Microeconomics Chapter 4
Refer to Figure 4-22. Which of the four panels illustrates an increase in quantity supplied? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
a
Refer to Figure 4-22. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
a
If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises? a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.
a. Both the equilibrium price and quantity would decrease.
If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise? a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.
a. Both the equilibrium price and quantity would increase
Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market? a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
Refer to Figure 4-22. Panel (b) shows which of the following? a. a decrease in demand and a decrease in quantity supplied b. a decrease in demand and a decrease in supply c. a decrease in quantity demanded and a decrease in quantity supplied d. a decrease in quantity demanded and a decrease in supply
a. a decrease in demand and a decrease in quantity supplied
Refer to Figure 4-22. Panel (a) shows which of the following? a. an increase in demand and an increase in quantity supplied b. an increase in demand and an increase in supply c. an increase in quantity demanded and an increase in quantity supplied d. an increase in quantity demanded and an increase in supply
a. an increase in demand and a decrease in quantity supplied
A decrease in input costs to firms in a market will result in a(n) a. decrease in equilibrium price and an increase in equilibrium quantity. b. decrease in equilibrium price and a decrease in equilibrium quantity. c. increase in equilibrium price and a decrease in equilibrium quantity. d. increase in equilibrium price and an increase in equilibrium quantity.
a. decrease in equilibrium price and an increase in equilibrium quantity
Which of the following sets of events must cause an increase in the price of a new house? (Assume that they are normal goods.) a. higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future b. lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future c. lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future d. higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future
a. higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future
Refer to Figure 4-22 Which of the four panels represents the market for winter coats as we progress from winter to spring? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
b
Refer to Figure 4-22. Which of the four panels illustrates a decrease in quantity supplied? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
b
Which of the following would shift the demand curve for gasoline to the right? a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline
b. an increase in consumer income, assuming gasoline is a normal good
A leftward shift of a demand curve is called a(n) a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded.
b. decrease in demand
Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for a. hair gel to increase. b. razors to increase. c. combs to increase. d. shampoo to increase.
b. razors to increase
Refer to Figure 4-22. Which of the four panels illustrates an increase in quantity demanded? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
c
Refer to Figure 4-22. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
c
Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of a. crystal to be unaffected. b. crystal to decrease. c. crystal to increase. d. lead to increase
c. crystals to increase
Equilibrium price must decrease when demand a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. d. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously
c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
Which of the following events must cause equilibrium price to fall? a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase
c. demand decreases and supply increases
Which of these statements best represents the law of demand? a. When buyers' tastes for a good increase, they purchase more of the good. b. When income levels increase, buyers purchase more of most goods. c. When the price of a good decreases, buyers purchase more of the good. d. When buyers' demands for a good increase, the price of the good increases.
c. when the price of a good decreases, buyers purchase more of the good
Refer to Figure 4-22. Which of the four panels illustrates a decrease in quantity demanded? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
d
Refer to Figure 4-22. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south? a. Panel (a) b. Panel (b) c. Panel (c) d. Panel (d)
d
Refer to Figure 4-22. Panel (d) shows which of the following? a. a decrease in demand and a decrease in quantity supplied b. a decrease in demand and a decrease in supply c. a decrease in quantity demanded and a decrease in quantity supplied d. a decrease in quantity demanded and a decrease in supply
d. a decrease in quantity demanded and a decrease in supply
An increase in the price of oranges would lead to a. an increased supply of oranges. b. a reduction in the prices of inputs used in orange production. c. an increased demand for oranges. d. a movement up and to the right along the supply curve for oranges.
d. a movement up and to the right along the supply curve
Refer to Figure 4-22. Panel (c) shows which of the following? a. an increase in demand and an increase in quantity supplied b. an increase in demand and an increase in supply c. an increase in quantity demanded and an increase in quantity supplied d. an increase in quantity demanded and an increase in supply
d. an increase in quantity demanded and an increase in supply
Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are a. complementary goods. b. normal goods. c. inferior goods. d. substitute goods
d. substitute goods
Which of the following events must cause equilibrium quantity to rise? a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase
d. supply and demand both increase
Which of the following demonstrates the law of supply? a. When leather became more expensive, belt producers decreased their supply of belts. b. When car production technology improved, car producers increased their supply of cars. c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters. d. When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.
d. when ketch prices rose, ketchup seller increased their quantity of ketchup