Micro Chapter 3 Demand Launchpad Questions

The law of supply states that as price ________, the quantity _______

rise; supplied rises

Which factor would shift the demand curve for gasoline to the right?

an increase in national income

Which factor would NOT cause the demand curve for green tea to shift to the right?

a decrease in the price of green tea

Butter is a substitute for margarine. If the price of margarine drops, we would expect to see:

both the price of butter and quantity of butter fall

When a large factory closed in the town of Greenville, income fell for many residents. As a result, demand for normal goods would _____ and demand for inferior goods would ________

decrease; increase

In the market for Chinese take-out, suppose that the price of Sushi take out, a substitute, decreases in price. What will happen to the demand for Chinese take out?

demand for Chinese take out will decrease

A decrease in demand causes the equilibrium prices to _____ and the equilibrium quantity to_____

fall;fall

When the quantity demanded in a market equals quantity supplies, then the:

market is in equilibrium

The supply curve represents the _____ price at which a firm is willing to _____

minimum, sell various quantities of a good

There is a(n) __________ relationship between price and quantity demanded

negative

If the demand for iphones rises as incomes increase, then the iphone i a(n) __________ good.

normal

Which enterprise is NOT an example of a market?

painting one's house

A good is a normal good if:

the demand curve shifts outward if income increases

The law of demand states that:

the lower a product's price, the more of that products consumers will purchase during a given period

A surplus exists:

when quantity supplies exceeds the quantity demanded