ECON Chapter 4 --- Before Class Quiz

In the market for briefcases​, the price of a briefcase falls and nothing else changes. Show the effect in the graph. Draw either a new supply curve or an arrow along the curve showing the direction of change.

-Arrow going downward on the supply curve When the price of a briefcase changes and all other influences on selling plans remain the​ same, we say there has been a change in the quantity supplied. When the price of a briefcase falls and everything else remains the​ same, the quantity supplied decreases and there is a movement down along the supply curve. This movement is shown by an arrow drawn on the supply curve.

A substitute is a good that is​ _____ another​ good, and a complement is a good that is​ _____ another good. A. consumed in place​ of; consumed together with B. consumed in place​ of; produced with C. consumed together​ with; consumed in place of D. produced in place​ of; sold with

A

Supply is​ _____, when all other influences on buying plans remain the same. A. the relationship between the quantity supplied of a good and the price of the good B. the relationship between the quantity supplied of a good and the cost of labor used to produce it C. the quantity of a good that producers plan to sell D. the is the quantity of a good that producers would be willing to sell if costs were lower

A

A supply schedule is a list of the​ ______ at each different price when all other influences on selling plans remain the same. A supply curve is a graph of​ _____ . A. quantities​ supplied; a supply schedule B. quantities​ supplied; quantities supplied C. quantities actually​ sold; a supply schedule D. quantities actually​ sold; quantities supplied

A A supply schedule is a list of the quantities supplied at each different price when all the other influences on selling plans remain the same. A supply curve is a graph of the relationship between the quantity supplied of a good and its price when all the other influences on selling plans remain the same. So a supply curve is a graph of a supply schedule. OK

A demand schedule is a list of the​ ______ at each different price when all other influences on buying plans remain the same. A demand curve is a graph of​ _____ . A. ​surpluses; price falls B. quantities​ demanded; a demand schedule C. quantities actually​ bought; quantities demanded D. ​shortages; price rises

B

Demand is​ _____, when all other influences on buying plans remain the same. A. the quantity of a good that people plan to buy B. the relationship between the quantity demanded of a good and income C. the relationship between the quantity demanded of a good and the price of the good D. the is the quantity of a good that people want but​ can't afford

C

Consider the market in which sporting goods producers operate. Suppose that the price of a basketball rises. Explain how this event will change the quantity of basketballs supplied and the supply of basketballs today. A. The quantity of basketballs supplied increases and the supply of basketballs also increases. B. The quantity of basketballs supplied increases and the supply of basketballs is unchanged. C. The supply of basketballs is unchanged and the quantity of basketballs supplied decreases. D. The supply of basketballs increases and the quantity of basketballs supplied is unchanged. E. The quantity of basketballs supplied decreases

B A change in the quantity supplied is a change in the quantity of a good that people plan to sell that results from a change in the price of the good with all other influences on selling plans remaining the same. A change in supply is the change in the quantity that suppliers plan to sell when any influence on selling plans other than the price of the good changes. -In the market for basketballs​, the price of a basketball rises. When the price of a basketball changes and all other influences on selling plans remain the same a change in the quantity supplied occurs. Because no other influence on the selling plans of basketball has changed the supply of basketballs

For​ consumers, donuts and chocolate chip cookies are substitutes. If the price of a donut increases​, the demand for chocolate chip cookies will​ _______. A. increase or​ decrease, but the demand for donuts will not change B. not​ change, but there will be a movement along the demand curve for chocolate chip cookies C. increase​, and the demand curve for chocolate chip cookies will shift rightward D. decrease​, and the demand curve for chocolate chip cookies will shift

C A substitute for a good is another good that can be consumed in its place. The demand for a good and the price of one of its substitutes move in the same direction. A complement of a good is another good that is consumed with it. The demand for a good and the price of one of its complements move in opposite directions. For​ consumers, donuts and chocolate chip cookies are substitutes. If the price of a donut increases​, the demand for chocolate chip cookies will increase​, and the demand curve for chocolate chip cookies will shift rightward.

Consider the U.S. market for ice skates. Suppose the price of a pair of inline skates rises. Explain the effect of this event on the quantity of ice skates demanded and on the demand for ice skates. A. The quantity of ice skates demanded decreases. B. The quantity of ice skates demanded increases. C. The demand for ice skates increases. D. The quantity of ice skates demanded decreases and the demand for ice skates also decreases. E. The demand for ice skates

C A substitute is a good that can be used in place of another good. A pair of inline skates is a substitute for a pair of ice skates. When the price of a substitute rises the demand for ice skates

When the price of a briefcase falls and nothing else​ changes, _______. A. the supply of briefcases decreases and the quantity of briefcases supplied also decreases B. the supply of briefcases increases and the quantity of briefcases supplied does not change C. the quantity of briefcases supplied changes and supply does not change D. the supply of briefcases increases and the quantity of briefcases supplied also increases

C When the price of a briefcase falls and nothing else​ changes, a movement occurs along the supply curve. The quantity of briefcases supplied changes. The supply curve does not shift. Supply does not change.

