Ch.3 Supply and Demand

When the market price falls, we can expect consumer surplus to: Please choose the correct answer from the following choices, and then select the submit answer button. fall. rise. remain constant. equal buyers' surplus.

rise

The demand for _____ goods increases as income increases, while the demand for inferior goods decreases as income increases. Please choose the correct answer from the following choices, and then select the submit answer button. luxury necessary normal unnecessary

normal

If high-waisted acid-washed tapered jeans become popular, the demand curve for them will: Please choose the correct answer from the following choices, and then select the submit answer button. not shift, but the supply curve will shift outward and to the right. shift out and to the right. shift down and to the left. not shift, but the quantity demanded will increase.

shift out and to the right.

The _____ is a function that shows the quantity demanded at various prices. Please choose the correct answer from the following choices, and then select the submit answer button. buyers' curve demand-price curve demand curve buyers' function

demand curve

Total producer surplus is measured by the area _____ and below the price. Please choose the correct answer from the following choices, and then select the submit answer button. above the supply curve below the demand curve above the demand curve below the supply curve

above the supply curve

A change in _____ does not shift the demand curve. Please choose the correct answer from the following choices, and then select the submit answer button. taste opportunity costs population income

opportunity costs

Refer to the table nearby. A graph plots two supply curves on price versus quantity.The horizontal axis represents Quantity and the vertical axis represents Price. The Supply 1 curve emanates from 0 on quantity, 5 on price and ends at 70 on quantity, 40 on price. The Supply 2 curve emanates from 0 on quantity, 5 on price and ends at 140 on quantity, 40 on price. What is the producer surplus at a price of $20 at Supply 1? $112.50 $600 $225 $450

225

Refer to the nearby figure with four different graphs. If all graphs potentially represent the demand for coffee shop coffee, which graph would be the best portrayal of the current week if consumers expect the price of coffee shop coffee to decrease next week? Please choose the correct answer from the following choices, and then select the submit answer button. graph C graph B graph A graph D

graph B

Producer surplus is the difference between the _____ price and the minimum price at which a producer would be willing to sell a particular quantity. Please choose the correct answer from the following choices, and then select the submit answer button. import minimum market maximum

market

Suppose Gil can write a poem in 1 hour, Holly can write a poem in 2 hours, and Ivan can write a poem in 3 hours. Each person spends 12 hours per day writing poems and requires a wage of $10 per hour to do so. How many poems per day will these three writers produce if the market price for a poem is $25?

18

Which factor decreases demand? Please choose the correct answer from the following choices, and then select the submit answer button. an increase in income an increase in the price of complements a decrease in natural resources a decrease in input prices

an increase in the price of complements

If the price of a good's complement rises, _____ for the good whose price did not change will decrease. Please choose the correct answer from the following choices, and then select the submit answer button. demand supply advertising profit

demand

Which will cause a decrease in demand? Please choose the correct answer from the following choices, and then select the submit answer button. an increase in the price of complements a decrease in the price of inputs an increase in the price of substitutes a decrease in supply

an increase in the price of complements

Suppose Gil can write a poem in 1 hour, Holly can write a poem in 2 hours, and Ivan can write a poem in 3 hours. Each person spends 12 hours per day writing poems and requires a wage of $10 per hour to do so. How much producer surplus per day will there be if the market price for a poem is $24? Please choose the correct answer from the following choices, and then select the submit answer button. $192 $252 $168 $72

192

The _____ is a function that shows the quantity demanded at various prices. Please choose the correct answer from the following choices, and then select the submit answer button. supply curve demand curve buyers' function quantity demanded curve

demand curve

The _____ is the producer's gain from exchange. Please choose the correct answer from the following choices, and then select the submit answer button. market surplus producer earning producer bonus producer surplus

producer surplus

If the people living on the Florida coast know that a hurricane is coming, the demand for groceries _____, and the demand curve shifts outward. Please choose the correct answer from the following choices, and then select the submit answer button. decreases increases decreases and then increases falls to zero

increases

Of the following answer choices, which is most likely to be an inferior good? Please choose the correct answer from the following choices, and then select the submit answer button. bottled water mochas clothes instant coffee

instant coffee

The _____ is the consumer's gain from an exchange. Please choose the correct answer from the following choices, and then select the submit answer button. producer trade-off consumer trade-off consumer earning consumer surplus

consumer surplus

A change in _____ does not shift the demand curve. Please choose the correct answer from the following choices, and then select the submit answer button. taste population income input prices

input prices

Consumer surplus is the difference between the _____ the consumer is willing to pay for a good and the market price. Please choose the correct answer from the following choices, and then select the submit answer button. supplier's cost minimum price supplier's profit maximum price

maximum price

The demand curve is a function that shows the _____ at a range of prices. Please choose the correct answer from the following choices, and then select the submit answer button. goods supplied buyers' demand goods demanded quantity demanded

quantity demanded

Total consumer surplus is measured by the area _____ and _____ the price. Please choose the correct answer from the following choices, and then select the submit answer button. below the supply curve; above above the supply curve; below below the demand curve; above below the quantity demanded curve; above

below the demand curve; above

The demand curve is a function that shows the _____ at a range of prices. Please choose the correct answer from the following choices, and then select the submit answer button. quantity demanded supply quantity supplied goods demanded

quantity demanded

The supply curve is a function that shows the _____ at various prices. Please choose the correct answer from the following choices, and then select the submit answer button. supply quantity that buyers are willing and able to buy marginal cost of production quantity supplied

quantity supplied