cheese puffs. Which of the following could cause the change in the market shown above?
Consumer incomes rise.
Government increases regulations on cheese puff producers.
Corn, a key ingredient in cheese puffs, falls in price.
Three cheese puff producers go out of business.
7
1
Rain is predicted in Georgia over the next month and that people prefer to have adequate rain gear to keep dry. Which of the following best describes the impact the rain will have on the market for rain coats?
Demand increases. Price increases. Quantity decreases.
Demand increases. Price increases. Quantity increases.
Supply increases. Price increases. Quantity increases.
Supply increases. Price increases. Quantity decreases.
8
1
Assume that better technology enables faster production of electric vehicles.
Which of the following will likely happen to the price and quantity of electric vehicles?
Price and quantity will increase.
Price and quantity will decrease.
Price will increase. Quantity will decrease.
Price will decrease. Quantity will increase.
9
1
From 2017 to 2018, the price of a coffee from "Beans-N-More" decreased by $0.50. The equilibrium quantity that "Beans-N-More" sold increased by 2000 cups per year. Which of the following explains the impact on market clearing price and equilibrium quantity for "Beans-N-More"?
Demand for coffee increased.
Demand for coffee decreased.
Supply of coffee increased.
Supply of coffee decreased.
10
1
Kara sells energy drinks. Last month, she saw the the market clearing price and the quantity of drinks that she sold both fell. What could best explain this change in price and quantity?
Demand for energy drinks rose.
Demand for energy drinks fell.
Supply of energy drinks rose.
Supply of energy drinks fell.
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