Econ Unit 1
which of the following factors would shift the demand curve?
a change in preferences change in expectations change in consumer income change in prices of other goods
which of the following will increase the supply of vanilla ice cream?
a decrease in the price of milk
an increase in the price of pineapples will result in
a larger quantity of pineapples supplied
a change in quantity demanded is represented by
a movement along the same demand curve
a decrease in the price of GPS systems will result in
a smaller quantity of GPS systems supplied
what is the difference between an increase in supply snd an increase in quantity supplied?
an increase in supply means the supply curve has shifted to the right while and 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 cause a decrease in the supply of peanut butter
an increase in the price of peanuts
if a decrease in income leads to an increase in the demand for macaroni then macaroni is
an inferior good
If a certain type of clothing becomes more fashionable, we would expect that its price
and quantity will both decrease
last month the tecumseh corporation supplied 400 units of three ring binders at $4 per unit. This month the company supplied the same quantity of binders at $6 per unit. Based on this evidence tecumseh has experienced
decrease in supply
in a firm has an incentive to increase supply now and decrease supply in the future then the firm expects that the
price of its product will be lower in the future than it is today
how has the gorwing popularity of online shopping affected the market for goods and services sold in retail malls
the supply and demand curve for goods and services sold in retail malls shifts to the left
Recently it has been discovered that lobsters grown on lobster farms can feed an algae, which is a cheaper lobster food. As a result of this discovery
the supply curve for lobster will shift to the right
In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.?
the supply curve shifted to the left
suppose that in october market analysis predicts that the price of platinum will fall in november. What happens in the platinum market in october, holding everything else constant
the supply curve shifts to the left
if in the market for peaches the supply curve has shifted to the left
the supply of peaches has decreased
studies show that the supply curve for oranges has shifted, Which of the following could explain the shift of the demand curve?
weather conditions have changed the price of fertilizer has changed the wage paid to orange pickers has changed the demand for grapefruit has changed
with an increase in income, all of the following tend to be examples of inferior goods EXCEPT: no-frills or store brand products day old bread bus rides appliances pawn shop loans
Appliances
When the price of a substitute rises
The demand for the other good rises
suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family:
hamburgers and hotdogs are substitutes
the aging of the population has fueled an increase in the growth of retirement homes. This is an example of a rise in demand due to change in
number of consumers and tastes and preferences
James can afford to buy two pairs of shoes but is interested in buying only one pair. In estimating this demand the relevant number is
one pair, because demand represents what the buyer is both willing and able to buy
supply and demand curves both
relate quantities to prices
when prices of substitutes or complements change, consumers
relocate their budget to satisfy their desires in the least costly
the supply curve for watches
shows the relationship between the price of watches and the quantity of watches supplied
As the price of milk increases, producers are normally willing to supply greater quantities. This is known as the law of
supply
the low carb diet is an example of a change in:
tastes and preferences
which of the following best defines supply?
the amount of a good that producers are willing and able to sell at each possible price, other things constant
when income rises
the demand for normal goods rise