HW 4

Which of the following indicates that the law of supply applies to makers of​ soda?

An increase in the price of a soda leads to an increase in the quantity of soda supplied.

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure​ of?

Equilibrium quantity increases.

Pizza and tacos are​ substitutes, and the price of a pizza increases. Which of the following correctly indicates what​ happens?

The quantity of pizza demanded decreases and the demand for tacos increases.

Plywood is used in the construction of houses. If the price of plywood​ rises, what happens to the supply of​ houses?

The supply decreases so that the supply curve shifts leftward.

If the automobile​ worker's union successfully negotiates a wage increase for its​ members, how does the wage hike affect the supply of​ automobiles?

The supply decreases.

If the costs to produce pizza​ increase, which will​ occur?

The supply of pizza will decrease.

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

a decrease in the current supply of wheat.

One reason supply curves have an upward slope is because

a higher price brings a greater​ profit, so firms want to sell more of that good.

Which of the following events will increase the quantity supplied of​ sweaters?

a rise in the price of a sweater

There are five hundred buyers in the market for cheese. If we know each​ individual's demand​ curves, to find the market​ demand, we must

add the quantities that each buyer will purchase at every price.

Which of the following definitely results in a​ product's equilibrium price​ rising?

an increase in demand combined with a decrease in supply

A market is defined as

any arrangement that brings buyers and sellers together.

If the number of buyers of computers increases and technology​ advances, you predict that the

equilibrium quantity of computers will increase.

Which of the following statements is true about a competitive​ market? A competitive market

has so many buyers and sellers that no one can influence the price.

The market supply curve is the​ ________ of the​ ________.

horizontal​ sum; individual supply curves

If the price of a DVD​ falls, i. the demand curve for DVDs will shift rightward. ii. the demand curve for DVDs will not shift. iii. there will be a movement along the demand curve for DVDs.

ii and iii

An increase in the number of fast−food restaurants

increases the supply of fast−food meals.

eBay

is a market because buyers and sellers are brought together to buy and sell.

As the number of buyers of pounds increases and the number of sellers of pounds​ increases, the equilibrium price of a pound

might​ rise, fall, or remain the same depending on whether the effect on buyers is larger​ than, less​ than, or the same as the effect on sellers.

the horizontal sum of the individual demand curves for mousetraps of all the buyers.

sum horizontally the individual demand curves of all the buyers.

Market demand curves are obtained by

summing the quantities every consumer is willing to buy at each different price.

If the number of companies producing memory chips​ increases, then the

supply of memory chips increases

What is the​ "quantity demanded"?

the amount of a good people are able and willing to buy during a specific time period and at a given price

The market demand curve for mousetraps is

the horizontal sum of the individual demand curves for mousetraps of all the buyers.

The market demand curve for mangos is

the horizontal sum of the individual demand curves of all the buyers.

When moving along a demand​ curve, which of the following​ changes?

the price of the good

Which of the following are examples of a​ market? i. the New York Stock Exchange ii. a used car lot iii. a website selling vacations to Disney World

​i, ii, and iii

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased. If the magnitude of the increase in demand was greater than the magnitude of the decrease in​ supply, then the equilibrium price of gasoline​ ________ and the equilibrium quantity​ ________.

​increased; increased