Macro Review Chapter #4

Refer to Figure 4-17. At a price of

$2, there is a shortage of 6 units

Refer to Table 4-11. The equilibrium price and quantity, respectively, are

$6 and 30 units

Refer to Figure 4-17. At a price of

$7, there is a surplus of 4 units

Refer to Figure 4-17. At a price of

$8, there is a surplus of 6 units $5, there is neither a shortage nor a surplus $2, there is a shortage of 6 units.

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

Both the equilibrium price and quantity would decrease

Refer to Figure 4-24. All else equal, a large number of people becoming vegetarians would cause a move from

DA to DB

Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

DA to DB

Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

DA to DB

Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from

DB to DA

Refer to Figure 4-24. All else equal, the approach of Thanksgiving would cause a move from

DB to DA

Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

The cost of an input to the production of this good increases

If macaroni and cheese is an inferior good, then an increase in

a consumer's income will cause the demand curve for macaroni and cheese to shift to the left

Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

a decrease in supply

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

decrease in the demand for printers and a decrease in the quantity supplied of printers

Equilibrium quantity must decrease when demand

decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

A market demand curve shows

how much of a good all buyers are willing and able to buy at each possible price

A decrease in the price of a good would

increase the quantity demanded of the good

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

increases

A decrease in demand is represented by a

leftward shift of a demand curve

A decrease in supply is represented by a

leftward shift of a supply curve

An increase in quantity supplied

results in a movement upward and to the right along a fixed supply curve

If, at the current price, there is a surplus of a good, then

sellers are producing more than buyers wish to buy

Refer to Table 4-11. If the price were $8, a

surplus of 25 units would exist, and price would tend to fall

If, at the current price, there is a shortage of a good, then

the price is below the equilibrium price

Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

x to y

Refer to Figure 4-24. All else equal, the premature deaths of thousands of turkeys would cause a move from

x to y

Refer to Figure 4-24. All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

y to x

Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

y to x