Econ 105 Quiz 4

In a​ recession, consumers have less income to spend. As a​ result, if dining out is a normal​ good, then which of the following would happen to the demand curve for dining​ out? A. The demand curve would not shift but the price of dining out would rise. B. The demand curve would shift leftward. C. The demand curve would not shift but the price of dining out would fall. D. The demand curve would shift rightward. E. The effect on the demand curve is unknown.

B. The demand curve would shift leftward.

If there is a surplus of​ tacos, then the A. quantity of tacos demanded equals the quantity of tacos supplied. B. quantity of tacos demanded is less than the quantity of tacos supplied. C. quantity of tacos demanded is greater than the quantity of tacos supplied. D. market is at equilibrium. E. supply curve of tacos will shift leftward to eliminate the surplus.

B. quantity of tacos demanded is less than the quantity of tacos supplied.

Which of the following shifts the demand curve for movies​ rightward? A. a decrease in the price of move tickets B. an increase in the price of HDTV sets C. an increase in the price of​ NetFlix, a substitute for movies D. an increase in movie star salaries E. an increase in the price of movie tickets

C. an increase in the price of​ NetFlix, a substitute for movies

Demand curves slope​ ________ because as the price increases and other things remain the​ same, the quantity demanded​ ________. A. ​upward; increases B. ​downward; does not change C. ​downward; decreases D. ​upward; decreases E. ​downward; increases

C. ​downward; decreases

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 A. add the quantities that each buyer will purchase at every price. B. average the price each buyer is willing to pay for each given quantity. C. add the prices that each buyer will pay at every quantity. D. multiply the price times quantity for each buyer and then add the resulting products together. E. give up because there is no way to find the market demand.

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

The law of demand implies​ that, other things remaining the​ same, A. as more people demand​ cheeseburgers, the quantity demanded increases. B. as the price of a cheeseburger​ rises, the quantity of cheeseburgers demanded increases. C. as the demand for cheeseburgers​ increases, the price of a cheeseburger falls. D. as the price of a cheeseburger​ rises, the quantity of cheeseburgers demanded decreases. E. as income​ increases, the quantity of cheeseburgers demanded increases.

D. as the price of a cheeseburger​ rises, the quantity of cheeseburgers demanded decreases.

When the demand curve shifts rightward and the market moves to a new​ equilibrium, then the A. price falls to restore the equilibrium. B. supply increases. C. supply decreases. D. quantity supplied increases. E. quantity supplied decreases.

D. quantity supplied increases.

When the price of oranges​ increases, A. the supply of oranges decreases. B. the quantity of oranges demanded increases. C. the supply of oranges increases. D. the quantity of oranges supplied increases. E. none of the above

D. the quantity of oranges supplied increases.

The figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. What point represents the most likely new price and​ quantity? A. A B. B C. C D. D E. E

D. D

When demand​ increases, A. consumers buy more of the good only if its price falls. B. the price is lower at any level of quantity demanded. C. the demand curve shifts leftward. D. consumers buy more of the good only if its price rises. E. consumers are willing to buy more at any price.

E. consumers are willing to buy more at any price.