Economics Chapter 5 - Review Game (Some questions were accompanied by visuals which were shown in class) 1.

What affect would creating new and better products and production methods have on the supply curve? It would shift it to the supply curve to the right 2. What is the primary determinant of supply elasticity?Time 3. Which of the following would occur if the price of a good rises? quantity supplied of the good rises (ANS) quantity demanded of the good increases supply increases demand curve shifts to the left 4. What effect would an advancement in technology have on the supply curve? It would shift it to the right 5. What will suppliers do if they expect the price of their products to fall in the future? They will increase supply now 6. What affect will that have on the supply curve? It will shift it to the right 7. Why is the supply curve upward-sloping? It reflects that suppliers earn higher profits when prices are high 8. What does the graph represent? A decrease in supply or a change in supply 9. What does the graph represent? A change in quantity demanded or the law of demand 10. What tells us that quantity supplied and price have a direct relationship? The law of supply 11. Which of the following would appear upward-sloping from left to right? demand schedule demand curve supply schedule supply curve (ANS)
12. What effect would an increase in taxes have on the supply curve? It would shift the supply curve to the left 13. What tells us as prices rise, sellers find they are willing to sell more goods than before? The law of supply 14. Which of the following would increase the demand for blank videotapes? a decrease in the price of tapes an increase in the price of tapes a decrease in the price of VCRs (ANS)

15. Which of the following would cause a decrease in the demand for Pepsi? an increase in the price of Coke a decrease in the price of Coke (ANS) an increase in the price of Pepsi a decrease in the price of Pepsi 16. Product A and Product B are substitutes, a fall in the price of Product A would: increase the demand for Product A. decrease the demand for Product B. (ANS) increase the demand for Product B. decrease the demand for Product A. 17. Which one of the following would not shift the supply curve? a change in the good's price (ANS) a change in technology a change in taxes a change in expectations about future prices 18. Which one of the following will cause a change in quantity demanded? income the price of the good (ANS) consumer taste population 19. What affect would an increase of wages have on the supply curve? It would make it shift to the left 20. What says the higher the price, the larger the quantity supplied? The law of supply 21. Which of the following would describe the affect of the price of cheese increasing? The supply of pizza will decrease (ANS) The supply of pizza will increase The supply of pizza will stay the same We do not have enough information to know 22. A household buys more CDs after the price of CDs falls illustrates _____. the law of demand (ANS) a change in demand the law of supply a change in supply 23. When the price of Product A increases, consumption of Product B increases. What can be concluded about the two products?

an increase in the price of VCRs

They are substitutes 24. What states that more of a good will be supplied the higher the price, other things constant? The Law of Supply 25. What does the graph represent? THE LAW OF DEMAND OR CHANGE IN QUANTITY DEMANDED The law of demand or a change in quantity demanded 26. What does the graph represent? Change in demand 27. Which of the following will NOT cause an increase in the supply of apples? an increase in the incomes of apple consumers (ANS) an increase in the number of apple orchards an improvement in fertilizer that makes apple trees more productive a fall in the wages of apple pickers 28. What does the graph represent? A change in supply 29. What happens to the supply of orange juice if the price of oranges increases? it goes down; the supply curve shifts to the left 30. In which time period would supply be most elastic? 20 Years (ANS) 20 months 20 weeks 20 days 31. Which of the following circumstances would most likely cause an increase in the current supply of milk? A decrease in the cost of transporting milk. (ANS) A decrease in the number of dairy farmers of a given size. An increase in the price of milk. An increase in demand for milk.