Economics Test
What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?
The demand for shotgun-shell ammunition will increase.
The law of demand states that, other things equal, when the price of a good..
falls, the quantity demanded of the good rises.
Soup is an inferior good if the demand
for soup falls when income rises.
If consumers often purchase croissants to eat while they drink their coffee at local coffee shops, what would happen to the equilibrium price and quantity of coffee if the price of muffins rises?
Both the equilibrium price and quantity would decrease.
If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?
Both the equilibrium price and quantity would increase.
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.
Which of the following is NOT held constant in a demand schedule?
Price
What would happen to the equilibrium price and quantity of latte's if the cost of producing steamed milk, which is used to make latte, rises?
The equilibrium price would increase, and the equilibrium quantity would decrease.
Which of the following is NOT a determinant of the demand for a particular good?
The prices of the inputs used to produce the good.
Which of the following would not increase in response to a decrease in the price of ironing boards?
The quantity of irons supplied at each possible price of irons.
The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result, which of the following statements is NOT true?
There is a shortage of blue jeans at the $30 price.
Which of the following is NOT a characteristic of a perfectly competitive market?
There is no free entry or exit.
When we move along a given demand curve,
all nonprice determinants of demand are held constant.
If a decrease in income increases the demand for a good, then the good is a(n)
an inferior good.
Today, producers changed their expectations about the future. This change
can affect today's supply.
Two goods are substitutes when a decrease in the price of one good
decrease the demand for the other good.
If the number of buyers in a market decreases, then
demand will decrease.
An increase in the price of a good will
increase quantity supplied
Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg
increases.
An improvement in production technology will shift the
supply curve to the right.
A baker recently has come to expect higher prices for bread in the near future. We would expect..
the baker to supply less bread now than she was supplying previously.
