Econ 201 Exam 2
If an increase in the price of good X causes the demand for good Y to decrease, this indicates that a X and Y are complements. b X and Y are substitutes. c X and Y are unrelated. d The demand for X is high and the demand for Y is low.Ê
X and Y are complements.
If price rises, what happens to quantity supplied of a product? a It increases. b It decreases. c It does not change. d Quantity supplied is constant, but supply increases.
a. It increases.
Which of the following is true in competitive markets? a Price reflects the marginal value consumers place on the last unit purchased. b Price reflects the total value consumers derive from the consumption of all units of the good. c The total area under the demand curve, but above the price, indicates the surplus producers derive from the production and sale of the good. d The total area above the supply curve, but below the price, indicates the surplus consumers derive from the consumption of the good.
a. Price reflects the marginal value consumers place on the last unit purchased.
Suppose a major civil war broke out in an important oil-producing nation. What impact would this have on the market for oil? a The supply of oil would fall. b The supply of oil would rise. c The demand for oil would fall. d The demand for oil would rise.
a. The supply of oil would fall.
What impact would a severe drought that destroys the wheat crop in several areas of the United States have on the market for wheat? a The supply of wheat would fall. b The supply of wheat would rise. c The demand for wheat would fall. d The demand for wheat would rise.
a. The supply of wheat would fall.
If a major hurricane were to destroy the sugarcane crop in Louisiana, there would be a a decrease in the supply of sugarcane. b an increase in the supply of sugarcane. c a decrease in the demand for sugarcane. d an increase in the demand for sugarcane.
a. a decrease in the supply of sugarcane.
Other things constant, which of the following would most likely cause the supply of garden hoses to decrease? a an increase in the price of plastic used to make garden hoses b a technological advance that lowers the cost of producing garden hoses c the occurrence of a very dry year with little rain d a decrease in the price of grass seed
a. an increase in the price of plastic used to make garden hoses
Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that a as more of a product is consumed, consumers will value additional units less. b as more of a product is consumed, consumers will value additional units more. c the value of additional units of the good is unrelated to the amount consumed. d the cost of production for a good generally rises as more of it is produced.
a. as more of a product is consumed, consumers will value additional units less.
For a typical product, a decrease in consumer income will cause the market demand for the product to a decrease, which is a shift to the left of the demand curve. b decrease, which is a shift to the right of the demand curve. c increase, which is a shift to the left of the demand curve. d increase, which is a shift to the right of the demand curve.
a. decrease, which is a shift to the left of the demand curve.
In Morgantown, when most students go home for the summer, the demand for many items such as pizza and beer a decreases, which is a shift to the left of the demand curves for these goods. b decreases, which is a shift to the right of the demand curves for these goods. c increases, which is a shift to the left of the demand curves for these goods. d increases, which is a shift to the right of the demand curves for these goods.
a. decreases, which is a shift to the left of the demand curves for these goods.
In which statement(s) are "supply" and "quantity supplied" used correctly?(I) "An increase in the price of computers will increase the quantity supplied of computers."(II) "A technological advance that lowers the cost of producing computers will increase the supply of computers." a in both statements I and II b in statement I only c in statement II only d in neither statements I nor II
a. in both statements I and II
According to the law of supply, a producers are willing to supply larger amounts of a good as its price increases. b a direct relationship exists between the price of a good and the amount buyers choose to buy. c an inverse relationship exists between the price of a good and the amount buyers wish to buy. d an inverse relationship exists between the price of a good and the amount producers supply.
a. producers are willing to supply larger amounts of a good as its price increases
When economists say the demand for a product has decreased, they mean a. the demand curve has shifted to the left. b. the product price has increased, and as a consequence, consumers are buying less of the product. c. consumers are now willing and able to buy more of this product at each possible price. d. the demand curve has shifted to the right.
a. the demand curve has shifted to the left.
The current demand for a good would decrease if a the price of a complementary good rose. b the price of a substitute good rose. c consumers suddenly believed the price of the good would be sharply higher in the future. d consumer income increased.
a. the price of a complementary good rose.
Saccharin and aspartame are both low-calorie substitutes for sugar. If saccharin is found cause cancer, a the price of aspartame will increase. b the price of sugar will decrease. c the price of saccharin will increase. d the demand curves for aspartame and sugar will shift leftward.
a. the price of aspartame will increase.
When economists say the supply of a product has decreased, they mean that a the supply curve has shifted to the left. b the product price has decreased, and as a consequence, suppliers are producing less of the product. c producers are now willing to sell more of this product at each possible price. d the supply curve has shifted to the right.
a. the supply curve has shifted to the left.
