D089 - Module 3 Practice - Supply and Demand

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School

Western Governors University *

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Course

D089

Subject

Economics

Date

Jan 9, 2024

Type

2

Pages

5

Uploaded by MajorMosquitoPerson1014

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D089 - Module 3 Practice - Supply and Demand D089 Course Instructors have created this resource to help develop your knowledge of the concepts in Module 3. We recommend reading the material in your Acrobatiq text and watching the videos before working on the questions. Please note that these questions do not come from the actual assessment. Course Instructors are not privy to information on the assessment. If you have any questions, please feel free to reach out to us at economics@wgu.edu . Points: 10/12 Correct 1/1 Points 1 According to the "Law of Demand", what happens when the price of a good increases?Single choice. Quantity demanded of the good decreases Feedback: The "Law of Demand" describes an inverse relationship between price and quantity demanded. When price increases, quantity demanded falls Demand for the good increases Quantity demanded of the good increases Demand for the good decreases Correct answers: Quantity demanded of the good decreases Correct 1/1 Points 2 What does the graph depict?Single choice. An increase in quantity demanded An increase in demand Feedback: When the demand curve moves to the right this is an increase in demand. A decrease in demand A decrease in quantity demanded Correct answers: An increase in demand Correct 1/1 Points 3
The graph below shows the demand for hand sanitizer. Which of the following scenarios could be depicted using the graph? (Choose 2)Multiple choice. The price of soap, a substitute for hand sanitizer, decreases. The price of hand sanitizer decreases. Consumers expect there to be a shortage of hand sanitizer in the future. Feedback: Demand increases when there is a change in the preference for hand sanitizer caused by the desire for protection from the virus. Demand also increases based on the expectations of future availability. CDC recommends hand cleaning to protect against Covid infections. Feedback: Demand increases when there is a change in the preference for hand sanitizer caused by the desire for protection from the virus. Demand also increases based on the expectations of future availability. Correct answers: Consumers expect there to be a shortage of hand sanitizer in the future.,CDC recommends hand cleaning to protect against Covid infections. Incorrect 0/1 Points 4 What happens when the price of pizza decreases?Single choice. The supply of pizza decreases. The quantity supplied of pizza decreases. The quantity supplied of pizza increases. Feedback: According to the "Law of Supply", there is a positive relationship between price and quantity supplied. The supply of pizza increases. Your answer to question 4 is wrong. Correct answers: The quantity supplied of pizza decreases. Incorrect 0/1 Points 5 What would happen to the demand curve for pizza if the price of pizza decreased? Single choice. A shift of the demand curve to the right Movement along the curve to a higher quantity demanded A shift of the demand curve to the left Movement along the curve to a lower quantity demanded Your answer to question 5 is wrong. Correct answers: Movement along the curve to a higher quantity demanded Correct 1/1 Points 6 Which of the following scenarios cause a decrease in the supply of lemonade? (Choose 2)Multiple choice. New tariffs raise the price of sugar used to produce lemonade. Fewer temporary worker Visas reduce the supply of labor to lemon groves.
The hot summer weather causes more people to want to drink lemonade. The price of lemonade decreases. Correct answers: New tariffs raise the price of sugar used to produce lemonade.,Fewer temporary worker Visas reduce the supply of labor to lemon groves. Correct 1/1 Points 7 The table shows the market for gasoline. If the price of gasoline is $1.80 per gallon, then...Single choice. There is a surplus and the price of gasoline will rise. There is a shortage and the price of gasoline will fall. There is a surplus and the price of gasoline will fall. Feedback: Prices adjust to bring markets back to equilibrium. When quantity supplied exceeds quantity demanded, there is a surplus and the price will fall in order to clear the market. There is a shortage and the price of gasoline will rise. Correct answers: There is a surplus and the price of gasoline will fall. Correct 1/1 Points 8 Use the supply and demand model to analyze the following scenarios. Which of these events increase the equilibrium quantity of bicycles? (Choose 2)Multiple choice. An increase in the number of people looking for alternate exercise options while their gyms are shut down. A shortage of aluminum used to make bikes. An improvement in the technology used to make bikes. There is a sale on bicycles. Correct answers: An increase in the number of people looking for alternate exercise options while their gyms are shut down.,An improvement in the technology used to make bikes. Correct 1/1 Points 9 Changes in climate conditions have improved farmer's corn yields, causing an increase in the supply of corn. Which of the following describes the impact of this change on the market for corn? Single choice. The supply curve will shift left, causing an decrease in equilibrium price and an increase in equilibrium quantity. The supply curve will shift left, causing an increase in equilibrium price and an decrease in equilibrium quantity. The supply curve will shift right, causing an increase in equilibrium price and an increase in equilibrium quantity. The supply curve will shift right, causing a decrease in equilibrium price and an increase in equilibrium quantity.
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