Macro Ch 4

A market is defined as A. any arrangement that brings buyers and sellers together. .B. a store where people buy physical goods. C. a physical place where people buy only goods. D. a place where one good is bartered for another. E. a physical place where people buy both goods and services.

A. any arrangement that brings buyers and sellers together.

If the price of tangerines​ increases, the price of oranges also rises because A. consumers consider the two goods substitutes and demand for oranges increases. B. if the supply of tangerines​ decreased, then the supply of oranges also must decrease. C. consumers consider the two goods complements and so sellers decreased the supply of oranges. D. buyers must have expected a higher price for oranges and thus increased their demand for oranges. E. ​buyers' incomes must have decreased and oranges are an inferior good.

A. consumers consider the two goods substitutes and demand for oranges increases.

Which of the following shifts the supply curve for​ oranges? A. disastrous weather that destroys about half of this​ year's orange crop B. an increase in income for all orange consumers if oranges are a normal good C. an increase in the price of​ bananas, a substitute in consumption for oranges D. an increase in the number of orange consumers E. a newly discovered increase in the nutritional value of oranges

A. disastrous weather that destroys about half of this​ year's orange crop

You are just about to finish college and are about to start a high paying job. Because of this new​ job, what is the most likely outcome in the market for​ cars? A. The market supply of cars will increase. B. Your demand for cars will increase. .C. The market supply of cars will decrease. D. Your demand for cars will decrease. E. The demand and the supply for cars will decrease.

B. Your demand for cars will increase.

If the demand for digital cameras increases when​ consumers' incomes​ rise, then digital cameras are A. an inferior good. B. a normal good. C. a complement to camcorders. D. a substitute for camcorders. E. made using advanced technology.

B. a normal good.

Hot dogs and hot dog buns are complements. If the price of a hot dog​ falls, then A. the quantity demanded of hotdogs will decrease. B. the demand for hot dog buns will increase. C. the demand for hot dog buns will decrease. D. the quantity demanded of hot dog buns will increase. E. the demand for hot dogs will increase.

B. the demand for hot dog buns will increase.

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a​ result, A. the demand for milk decreases because the price of milk rises. B. the demand for milk increases. C. the price of milk falls to encourage people to drink more milk. D. the demand for milk is not affected. E. the quantity demanded of milk increases.

B. the demand for milk increases.

Mulch is shredded wood and is a by-product in the production of lumber. Because these two goods are produced​ together, they are A. substitutes in production. B. not related. C. complements in production. .D. inputs into the same production process. E. normal goods in production.

C. complements in production.

Market equilibrium occurs when A. demand and supply move in opposite direction. B. opposing forces pull demand and supply apart. C. the quantity demanded equals the quantity supplied. D. all markets become equal. E. demand and supply change so that are equal at all possible prices.

C. the quantity demanded equals the quantity supplied.

If the automobile​ worker's union successfully negotiates a wage increase for its​ members, how does the wage hike affect the supply of​ automobiles? A. The supply increases. B. The quantity supplied decreases. C. The quantity supplied increases. D. The supply decreases. E. Both answers B and D are correct.

D. The supply decreases.

Bagels and cream cheese are complementary goods. Suppose that the price for​ flour, which is used to produce​ bagels, increases. The equilibrium price of cream cheese​ ________ and the equilibrium quantity of cream cheese​ ________. A. ​falls; increases B. ​rises; increases C. ​rises; decreases D. ​falls; decreases .E. does not​ change; does not change

D. ​falls; decreases

The number of corn producers​ increases, so the supply of corn​ ________ and the supply curve of corn​ ________. A. ​decrease; shifts rightward B. ​decreases; shifts leftward C. ​increases; does not shift D. ​increases; shifts leftward E. ​increases; shifts rightward

E. ​increases; shifts rightward

If consumers buy a large number of plugminusin electric​ cars, the equilibrium price of electricity will​ ________ and the equilibrium quantity of electricity will​ ________. A. not​ change; increase B. ​fall; decrease C. ​rise; decrease D. ​fall; increase E. ​rise; increase

E. ​rise; increase

f good weather conditions results in a larger than normal crop of​ peaches, then the A. increase in the supply of peaches induces a greater demand for​ peaches, so that the equilibrium price rises and the equilibrium quantity increases. B. equilibrium price of peaches rises and the equilibrium quantity of peaches increases. C. demand curve for peaches shifts leftward. D. equilibrium price of peaches falls and the equilibrium quantity of peaches decreases. E. equilibrium price of peaches falls and the equilibrium quantity of peaches increases.

E. equilibrium price of peaches falls and the equilibrium quantity of peaches increases.