module 3 quiz econ

Economists use the term "demand" to refer to:

a schedule of various combinations of market prices and amounts/quantities demanded.

Digital cameras and memory cards are:

complementary goods.

If X is a normal good, a rise in money income will shift the:

demand curve for X to the right.

Answer the question on the basis of the given supply and demand data for wheat: Refer to the data. If the price in this market was $4:

farmers would not be able to sell all their wheat.

Refer to the diagram. A price of $20 in this market will result in a:

shortage of 100 units.

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:

supply curve for cigarettes leftward.

Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:

supply has decreased and equilibrium quantity has decreased.

Refer to the diagram. A government-set price floor is best illustrated by:

price C.

If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium:

price must rise, but equilibrium quantity may rise, fall, or remain unchanged.

A decrease in the demand for recreational fishing boats might be caused by an increase in the:

price of outboard motors.

The law of supply indicates that, other things equal:

producers will offer more of a product at high prices than at low prices.

Refer to the table. In relation to column (3), a change from column (1) to column (2) would mostly likely be caused by:

reduced taste for the good.

Refer to the diagram. A shortage of 160 units would be encountered if price was:

$0.50.

Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be:

$9 and 60 units.

If the demand curve for product B shifts to the right as the price of product A declines, then:

A and B are complementary goods.

Which of the following will not cause the demand for product K to change?

A change in the price of product K.

If producers must obtain higher prices than before to produce a given level of output, then the following has occurred:

A decrease in supply.

If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will:

increase the quantity supplied of X and decrease the quantity demanded of X.

In presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is:

the price of the product itself.

If there is a shortage of product X, and the price is free to change:

the price of the product will rise.