Pre-Chapter Questions 3: Chapter 3, Part 2.Assignment

A movement along the demand curve is considered ______. Multiple choice question. a change in the quantity demanded a change in demand

a change in the quantity demanded a change in demand

An increase in the supply of corn (a rightward shift in the supply curve) could be the result of _____ in the price of an input to the production of corn. Multiple choice question. - an increase - a decrease

a decrease Reason: A decrease in the price of an input to production leads to an increase in supply.

If butter and popcorn are complements, then an increase in the price of butter will lead to _____ in the demand for popcorn. Multiple choice question. a decrease an increase

a decrease an increase

If bagels and cereal are substitutes, then a decrease in the price of bagels will lead to _____ in the demand for cereal. Multiple choice question. an increase a decrease

an increase a decrease

If the demand for tea increases when the price of coffee goes up, then this suggests that coffee and tea are _____. Multiple choice question. - complements - inferior - substitutes - normal

substitutes

Which of the following factors will lead to a decrease in demand? Multiple select question. - A decrease in the population of potential buyers. - An expectation of higher prices in the future. - A decrease in the price of a substitute. - An increase in consumers' income if the good is a normal good.

- A decrease in the population of potential buyers. - An expectation of higher prices in the future. Reason:An expectation of higher prices in the future should increase current demand. - A decrease in the price of a substitute. - An increase in consumers' income if the good is a normal good.

Which of the following factors will lead to an increase in the demand for a good? Multiple select question. - An expectation of higher prices in the future - A decrease in income (for normal goods) - A decrease in the price of a complement - An increase in price

- An expectation of higher prices in the future - A decrease in income (for normal goods) Reason: A decrease in income will decrease the demand for normal goods. - A decrease in the price of a complement - An increase in price Reason: A decrease in price will lead to an increase in quantity demanded, but it will not lead to an increase in demand (that is, the demand curve will not shift).

Which of the following factors will lead to an increase in the demand for a good? Multiple select question. - An expectation of higher prices in the future - A decrease in the price of a complement - An increase in price - A decrease in income (for normal goods)

- An expectation of higher prices in the future - A decrease in the price of a complement - An increase in price Reason: An decrease in price will lead to an increase in quantity demanded, but it will not lead to an increase in demand (that is, the demand curve will not shift). - A decrease in income (for normal goods) Reason: A decrease in income will decrease the demand for normal goods.

Which of the following factors will lead to a decrease in demand? Multiple select question. - An expectation of higher prices in the future. - A decrease in the population of potential buyers. - A decrease in the price of a substitute. - An increase in consumers' income if the good is a normal good.

- An expectation of higher prices in the future. Reason: An expectation of higher prices in the future should increase current demand. - A decrease in the population of potential buyers. - A decrease in the price of a substitute. - An increase in consumers' income if the good is a normal good.

A movement along the demand curve is considered ______. Multiple choice question. - a change in the quantity demanded - a change in demand

- a change in the quantity demanded - a change in demand

If the price of cheese increases, then this should lead to _____ in the supply of pizza. Multiple choice question. - a decrease - an increase - no change

- a decrease Reason: An increase in the price of an input will lead to a decrease in supply. - an increase - no change

A change in quantity demanded is represented by Multiple choice question. - a shift in the entire demand curve. - a movement along the demand curve.

- a movement along the demand curve Reason:A shift in the entire demand curve represents a change in demand.

A change in quantity demanded is represented by Multiple choice question. - a movement along the demand curve. - a shift in the entire demand curve.

- a movement along the demand curve. - a shift in the entire demand curve. Reason: A shift in the entire demand curve represents a change in demand.

Two goods are complements if Multiple choice question. - an increase in the price of one good, leads to an increase (rightward shift) in the demand for the other. - an increase in the price of one good, leads to a decrease (leftward shift) in the demand for the other.

- an increase in the price of one good, leads to an increase (rightward shift) in the demand for the other. - an increase in the price of one good, leads to a decrease (leftward shift) in the demand for the other.

The socially optimal quantity is Multiple choice question. - determined by democratically elected governments in most countries. - the equilibrium quantity. - the quantity of a good that maximizes the total economic surplus that results from producing and consuming the good.

- determined by democratically elected governments in most countries - the equilibrium quantity Reason: The equilibrium quantity will not be socially optimal if the supply curve and demand curve do not capture all of the significant costs and benefits associated with production and consumption. - the quantity of a good that maximizes the total economic surplus that results from producing and consuming the good.

If the demand for bread increases when the price of peanut butter falls, then this suggests that bread and peanut butter are _____. Multiple choice question. - inferior - substitutes - complements - normal

- inferior - substitutes - complements - normal

If an increase in the price of one good, causes a decrease (leftward shift) in the demand for another good, then the two goods are _____. Multiple choice question. - substitutes - normal - complements - inferior

- substitutes - normal - complements - inferior

Total surplus is Multiple choice question. - the difference between the buyer's reservation price and the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the sum of the buyer's reservation price and the seller's reservation price. - the difference between the price the seller receives and the seller's reservation price.

- the difference between the buyer's reservation price and the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the sum of the buyer's reservation price and the seller's reservation price. - the difference between the price the seller receives and the seller's reservation price.

Total surplus is Multiple choice question. - the difference between the price the seller receives and the seller's reservation price. - the sum of the buyer's reservation price and the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the difference between the buyer's reservation price and the seller's reservation price.

- the difference between the price the seller receives and the seller's reservation price. - the sum of the buyer's reservation price and the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the difference between the buyer's reservation price and the seller's reservation price.

Seller's surplus is Multiple choice question. - the same as the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the difference between the buyer's reservation price and the seller's reservation price. - the difference between the price the seller receives and the seller's reservation price.

- the same as the seller's reservation price. - the difference between a buyer's reservation price and the price the buyer actually pays. - the difference between the buyer's reservation price and the seller's reservation price. - the difference between the price the seller receives and the seller's reservation price.