mcq - supply and demand

(This question refers to the MRU video 'The Demand Curve Shifts'.) How do we show an increase in demand graphically?

By a shifting out of the demand curve, to the northeast.

(This question refers to the MRU video 'The Supply Curve Shifts'.) A new policy that restricted the importing of butter from Europe would have what impact in the domestic butter market?

It would decrease the supply of butter, shifting the supply curve up and to the left.

(This question refers to the MRU video 'Supply and Demand Terminology'.) A decrease in quantity demanded can be caused by:

a decrease in supply

A "change in quantity supplied" refers to:

a movement along a stationary supply curve.

(This question refers to the MRU video 'The Demand Curve Shifts'.) If, at a certain price, buyers suddenly demand a greater quantity of a good than they did previously, there has been:

an increase in demand.

(This question refers to the MRU video 'Supply and Demand Terminology'.) Movement downward along a fixed demand curve is called:

an increase in quantity demanded.

(This question refers to the MRU video 'The Supply Curve Shifts'.) Which of the following is NOT among the specific supply shifters that Professor Tabarrok mentions in the video?

income

(This question refers to the MRU video 'The Supply Curve Shifts'.) Anything that decreases cost _______ supply, shifting the supply curve _______.

increases supply; down and to the right

Supply curves have a positive slope because of the:

law of supply.

Demand and Supply are:

laws

When the price of mangoes rises, Noor buys more pineapples. This means that, for Noor:

mangoes and pineapples are substitutes

When the supply for a good decreases, the supply curve:

shifts to the left

When the demand for a good increases, the demand curve:

shifts to the right.

(This question refers to the MRU video 'The Demand Curve Shifts'.) Most goods are normal goods, which means that when income rises:

the demand for the good increases.

An inferior good is a good that:

you would buy more of if your income fell.

(This question refers to the MRU video 'The Demand Curve Shifts'.) Two goods are _______ if an increase in the price of one good leads to a decrease in the demand for the other good.

complements

At the most basic level, all supply shifters are essentially factors that change:

costs

Suppose the government declares that a gallon of milk MUST cost $10. As a result of their new decree:

neither the demand curve nor the supply curve for milk will shift.

(This question refers to the MRU video 'The Demand Curve Shifts'.) Which of the following sounds the most like a horizontal reading of a decrease in demand?

"At every price, buyers are willing to buy less at that price."

(This question refers to the MRU video 'Supply and Demand Terminology'.) Which of the following can cause a change in supply?

A change in cost

(This question refers to the MRU video 'Supply and Demand Terminology'.) Which of the following can cause a change in quantity demanded?

A change in the good's price

(This question refers to the MRU video 'The Supply Curve Shifts'.) If a good can be stored, then the expectation of a higher future price would have what impact on the supply of that good?

Supply in the present would fall, supply in the future would rise

The law of demand is best illustrated by which feature of a demand curve?

The fact that it has a negative slope

A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases?

The opportunity cost of producing soccer balls rises, so the supply of soccer balls increases.

(This question refers to the MRU video 'The Supply Curve Shifts'.) If furniture prices rise, which of the following would happen as a result?

The supply of goods with inputs similar to furniture will decrease

(This question refers to the MRU video 'Supply and Demand Terminology'.) _______ is caused by a reduction in costs, while _______ is caused by an increase in demand.

An increase in supply; an increase in quantity supplied **

What effect would $20 tax have on a good's supply curve?

It would shift the supply curve upward by $20.

Yesterday, two things happened: Mo got a pay raise and the price of orange juice fell. If tomorrow, Mo buys more pineapple juice, which of the following CANNOT be true?

For Mo, pineapple juice is an inferior good and a substitute for orange juice.

(This question refers to the MRU video 'The Demand Curve Shifts'.) Tastes and preferences:

differ among consumers and can change over time.