ECON 202-Macroeconomics Chapter 3

A change in quantity supplied is the result of: A change in the price of the good. A change in technology. An increase in the number of sellers. All of the above.

A change in the price of the good.

If bagels and donuts are substitutes, then a decrease in the price of donuts will result in: An increase in the demand for donuts. An increase in the demand for bagels. A decrease in the demand for donuts. A decrease in the demand for bagels.

A decrease in the demand for bagels.

A market shortage is: The amount by which the quantity demanded exceeds the quantity supplied at a given price. A situation of excess demand. A situation in which people cannot buy all of the goods they are willing and able to buy at the actual market price. All of the above.

All of the Above

Tennis balls and tennis rackets are commonly used together and can be considered complementary goods. A decrease in the price of tennis rackets will result in: An increase in the demand for tennis balls. A decrease in the demand for tennis balls. An increase in the demand for tennis rackets. A decrease in the demand for tennis rackets.

An increase in the demand for tennis balls.

A change in demand means there has been a shift in the demand curve, and a change in quantity demanded: Results from a change in price of other goods. Means a shortage or surplus will result from holding prices constant. Also means demand has shifted. Means that price has changed and there is movement along the demand curve.

Means that price has changed and there is movement along the demand curve.

A rock concert was sold out several weeks before the performance. This implies that the: Stadium where the concert was being held was very small. Price of the tickets must have been very high because of the high demand. Rock group must be very popular. Price of the tickets must have been below the equilibrium price.

Price of the tickets must have been below the equilibrium price.

When a surplus exists: Producers reduce price in an attempt to decrease excess inventory. Consumers buy more of the good because they know a surplus exists. Government officials offer more subsidies. All of the above.

Producers reduce price in an attempt to decrease excess inventory.

A buyer is said to have a demand for a good only when: The buyer wants to own the good. The buyer is both willing and able to purchase the good at alternative prices. The price of the good is low enough. An adequate supply of the good is available for purchase.

The buyer is both willing and able to purchase the good at alternative prices.

A market is said to be in equilibrium when: Demand is fully satisfied at all alternative prices. The buying intentions of all consumers are realized. The supply intentions of all sellers are realized. The quantity demanded equals the quantity supplied.

The quantity demanded equals the quantity supplied.

According to the law of demand, a decrease in price leads to an increase in quantity demanded. True False

True