1. When is equilibrium reached?

A. When supply is greater than demand

B. When buyers and sellers are satisfied

C. When supply is less than demand

D When demand and supply both change

2.

A celebrity endorses a new brand of energy drinks. What impact will this have on demand for that energy drink?

A. Demand for the energy drink will remain unchanged.

B. Demand for the energy drink will increase.

C. Demand for the energy drink will decrease.

D. Demand for the energy drink will decrease, then increase.

3.

Freezing weather kills a crop of oranges. What impact will this have on the supply of orange juice?

A. The supply of orange juice will remain unchanged.

B. The supply of orange juice will decrease.

C. The supply of orange juice will increase.

D. The supply of orange juice will increase, then decrease.

4.

Most cork is harvested in Portugal and Spain. An uncontrolled wild fire destroyed over half of the cork oaks in a single year. What will happen to the price of cork, and why?

A. The price of cork will decrease because there is a decrease in supply.

B. The price of cork will increase because there is a decrease in supply.

C. The price of cork will decrease because there is an increase in supply.

D. The price of cork will increase because there is an increase in supply.

5.

There has been only one hotel near a popular amusement park. Two new similar hotels open up in time for the summer season. What will happen to the price of a hotel stay, and why?

A. The price of a hotel stay will increase because there is less competition among businesses.

B. The price of a hotel stay will decrease because there is less competition among businesses.

C. The price of a hotel stay will increase because there is more competition among businesses.

D. The price of a hotel stay will decrease because there is more competition among businesses.