Quiz 1/2

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury?

D decreases, S no change, P and Q decrease

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

S increases, D no change, P decreases, Q increases

In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?

The supply curve shifts to the left.

Which of the follow is a result of imposing a rent ceiling?

There is an increase in the quantity of apartments demanded.

If, in response to an increase in the price of pineapples, the quantity demanded of pineapples decreases, economists would describe this as

a decrease in quantity demanded.

The phrase "demand has increased" means that

a demand curve has shifted to the right

If, in response to a decrease in the price of coffee, the quantity demanded of coffee increases, economists would describe this as

an increase in quantity demanded.

Which of the following would cause an increase in the supply of cheese?

an increase in the number of firms that produce cheese

Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except

an increase in the price of gasoline

Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?

an increase in the price of gasoline.

Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?

an increase in the price of tomatoes

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline,

he supply curve shifted to the left resulting in an increase in the equilibrium price

An ________ is represented by a rightward shift of the demand curve while an ________ is represented by a movement along a given demand curve.

increase in demand; increase in quantity demanded

To affect the market outcome, a price floor

must be set above the equilibrium price.

The minimum wage is an example of

price floor

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that

the demand for personal trainers has increased.

If you are considering buying either an Apple iPhone or a Samsung Galaxy, and you choose the Samsung only because the price is lower, then you consider

the iPhone and the Galaxy to be substitutes

One would speak of a movement along a supply curve for a good, rather than a change in supply, if

the price of the good changes

If in the market for apples the supply has decreased then

the supply curve for apples has shifted to the left.