AP Macroeconomics Demand and Supply — practice questions
47 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice AP Macroeconomics Demand and Supply in the app →Holding income, tastes, and every other market factor fixed, what does the law of demand say happens to quantiHolding input costs and every other market factor fixed, what does the law of supply say happens to quantity sAn economist tells you that demand is not the same thing as quantity demanded. What is the distinction?An economist tells you that supply is not the same thing as quantity supplied. What is the distinction?What condition defines market equilibrium in the demand and supply model?When economists draw a single demand curve or supply curve using only price and quantity, what assumption are On a standard demand and supply graph in this model, which axis carries quantity and which carries price?In the gasoline market example, the price of $1.40 per gallon sets quantity demanded and quantity supplied equAt a price above the equilibrium level in a competitive market, quantity supplied exceeds quantity demanded. WAt a price below the equilibrium level in a competitive market, quantity demanded exceeds quantity supplied. WSuppose only the price of gasoline changes, with income, tastes, and every other factor held fixed. What happeSuppose only the price of a good changes, with production costs and every other factor held fixed. What happenWhat kind of change in the market for a good is capable of shifting its entire demand curve to a new position,A student named Lee analyzes a drought's effect on the wheat market. Lee's first step is that the drought shifA city imposes a price ceiling on rental apartments. What effect does this price control have on the underlyinHigher income raises the quantity of automobiles that consumers want to buy at every given price. For a normalA product whose demand falls when income rises is called an inferior good. If consumer income rises, what happA product whose demand rises when income rises, and falls when income falls, is given what name for this kind A product whose demand falls when income rises, and rises when income falls, is given what name for this kind From 1980 to 2014, American per-person chicken consumption rose while beef consumption fell, a change attributThe share of elderly citizens in the United States population has been rising for decades. What effect does anAs the price of tablet computers has fallen, more shoppers buy tablets instead of laptops, since the two serveGolf clubs and golf balls are complements. If the price of golf clubs rises, what happens to the demand curve People hear that a hurricane is approaching and rush to buy flashlight batteries before the storm hits, even tA messenger company's main cost is gasoline for its vehicles. If the price of gasoline falls, lowering the comSteel is a key input for making cars. If the price of steel rises, raising automakers' production costs, what A severe drought damages the wheat, corn, and soybean crops on a major agricultural plain. What does this natuEspecially good weather conditions arrive for a growing season, with no other change in farming costs or technA new seed technology lets farmers grow twice as much wheat and rice per acre at the same cost as before. WhatThe federal government imposes a tax on alcoholic beverages that producers must pay. From the seller's perspecA government pays firms directly to encourage them to carry out certain actions, effectively lowering their coA four-step process analyzes how a single economic event changes equilibrium price and quantity. In what orderIn the summer of 2000, unusually good weather, heavy rains, cooler ocean temperatures, and calm seas, boosted Between 2004 and 2012, more Americans shifted from reading print newspapers to getting news from digital sourcPostal worker compensation rises each year due to cost-of-living increases, which raises the U.S. Postal ServiAt the same time postal compensation was rising, many people switched from mailing letters to using email and Combine the two Postal Service events: higher labor compensation shifts supply left, and the shift toward digiA government sets a legal maximum on the price of an apartment rental. What is the technical term for this kinA government sets a legal minimum on the wage an employer may pay. What is the technical term for this kind ofRising incomes in a city shift the demand curve for rental housing to the right, moving the unconstrained equiWhat hourly rate was the federal minimum wage set at, at the end of 2014?If a government sets a price floor below the market equilibrium price, what is the expected effect on quantityA consumer would have been willing to pay more for a good than the market equilibrium price they actually paidA seller would have been willing to accept less for a good than the market equilibrium price they actually recWhat is the loss in total surplus that occurs when an economy produces at an inefficient quantity, such as a qA new back-pain drug would sell at a free-market equilibrium price of $600 per month, with 20,000 people usingA city's movie theaters reach a free-market equilibrium of $8 per ticket with 1,800 people attending. Worried