micro econ chapter 4 quiz

A demand curve shows the graphical relationship between quantity demanded and

price.

Considering the graph for microchips, if prices decrease from $200 to $150, suppliers will want to

produce nearly 70 fewer microchips.

In general, supply curves

slope upward from left to right

Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a rightward shift of

the supply curve.

Miriam owns a small shop selling custom headbands and accessories. Last month, she sold 335 headbands for $10 each. According to the law of demand, what quantity might Miriam expect to sell if she drops the price to $6?

415

According to the law of demand, assuming other factors are held constant

As the price of milk decreases, the quantity of milk demanded will increase.

The operations vice president is adjusting the production quantities for the upcoming month of March for the coal company. Last month the price of a ton of coal was $45, and it has now increased to $64 per ton. According to the law of supply, what would be a rational response of the VP of operations in adjusting his coal output with the change in the market price

Increase output and hire more workers.

Two common ways to discourage tobacco use are taxes on tobacco and information campaigns on the hazards of tobacco use. Which one causes a shift in the demand curve for smoking?

Information campaign on hazards of tobacco.

If an increase in the price of Nike shoes increases the demand for Adidas shoes, this means that

Nike shoes and Adidas shoes are substitutes.

What would cause the level of demand (meaning the relationship between price and quantity demanded) to shift?

Population grows in a particular market area.

The regional soda company in Michigan, Faygo, has recently run viral advertisements online and has increased their prices and number of supplied sodas to regional grocery stores. The graph of Faygo's supply schedule is shown below Which supply schedule is correct for creating Faygo's soda supply curve graph?

Price ($)Quantity Supplied$40050$60070$70090$800110$900130$1,100150$1,200170

According to this graph, what happens to quantity demanded if the price of a used car increases from $5000 to $7000?

The quantity demanded drops to 1,000 cars.

The supply curve will shift to the right if which of the following occurs?

There is an improvement in production technology.

A supply curve is a graphical illustration of the relationship between quantity supplied and

price

According to the law of supply, assuming other factors are held constant

as the price of milk decreases, the quantity of milk supplied will decrease.