If the price of a good falls​, a​ ______ the supply curve occurs. If any factor that influences selling plans other than the price​ changes, then a​ ______ the supply curve occurs. A. movement up ​along; shift of B. rightward shift​ of; movement down along C. movement down ​along; movement up along D. movement down ​along; shift of

D

If the price of a laptop rises​, with all other influences on buying plans remaining the​ same, _______. A. the demand for laptops increases B. the demand for laptops decreases C. the quantity of laptops demanded increases D. the quantity of laptops demanded

D If the price of a laptop rises​, with all other influences on buying plans remaining the​ same, a movement occurs up along the demand curve. The quantity of laptops demanded decreases.

GM, UAW reach crucial​ cost-cutting pact GM and the UAW agree on restructuring​ workers' jobs. This​ restructuring, with no change in the wage​ rate, will save GM billions in labor costs. ​Source: Wall Street Journal​, May​ 22, 2009 Will this reduction of labor​ costs, with no change in the wage​ rate, change​ GM's supply of​ vehicles? The cut in labor costs with no change in the wage rate will​ ______. A. not change​ GM's supply of vehicles B. decrease​ productivity, which will decrease​ GM's supply of vehicles C. decrease the expected future price of a GM​ vehicle, which will decrease​ GM's supply of vehicles D. increase​ productivity, which will increase​ GM's supply of vehicles E. decrease the price of a GM vehicle in comparison to a​ Ford, which will increase​ Ford's supply of vehicles

D Productivity is output per unit of input. When General Motors restructures​ workers' tasks so that its labor costs decrease with no change in the wage​ rate, the productivity of workers increases. And an increase in productivity increases​ GM's supply of vehicles.

In the market for skim milk, the price of a carton of skim milk rises. Explain the effect of this event on the quantity of skim milk supplied and on the supply of skim milk. A. The quantity of skim milk supplied increases and the supply of skim milk also increases. B. The supply of skim milk is unchanged and the quantity of skim milk supplied decreases. C. The quantity of skim milk supplied decreases and the supply of skim milk also decreases. D. The supply of skim milk increases and the quantity of skim milk supplied is unchanged. E. The quantity of skim milk supplied increases and the supply of skim milk is unchanged.

E

Consider the market for coffee. Suppose the price of a cup of coffee rises. Explain the effect of this event on the quantity of coffee demanded and on the demand for coffee. A. The quantity of coffee demanded increases and the demand for coffee also increases. B. The quantity of coffee demanded increases and the demand for coffee is unchanged. C. The quantity of coffee demanded decreases and the demand for coffee also decreases. D. The quantity of coffee demanded is unchanged and the demand for coffee decreases. E. The quantity of coffee demanded decreases and the demand for coffee is unchanged.

E A change in the quantity demanded is a change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same. A change in demand is a change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes. When the price of a cup of coffee changes and all other influences on buying plans remain the same a change in the quantity demanded occurs. Because no other influence on the buying plans for coffee has changed, the demand for coffee

Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 11 DVDs when the price of a DVD is ​$12.00​, 10 DVDs when the price of a DVD is ​$13.00​, and 8 DVDs a month when the price of a DVD is ​$15.00. Robert buys 21 DVDs a month when the price of a DVD is ​$12.00​, 7 DVDs when the price of a DVD is ​$13.00​, and zero DVDs when the price of a DVD is ​$15.00. In the market for​ DVDs, the quantity demanded​ _______. A. at ​$13.00 a DVD is 10 DVDs a month B. at ​$12.00 a DVD is less than the quantity demanded at ​$13.00 a DVD C. increases as the price rises D. at ​$13.00 a DVD is 7 DVDs a month E. increases as the price falls

E When the price of a DVD is ​$15.00​, Mildred buys 8 DVDs a month and Robert buys zero​ DVDs, so the quantity demanded by the market is 8 DVDs a month. When the price of a DVD is ​$13.00​, Mildred buys 10 DVDs a month and Robert buys 7 ​DVDs, so the quantity demanded by the market is 17 DVDs a month. When the price of a DVD is ​$12.00​, Mildred buys 11 DVDs a month and Robert buys 21 ​DVDs, so the quantity demanded by the market is 32 DVDs a month. The quantity of DVDs demanded increases as the price falls.

Market supply is

the sum of the supplies of all the sellers in the market.