Economics Test 2
A decrease in the quantity of raisins demanded
Holding everything else constant, an increase in the price of raisins will result in...
An inferior good
If an increase in the demand for salami, then salami is...
True
If consumers believe the price of hybrid vehicles will decrease in the future, this will cause the demand for hybrid vehicles to decrease now
The supply curve for apples has shifted to the left
If in the market for apples the supply has decreased, then...
The supply of bananas increased
If in the market for bananas the supply curve has shifted to the right, then...
The supply curve will shift to the right
If the US lifts the embargo on Cuban products, what will happen in the US market for Cuban cigars?
False
If the price of a product is expected to increase in the future, the supply today will increase
The demand curve for public transportation shifts to the right
If the price of gasoline increases, what will be the impact in the market for public transportation?
False
If the price of peaches, a substitute for plums, increases the demand for plums will decrease
The Apple Watch and the Samsung Gear S2 to be SUBSTITUTES
If you are considering buying either an Apple Watch or a Samsung Gear S2, and you choose the Samsung only because the price is lower, then you consider...(!)
An increase in quantity demanded
If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as...
The supply curve shifts to the left
In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
Marginal benefit; marginal cost
In a competitive market equilibrium the....equals the...of the last unit sold.
Demand; supply
In a competitive market the....curve shows the marginal benefit received by consumers and the.....curve shows the marginal cost to producers
Above;shortage
In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents....the controlled rates, because rent control causes a....of apartments
Ice cream and hot fudge are complements
Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. To Liza,....
Pickles and ketchup are complements
Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy,...
Is equal to marginal benefit
The additional benefit to a consumer from consuming one more unit of a good or service...
Highest price a consumer is willing to pay; price the consumer actually pays
The difference between the....for a good and the....is called consumer surplus
Changes in consumer tastes
The market for smartwatches is becoming very competitive. The increase in competition in this market is an example of how the market responds to...
A demand curve has shifted to the right
The phrase "demand has increased" means that...
The supply curve for digital photo printing services shifts to the right
The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services. How does this affect the digital photo printing market?
Supply curve
What is a curve that shows the relationship between the price of a product and the quantity of the product supplied?
Economic efficiency
What is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum?
False
t/f A decrease in supply is caused by a decrease in the price of the product
False
t/f A decrease in the number of firms in a market will cause supply to increase
True
t/f All else equal, as the price of a product falls, the quantity supplied decreases
False
t/f An inferior good is a good for which the quantity demanded increases as the price decreases, holding everything else constant
False
t/f Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product
False
t/f Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays
True
t/f The substitution effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded
True
t/f The total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price
The marginal benefit is equal to the price of the product
A consumer is willing to purchase a product up to the point where...
True
A decrease in the price of inputs will cause the supply curve for a product to shift to the right
The price of a product and the quantity of the product being demanded
A demand curve shows the relationship between...(!)
A larger quantity of MP3 players supplied
An increase in the price of MP3 players will result in...
Increase in demand; Increase in quantity demanded
An....is represented by a rightward shift of the demand curve while an....is represented by a movement along a given demand curve
Any buyer who is willing and able to pay the price will find a seller for the product
At a product's equilibrium price...
Quantity demanded equals quantity supplied
At market equilibrium...
The willingness of consumers to purchase a product at different prices
Each point on a demand curve shows...
Marginal benefit equals marginal cost
Economic surplus is maximized in a competitive market when...
$35
Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for$85. Juanita's consumer surplus from the purchase is...
An increase in supply
Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced...
An economically efficient level of output is produced
When the marginal benefit equals the marginal cost of the last unit sold in a competitive market...
"I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses
Which of the following statements best describes the concept of consumers surplus?
Producer surplus measures the total benefit received by producers from participating in a market
Which of the following statements is not true?
An increase in the price of a good
Which of the following will not shift the demand curve for a good?
