econ 2300 test1
Which of the following changes would not shift the supply curve for a good or service?
A change in the price of the good or service Answers:a. A change in production technology b. A change in the price of the good or service c. A change in expectations about the future price of the good or serviced. A change in input prices b
What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?
Price would fall, and the effect on quantity would be ambiguous.
The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well.
True
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
a. The equilibrium price would rise. b. Sellers would not be able to produce and sell as much as before at each relevant price. c. The supply would decrease. d. Buyers would not be willing to buy as much as before at each relevant price d.
When we move along a given supply curve,
all nonprice determinants of supply are held constant.
Which of the following is not an example of a market?
d. A small town has only one seller of electricity.
A decrease in the price of baseball bats will decrease the demand for baseballs.
false
Individual demand curves are summed vertically to obtain the market demand curve.
false
When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.
false
the law of supply states that, other things equal,when the price of a good
rises, the quantity supplied of a good rises
An improvement in production technology will:
shift the supply curve to the right
Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a
surplus to exist and the market price of roses to decrease.
If something happens to alter the quantity supplied at any given price, then
the supply curve shifts. b. the supply curve becomes flatter. c. we move along the supply curve. d. the supply curve becomes steeper. a
A decrease in income will shift the demand curve for an inferior good to the right.
true
An increase in the price of a substitute good will shift the demand curve for a good to the right
true
An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.
true
If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.
true
