econ101 problem set #2 mc

A linear, downward-sloping demand curve is a. inelastic. b. unit elastic. c. elastic. d. inelastic at some points and elastic at others.

inelastic at some points and elastic at others

When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a. Black markets develop. b. Efficient use of housing space results. c. The quality of rental housing units falls. d. Nonprice methods of rationing emerge.

Black markets develop, the quality of rental housing units falls, and nonprice methods of rationing emerge

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods? a. Prices and quantities both rise. b. Prices and quantities both fall. c. Prices rise, quantities fall. d. Prices fall, quantities rise.

Prices and quantities both rise

Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets? a. The supply curve shifts to the left. b. The supply curve shifts to the right. c. The demand curve shifts to the left. d. The demand curve shifts to the right.

The demand curve shifts to the right

Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay? a. The imposition of a binding price floor b. The removal of a binding price floor c. The passage of a tax levied on producers d. The repeal of a tax levied on producers

The repeal of a tax levied on producers

A $1 per unit tax levied on consumers of a good is equivalent to a. a $1 per unit tax levied on producers of the good. b. a $1 per unit subsidy paid to producers of the good. c. a price floor that raises the good's price by $1 per unit. d. a price ceiling that raises the good's price by $1 per unit

a $1 per unit tax levied on producers of the good

True or False: When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.

false, it's the curve that shifts by the larger magnitude

If the demand for a good rises when income falls, the good is called what

inferior good

will an increase in the price of the product cause a movement along the demand curve or a shift on the demand curve

movement along

4 factors affecting supply

price of inputs, production of technology, number off producers, expectations of producers

What are the 5 factors that determine demand

price of related goods, income of consumers, tastes of consumers, number of consumers and expectations of consumers

will a decrease in the number of consumers cause a movement along the demand curve or a shift on the demand curve

shift

will an increase in income of consumers cause a movement along the demand curve or a shift on the demand curve

shift

When a fall in the price of one good reduces the demand for another good, what are the two goods are called

substitutes