Eco 221 Chapter 3 Quiz

If, in response to an increase in the price of chocolate, the quantity of chocolate demanded decreases, then economists would describe this as

A decrease in quantity demanded

Which of the following will shift the demand curve for a good

A decrease in the price of a complementary good

If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is

A necessity

At a price of $10 how many units will be sold

$200

What is the difference between an increase in demand and an increase in quantity demanded

An increase in demand is represented by a rightward shift of the demand curve while an increase in quantity demanded is represented by a movement along a given demand curve

What is the difference between an increase in supply and an increase in quantity supplied

An increase in supply means the supply curve has shifted to the right while an increase in quantity supplied refers to a movement along a given supply curve in response to an increase in price

Which of the following would shift the supply curve for MP3 players to the left

An increase in the price of an input used to produce MP3 players

If an increase in income leads to a decrease in the demand for popcorn, then popcorn is

An inferior good

Which of the following is the correct way to describe equilibrium in a market

At equilibrium, quantity demanded equals quantity supplied

A decrease in the price of a complementary good would be represented by a movement from D

D1 to D2

An increase in population would be represented by a movement from D

D1 to D2

A decrease in taste or preference would be represented by a movement from D

D2 to D1

If the product represented is an inferior good, an increase in income would be represented by a movement from D

D2 to D1

If a demand curve shifts to the left, then

Demand has decreased

A change in all of the following variables will change the market demand for a product except

The price of the product

Suppose that when the price of hamburgers decreases, the Ruiz family increase their purchases of ketchup. To the Ruiz family

Hamburgers and ketchup are complements

Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles (Figure)

Panel D

A decrease in the expected future price of the product would be represented by a movement from S

S1 to S2

An increase in the number of firms in the market would be represented by a movement from S

S1 to S2

A decrease in productivity would be represented by a movement from S

S2 to S1

An increase in price of inputs would be represented by a movement from S

S2 to S1

The law of demand, implies holding everything else constant, that as the price of bagels increases

The quantity of bagels demanded will decrease

If a firm expects that the price of its product will be higher in the future than it is today

The firm has an incentive to decrease supply now and increase supply in the future

Which of the following is evidence of a surplus of bananas

The price of bananas is lowered in order to increase sales

If the price is $10

there would be a shortage of 600 units.