Noah drinks Dr. Pepper. He can buy as many cans of Dr. Pepper as he wishes at a price of $0.50 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Noah is rational in deciding how many cans to buy. His consumer surplus is a $0.50. b $0.85. c $1.05. d $1.20.
b. $0.85.
Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts? a An increase in the price of wool shirts and a decrease in the price of raw cotton. b A decrease in the price of wool shirts and a decrease in the price of raw cotton. c An increase in the price of wool shirts and an increase in the price of raw cotton. d A decrease in the price of wool shirts and an increase in the price of raw cotton.
b. A decrease in the price of wool shirts and a decrease in the price of raw cotton.
If Harry is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that a Harry received no producer surplus from the transaction. b Harry received $5,000 of producer surplus from the transaction. c Harry received $20,000 of producer surplus from the transaction. d Harry received $25,000 of producer surplus from the transaction.
b. Harry received $5,000 of producer surplus from the transaction
Assume that black beans and rice are staples in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods? a If the price of black beans rose and the consumption of rice remained the same, they would be substitutes. b If the price of black beans rose and the consumption of rice increased, they would be substitutes. c If the price of black beans rose and the consumption of rice decreased, they would be substitutes. d If the price of black beans rose and the consumption of both goods remained the same, they would be complements.
b. If the price of black beans rose and the consumption of rice increased, they would be substitutes.
If price rises, what happens to the quantity demanded for a product? a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
b. It decreases.
What happens to consumer surplus if the price of a good increases? a It increases. b It decreases. c It is unchanged. d It may increase, decrease, or remain unchanged.
b. It decreases.
Suppose both the equilibrium price and quantity rise for a particular product. Which of the following best explains this situation? a Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand. b Supply and demand simultaneously increased and the shift in supply was less than the shift in demand. c Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand. d Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.
b. Supply and demand simultaneously increased and the shift in supply was less than the shift in demand.
How will a reduction in the price of cotton influence the market for blue jeans? a The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the left. b The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the right. c The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the left. d The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the right.
b. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the right.
How will consumers generally react to an increase in the price of butter? a.They will purchase a larger quantity of butter. b. They will substitute other goods like margarine for the more expensive butter. c. They will reduce their purchases of substitute goods like margarine. d. They will continue purchasing the same quantity of butter at the higher price.
b. They will substitute other goods like margarine for the more expensive butter.
Farmers can produce wheat and/or corn. What will happen in the wheat market if there is an increase in price of corn? a Wheat supply will increase. b Wheat supply will decrease. c Wheat demand will increase. d Wheat demand will decrease.
b. Wheat supply will decrease.
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be a a decrease in the supply of automobiles, which is a shift to the right of the supply curve. b a decrease in the supply of automobiles, which is a shift to the left of the supply curve. c an increase in the supply of automobiles, which is a shift to the right of the supply curve. d an increase in the supply of automobiles, which is a shift to the left of the supply curve.
b. a decrease in the supply of automobiles, which is a shift to the left of the supply curve.
Which of the following would reduce the supply of tennis shoes? a an increase in the demand for tennis shoes b a new tax imposed on the producers of tennis shoes c a reduction in the price of leather used to make tennis shoes d all of the above
b. a new tax imposed on the producers of tennis shoes
Which of the following would increase the supply of laptop computers? a higher wage rates for the workers that produce laptop computers b a technological improvement that lowers the cost of producing laptop computers c an increase in the price of computer chips used to produce laptop computers d all of the above
b. a technological improvement that lowers the cost of producing laptop computers
Which of the following will reduce the supply of motorcycles? a an increase in the population age 16 to 35, the primary consumers of motorcycles b an increase in taxes imposed on motorcycle producers c a technological improvement reducing the production costs of motorcycles d a government study that reveals motorcycle riders, on average, live 10 years longer than those who donÕt ride motorcycles
b. an increase in taxes imposed on motorcycle producers
In economics, the demand for a good refers to the amount of the good people a. would like to have if the good were free. b. are willing to buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.
b. are willing to buy at various prices.
The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called a price elasticity of demand. b consumer surplus. c the substitution effect. d income elasticity of demand.
b. consumer surplus.
If salsa and nacho chips are complements, an increase in the price of nacho chips would a increase the price of salsa. b decrease the demand for salsa. c increase the demand for salsa. d have no effect on the demand for salsa.
b. decrease the demand for salsa.
