Microeconomics chapter 3

demand for coffee beans has increased

(consider this) suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015, and sell 240 million pounds for $3 per pound in 2016. based on this information we can conclude that the:

supply of salsa has increased

(consider this) suppose that salsa manufacturers sell 2 million bottles at $3.50 in one year, and 3 million bottles at $3 in the next year. based on this information we can conclude that the:

even sponsors have established ticket prices at below-equilibirum levels

(consider this) ticket scalping implies that:

reselling a ticket at a price above its original purchase price

(consider this) ticket scalping refers to:

commercialize human body parts and thus diminish the special nature of human life

(last word) a major objection to creating a legal market for human organs is that such a market would:

eliminate thr shortage of organs

(last word) a market for human organs (rather than the current volunteer-donor system) would be expected to:

increase the quantity of organs available for transplant

(last word) a market-based system of buying and selling human organs for transplant would:

increase equilibirum price and quantity

given a downsloping demand curve an upsloping supply curve for a product, an increase in the price of a substitute good (from the buyer's perspective) will:

the horizontal sum of individual demand curve

graphically, the market demand curve is:

demand curve for X to the right

if X is a normal, a rise in money income will shift the:

demand curve for Z to the left

if Z is an inferior good, an increase in money income will shift the:

neither the equilibirum price nor equilibirum quantity will be affected

if a legal ceiling price is set above the equilibrium price:

not achieving productive efficiency

if an economy produces its most wanted goods but uses outdated production methods, it is:

may shift either to the right or left

if consumer incomes increase, the demand for product X:

it would create neither a shortage nor a surplus

if government set a maximum price of $45 in the above market, a:

surplus of 21 units would occur

if government set a minimum price of $50 in the above market, a:

surplus will increase quantity demanded and decrease quantity supplied

if price is above the equilibrium level, competition among sellers to reduce the resulting:

a decrease in supply

if producers must obtain higher prices than before to produce a given level of output, then the following has occured:

demand for A will increase and the quanitity of B demanded will increase

if products A and B are complements and the price of B decreases the:

shift the demand curve of D to the right

if products C and D are close substitures, an increase in the price of C will:

A and B are complementary goods

if the demand curve for product B shifts to the right as the price of product A declines, then:

consumer incomes have fallen

if the demand for steak (a normal good) shifts to the left, the most likely reason is that:

shift to the right

if the price of product L increases, the demand curve for close-substitute product J will:

quantity must decline, but equilibrium price may rise, fall, or remain unchanged

if the supply and demand curves for a product both decrease, then equilibrium:

increases and demand decreases

one can say with certainty that equilibrium price will decline when supply:

lower price increases the real incomes of buyers, enabling them to buy more

one reason that the quantity demanded of a good increases when its price falls is that the:

increase its price

other things equal, an excise tax on a product will:

product supply curve of X will shift to the right

other things equal, if the price of a key resource used to produce product C falls, the:

the development of a low-cost electric automobile

other things equal, which of the following might shift the demand curve for gasoline to the left?

independent goods

tennis rackets and ballpoint pens are:

price

the construction of demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:

price must ride, but equilibrium quantity may rise, fall, or remain unchanged

if the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium:

the price of the product will rise

if there is a shortage of product X, and the price is free to change:

is above the equilibrium level

if there is a surplus of a product, its price:

price and quantity demanded

the demand curve shows the relationship between:

normal goods

the demand for most products varies directly with changes in consumer incomes. such productsa re known as:

a decrease in the price of one will increase the demand for the other

if two goods are complements:

quantity supplied exceeds quantity demanded

if we say that a price is too high to clear the market, we mean that:

the prices of other goods are assumed constant

in constructing a demand curve for product X:

the price of the product for which the demand curve is relevant

in moving along a demand curve which of the following is not held constant?

the price of the product for which the supply curve is relevant

in moving along a supply curve which kof the following is not held constant?

the price of the product itself

in presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is:

price ceiling

in the above market, economists would call a government-set maximum price of $40 a:

price floor

in the above market, economists would call a government-set minimum price of $50 a:

a change in buyer tastes

in the past few years, the demand for donuts has greatly increased. This increase in demand might be best explained by:

demand rises and supply rises

in which of the following instances if the effect on equilibrium price dependent on the magnitude of the shifts in supply and demand?

when the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell

in which of the following statements are the terms "demand" and "quantity demanded: used correctly?

