EC 111 Chapter 4

A university's football stadium is never more than half-full during football games. This indicates a. the ticket price is above the equilibrium price b. the ticket price is below the equilibrium price c. the ticket price is at the equilibrium price d. nothing about the equilibrium price

a. the ticket price is above the equilibrium price

If the supply of a product decreases, then we would expect equilibrium price a. to increase and equilibrium quantity to decrease b. to decrease and equilibrium quantity to increase c. and equilibrium quantity to both increase d. and equilibrium quantity to both decrease

a. to increase and equilibrium quantity to decrease

Which of the following changes would NOT shift the demand curve for a good or service? a. a change in income b. a change in the price of the good or service c. a change in expectations about the future price of the good or service d. a change in the price of a substitute good or service

b. a change in the price of the good or service

Which of the following would cause a movement along the supply curve for cupcakes? a. an improvement in technology for commercial mixers b. a decrease in the price of cupcakes c. an increase in the price of cake flour d. all of the above are correct

b. a decrease in the price of cake flour

A leftward shift of a supply curve is called a(n) a. increase in supply b. dcrease in supply c. decrease in quantity supplied d. increase in quantity supplied

b. decrease in supply

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are a. inferior goods b. normal goods c. complement goods d. can't determine

b. normal goods

Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a a. shortage to exist and the market price of roses to decrease b. shortage to exist and the market price of roses to increase c. surplus to exist and the market price of roses to increase d. surplus to exist and the market price of roses to decrease

b. shortage to exist and the market price of roses to increase

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the a. supply curve for Matthew's pies will increase b. supply curve for Matthew's pies will decrease c. demand curve for Matthew's pies will increase d. demand curve for Matthew's pies will decrease

b. supply curve for Matthew's pies will decrease

An improvement in production technology will: a. increase a firm's costs and increase its supply b. increase a firm's costs and decrease its supply c. decrease a firm's costs and increase its supply d. decrease a firm's costs and decrease its supply

c. decrease a firm's costs and increase its supply

If textbooks and study guides are complements, then an increase in the price of textbooks will result in a. more textbooks being sold b. more study guides being sold c. fewer study guides being sold d. no difference in the quantity sold of either good

c. fewer study guides being sold

If the price of roses increases, then: a. the demand for roses will decrease b. the demand for roses will increase c. the quantity demanded for roses will decrease d. the quantity demanded for roses will increase

c. the quantity demanded of roses will decrease

Which of the following would cause price to increase? a. an increase in supply b. a decrease in demand c. a surplus of the good d. a shortage of the good

d. a shortage of the good

Which of the following events must cause equilibrium quantity to rise? a. demand increases and supply decreases b. demand and supply both increase c. demand decreases and supply increases d. demand and supply both increase

d. demand and supply both increase

The law of demand states that, other things equal (Ceteris Paribus), when the price of a good a. falls, the demand for the good rises b. rises, the quantity demanded of the good rises c. rises, the demand for the good falls d. falls, the quantity demanded of the good rises

d. falls, the quantity demanded of the good rises

Soup is an inferior good if the demand a. for soup falls when the price of a substitute for soup rises b. for soup rises when the price of soup falls c. curve for soup slopes upward d. for soup falls when income rises

d. for soup falls when income rises

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 ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.