ECON Ch. 4

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Decrease

If the demand curve started at D2 and fell left to D1 position, this would indicate a(n) _______ in demand.

increase, decrease

If the quantity of Florida oranges decreased because of a freeze, the equilibrium price of the oranges would ________ and the equilibrium quantity would ______.

c

In an attempt to encourage a healthy​ society, the government is making soft drink manufacturers pay a tax for every bottle or can of soda they produce. What will be the effect on the market for soft​ drinks? A. Supply increases and equilibrium price increases. B. Supply increases and equilibrium price decreases. C. Supply falls and equilibrium price increases. D. Supply falls and equilibrium price decreases.

a

A change in quantity supplied causes a _______ the supply curve. a) movement along b) shift of

b (A change in a variable other than the​ product's own price causes a change in demand. This is shown by a shift in the entire demand curve.)

A change in demand causes a _____ the demand curve. a) movement along b) shift of

a

A change in price causes movement along a demand curve and a change in a) the quantity demanded b) demand

b

A change in price causes movement along a demand curve and a change in a) demand b) quantity demanded

a

A change in price causes movement along a supply curve and a change in a) the quantity supplied b) supply

a

A change in quantity demanded causes a _______ the demand curve. a) movement along b) shift of

Decrease

A change in the supply curve from S1 to S2 indicated a(n) _______ in supply.

Increase

A change in the supply curve from S1 to S2 indicates a(n) ________ in supply.

increases, decreases

A decrease in the supply of a product [increases or decreases] the equilibrium price and [increases or decreases] the equilibrium quantity.

b

A man has been laid off from his job. He has a wife and two children. To cut back on​ expenses, the family has begun purchasing​ mega-packs of generic brand macaroni and cheese to use for meals. In this​ case, macaroni and cheese is an example of a(n) _______ good. a) normal b) inferior

price

A movement along a single demand curve is called a change in quantity demanded. This is a change in the quantity a consumer is willing to buy when the _________ changes.

b

A tax on pencil production shifts the supply curve for pencils a) down/ to the right b) up/ to the left

Increases

According to the law of demand, if the price decreases, the demand ________.

a, b

Excess demand occurs when the price is _______ the equilibrium​ price. a) less than b) greater than excess supply occurs when the price is _________ the equilibrium price. a) less than b) greater than

increases, decreases

If a​ $1.00 per pound tax levied on fish producers, the equilibrium price _______ and the equilibrium quantity ________.

a

People enjoy eating two types of​ cereal, Frosted​ Mini-Wheats and Rice Krispies. The price of wheat goes​ up, raising the price of Frosted​ Mini-Wheats. As a​ result, the demand for Rice Krispies increases. In this​ case, A. Rice Krispies and Frosted​ Mini-Wheats are substitutes. B. Rice Krispies is an inferior good. C. Frosted​ Mini-Wheats is a normal good. D. Rice Krispies and Frosted​ Mini-Wheats are complements.

d

Refer to Figure​ 4.1, which shows​ Molly's and​ Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the​ market, what is the market quantity demanded at a price of​ $3? A. 6 B. 9 C. 15 D. 20

80, 80, demand, 30

The equilibrium price of corn is ​$____​, and the equilibrium quantity is _____ tons. ​ At a price of ​$70​, there is excess [supply or demand] equal to ___ tons. Table: Price/ supplied/ demanded $60/ 60/ 120 $70/ 70/ 100 $80/ 80/ 80 $90/ 90/ 60

positive

There is a ________ relationship between price and quantity supplied, according to the law of supply.

negative

There is a _________ relationship between price and quantity demanded, according to the law of demand.

b

There is​ ___________ relationship between the price and the quantity demanded. A. a positive B. a negative C. no D. a flat

b

There is​ ___________ relationship between the price and the quantity demanded. A. no B. a negative C. a flat D. a positive

Decreases

According to the law of demand, if the price increases, the demand ________.

Increase

In this demand curve, the line moves to the right. This indicates that there is a(n) ________ in demand.

b

A change in supply causes a ________ the supply curve. a) movement along b) shift of

a

According to the law of​ demand, a decrease in price ________ the quantity demanded. a) increases b) decreases

b

According to the law of​ supply, an increase in a​ good's price ___________ the quantity supplied of that good. a) decreases b) increases

increase, decrease, increase

An excess demand for a product will cause the price to _____. As a consequence of of the price change, the quantity demanded will _____ and the quantity supplied will _______

a

An improvement in​ pencil-production technology shifts the supply curve for pencils a) down/ to the right b) up/ to the left

b

An increase in the price of wood shifts that supply curve for pencils a) down/ to the right b) up/ to the left

b

The intersection of the supply curve and the demand curve is known as the A. law of demand. B. market equilibrium. C. minimum supply price. D. law of supply.

d

The manager of a pizza shop must decide how much pizza he will produce at a given price. Which of the following would NOT be a consideration for the​ manager? A. The cost of the pizza oven. B. The wage paid to the pizza​ shop's employees. C. The cost of​ dough, cheese, and toppings. D. Consumer income.

a

The market demand curve for a normal good will shift to the left ​(decrease​) when the price of a substitute good a) decreases b) increases ​

decreases, increases, decreases, decreases

The market demand for a normal good ll shift to the left (decrease) when the price of a substitute good _________, the price of a complementary good ________, consumer income _______, and population _______.

lowest

The minimum supply price is the _________ price at which a product is supplied.

supply

When _______ changes, the equilibrium price and equilibrium quantity move in opposite directions.

demand

When _______ changes, the equilibrium price and equilibrium quantity move in the same direction.

decrease

When demand​ decreases, the equilibrium price and quantity will both _________.

price

A movement along a single supply curve is called a "change in quantity supplied". This is a change in the quantity a producer is willing and able to sell when the ________ changes.

21

The following is a demand schedule for International House of Falafel. The following are the number of falafel dishes customers are willing to purchase at the following prices. Price / Quantity $7.50 / 12 $7.00 / 15 $6.50 / 18 $6.00 / 21 $5.50 / 24 International House of Falafel has decided to lower its pricing to​ $6.00 for a special sale. At this​ price, the quantity demanded is __________ . ​ (Enter your response as a whole​ number.)

c, 150, 200, demand, increase, supply, decrease

Interpreting the Graph. The graph to the right shows the demand and supply curves for CD players. Use the information to complete the following statements. At the market equilibrium ​(shown by point ______, the price of CD players is $_____ and the quantity of the CD players is _____. At a price of $100. there would be excess [supply or demand], so we would expect the price of CD players to [increase or decrease]. At any price exceeding the equilibrium price, there would be excess [supply or demand], so we would expect the price to [increase or decrease].


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