Download Supply and Demand Determinant Practice

4 & 5 Determinant Practice
2015
1.
A leftward shift of the supply curve for oil in the United States is most likely to result from:
A. A decrease in the price which oil companies must pay for drilling licenses
B. An increase in the costs of exploration and drilling for oil
C. Opening of new areas for oil exploration in the United States
D. A decrease in the world price of oil
2.
Which will not, ceteris paribus, cause the demand curve for good A to shift?
A. A change in the price of A
B. A change in the price of B, a complement
C. A change in the price of C, a substitute
D. An increase in average income
3.
If product Y is an inferior good, an increase in consumer incomes will:
A. Result in a surplus of product Y
B. Not affect the sales of product Y
C. Shift the demand curve for product Y to the left
D. Shift the demand curve for product Y to the right
4.
Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee
illustrated by the shift from D1 to D2?
A. A decrease in the price of tea
B. An increase in consumer incomes
C. An increase in the price of sugar
D. A technological improvement in the production of coffee
5.
Suppose that goods A and B are close substitutes and the price of good B falls. We would then expect an:
A. Increase in the demand for good A and the quantity demanded for good B
B. Increase in the demand for good A and a decrease in the quantity demanded for good B
C. Increase in the quantity demanded of good B and a decrease in the demand for good A
D. Increase in the demand for goods A and B
6.
If the demand for product J shifts to the left as the price of product K increases, then:
A. The number of consumers of product K has increased
B. The income of consumers of product K has increased
C. J and K are substitute goods
D. J and K are complementary goods
7.
All of the following are assumed to be constant when the supply curve for a product is drawn, except the:
A. Price of the product
B. State of technology
C. Number of producers
D. Price of inputs used to make the product
4 & 5 Determinant Practice
8.
Refer to the above graph. A decrease in demand would best be reflected by a change from:
A. Point 4 to 6
B. Point 1 to 3
C. Line A to B
D. Line A to C
9.
A decrease in supply:
A. Refers to a leftward shift in the supply curve
B. Refers to a downward movement along a supply curve
C. Has the same meaning as the phrase "a decrease in quantity supplied"
D. Is likely to result from the decrease in the price of a productive resource
2015
10. Refer to the above diagram, which shows three supply curves for corn. Which of the following would cause the change in the supply of
corn illustrated by the shift from S1 to S2?
A. An increase in the price of fertilizer
B. A change in consumer tastes away from cornbread
C. A decrease in consumer incomes
D. The development of a more effective insecticide for corn rootworm
11. Refer to the above diagram, which shows three supply curves for corn. Which of the following would cause the change in the supply of
corn illustrated by the shift from S1 to S3?
A. A decrease in the price of fertilizer
B. An increase in the price of irrigation equipment
C. An increase in consumer incomes
D. A change in consumer tastes in favor of cornbread
12. If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
A. Supply of the product will shift to the left
B. Supply of the product will shift to the right
C. Quantity supplied of the product will decline
D. Quantity supplied of the product will increase
13. Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n):
A. Increase in supply, or a rightward shift of the supply curve
B. Decrease in supply, or a leftward shift of the supply curve
C. Increase in quantity supplied, or movement down the supply curve
D. Decrease in quantity supplied, or movement up the supply curve
14. Which is a determinant of supply?
A. Tastes and preferences
B. Technology
C. Consumer income
D. Number of consumers