The Law of Supply and Demand

Question 1

This graph shows the equilibrium point at which price?

Revolt · Accepted Answer

B: $9

Question 2

What change is taking place on this graph?

Revolt · Accepted Answer

D: an increase in demand

Question 3

Which change is illustrated by the shift taking place on this graph?

Revolt · Accepted Answer

B: an increase in supply

Question 4

What would tortilla manufacturers have needed to do in order to make the same profit?

Revolt · Accepted Answer

A: increase the price of tortillas

Question 5

Supply and demand are powerful forces in a free market.In four to five sentences, explain some of the factors that cause shifts in supply and demand and what the effects of these shifts are.

Revolt · Accepted Answer

A supply shift occurs when the quantity of a good producers are willing and able to sell changes because of factors other than the good’s price. A demand shift occurs when the quantity consumers are willing and able to buy changes because of factors other than the good’s price. Supply can shift because of changes in production costs, technology, taxes, or the availability of labor and resources, while demand can shift because of changes in income, population, tastes, or the prices of related goods. An increase in supply usually lowers the equilibrium price and raises the equilibrium quantity, while a decrease in supply usually raises price and lowers quantity. An increase in demand usually raises both equilibrium price and quantity, while a decrease in demand lowers both.

Question 6

Supply and demand are powerful forces in a free market.In four to five sentences, explain some of the factors that cause shifts in supply and demand and what the effects of these shifts are.

Revolt · Accepted Answer

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Question 7

Match each term with the correct part of the graph.

Revolt · Accepted Answer

Demand curve:: B; Supply curve:: A; Equilibrium point:: C

Question 8

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.

Revolt · Accepted Answer

: excess supply; : fall

Question 9

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.

Revolt · Accepted Answer

B: ✔ excess supply

Question 10

rise✔ fallstay the same

Revolt · Accepted Answer

B: ✔ fall

The Law of Supply and Demand Answers

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