Demand and Supply Clicker Questions

Document created by Elizabeth Uva Employee on Mar 31, 2015Last modified by Elizabeth Uva Employee on Apr 1, 2015
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Which of the following demonstrates the law of demand?

 

A) Relative to last month, Jon buys more pretzels at $1.50 per pretzel since he got a raise at work this month.

B) Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.

C) Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.

D) Kendra buys fewer Snickers at $0.60 per Snickers since the price of Milky Ways fell to $0.50 per Milky Way.

 


 

Do you think Wal-Mart and Target did better (more sales) or worse (fewer sales) as the economy went into recession?

 

A) Both are doing better

B) Both are doing worse

C) Wal-Mart doing better, Target doing worse

D) Target doing better, Wal-Mart doing worse

 

Note: Wal-Mart had increased revenues, Target had decreased revenues ñ can use to motivate difference between normal and inferior goods

The price of Milky Ways falls to $0.50 while the price of Snickers stays at $0.60. If Kendra buys more Milky Ways and fewer Snickers, what does this tell us about Kendra?

 


The price of Milky Ways falls to $0.50 while the price of Snickers stays at $0.60. If Kendra buys more Milky Ways and fewer Snickers, what does this tell us about Kendra?

  

A) Her demand curve for Snickers shifted left; her quantity demanded of Milky Ways rose but that curve did not shift.

B) Her quantity demanded of Snickers fell and quantity demanded of Milky Ways rose but neither demand curve shifted.

C) Her demand curve for Snickers shifted left; demand curve for Milky Ways shifted right.

D) Her quantity demanded of Snickers fell but that curve did not shift; her demand curve for Milky Ways shifted right.

 


 

Ford Motor Company announces that it will offer $3,000 rebates on new Mustangs

A) starting next month. As a result of this information, todays demand curve for Mustangs shifts to the right.

B) shifts to the left.

C) shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information.

D) will not shift; rather, the demand curve for Mustangs will shift to the right next month

 


 

Fiberglass is used to make kayaks, surfboards and skateboards (as well as of other recreational equipment). If the price of fiberglass increases, other things equal, we would expect the supply of

 

A) kayaks to be unaffected.

B) surfboards to decrease.

C) skateboards to increase.

D) fiberglass to increase.

 


 

Consider the market for Turbo Tax and other tax return preparation software. Which of the following would cause the supply curve to shift?

 

A. Retailers cut the price of the software.

B. A technological advance allows the software to be produced at lower cost.

C. Professional tax return preparers (like H&R Block) raise the price of the services they provide.

D. All of the above

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