is P=35 .5Q

the equation for the demand curve in the below diagram:

marginal benefit and marginal cost are equal at that point

the equilibrium price and quantity in a market usually produces allocative efficiency because:

the downward sloping demand curve

the income and substitution effects account for:

price and quantity demanded are inversely related

the law of demand states that, other things equal:

producers will offer more of a product at high prices than at low prices

the law of supply indicates that, other things equal:

production technology

the location of the product supply curve depends on the:

capacity of a competitive market to equate quantity demanded and quantity supplied

the rationing function of prices refers to the:

direct, inverse

the relationship between quantity supplied and price is ____ and the relationship between quanity demanded and price is ____

price and quantity supplied

the supply curve shows the relationship between:

law of supply

the upward slope of the supply curve reflects the:

consumers want to buy less than producers offer for sale

there will be a surplus of a product when:

consumers are now willing to purchase more of this product at each possible price

when an economist says that the demand for a product has increased, this means that:

the substitution effect

when the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decisions to buy more Nike soccer balls?

the income effect

when the price of a product falls, the purchasing power of our money income rises and thus permits consumers to purchase more of the product. this statement describes:

income effect

when the price of a product increases, a consumer is able to buy a less of it with a given money income. This describes the:

the substitution effect

when the price of a product rises, consumers shift their purchase to other products whose prices are now relatively lower. This statement describes:

increase in the supply of gasoline

when the price of oil declines significantly, the price of gasoline also declines. the latter occurs because of a(n):

all of these are consequences of rent controls

which of the following is a consequence of rent controls established to keep housing affordable for the poor?

used clothing

which of the following is most likely to be an inferior good

an increase in the price of C will decrease the demand for complementary product D

which of the following statements is correct?

if supply increases and demand decreases, equilibrium price will fall

which of the following statements is correct?

an increase in supply

which of the following will cause a decrease in market equilibirum price and an increase in equilibrium quantity?

an increase in money income if A is an inferior good

which of the following will cause the demand curve for product A to shift to the left?

a change in the price of K

which of the following will not cause the demand for product K to change?

the expectations by consumers that gasoline prices will be higher in the future

which of the following would most likely increase the demand for gasoline?

a reduction in the price of cattle feed

which of the following would not shift the demand curve for beef?

decrease equilibrium price and increase equilibirum quantity

with a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:

increase equilibrium price and quantity if the product is a normal good

with a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:

why the supply curve is upsloping

increasing marginal cost of production explains:

shift the demand curve for memory cards to the right

a decrease in the price of digital cameras will:

indicates the quantity demanded at each price in a series of prices

a demand curve:

beyong some point the production costs of additional units of output will rise

a firm's supply curve is upsloping because:

increases product supply

a government subsidy to the producers of a product:

some firms leaving an industry

a leftward shift of a product supply curve might be caused by:

if the amount producers want to sell is equal to the amount consumers want to buy

a market is in equilibrium:

is an institution that brings together buyers and sellers

a market:

for which the consumption varies directly with incomes

a normal good is one:

government is imposing a legal price that is typically below the equilibrium price

a price ceiling means that:

government is imposing a minimum legal price that is typically above the equilibrium price

a price floor means that:

beer and marijuana are complementary goods

a recent study found that an increase in the federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:

consumer preference have changed in favor of A so that they now want to buy more at each possible price

a shift to the right in the demand curve for product A can be most reasonably explained by saying that:

above equilibrium with the result that quantity supplied exceeds quantity demanded

a surplus of a product will arise when price is:

the mix of output that will maximize society's satisfaction

allocative efficiency involves determining:

producing the combination of goods most desired by society

allocative efficiency is concerned with:

the production of the product mix most wanted by society

allocative efficiency refers to:

bicycles are normal goods

an economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. this prediction assumes that:

result in a product shortage

an effective ceiling price will:

result in a surplus of wheat

an effective price floor on wheat will:

result in a product surplus

an effective price floor will:

shift the supply curve to the right

an improvement in production technology will:

quantity demanded to decrease

an increase in product price will cause:

supply curve for cigarettes leftward

an increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:

consumers will substitute other products for the one whose price has risen

an increase in the price of a product will reduce the amount of it purchased because:

increase the demand for substitute product B

an increase in the price of product A will:

price has declined and consumers therefore want to purchase more of the product

an increase in the quantity demanded means that:

not accurately defined by any of these statements

an inferior good is:

decrease, quantity demanded will increase, and quantity supplied will decrease

assume in a competitive market that price is initially above the equilibrium level. we can predict that price will:

increase, quantity demanded will decrease, and quantity supplied will increase

assume in a competitive market that price is initially below the equilibirum level. we can predict that price will:

a larger quantity of C will be demanded

assume that the demand curve for product C is downsloping. if the price of C falls from $2.00 to $1.75:

a decline in income if X is an inferior good

assume the demand curve for product X shifts to the right. this might be caused by:

generally alter both equilibrium price and quantity

assuming conventional supply and demand curves, changes in the determinants of both supply and demand will:

