Econ 300 - Exam 1

Which of the following will cause the demand for kerosene heaters to​ increase? A. An increase in the price of kerosene heaters. B. A decrease in the price of kerosene. C. A decrease in the price of kerosene heaters. D. An increase in the price of kerosene.

B. An increase in the price of kerosene (complement)

Which one of the following would NOT occur if the market price was above the​ market-clearing price? A. There would be a surplus. B. Consumers would bid up the price. C. Producers would want to produce and sell more than consumers would want to buy. D. Producers would begin to lower their prices to sell off excess inventory.

B. Consumers would bid up the price.

Even though the annual consumption of copper is now about 100 times greater than it was in​ 1880, the real price of copper has remained relatively unchanged. Which of the following help account for this​ pattern? A. New deposits that were cheaper to mine were discovered. B. Demand for copper grew dramatically. C. More efficient technologies reduced production costs. D. All of the above.

D. All of the above.

Suppose that unusually hot weather causes the demand curve for ice cream to shift to the right. Why will the price of ice cream rise to a new​ market-clearing level? The hot weather will A. cause the supply curve to become​ fixed, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded. B. shift the demand curve to the right​, initially creating a surplus until the price rises to where quantity supplied again equals quantity demanded. C. shift the demand curve to the right​, initially creating a shortage until the price falls to where quantity supplied again equals quantity demanded. D. shift the supply curve to the right​, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded. E. shift the demand curve to the right​, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded.

E. shift the demand curve to the right​, initially creating a SHORTAGE until the price RISES to where quantity supplied again EQUALS quantity demanded.