Assume that eggnog and Christmas cookies are complements. If the price of eggnog goes up, what happens to the demand for Christmas cookies? a demand for cookies increases b demand for cookies decreases c demand for cookies remains unchanged d the shift in demand will depend on the original price of cookies
b. demand for cookies decreases
Which of the following would lead to an increase in the demand for restaurant meals in Morgantown? a the local bus service beginning to offer free bus transportation to students b homecoming weekend when many former alumni visit c a large protest by a campus groups against conspicuousÊconsumption d an increase in the tuition charged by WVU
b. homecoming weekend when many former alumni visit
If people expect the price of coffee to rise next month, the demand for coffee will a decrease now. b increase now. c stay the same now and increase next month. d stay the same now and decrease next month.
b. increase now.
A decrease in the price of a good would a. increase the demand of the good. b. increase the quantity demanded of the good. c. decrease demand for the good. d. decrease the quantity supplied of the good.
b. increase the quantity demanded of the good.
If the number of consumers in a market increases, the market demand curve will a decrease, which is a shift to the left of the demand curve. b increase, which is a shift to the right of the demand curve. c not shift, but rather this will just cause a movement along the demand curve. d do none of the above.
b. increase, which is a shift to the right of the demand curve.
The demand curve for a good a. indicates the relationship between the price of the good and the price of other goods. b. indicates the quantities of the good that people will buy at various prices. c. illustrates the quantity producers will provide at alternative prices. d. is determined primarily by the cost of producing the good.
b. indicates the quantities of the good that people will buy at various prices
A movement along a demand curve a. is called a change in demand. b. is the result of a change in the price of the good. c. can be caused by many things. d. means the product is inelastic.
b. is the result of a change in the price of the good
Which of the following would most likely increase the supply of beef? a lower prices for chicken, a substitute for beef b lower prices of grains used to feed cattle c new medical research suggesting that beef causes more serious health problems than was previously thought d an increase in the cost of transporting beef products to the consumer market
b. lower prices of grains used to feed cattle
f equilibrium is present in a market, a there is generally either a shortage or a surplus. b quantity demanded equals quantity supplied. c quantity demanded exceeds quantity supplied. d quantity supplied exceeds quantity demanded.
b. quantity demanded equals quantity supplied.
Other things constant, an increase in consumer income will a shift the demand curve for automobiles to the left. b shift the demand curve for automobiles to the right. c cause a movement along the demand curve for automobiles, but it will not shift the demand curve. d lead to a reduction in the supply of automobiles.
b. shift the demand curve for automobiles to the right.
If the price of a good is below the equilibrium price, a suppliers will find inventories building; they will cut output and raise prices. b suppliers will find inventories being depleted. They will increase production and raise prices. c the demand curve will shift down until an equilibrium is established at the existing price. d the supply curve will shift up until an equilibrium is established at the existing price.
b. suppliers will find inventories being depleted. They will increase production and raise prices.
n the automobile market, a rise in consumer income, other things being equal, will cause a the demand curve for automobiles to shift to the left. b the demand curve for automobiles to shift to the right. c a downward movement along the demand curve for automobiles. d an upward movement along the demand curve for automobiles.
b. the demand curve for automobiles to shift to the right
If coffee and cream are complements, an increase in the price of coffee will cause a the demand for cream to increase. b the demand for cream to fall. c the demand for coffee to fall. d no change in the demand for cream; only quantity demanded would be affected.
b. the demand for cream to fall.
The maximum price that consumers are willing to pay for the hundredth unit of a good can be found as a the height of the supply curve at a quantity of 100. b the height of the demand curve at a quantity of 100. c the difference between the height of the supply and demand curves at a quantity of 100. d none of the above.
b. the height of the demand curve at a quantity of 100.
Each point on the demand curve indicates a. the demand for the product. b. the quantity demanded at that price. c. the amount that people need. d. the amount people want to buy at different income levels.
b. the quantity demanded at that price.
The figure shows conditions in the market for beef. A reduction in the price of the grain used to feed cattle results in a the supply curve for beef shifting to the left resulting in higher beef prices and a lower quantity sold. b the supply curve for beef shifting to the right resulting in lower beef prices and a higher quantity sold. c the demand curve for beef shifting to the left resulting in lower beef prices and a lower quantity sold. d the demand curve for beef shifting to the right resulting in higher beef prices and a higher quantity sold.
b. the supply curve for beef shifting to the right resulting in lower beef prices and a higher quantity sold.