increase, quantity demanded to decrease, and quantity supplied to increase

at the current price there is a shortage of a product. we would expect price to:

there are no pressure on price to either rise or fall

at the equilibrium price:

the quantity that consumers want to purchase and the amount producers choose to sell are the same

at this point where the demand and supply curves for a product intersect:

assume many buyers and many sellers of a standardized product

markets, viewed from the perspective of the supply and demand model:

a schedule of various combinations of market prices and amounts demanded

economists use the term "demand" to refer to:

shift the supply curve to the right

because of unseasonably cold weather, the supply of oranges has substantially decreased. this statement indicates the:

ceiling prices and the resulting product shortaged

black markets are associated with:

complementary goods

blu-ray players and blu-ray discs are:

the quantity demanded at each price in a set of prices is greater

by an "increase in demand" economists mean that:

raise their price and increase their quantity supplied

camille's creations and julia's jewels both sell beads in a competitive market. if at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both camille's and julia's to:

inferior goods

college students living off-campus frequently consume large amounts of ramen noodles and boxed macroni and cheese. when they finish school and start careers, their consumption of both goods frequently declines. this suggests that ramen noodles and boxed macroni and cheese are:

complementary goods

digital cameras and memory cards are:

school-age population, incomes, and preferences for education have changed over the twenty-year period

data from the registrar's office at gigantic state university indicate that over the past twenty years tuition and enrollment have both increased. from this information we can conclude that:

increases in the supply of computer memory have exceeded increases in demand

over time, the equilibrium price of a gigabyte of computer memory has fallen while the equiblibrium quantity purchased has increased. based on this we can concluse that:

interfere with the rationing function of prices

price floors and ceiling prices:

the use of the least-cost method of production

productive efficiency refers to:

$2

refer to the above data. equilibrium price will be:

quantity of what supplied to decline as a result of the subsequent price change

refer to the above data. if price was initially $4 and free to fluctuate, we would expect the:

farmers would not be able to sell all their wheat

refer to the above data. if the price in this market was $4

increase in the price of complementary good Y

refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. a shift in the demand curve from D0 to D1 might be caused by a(n):

supply has decreased and equilibrium quantity has decreased

refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. given D0, if the supply curve moved from S0 to S1, then:

0F represents a price that would result in a shortage of AC

refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. if supply is S1 and demand D0, then

0F and 0C, respectively

refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. if the initital demand and supply curves are D0 and S0, equilibrium price and quantity will be:

increase in the wage rates paid to loberers employed in the production of X

refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. other things equal, a shift of the supply curve from S0 to S1 might be caused by a(n):

shift from D2 to D1

refer to the above diagram. a decrease in demand is depicted by a:

move from point y to point x

refer to the above diagram. a decrease in quantity demanded is depicted by a:

shift from S2 to S1

refer to the above diagram. a decrease in supply is depicted by a:

price C

refer to the above diagram. a government price support program to aid farmers is best illustrated by:

price A

refer to the above diagram. a government-set price ceiling is best illustrated by:

price C

refer to the above diagram. a government-set price floor is best illustrated by:

shortage of 100 units

refer to the above diagram. a price of $20 in this market will result in a:

a surplus of 100 units

refer to the above diagram. a price of $60 in this market will result in

$0.50

refer to the above diagram. a shortage of 160 units would be encountered if price was:

$1.60

refer to the above diagram. a surplus of 160 units would be encountered if the price was:

move from point y to point x

refer to the above diagram. as increase in quantity supplied is depicted by a:

$40 and 150, respectively

refer to the above diagram. if this is a competitive market, price and quantity will move toward:

price A

refer to the above diagram. rent controls are best illustrated by:

$1.00 and 200

refer to the above diagram. the equilibrium price and quantity in this market will be:

$60

refer to the above diagram. the highest price that buyers will be willing and able to pay for 100 units of this product is:

suggests that the supply of blu-ray players has increased

since their introduction, prices of blu-ray players have fallen and the quantity purchased has increased. this statement:

the income effect

steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by:

the supply to increase as farmers plant more corn

suppose that corn prices rise significantly. if farmers expect the price of corn to continue rising relative to other crops, then we would expect:

suggest that the demand for mustangs increased between 2007 and 2008

suppose that in 2007, ford sold 500,000 mustangs at an average price of $18,800 per car; in 2008, 600,000 mustangs were sold at an average price of $19,500 per car. these statements:

demand for clothing has grown faster than the supply of clothing

suppose that in the clothing market, production costs have fallen, but the equilibrium

reduce the demand for soda and increase the demand for tacos

suppose that tacos and pizza are substitutes, and that soda and pizza are complements. we would expect an increase in the price of pizza to: