Shifts and Equilibrium Retake
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by Stephanie Foy
| 10 Questions
1
1 pt
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 pt
Which of the following events could cause the shift shown in the graph above. Assume this is the market for peanut butter.
Studies show that peanut butter lowers cholesterol.
Nutella, a close substitute for peanut butter, rises in price.
Consumers expect the price of peanut butter to fall next week.
Income rises among peanut butter consumers.
3
1 pt
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 pt
Assume that the graph above shows a change in the market for cranberries. Which of the following events could have caused the shift shown?
Cranberry consumer incomes rise.
The price of blueberries fall. Blueberries are a close substitute for cranberries.
The government begins to tax cranberry farmers.
Producers expect the price of cranberries to fall next month.
5
1 pt
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 pt
Assume that the graph above shows a change in the market for tomatoes. Which of the following could cause the change in the market shown above?
Consumer incomes rise.
Government increases regulations on tomato producers.
Rainfall in tomato producing regions is ideal this year, leading to a decrease in irrigation costs.
One third of tomato producers go out of business.
7
1 pt
Roomba producers find a new technology that enables them to produce the Roomba in a faster, less expensive manner. Which of the following describes the impact this will have on the Roomba market?
Demand increases. Price increases. Quantity decreases.
Demand increases. Price increases. Quantity increases.
Supply increases. Price decreases. Quantity increases.
Supply increases. Price decreases. Quantity decreases.
8
1 pt
Assume that consumers begin to prefer canned sardines over canned tuna.
Which of the following will likely happen to the price and quantity of canned tuna?
Price and quantity will increase.
Price and quantity will decrease.
Price will increase. Quantity will decrease.
Price will decrease. Quantity will increase.
9
1 pt
From 2017 to 2018, the price of an ice cream at Coconuts rose $0.50. The equilibrium quantity fell by 50 scoops per week. Which of the following explains the impact on market clearing price and equilibrium quantity for ice cream at Coconuts?
Demand for coffee increased.
Demand for coffee decreased.
Supply of coffee increased.
Supply of coffee decreased.
10
1 pt
Dana sells donuts. Last month, she saw that the market clearing price and the quantity of donuts that she sold both rose. What could best explain this change in price and quantity?
Demand for donuts rose.
Demand for donuts fell.
Supply of donuts rose.
Supply of donuts fell.
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