Quiz03SupplyandDemand

A decrease in the opportunity cost of steel production will: a. make suppliers more likely to produce steel, thus shifting the supply curve down and to the right. b. make suppliers more likely to produce steel, thus shifting the supply curve up and to the left. c. entice producers to produce more substitute goods. d. increase the price of steel.

a. make suppliers more likely to produce steel, thus shifting the supply curve down and to the right.

The supply curve for oil slopes upward because: a. oil will be extracted from more costly sources only when the price of oil is higher. b. oil producers do not react to any change in the price of oil. c. no oil producer is willing to extract oil when the price of oil decreases. d. oil will be extracted from more costly sources only when the price of oil is lower.

a. oil will be extracted from more costly sources only when the price of oil is higher.

Suppose it is widely believed that the price of flat-screen, high-definition televisions will be lower next year. What will happen as a result of such beliefs? a. The demand for flat-screen TVs will decrease next year. b. The demand for flat-screen TVs will decrease now. c. The demand for flat-screen TVs will increase now. d. The demand for flat-screen TVs will not change now.

b. The demand for flat-screen TVs will decrease now.

The difference between the maximum price a consumer is willing to pay for a given quantity of a good and its market price is: a. consumer shortage. b. consumer surplus. c. producer surplus. d. producer shortage.

b. consumer surplus.

A farmer can grow either apples or oranges. An increase in the price of apples ______ the opportunity cost of growing oranges so that the supply curve of oranges shifts ______. a. decreases; up and to the left b. increases; up and to the left c. decreases; down and to the right d. increases; down and to the righ

b. increases; up and to the left

Which of the following would cause the demand curve in this market to shift from to ? a. The price of an input in the production of the good decreases b. Tastes shift to lesser popularity of the good c. income in the population increases and the good is a normal good d. the price of the good decreases None of the above

c. income in the population increases and the good is a normal good

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______. a. decreases; down and to the right b. increases; down and to the right c. increases; up and to the left d. decreases; up and to the left

c. increases; up and to the left

The quantity supplied: a. shows how much sellers are willing and able to sell at different prices. b. is the amount that buyers are willing and able to buy at a particular price. c. the amount that sellers are willing and able to sell at a particular price. d. shows how much buyers are willing and able to buy at different prices.

c. the amount that sellers are willing and able to sell at a particular price.

A supply curve indicates that: a. the supply for a good is higher when the price of that good is higher. b. the quantity supplied of a good is higher when the price of that good is lower. c. the quantity supplied of a good is higher when the price of that good is higher. d. the supply for a good is higher when the price of that good is lower.

c. the quantity supplied of a good is higher when the price of that good is higher.

Which of the following statements about the supply curve is TRUE? a. As the price of a good rises, it becomes profitable to sell only the lower-cost good. b. All sellers are able to sell a good only when the price is very low. c. All sellers are willing to sell a good only when the price is very high. d. As the price of a good rises, it becomes profitable to sell the higher-cost good.

d. As the price of a good rises, it becomes profitable to sell the higher-cost good.

Consumer surplus is the amount that consumers: a. are willing to pay for a good plus the amount that they actually pay for it. b. are willing to pay for a good. c. actually pay for a good. d. are willing to pay for a good minus what they actually pay for it.

d. are willing to pay for a good minus what they actually pay for it.

Demand slopes down because: a. supply slopes up, and supply and demand must intersect. b. goods usually have only a single use. c. consumers focus too much on the price of goods when they choose the quantity to demand. d. consumers will choose to use goods only in their most valuable uses when prices are high.

d. consumers will choose to use goods only in their most valuable uses when prices are high.

f, for any given amount of a good or service, willingness to pay increases, then: a. supply has decreased. b. supply has increased. c. demand has decreased. d. demand has increased.

d. demand has increased.

Quantity demanded: a. shows how much sellers are willing and able to sell at different prices. b. shows how much buyers are willing and able to buy at different prices. c. is the amount that sellers are willing and able to sell at a particular price. d. is the amount that buyers are willing and able to buy at a particular price.

d. is the amount that buyers are willing and able to buy at a particular price.

Consider the (world) market supply curve for oil. Saudi oil production inhabits the _____ part of the curve, and Canadian oil production inhabits the _____ part of the curve.

lower; upper