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[BBI] Supply & Demand Formative Assessment

Last updated over 2 years ago

15 questions

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Question 1

1.

Which of the following is represented by the arrows in the graph below?

decrease in demand

increase in demand

decrease in quantity demanded

increase in quantity demanded

Question 2

2.

Which of the following is the best example of the law of demand?

a consumer purchases more shoes when they find a style they really like

a consumer purchases more shoes when they go on a "buy-one-get-one" sale

a consumer buys more shoes when the price increases

a consumer purchases more shoes when his income rises

Question 3

3.

The expectation of a sale on a good/service in the future is most likely to lead to which of the following right now?

market equilibrium

decrease in demand

increase in demand

Question 4

4.

Which of the following would likely cause the shift (illustrated by the arrow) shown below in the market for avocados?

Canadian incomes fall for the third month in a row.

New research shows that avocados are good for heart health.

Avocado-growing regions experienced a severe drought and crop disease.

New fertilizer leads to large avocado crop.

Question 5

5.

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 increase.

Demand for chips will decrease.

Demand for chips will be unchanged.

Supply of chips will increase.

Question 6

6.

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 as price increases.

a consumer buys less products as the price decreases.

Question 7

7.

Which of the following news headlines would cause the shift shown on the graph below (as illustrated by the arrows) in the market for cars?

Steel, a resource used in making cars, doubles in price

Canadian incomes rise.

More mass transit replaces the need for personal vehicles.

New technology makes car production more efficient.

Question 8

8.

The movement from P1, Q1 to P2, Q2 (as illustrated by the arrow) in the image below is best described as

an increase in quantity supplied

an increase in supply

a decrease in supply

a decrease in quantity supplied

Question 9

9.

Identify the spot that represents the market equilibrium on the following image.

Question 10

10.

Select all of the spots that are part of the demand curve on the following image.

Question 11

11.

Select all of the spots that are part of the supply curve on the following image.

Question 12

12.

All else being equal, demand goes _______ when prices come down.

Question 13

13.

All else being equal, supply comes down when prices come _______ .

Question 14

14.

The "Demand" part of the Economic Principle of Suppy and Demand is from the _______ 's perspective.

Question 15

15.

Match the examples in the left column with the correct category in the right column.

Desktop computer and laptop
apple and orange
winter coat and winter boots
Nike running shoes and Reebox running shoes

complementary goods
substitute goods