Chapter 4 Quick Check and True/False

Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold a. an increase in the price of peanut butter, a complement to jelly b. an increase in the price of Marshmallow Fluff, a substitute for jelly c. an increase in the price of grapes, an input into jelly d. an increase in consumers' incomes, as long as jelly is a normal good

c. an increase in the price of grapes, an input into jelly

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods? a. prices and quantities both rise b. price and quantities both fall c. prices rise and quantities fall d. prices fall and quantities rise

a. prices and quantities both rise

Suppose that the equilibrium price and quantity of construction materials increased in Houston after the hurricane. How do you think the demand and supply curves of construction materials shifted? a. the increase in demand was greater than the increase in supply b. the increase in demand was smaller than the increase in supply c. the decrease in demand was greater than the decrease in supply d. the decrease in demand was smaller than the increase in supply

a. the increase in demand was greater than the increase in supply

The discovery of a large new reserve of crude oil will shift the _______ curve for gasoline, leading to a ________ equilibrium price a. supply, higher b. supply, lower c. demand, higher d. demand, lower

b. demand, higher

An increase in ________ will cause a movement along a given demand curve, which is called a change in ________. a. supply; demand b. supply; quantity demanded c. demand; supply d. demand; quantity supplied

b. supply; quantity demanded

A change in which of the following will NOT shift the demand curve for hamburgers? a. the price of hotdogs b. the price of hamburgers c. the price of hamburger buns d. the income of hamburger consumers

b. the price of hamburgers

An increase in the price of steel will shift the supply curve of automobiles to the a. rights and it will increase the price of automobiles b. right and it will decrease the price of automobiles c. left and it will decrease the price of automobiles d. left and it will increase the price of automobiles

d. left and it will increase the price of automobiles

The price of good A falls and the demand for good B decreases. Goods A and B are a. cannot be determined b. complements c. normal goods d. substitutes

d. substitutes

Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets? a. the supply curve shifts to the left b. the supply curve shifts to the right c. the demand curve shifts to the left d. the demand curve shifts to the right

d. the demand curve shifts to the right

Which of the following is not a determinant of the demand for a particular good? a. the prices of related goods b. incomes c. tastes d. the prices of inputs used to produce the good

d. the prices of inputs used to produce the good