ECON202

After it earns 1st prize in the spicy category of a ramen tasting competition, college student by more Lamian brand ramen noodles.

Shift of the demand curve

Out N in, a burger joint with an absurd national following in the US., sells more burgers as the price of chicken increases

Shift of the demand curve

After discovering that flash steaming tuna first before using mechanical processes to extract meat, removes more tuna flesh. more cans of tuna hit the shelves at major grocers.

Shift of the supply curve

Amplitude decides to join the smartphone market

Shift of the supply curve

Assume that many farmers choose between planting either peanuts or corn. Suppose that the government deciders to offer farmers a subsidy of $10 a bushel to plant corn since it was discovered that ethanol made from corn can be used as alternative fuel source.

Supply curve for peanuts rise, Supply curve for corn decreases, due to a change in opportunity cost

total producer surplus

an amount measured by the area above the supply curve and the the price up to the quantity traded

total consumer surplus

an amount measured by the area beneath the demand curve and above the price up to the quantity traded

Which of the following wouldn't lead to a decrease in the price of domestic automobiles? an increase in the price of foreign made automobiles an economic recession which decreases consumer income a decrease in the wages to paid union workers an increase in the number of domestic auto makers

an increase in the price of foreign made automobiles

Which of the following does not shift the demand curve: -changes in the price of the product itself -changes in income -changes in population -changes in tastes and preferences

changes in the price of the product itself

In a free market in which equilibrium price and quantity prevails: Consumer surplus is less than producer surplus consumer surplus is greater than producer surplus consumer surplus is the same as producer surplus consumer surplus and producer surplus are maximized

consumer surplus and producer surplus are maximized

when asian countries went into a recession in 1997, the demand for oil_______ and the price of oil______.

decreases, decreased

several other companies now pro due cellphones with gps capability, making substitutes for gps units. Suppose the prices of gps enabled cell phones increase due to a large batch of faulty chips. what effect does this have on the supply and demand.

demand shifts right, equilibrium price increases and equilibrium quantity increases

technological knowledge

knowledge about how the world works that is used to produce goods and services

surpluses lead to

lower prices

Americans put up their gold and silver jewelry for sale as a result of rising prices.

movement along the supply curve

a local fight club supplies less of its premium quality soap as a result of lower prices

movement along the supply curve

consumption

private spending on final goods and services

TH condition for equilibrium to occur in a market is

quantity demand equalling quantity supplied

The quantity of DVDs that people plan to buy this month depends on all of the following EXCEPT the: price of DVDs price of movies for download population quantity of DVDs the sellers have stocked

quantity of DVDs the sellers have stocked

nominal variables

variables such as nominal GDP that have not been adjusted for changes in prices

real variables

variables such as real GDP that have been adjusted for changes in prices by using the same set of prices in all time periods

Recall the discussion in your textbook about the demand curve for oil. Which of the following correctly explains why the demand curve for oil is negatively sloped: When the price of oil rises, consumers use oils for more and varied purposes. As the price of oil rises, consumers begin to use oil only for those purposes where no good substitute exists As the price of oil rises, consumers use oil more freely. As the price of oil rises, more produces are able to produce oil.

As the price of oil rises, consumers begin to use oil only for those purposes where no good substitute exists

Which of the following are compliments? Hotdogs and hamburgers books and book lights coffee and tea cars and vans

Books and book lights

If Romaine lettuce and iceberg lettuce are substitute product, an increase in the price of Romaine lettuce will______ the demand for iceberg lettuce

Increase

The cost of lithium ion batteries has been dropping more steeply than expected. The figure below shows the market for electric vehicles.

Equilibrium Price decreases Equilibrium Quantity Increases Supply curve shifts to the right

True/False: bill usually buys 2 pounds of stench each month. If bills steak consumption is observed to decline to 1 pound in a particular month, this means bills demand for stench has declined

False

GDP per capita

GDP divided by population

Le Bureau et Chaise offers a one weekend clearance sale on its old model of desks which causes students to rush to upgrade their dorm furniture.

Movement along the demand curve

Nettoyer reassess the price for its laundry detergent, which results in less sales and strange around college dorms

Movement along the demand curve

Why did the NAFTA agreement result in an increase in lumber supply in the UNITED STATES?

NAFTA reduced barriers to trade allowing Canadian lumber to enter the United States

Due to an increase in hay prices an input for raising cattle, the price of a gallon of milk increases from $2.98 to $3.25

Quantity Demanded Decreases

Sharp increase in the price of wood causes increases in prices for dressers and desks.

Quantity Demanded Decreases

Groupon has a group on for $6 off the price of laser tag.

