Econ 2301 CH 3
A decrease in the price of electricity can best be explained by
A decrease in the population
Ceteris Paribus, which of the following is most likely to cause an increase in the quantity demanded of perfume?
A decrease in the price of perfume
A lower quantity demanded os a good reflects, ceteris paribus
A higher price of the good
Peanut butter and jelly are compliments. A decrease in the price of one will result in
An increase in the demand for the other
Ceteris paribus, which of the following is most likely to cause an increase in the quantity supplied of perfume
An increase in the price of perfume
In table 3.1, if the price is $4 (demand 30, supplied 30) the market will
Be in equilibrium
Which of the following is purchased in a product market
Cell phone service
A leftward shift of the market demand curve for HDTVs, ceteris paribus, causes equilibrium price to
Decrease and the quantity to decrease
In table 3.1, if the price is $2 (demand 32, supplied 10) the market will
Experience a shortage of 22 units
In table 3.1, if the price is $8 (demand 14, supplied 70) the market will
Experience a surplus of 56 units
A change in demand means there has been a shift in the demand curve, and a change in quantity demanded
Means that price has changed and there is movement along the demand curve
Which determinate of demand changes in the personal computer market as more individuals become interested in "surfing the internet"
Number of buyers
A rightward shift of the market demand curve for MP3 players, ceteris paribus, causes equilibrium
Price to increase and quantity to increase
In a market economy, which of the following determines the answer to the WHAT to produce question
Prices and profit
When a surplus exists for a product
Producers reduce the level of output and reduce price
A market in which final goods and services are exchanged is a
Product market
The goal of the business firms in a market economy is to maximize
Profits
Suppose a hurricane hits Florida causing widespread damage to houses and businesses. The governor of Florida places a price ceiling on all building materials to keep prices reasonable. Which of the following is the most likely result?
Shortages of building materials and a slower recovery from the storm
If there is a shortage at a given price, then
That price is less than the equilibrium price
In 2007 a company sold 35,000 MP3 players at $150 each. In 2008 the same company sold 40,000 MP3 players at $170 each. This information suggests that
The demand for MP3 players increased from 2007 to 2008
Which of the following can change without shifting either demand or supply, ceteris paribus
The price of the good itself