2 Shifts in Demand and Supply Online Quiz Questions

True or false: If the price of a good rises while other influences stay constant, buyers move along the existing demand curve rather than demand shifting.

Tea and a particular sweetener are complements. If the sweetener’s price rises, which change is most likely in the market for tea, holding other influences constant?

A good is normal. If buyers’ incomes rise and other influences stay constant, in which direction does its demand curve shift?

Select all changes that would generally increase market supply, holding other influences constant.

True or false: If sellers expect a higher future price, they may reduce the amount they supply now, depending on the product and whether it can be stored.

A market’s demand curve shifts left while its supply curve stays fixed. What happens to equilibrium price and equilibrium quantity?

A market’s supply curve shifts right while demand stays fixed. Does equilibrium quantity rise or fall?

Select all changes that would generally increase demand for a good, holding other influences constant.

Demand and supply both decrease in a market. Which statement about the new equilibrium is supported without knowing the relative sizes of the shifts?

A poor harvest reduces the supply of coffee at the same time that demand for coffee increases. Explain what happens to equilibrium price and why the direction of equilibrium quantity cannot be determined without more information.

Buyers expect a good’s price to be lower next month. Holding other influences constant, what is a likely effect on current demand for the good?

The price of a good rises, while buyers’ incomes, preferences, and other demand determinants remain unchanged. What happens to the good’s demand curve?

A consumer’s income rises. How does this change demand for a normal good and an inferior good, respectively, assuming other factors stay constant?

Wages paid to workers who produce a good rise, and no other production conditions change. What is the most likely effect on the market supply of that good?

A government introduces a subsidy for producers of a good. If demand is unchanged, what is the expected effect on equilibrium price and quantity?

If demand and supply both increase, equilibrium quantity rises, but the effect on equilibrium price is ambiguous without knowing the relative sizes of the shifts.

Demand for electric bikes increases while a supply disruption reduces the number available. What happens to the equilibrium price? Enter the direction using one word.

Demand for a product decreases while its supply increases. Without knowing the relative sizes of these shifts, what can be concluded about the direction of the change in equilibrium quantity? Enter one word.