Macroecon Homework #3

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward. Which of the following could have caused these shifts?

Desktop computers are a normal good and incomes increased, while the labor costs of producing personal computers increased.

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter_____ and the equilibrium quantity of scooter_____.

Falls; decreases.

Suppose that equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

More home buyers might have moved into the area.

Suppose the equilibrium price of movie tickets is $10. If the supply curve for a movie shifts_____ the equilibrium price will _____.

Rightward; decrease

Suppose that equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

The demand for new houses increased and the supply did not change.

What raises the equilibrium price of cement?

an increase in the demand for cement.

A surplus of cardboard boxes means that...

at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.

As a falling price eliminates a surplus in the jersey market,

consumers increase the quantity of jerseys they demand.

Computer chips are a normal good. Suppose the economy slips into a recession so that income falls. As a result, the demand for computer chips____ so that the price of a computer chip____.

decreases, falls.

Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?

demand increased and supply decreased by an equal amount.

If good weather conditions result in a larger than normal crop of peaches, then the...

equilibrium price of peaches falls, and the equilibrium quantity of peaches increase.

Bagels and cream cheese are complementary good. 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_____.

falls; decreases

Because of a sharp increase in the price of gasoline, the demand for sports utility vehicles has decreased. So, the high price of gasoline leads to a...

leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.

When there is a shortage of parking spaces at your college, the...

quantity of parking spaces demanded is greater than the quantity of parking spaces supplied.

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price a..

surplus exists and the price falls to restore equilibrium.

The initial equilibrium price in the market for web pages is $200 per page and 1000 web pages are created in a month. Many new web design firms now enter the market. As a result..

the supply of web pages increases and the price falls.

If the price is below the equilibrium price,

there is a shortage.