Chapter 3

3 bottles of soda per bag of corn chips

10) The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

wants will exceed demands.

12) Scarcity guarantees that

a normal good.

14) Georgine buys more sweaters when her income increases. For Georgine, sweaters are

demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.

16) Demands differ from wants because

demand curve for bowling balls rightward.

18) A decrease in the price of bowling shifts the

relative price.

2) The opportunity cost of a good is the same as its

an increase in the price of sneakers

22) A change in which of the following would NOT shift the supply curve for sneakers?

increases the supply of good B.

24) Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

quantity of peanuts supplied decreases.

26) As the price of a pound of peanuts falls, the

income

28) Which of the following is NOT one of the factors that influences the supply of a product?

equal to the quantity supplied.

36) When there is a shortage in the market, the quantity sold is

pushes the price up.

38) The existence of a shortage

ratio of the money price of a hot dog to the money price of a hamburger

4) The opportunity cost of a hot dog in terms of hamburgers is the

the equilibrium price of B will rise and the equilibrium price of A will fall.

46) For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

rightward, and the price falls.

48) Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

falls.

6) The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

an opportunity cost

8) The relative price of a good is