AP Microeconomics. Practice Quiz on Changing Equilibrium. Directions: Answer
the following questions on a scratch piece of paper. 1. If the supply of apples ...
AP Microeconomics Practice Quiz on Changing Equilibrium Directions: Answer the following questions on a scratch piece of paper. 1. If the supply of apples increases, which of the following will generally occur in a market setting? (A) The demand for apples will increase. (B) The quantity demanded will decline. (C) The costs of apple producers will increase. (D) The price of apples will fall. 2. If both the supply and demand for computer games increase, then the equilibrium (A) price of the games is indeterminate and the equilibrium quantity rises. (B) price of the games is indeterminate and the equilibrium quantity falls. (C) price of the games falls and the equilibrium quantity falls. (D) price of the games falls and the equilibrium quantity is indeterminate. 3. A scientist discovers a way to produce a gasoline-like substance from potatoes. This substance is shown to work well as automobile fuel and can be produced at about the same cost per gallon as gasoline. At the same time, another scientist develops a fertilizer that raises the yield of potato crops by an average 20 percent per acre. Which of the following can you be most sure will occur? (A) The equilibrium quantity of potatoes produced will increase. (B) The equilibrium price of potatoes will increase. (C) The equilibrium quantity of potatoes produced will decrease. (D) The equilibrium price of potatoes will fall.
4. How will an increase in lumber prices influence the home construction market? (A) The demand for newly constructed homes will rise. (B) The demand for newly constructed homes will fall. (C) The supply of newly constructed homes will rise. (D) The supply of newly constructed homes will fall. 5. A severe drought during the spring and summer of 1996 destroyed the wheat crop in several areas of the United States. What impact did the drought have in the market for wheat? (A) The supply of wheat fell, pushing wheat prices upward. (B) The supply of wheat rose, leading to lower wheat prices. (C) The demand for wheat fell, leading to lower wheat prices. (D) The demand for wheat rose, pushing wheat prices upward.
