3 Quiz Econ

Which of the following would increase the demand for sandwiches from Jersey Mike's?

An increase in the price of Subway sandwiches.

If a good is in excess supply, what do we expect to happen to the price of the good as the market reaches equilibrium?

It will decrease

The law of demand states that, holding everything else constant, as the price of a good rises, the _________ decreases.

Quantity demanded

As the price of Wizzles increases, we see an increase in the demand for Floozles. This suggests that Wizzles and Floozles are ____________.

Substitutes

What would cause an increase in the supply of red wine from a local vineyard.

The implementation of new technology of grape harvesting.

As the demand for hand sanitizer increases, what does the demand and supply model predict will happen to the price of hand sanitizer and the quantity of hand sanitizer sold? (Assume only demand is changing, supply stays the same)

The price increases and the quantity increases

When the supply of a good increases, what direction do we shift the supply curve in the standard demand and supply model?

To the right.

A surplus occurs when ___________?

When the quantity supplied of a good is greater than the quantity demanded.

The law of supply states that, holding everything else constant, as the price of a good rises, the quantity supplied _________.

decreases

When a recession reaches an economy driving down consumer incomes, the demand for generic brand tinned beef tends to increase. This suggests that generic brand tinned beef is a(n) ____________.

inferior good