ECON Ch. 4
Decrease
If the demand curve started at D2 and fell left to D1 position, this would indicate a(n) _______ in demand.
increase, decrease
If the quantity of Florida oranges decreased because of a freeze, the equilibrium price of the oranges would ________ and the equilibrium quantity would ______.
c
In an attempt to encourage a healthy society, the government is making soft drink manufacturers pay a tax for every bottle or can of soda they produce. What will be the effect on the market for soft drinks? A. Supply increases and equilibrium price increases. B. Supply increases and equilibrium price decreases. C. Supply falls and equilibrium price increases. D. Supply falls and equilibrium price decreases.
a
A change in quantity supplied causes a _______ the supply curve. a) movement along b) shift of
b (A change in a variable other than the product's own price causes a change in demand. This is shown by a shift in the entire demand curve.)
A change in demand causes a _____ the demand curve. a) movement along b) shift of
a
A change in price causes movement along a demand curve and a change in a) the quantity demanded b) demand
b
A change in price causes movement along a demand curve and a change in a) demand b) quantity demanded
a
A change in price causes movement along a supply curve and a change in a) the quantity supplied b) supply
a
A change in quantity demanded causes a _______ the demand curve. a) movement along b) shift of
Decrease
A change in the supply curve from S1 to S2 indicated a(n) _______ in supply.
Increase
A change in the supply curve from S1 to S2 indicates a(n) ________ in supply.
increases, decreases
A decrease in the supply of a product [increases or decreases] the equilibrium price and [increases or decreases] the equilibrium quantity.
b
A man has been laid off from his job. He has a wife and two children. To cut back on expenses, the family has begun purchasing mega-packs of generic brand macaroni and cheese to use for meals. In this case, macaroni and cheese is an example of a(n) _______ good. a) normal b) inferior
price
A movement along a single demand curve is called a change in quantity demanded. This is a change in the quantity a consumer is willing to buy when the _________ changes.
b
A tax on pencil production shifts the supply curve for pencils a) down/ to the right b) up/ to the left
Increases
According to the law of demand, if the price decreases, the demand ________.
a, b
Excess demand occurs when the price is _______ the equilibrium price. a) less than b) greater than excess supply occurs when the price is _________ the equilibrium price. a) less than b) greater than
increases, decreases
If a $1.00 per pound tax levied on fish producers, the equilibrium price _______ and the equilibrium quantity ________.
a
People enjoy eating two types of cereal, Frosted Mini-Wheats and Rice Krispies. The price of wheat goes up, raising the price of Frosted Mini-Wheats. As a result, the demand for Rice Krispies increases. In this case, A. Rice Krispies and Frosted Mini-Wheats are substitutes. B. Rice Krispies is an inferior good. C. Frosted Mini-Wheats is a normal good. D. Rice Krispies and Frosted Mini-Wheats are complements.
d
Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3? A. 6 B. 9 C. 15 D. 20
80, 80, demand, 30
The equilibrium price of corn is $____, and the equilibrium quantity is _____ tons. At a price of $70, there is excess [supply or demand] equal to ___ tons. Table: Price/ supplied/ demanded $60/ 60/ 120 $70/ 70/ 100 $80/ 80/ 80 $90/ 90/ 60
positive
There is a ________ relationship between price and quantity supplied, according to the law of supply.
negative
There is a _________ relationship between price and quantity demanded, according to the law of demand.
b
There is ___________ relationship between the price and the quantity demanded. A. a positive B. a negative C. no D. a flat
b
There is ___________ relationship between the price and the quantity demanded. A. no B. a negative C. a flat D. a positive
Decreases
According to the law of demand, if the price increases, the demand ________.
Increase
In this demand curve, the line moves to the right. This indicates that there is a(n) ________ in demand.
b
A change in supply causes a ________ the supply curve. a) movement along b) shift of
a
According to the law of demand, a decrease in price ________ the quantity demanded. a) increases b) decreases
b
According to the law of supply, an increase in a good's price ___________ the quantity supplied of that good. a) decreases b) increases
increase, decrease, increase
An excess demand for a product will cause the price to _____. As a consequence of of the price change, the quantity demanded will _____ and the quantity supplied will _______
a
An improvement in pencil-production technology shifts the supply curve for pencils a) down/ to the right b) up/ to the left
b
An increase in the price of wood shifts that supply curve for pencils a) down/ to the right b) up/ to the left
b
The intersection of the supply curve and the demand curve is known as the A. law of demand. B. market equilibrium. C. minimum supply price. D. law of supply.
d
The manager of a pizza shop must decide how much pizza he will produce at a given price. Which of the following would NOT be a consideration for the manager? A. The cost of the pizza oven. B. The wage paid to the pizza shop's employees. C. The cost of dough, cheese, and toppings. D. Consumer income.
a
The market demand curve for a normal good will shift to the left (decrease) when the price of a substitute good a) decreases b) increases
decreases, increases, decreases, decreases
The market demand for a normal good ll shift to the left (decrease) when the price of a substitute good _________, the price of a complementary good ________, consumer income _______, and population _______.
lowest
The minimum supply price is the _________ price at which a product is supplied.
supply
When _______ changes, the equilibrium price and equilibrium quantity move in opposite directions.
demand
When _______ changes, the equilibrium price and equilibrium quantity move in the same direction.
decrease
When demand decreases, the equilibrium price and quantity will both _________.
price
A movement along a single supply curve is called a "change in quantity supplied". This is a change in the quantity a producer is willing and able to sell when the ________ changes.
21
The following is a demand schedule for International House of Falafel. The following are the number of falafel dishes customers are willing to purchase at the following prices. Price / Quantity $7.50 / 12 $7.00 / 15 $6.50 / 18 $6.00 / 21 $5.50 / 24 International House of Falafel has decided to lower its pricing to $6.00 for a special sale. At this price, the quantity demanded is __________ . (Enter your response as a whole number.)
c, 150, 200, demand, increase, supply, decrease
Interpreting the Graph. The graph to the right shows the demand and supply curves for CD players. Use the information to complete the following statements. At the market equilibrium (shown by point ______, the price of CD players is $_____ and the quantity of the CD players is _____. At a price of $100. there would be excess [supply or demand], so we would expect the price of CD players to [increase or decrease]. At any price exceeding the equilibrium price, there would be excess [supply or demand], so we would expect the price to [increase or decrease].