econ chap 4

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

a decrease in consumer income

If something happens to alter the quantity supplied at any given price, then?

the supply curve shifts

Which of the following is not held constant in a supply schedule?

the price of the good

The equilibrium price and quantity are?

$2.00 and 300 cases

Equilibrium price and quantity are, respectively?

$30 and 400 units

If these are the only two sellers in the market, then the market quantity supplied at a price of $6 is?

21 units

Which of the following changes would not shift the demand curve for a good or service?

A change in the price of the good or service

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. Which of the following explanations would be most consistent with this observation?

New medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy

The shift from S' to S could be caused by?

an increase in input prices

The movement from point B to point A on the graph is caused by?

an increase in price

If muffins and bagels are substitutes, a higher price for bagels would result in?

an increase in the demands of muffins

If a seller in a competitive market chooses to charge more than the going price, then?

buyers will make purchases from other sellers

The line that relates the price of a good and the quantity supplied of that good is called the supply?

curve, and it usually slopes upward

Suppose you like to make, from scratch, pies filled with bananas and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would?

decrease

Equilibrium price must decrease when?

demand does not change and supply increases

The law of demand states that, other things equal, when the price of a good?

falls, the quantity demanded of the good rises

Which of the following is not held constant in a demand schedule?

price

The law of supply states that, other things equal, when the price of a good?

rises, the quantity supplied of the good rises

Which of the following events could cause an increase in the supply of ceiling fans?

the number of ceiling fan sellers increase

If the supply of a product decreases, then we would expect equilibrium price?

to increase and equilibrium quantity to decrease