When economists say the quantity demanded of a product has increased, they mean the a demand curve has shifted to the left. b demand curve has shifted to the right. c price of the product has fallen, and consequently, consumers are buying more of it. d price of the product has risen, and consequently, consumers are buying less of it.
c
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Katie's willingness to pay was $100, Kendras's willingness to pay was $95, and Kristen's willingness to pay was $80. Consumer surplus for the three individuals combined is $15. b $20. c $35. d $80.
c. $35.
Which of the following events would result in an increase in equilibrium price and an uncertain change in equilibrium quantity? a An increase in supply and an increase in demand. b An increase in supply and a decrease in demand. c A decrease in supply and an increase in demand. d A decrease in supply and a decrease in demand.
c. A decrease in supply and an increase in demand.
Which of the following would lead to an increase in the demand for fast food in Morgantown? a a decrease in the average price charged by sit-down restaurants b a front page newspaper article in the Dominion Post stating that fast food is very bad for your health c A doubling of Morgantown'sÊpopulation d a decrease in average consumer income in Morgantown
c. A doubling of Morgantown'sÊpopulation
A new study on the health benefits of vitamin C has caused more people to prefer orange juice.Ê At the same time, a freeze in Florida has devastated the orange crop.Ê Given these two effects, what can we say about the equilibrium price and quantity of orange juice? a Equilibrium quantity will decrease, equilibrium price will increase. b Equilibrium price will decrease; the effect on quantity is ambiguous. c Equilibrium price will increase; the effect on quantity is ambiguous. d Equilibrium quantity will increase; the effect on price is ambiguous.
c. Equilibrium price will increase; the effect on quantity is ambiguous.
If price rises, what happens to supply of a product? a It increases. b It decreases. c It does not change. d Uncertain-economic theory has no answer to this question
c. It does not change.
If price rises, what happens to the demand for a product? a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
c. It does not change.
Refer to the table. If the table represents the willingness to pay of four buyers and the price of the product is $15, then who would be willing to purchase the product? Mike $50 Sandy $30 Jonathan $20 Haley $10 a Mike b Mike and Sandy c Mike, Sandy, and Jonathan d Mike, Sandy, Jonathan, and Haley
c. Mike, Sandy, and Jonathan
How will consumers generally react to a decrease in the price of a product? a. They will purchase less of it. b. They will substitute other goods for it. c. They will purchase more of it. d. They will continue purchasing the same quantity at the lower price.
c. They will purchase more of it
Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $1.50 to $1.25 per dozen, a cookie producers will go out of business. b the demand for cookies will fall. c a larger quantity of cookies will be demanded. d a smaller quantity of cookies will be demanded.
c. a larger quantity of cookies will be demanded.
If an increase in the price of peaches reduces the demand for cream, this indicates that peaches and cream are a normal goods. b inferior goods. c complements. d substitutes.
c. complements.
Corn and soybeans are alternatives that could be grown by most farmers. If government subsidies for ethanol lead to higher corn prices, this will a increase the supply of corn. b increase the supply of soybeans. c decrease the supply of soybeans. d decrease the supply of corn.
c. decrease the supply of soybeans
Corn and soybeans are alternatives that could be grown by most farmers. If government subsidies for ethanol lead to higher corn prices, this will a increase the supply of corn. b increase the supply of soybeans. c decrease the supply of soybeans. d decrease the supply of corn. e have no effect on the supplies of corn and soybeans.
c. decrease the supply of soybeans.
When the quantity demanded and quantity supplied in a market are equal, the market is said to be in a fixation. b excess supply. c equilibrium. d excess demand.
c. equilibrium.
In which statement(s) is "demand" used correctly? (I) "An increase in the price of hot dogs will reduce the demand for hot dogs."(II) "An increase in the price of hot dogs will reduce the demand for hot dog buns." a in both statements I and II b in statement I only c in statement II only d in neither statements I nor II
c. in statement II only
In which statement(s) is "supply" used correctly?(I) "An increase in the price of eggs will increase the supply of eggs."(II) "As the cost of producing eggs rises, the supply of eggs will tend to fall." a in both statements I and II b in statement I only c in statement II only d in neither statements I nor II
c. in statement II only
According to the law of supply, a more of a good is desired by consumers as the price falls. b less of a good is desired by consumers as the price rises. c more of a good will be offered by suppliers as the price rises. d less of a good will be offered by suppliers as the price rises.
c. more of a good will be offered by suppliers as the price rises.
