Chapter 4 quiz

Complete the following table by indicating whether an event will cause a movement along the demand curve for peanut butter or a shift of the demand curve for peanut butter, holding all else constant. 1. a change in the expectations of consumers about prices 2. a decrease in the price of hazelnut spread (a substitute for peanut butter) 3. an increase in the price of peanut butter

1. shift 2. shift 3. movement along

Complete the following table by indicating whether an event will cause a movement along the supply curve for peanut butter or a shift of the supply curve for peanut butter, holding all else constant. 1. a decrease in the number of producers 2. a decrease in the price of peanut butter 3. a change in expectations about the future price of peanut butter

1. shift 2. movement along 3. shift

Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?

An increase in the price of grapes, an input to jelly

True or False: An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied

FALSE

Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand. If a shortage exists in the car market, then the current price must be ____ than the equilibrium price. For the market to reach equilibrium, you would expect ______

lower, buyers to offer higher prices

If the economy goes into a recession and incomes fall, what happens in the markets for infer

prices and quantities both rise

The discovery of a large new reserve of crude oil will shift the ________ curve for gasoline, leading to a ________ equilibrium price.

supply, lower

An increase in ________ will cause a movement along a given demand curve, which is called a change in ______

supply, quantity demanded

Movie tickets and DVDs are substitutes. If the price of DVDs increases, what happens in the market for movie tickets?

the demand curve shifts to the right

A change in which of the following will not shift the demand curve for hamburgers?

the price of hamburgers