Demand and Supply

2. 4 Demand and Supply CLICKER QUESTIONS

3. Checkpoint 4.1 Checkpoint 4.2 Checkpoint 4.3 Question 1 Question 4 Question 7 Question 2 Question 5 Question 8 Question 3 Question 9 Question 6 Question 10

4. CHECKPOINT 4.1 Question 1 When the price of a cell phone falls and other things remain the same, the quantity of cell phones demanded ________ and the demand for cell phone ______. • is unchanged; increases. • decreases; is unchanged • decrease; decreases • increases; is unchanged • increases; increases

5. CHECKPOINT 4.1 Question 2 The shift of the demand curve for pizza illustrated in the figure could be the result of • a rise in income if pizza is a normal good. • a fall in the price of fried chicken, a substitute for pizza. • consumers coming to believe that pizza is unhealthy. • the belief that pizza will fall in price next month. • a fall in the price of a pizza

6. CHECKPOINT 4.1 Question 3 Pizza and tacos are substitutes. If the price of a pizza rises, then _______. • The demand for pizzas decreases and the demand for tacos increases. • The demand for both goods decreases. • The quantity of tacos demanded increases and the quantity of pizza demanded decreases. • The quantity of pizza demanded decreases and the demand for tacos increases. • The demand for each good decreases because both are normal goods.

7. CHECKPOINT 4.2 Question 4 The quantity supplied of a good, service, or resource is ____ during a specified period and at a specified price. • the amount that people are able to sell • the amount that people are willing to sell • the amount that people are able and willing to sell • the amount that people are willing and able to buy • the amount sold

8. CHECKPOINT 4.2 Question 5 An increase in the productivity of workers who sew jeans will result in _______. • the quantity of jeans supplied increasing • the supply of jeans increasing • buyers demanding more jeans because they are now more efficiently produced • buyers demanding fewer jeans because their price will fall, which signals lower quality. • some change but the impact on the supply of jeans is impossible to predict.

9. CHECKPOINT 4.2 Question 6 Suppose the price of leather used to produce shoes increases. The higher price of leather ____ the supply of shoes and the supply curve of shoes ____. • increases; shifts rightward • increases; shifts leftward • decreases; shifts rightward • decreases; shifts leftward • does not change; does not shift

10. CHECKPOINT 4.3 Question 7 Which of the following statements is correct? A surplus of a good puts downward pressure on the price of the good. A shortage of a good puts upward pressure on the price of the good At the market equilibrium, there’s no surplus or shortage. • i and ii • i and iii • ii and iii • i, ii, and iii • only iii

11. CHECKPOINT 4.3 Question 8 If the price of lettuce used to produce tacos increases, then the equilibrium price of a taco ____ and the equilibrium quantity of tacos ____. • rises; increases • rises; decreases • falls; increases • falls; decreases • does not change; decreases

12. CHECKPOINT 4.3 Question 9 When the number of buyers of ceiling fans increases, • quantity of ceiling fans demanded increases and a surplus of ceiling fans occurs. • demand for ceiling fans increases and the price of a ceiling fan rises. • demand for ceiling fans increases and a surplus of ceiling fans occurs. • supply of ceiling fans increases and the price of a ceiling fan doesn’t change. • Both the demand for and supply of ceiling fans increases.

13. CHECKPOINT 4.3 Question 10 If the supply of milk decreases by 45 cartons, the price of milk ______. • falls to $1.25 a carton • rises to $2.00 carton • rises by 25 cents a carton • falls by 25 cents a carton • doesn’t change The Market for Milk