Economics Ch3
With an upward-sloping supply curve, which of the following is true?
A decrease in price results in a decrease in quantity supplied.
Which of the following would shift the demand curve for autos to the right?
A fall of price of auto insurance
Which of the following will increase the demand for large automobiles?
A rise in buyers' incomes (assuming large automobiles to be a normal good).
Which of the following will not shift the demand curve for grapefruit?
A technical development that allows machines to replace the workers who harvest grapefruit.
A baby boom will have what immediate effect on the disposable diaper market?
Demand increases.
Which of the following could cause the supply of carrots to decrease?
Fertilizer costs increase.
If there is an increase in income, which of the following is true?
The demand for normal goods increases.
Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:
a rightward shift in the demand curve for bus travel.
If butter is a substitute for margarine, then an increase in the price of butter would be most likely to cause:
a rightward shift of demand for margarine.
Assuming gasoline and oil to be complementary goods, the effect on the oil market of an increase in the price of gasoline (other things being equal) would best be described as a(n):
decrease in the demand for oil.
If two goods are substitutes in consumption, a(n):
decrease in the price of one product will cause a decrease in the demand for the other product.
If the price of potato chips increases, other things constant, demand for potato-chip dip will:
decrease, because the goods are complements.
Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:
demand for good Y to increase.
At any price below the equilibrium price, the:
demand is less than supply.
Assuming that dry cleaning is a normal good, an increase in consumer income, other things being equal, will:
increase the demand for dry cleaning.
Other things being equal, the effects of an increase in the price of crackers on the market for soup is represented by a(n):
leftward shift in the demand curve for soup.
Assuming that shoe repair services are an inferior good, an increase in consumer income, other things being equal, will cause a(n):
leftward shift in the demand curve.
When economists say the quantity supplied of a product has decreased, they mean the
price of the product has fallen, and consequently, suppliers are producing less of it.
According to the law of supply a(n):
producer is willing to supply larger amounts of a good as its price increases.
The supply schedule shows the specific quantity of a good that suppliers are willing and able to:
provide at different prices.
Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):
rightward shift in the demand curve for Coca-Cola.
Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:
the demand curve for good Y to shift to the right.
According to the law of supply, there is a direct relationship between quantity supplied and
the price of the good.
If a shortage of a product currently exists in the market,
the quantity demanded exceeds the quantity supplied at the market price.