Quantity Demanded Increases

Week long special at safeway, where pork shoulder is on sale at $1.99 a pound, down from $3.99 per pound.

Quantity Demanded increases

A new diet is popularized by a health expert, Richardo Simmonetz, that requires people to eat only fried chicken for six weeks. The popularity of the diet resuls in more chicken plants being built nationwide to handle the increased demand for chicken.

Quantity Supplied shifts to the right

Buy one get one special for mp3 albums on amazon.

Quantity demanded increases

Hot springs are discovered outside of Golden, Colorado, resulting in the construction of several new ski resorts. The resorts offer many personalized services and require a large staff to accommodate customer needs.

Quantity supplied moves to the right

The federal government decides to adopt a new visa policy for guest workers seeking to immigrate the the US in order to find jobs. as a result 30% more work visas are given out than had previously been granted. The change is expected to be permanent

Supply shifts to the right

Law of demand

There is a negative relationship between price and quantity demanded There is an inverse relationship between price and quantity that buyers are willing and able to buy. There is an inverse relationship between price and quantity demanded.

you observe that the price of coffee has increased, yet evidence suggests demand for coffee has been stable; you surmise a possible explanation that is: There has been no change in the supply of coffee There has been increases use of subsides in coffee production Wages of workers in coffee production might have decreased Wages of workers in coffee production might have increased

Wages of workers in coffee production might have increases

supply curve

a function that show the quantity supplied at different prices

Demand curve

a function that shows the quantity demanded at different prices

inferior good

a good for which demand decreases when income increases

normal good

a good for which demand increases when income increases

price ceiling

a maximum price allowed by law

price floor

a minimum price allowed by law

rent control

a price ceiling on retail housing

which one of the following answer choices wouldd cause the demand curve for an inferior good to shift to the left? a fall in incomes a fall in the price of the inferior good a rise in incomes a rise in the price of an inferior good

a rise in incomes

recession

a significant widespread decline in real income and employment

shortage

a situation in which the quantity demanded is greater than the quantity supplied

surplus

a situation in which the quantity supplied is greater than the quantity demanded

What does the law of demand state There is a negative relationship between price and quantity demanded There is an inverse relationship between price and quantity that buyers are willing and able to buy. There is an inverse relationship between price and quantity demanded. all of the following

all of the following

The quantity supplied is the: amount of inputs that a firm earns profit on. change in the sellers' output multiplied by the change in price. incremental cost of producing one more unit of output. amount of a good that firms are willing and able to sell at a particular price during a given period of time.

amount of a good that firms are willing and able to sell at a particular price during a given period of time.

immediately after a hurricane, it is likely that the quantity demanded for tree cutting removal serves will ____ the quantity supplied, causing the price of tree cutting removal services to ______

exceed, rise

shortages lead to

higher prices

free rider

someone who consumes the benefits of a public good without paying a share of the costs

government purchases

spending by all levels of government on final goods and services not including transfers

institutions

the "rules of the game" that structure economic incentives

economies of scale

the advantages of large-scale production that reduces average cost as quantity increases

consumer surplus

the consumers gain form exchange, or the difference between he maximum price a consumer is willing to pay for a certain quantity and the market price

Economic growth

the growth rate of real gdp per capita: Gt=Yt-Yt-1/Yt-1*100 where Yt is real per capita GDP in period t

GNP

the market value of all final goods and services produced by a county's permanent residents, wherever located in a year

GDP

the market value of all final goods and services produced within a country in a year

equilibrium price

the price at which the quantity demanded is equal to the quantity supplied

producer surplus

the producers gain from exchange or the difference between the market price and the minimum price at which a producer would be willing to sell a particular quantity

equilibrium quantity

the quantity at which the quantity demanded is equal to the quantity supplied

quantity demanded

the quantity that buyers are willing and able to buy at a particular price

quantity supplied

the quantity that sellers are willing and able to sell at a particular price

business fluctuation

the short run movements in real GDP around its long term trend

physical capital

the stock of tools including machines, structures, and equipment

deadweight loss

the total lost consumer and producer surplus when not all mutually profitable gains from trade are exploited

net exports

the value of exports minus the value of imports

Suppose that the price of toy footballs goes up from 8 dollars to 15 dollars

there will be an increase in quantity supplied

human capital

tools of the mind; the proactive knowledge and skills that worlds acquire through education, training, and experience

substitutes

two goods for which a decrease in the price of one leads to a decrease in demand for the other

compliments

two goods for which a decrease in the price of one leads to an increase in the demand for the other, hamburgers/hamburgerbuns