Trial Questions -Demand and Supply PDF

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Question 1: Suppose there are three buyers of candy in a market: Christie, Michael, and Kim. The market demand and the individual demands of Christie, Michael, and Kim for candy are given in the table below. a. Fill in the table for the missing values. Price per Candy $8 7 6 5 4

Christie Qd 3 8 17 23

Michael Qd 1 2 3 5

Kim Qd 0 4 6 8

Total Quantity Demanded 12 19 27

b. (i) Which buyer demands the least at a price of $5? (ii) Which buyer demands the most at a price of $7? c. Which buyer’s quantity demanded increases the most when the price is lowered from $7 to $6 (in absolute terms)? d. (i) Which direction would the market demand curve shift if Kim withdrew from the market? (ii) Which direction would the market demand curve shift if Christie doubled her purchases at each possible price? e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Is this a “change in the quantity demanded” or a “change in demand”?

Question 1: Derive a demand schedule and draw a demand curve for pizza using the information below. A. If the price of pizza is $10 the quantity demanded is 40 pizzas a day. If the price of pizza is $8 the quantity demanded is 60 pizzas a day. Show these points on the pizza graph. b. what would happen if the price fell to $6? What is this change called?

a. What would happen on your graph if the income in the area decreased? Show your answer on the graph. What is this change called? ! ! !

Question 2. On a graph show the change in demand, or quantity demanded that results from the following event. 1. If the price of apples decreases, what happens in the market for apples? 2. In the market for new houses, an increase in income will cause the demand curve to … 3. The government reports that a glass of red wine each day decreases the likelihood of developing some types of cancer. With this report, what happens to the demand for red wine? 4. An increase in the population of Canadian residents causes the demand for Canadian universities to ____________. What affect will this have on the price of tuition at Canadian universities? 5. Can price be determined by demand alone? Why not?

6. In the market for microwave popcorn, what would happen if a new report claimed that the popcorn powder caused lung cancer? !

Questions On Supply. Which of the following causes an increase in the quantity supplied of good X but NOT in the supply of X? A) an improvement in the technology for producing X B) an increase in the price of good Y, a complement in the production of X C) an increase in the price of X D) a reduction in the price of resources used to produce X ! ! !

Question: Indicate whether the movements in points below represents an increase/decrease in supply or an increase/decrease in quantity supply A) point a to point d. B) point a to point e. C) point a to point b. D) point a to point c....