When economists say the quantity supplied of a product has increased, they mean the a supply curve has shifted to the left. b supply curve has shifted to the right. c price of the product has risen, and consequently, suppliers are producing more of it. d price of the product has fallen, and consequently, suppliers are producing less of it.
c. price of the product has risen, and consequently, suppliers are producing more of it.
Ceteris paribus (other things being equal), an increase in the price of a good will cause the a quantity demanded of the good to increase. b quantity supplied of the good to decrease. c producer surplus derived from the good to increase. d supply of the good to decrease.
c. producer surplus derived from the good to increase.
Bill is willing to cut lawns for a minimum of $200 a week. He is, however, paid $250 for the same service by a lawn maintenance company. This is an example of a consumer surplus. b employment discrimination. c producer surplus. d the derivation of accounting profit.
c. producer surplus.
According to the law of supply, as the price of a good increases, a buyers will buy more of the good. b buyers will buy less of the good. c sellers will produce more of the good. d sellers will produce less of the good.
c. sellers will produce more of the good.
If the price of coffee decreases, the demand curve for tea (a substitute good) will a remain unchanged. b shift to the right. c shift to the left. d do none of the above.
c. shift to the left.
When economists say the quantity demanded of a product has decreased, they mean the a demand curve has shifted to the left. b demand curve has shifted to the right. c price of the product has fallen, and consequently, consumers are buying more of it. d price of the product has risen, and consequently, consumers are buying less of it.
d price of the product has risen, and consequently, consumers are buying less of it.
The table lists the opportunity cost of production for five sellers in a market. Suppose each of the five sellers can supply at most one unit of the good; then the market quantity supplied is exactly 3 if the price is a $670. b $770. c $970. d
d. $1,170.
Shannon buys a new satellite radio for her car for $135. She receives consumer surplus of $25 on her purchase if her willingness to pay is r. a $25. b $110. c $135. d $160.
d. $160.
A cold snap in Florida destroys one-third of the orange crop in the United States. How would this be reflected in our supply curve analysis? a A decrease in quantity supplied. b An increase in quantity supplied. c An increase in supply. d A decrease in supply.
d. A decrease in supply.
The table list five sellers and their cost per unit. Suppose the market price of their good is $775. Which of the sellers would be willing to supply the product at that price? Dale 1500 Jill 1200 Denise 1000 Catherine 750 Jackson: 500 a Dale and Jill b Dale, Jill and Denise c Denise, Catherine and Jackson d Catherine and Jackson
d. Catherine and Jackson
Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market? a The quantity of eggs demanded will increase. b Egg demand will decrease. c Egg supply will increase. d Egg supply will decrease.
d. Egg supply will decrease.
An add in the newspaper claims that the price of milk will increase next week.Ê At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, what can we say about the equilibrium price and quantity of milk? a Equilibrium quantity will decrease, equilibrium price will increase. b Equilibrium price will decrease; the effect on quantity is ambiguous. c Equilibrium price will increase; the effect on quantity is ambiguous. d Equilibrium quantity will increase; the effect on price is ambiguous.
d. Equilibrium quantity will increase; the effect on price is ambiguous.
If the supply of a good increased, what would be the effect on the equilibrium price and quantity? a Price would increase and quantity would decrease. b Price would decrease and quantity would decrease. c Price would increase and quantity would increase. d Price would decrease and quantity would increase.
d. Price would decrease and quantity would increase.
Suppose both the equilibrium price and quantity fall for a particular product. Which of the following best explains this situation? a Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand. b Supply and demand simultaneously increased and the shift in supply was less than the shift in demand. c Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand. d Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.
d. Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.
Which of the following would decrease the supply of sugar? a The demand for sugar increases. b A technological advance lowers the cost of producing sugar. c The price of artificial sweeteners rises dramatically. d The tariff (tax) on imported sugar increases.
d. The tariff (tax) on imported sugar increases.
Which of the following would most likely increase the demand for televisions? a a decrease in the price of televisions b a decline in consumer income c a decrease in the price of gym memberships, a substitute for televisions d a decrease in the price of streaming services such as Netflix, a product that is complementary with televisions
d. a decrease in the price of streaming services such as Netflix, a product that is complementary with televisions
A demand curve shows the relationship between price and quantity demanded, other things constant. These other things include which of the following? a. consumer preferences b. the price of substitute goods c. consumer income d. all of the above
d. all of the above
An important assumption that is made when constructing a supply schedule is a only price and quantity matter in determining supply. b firms always want to sell a certain amount of a product. c supply is too important to be left to the marketplace. d all other determinants of supply are held constant.
d. all other determinants of supply are held constant.
