Tasty multiple-Choice Party

____ 1. At the start of the current pandemic, gas prices fell dramatically.How did this affect the market for fuel-efficient hybrids?

a. The supply of hybrids fell.

b. The demand for hybrids fell.

c. The demand for hybrids rose.

d. The supply of hybrids rose.

____ 2. In the next 10 years, I expect both the demand and supply of electric cars will rise.If I am correct, what will happen in the market for electric cars?

a. Equilibrium price would increase, but the impact on equilibrium quantity would be uncertain.

b. Equilibrium price would decrease, but the impact on equilibrium quantity would be uncertain.

c. Equilibrium quantity would decrease, but the impact on equilibrium price would be uncertain.

d. Equilibrium quantity would increase, but the impact on equilibrium price would be uncertain.

____ 5. It has been found that certain types of plastic water bottles release harmful chemicals.How will this affect the market for metal water bottles?

a. Equilibrium price would decrease, but equilibrium quantity would increase.

b. Equilibrium price would increase, and equilibrium quantity will also increase.

c. Equilibrium quantity would decrease, and equilibrium quantity will also decrease.

d. Equilibrium quantity would decrease, but equilibrium price would increase.

____ 6. If a surplus exists in a market, we know that the market price is currently

a. above the equilibrium price, and quantity supplied is greater than quantity demanded.

b. above the equilibrium price, and quantity demanded is greater than quantity supplied.

c. below the equilibrium price, and quantity demanded is greater than quantity supplied.

d. below the equilibrium price, and quantity supplied is greater than quantity demanded.

____ 7. In the e-book market in the last 5 years, the price of e-books has fallen, and the quantity of books sold has risen.What does our supply and demand model tell us we can conclude from this?

a. Demand has risen.

b. Demand has fallen.

c. Supply has risen.

d. Supply has fallen.

____ 8. In the summertime, housing sales boom, but prices stay about the same.What does our supply and demand model tell us we can conclude from this?

a. Only demand rises.

c. Demand rises and supply falls.

b. Only supply rises.

d. Both demand and supply rise.