Chapter 4

The input costs of a good decrease. What does this do to supply? Supply stays the same Decreases supply It depends Increases supply

Increases supply

In the market for shoes, there is a leftward shift in demand and a leftward shift in supply. How will this affect price and quantity respectively? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesIt depends; decreasesIncreases; increasesIncreases; it dependsDecreases; decreases

It depends, decreases

Which of the following is correct about the market for red delicious apples? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesIt is perfectly competitive, because few consumers want an identical good.It is a planned economy, because a centralized power is dictating all production factors.It is perfectly competitive, because consumers want different goods.It is perfectly competitive, because many consumers want an identical good.

It is perfectly competitive because many consumers want an identical good

Lisa has a stand at the local farmer's market where she sells honey from her farm. Every week, Lisa sells out of honey while still having people waiting in line to buy some. What is happening in the market for Lisa's honey? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesQuantity supplied exceeds quantity demanded, creating a surplus.Quantity demanded exceeds quantity supplied, creating a surplus.Quantity supplied exceeds quantity demanded, creating a shortage.Quantity demanded exceeds quantity supplied, creating a shortage.

Quantity demanded exceeds quantity supplied, creating a shortage.

Suppose you are a manager at a local coffee shop. You notice that every day by 8AM you are entirely sold out of bagels, but have at least 20 people ask for bagels later in the day. Which of the following decisions would result in the best outcome for your shop? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesDecrease the price of bagels.Bake fewer bagels in the morning.Brew less coffee.Raise the price of bagels.

Raise the price of bagels

A guitar manufacturer finds a cheaper source for wood in the production of their electric guitars. During this time, a sharp decrease occurs in the popularity of rock music in favor of electronic dance music created using computers. What effect will this have on price and quantity? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesPrice falls; quantity fallsPrice rises; the change in quantity is unknownPrice rises; quantity risesPrice falls; the change in quantity is unknown

price falls, the change in quantity is unknown

Auction houses, coffee shops, and the New York Stock Exchange are different, and yet they are all considered markets because: they bring buyers and sellers together. they all have explicitly stated prices. they're all brick-and-mortar stores. they all have an online store.

they bring buyers and sellers together

Mrs. Johnson decides that she is going to create her own country. She determines that she will be in charge of all production matters because she knows how to do things more efficiently than anybody else. What kind of economy has Mrs. Johnson effectively created? Planned Auction Market Stock

Planned

Malik is a local politician running for governor in his state. What role does Malik play in the market for votes? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesBorrowerMarketDemanderOrganizer

demander

Aika owns a flower shop. She finds that on Valentine 's Day, she sells out of every kind of flower and has no customers left waiting at the end of the day. This is an example of a market in: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesshortage.surplus.equilibrium.disequilibrium.

equilibrium

Jamal is an engineer working at a large lithium-ion battery producer. He recently made a breakthrough causing the production cost of lithium-ion batteries used in smartphones to go down. In the market for smartphones, this innovation will cause the equilibrium quantity to _____ and the equilibrium price to _____. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesrise; risefall; fallfall; riserise; fall

rise, fall

James goes to a concert at the amphitheater by his house. During the encore, the drummer throws one of his drum sticks into the crowd and James catches it. James doesn't have much interest in memorabilia, so he decides to list the drumstick on eBay. In the market for this band's memorabilia, James is a: buyer. manufacturer seller. demander.

seller

Recall that the demand curve presents your marginal benefit curve. With this in mind, and with no change in the availability of water, why is it that your willingness to pay for water is relatively small compared to other, nonessential to life, goods? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesBecause your water consumption is based on total benefit, not marginal benefitBecause most people prefer other alternativesBecause consumption has no effect on priceBecause your water consumption is based on marginal benefit, not total benefit

Because your water consumption is based on marginal benefit, not total benefit

Dr. Larson is a professor at a state university. He is known for being tough but fair in his grading, and rarely gives out A's on his assignments. Considering that Dr. Larson is on the supply side and his students are on the demand side, why is it so difficult to attain an A? Please choose the correct answer from the following choices, and then select the submit answer button. Answer choicesDemand is high, so price is high.Price stays stagnant regardless of demand.Demand is low, so price is high.Demand is high, so price is low.

Demand is high so price is high

What quick diagnostic tool can you use to assess whether or not a market is in equilibrium? Whether or not it's a sellers-only market Whether or not it's a buyers-only market Whether or not prices are changing The types of goods being exchanged

Whether or not prices are changing