Which of the following would cause an increase in the price of gasoline and an expansion in the equilibrium quantity? a an increase in the price of crude oil, a key ingredient required for the production of gasoline b the introduction of a miracle carburetor that substantially improves the gas mileage of automobiles c a recession that substantially reduces the income of households d an increase in the popularity and use of Sport Utility Vehicles that consume aÊlot of gasoline per mile driven
d. an increase in the popularity and use of Sport Utility Vehicles that consume aÊlot of gasoline per mile driven
For a typical product, an increase in consumer income will cause the market demand for the product to a decrease, which is a shift to the left of the demand curve. b decrease, which is a shift to the right of the demand curve. c increase, which is a shift to the left of the demand curve. d increase, which is a shift to the right of the demand curve.
d. increase, which is a shift to the right of the demand curve.
Consumer surplus a is the total area under a consumer's demand curve. b is always negative because of diminishing marginal utility. c guarantees that the market value of a good in money is equal to the total economic value of the good. d is the difference between total willingness to pay and the total amount paid.
d. is the difference between total willingness to pay and the total amount paid.
If consumer tastes are changing more in favor of the consumption of a particular good the a market demand curve will shift to the left. b consumer will move up a given demand curve, decreasing the quantity demanded. c consumer would move down a given demand curve, decreasing the quantity demanded. d market demand curve would shift to the right. e consumer would move down a given demand curve, increasing the quantity demanded.
d. market demand curve would shift to the right.
A demand curve for concert tickets would show the a. number of tickets the box office is willing to sell at various prices. b. number of people who need tickets. c. quality of people who want to buy these concert tickets. d. number of tickets that will be purchased at various prices.
d. number of tickets that will be purchased at various prices.
The total economic cost of producing a good or service is called the a comparative value of construction. b social consequence of resources. c marginal valuation of output. d opportunity cost of production.
d. opportunity cost of production.
When economists say the quantity supplied of a product has decreased, they mean the a supply curve has shifted to the left. b supply curve has shifted to the right. c price of the product has risen, and consequently, suppliers are producing more of it. d price of the product has fallen, and consequently, suppliers are producing less of it.
d. price of the product has fallen, and consequently, suppliers are producing less of it.
An increase in the supply of the product implies that a producers will now charge a higher price for a given quantity of output. b the supply curve will shift to the left. c some producers are dropping out of this market. d producers will now charge a lower price for a given quantity of output. e the price of this product has increased.
d. producers will now charge a lower price for a given quantity of output.
According to the law of supply, as the price of a good decreases a buyers will buy more of the good. b sellers will produce more of the good. c buyers will buy less of the good. d sellers will produce less of the good.
d. sellers will produce less of the good
When economists say the supply of a product has increased, they mean the a amount of the product that consumers are willing to purchase at various prices has increased. b supply curve has shifted to the left. c price of the product has risen, and consequently, suppliers are producing more of it. d supply curve has shifted to the right.
d. supply curve has shifted to the right.
A decrease in the price of leather used to make shoes would cause the a demand for shoes to decrease. b demand for shoes to increase. c supply of shoes to decrease. d supply of shoes to increase.
d. supply of shoes to increase.
The law of demand indicates that a. every physical good has a use. b. when people want a good badly enough, they will find a way to pay for it. c. the desire for a good is unrelated to its price. d. the quantity of a good that people will buy is inversely related to the price of the good.
d. the quantity of a good that people will buy is inversely related to the price of the good.
A decrease in supply means that a demand will increase by the same amount. b the quantity demanded will increase. c there is a movement down and to the left along the supply curve. d the quantity supplied at each price will decrease.
d. the quantity supplied at each price will decrease.
The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the a. supply curve. b.demand curve. c.production possibilities curve. d.consumption curve.
demand curve
When economists say the demand for a product has increased, they mean the a. amount of the product that consumers are willing to purchase at various prices has decreased. b. cost of producing the product has risen. c. price of the product has fallen, and consequently, consumers are buying more of it. d. demand curve has shifted to the right.
demand curve has shifted to the right.
n which statement(s) are "demand" and "quantity demanded" used correctly? (I). "An increase in the price of coffee will reduce the quantity demanded of coffee"(II). "An increase in the price of coffee will reduce the demand for creamer used in coffee" a in both statements I and II b in statement I only c in statement II only d in neither statements I nor II
in both statements I and II
