Econ

Which of the following statements describes the law of market forces​?

A shortage of cabbage increased the price of cabbage and a surplus of corn lowered its price.

Aqua Springs makes the following four statements about bottled spring water. Which statement best describes the​ firm's quantity supplied in the bottled water​ market?

At a price of​ $1 gallon, we plan to sell​ 2,000 gallons per day.

Jeb makes the following four statements about peanuts. Which statement best describes his quantity demanded in the peanut​ market?

At a price of​ $1 per​ pack, I plan to buy 2 packs of peanuts per week.

Which of the following statements describes a change in the quantity supplied and which describes a change in​ supply? I Farms are selling less chicken because the price of turkey has increased. II Farms are selling less chicken because the price of chicken has fallen. III Farms are selling more chicken because the price of chicken has risen. IV Farms are selling more chicken because the cost of chicken feed has fallen.

I and IV are changes in supply and II and III are changes in the quantity supplied

Which of the following statements about the market for chicken describes a change in the quantity demanded and which describes a change in demand​? I People are buying less chicken because the price of beef has fallen. II People are buying less chicken because the price of chicken has increased. III People are buying more chicken because the price of chicken has fallen. IV The cost of chicken feed has increased.

I is a change in demand and II and III are changes in the quantity demanded.

Which of the following statements is about a normal good​, which is about an inferior good​, which is about​ both, and which is about​ neither? I With incomes falling in the​ recession, people are buying more chicken. II People are buying more beef now that incomes have increased. III People are buying more chicken because the price of chicken has fallen. IV With higher incomes people are switching from chicken to beef.

I is​ inferior, II is​ normal, III is​ neither, and IV is both

Which of the following statements by Aqua Springs demonstrates that the​ firm's selling plans obey the law of supply​?

If the price of bottled water falls and all the other influences on our selling plans remain the​ same, we will cut back on production and lay off some workers

In the market for​ smartphones, which of the following events increases the supply of​ smartphones?

New technology that lowers the cost of making a smartphone

Which of the following events in the market for smartphones illustrates the law of​ demand? 1. The price of a smartphone falls. 2. Producers announce that smartphone prices will fall next month. 3. The price of a call made from a smartphone falls. 4. The price of a call made from a​ land-line phone increases. 5.An increase in memory makes smartphones more popular.

Only Event​ #1

Which of the following events in the market for timber beams illustrates the law of​ supply? 1. The wage rate of sawmill workers rises. 2. The price of sawdust rises. 3. The price of a timber beam rises. 4. The price of a timber beam is expected to rise next year. 5. Environmentalists convince Congress to introduce a new law that reduces the amount of forest that can be cut for timber. 6. A new technology lowers the cost of producing timber beams.

Only Event​ #3

Which of the following statements by Tom demonstrates that his buying plans obey the law of demand​?

The only thing​ that's changed is the price of​ textbooks: they've become more expensive and now​ I'm not buying as many.

In the market for​ jeans, which of the following events increases the demand for a pair of​ jeans?

The price of a denim skirt​ (a substitute for​ jeans) rises.

A substitute is a good that is​ _____ another​ good, and a complement is a good that is​ _____ another good.

consumed in place​ of; consumed together with

Which of the following events illustrates the law of​ demand: Other things remaining the​ same, a rise in the price of a good will​ ______.

decrease the quantity demanded of that good

Other things remaining the​ same, a fall in the price of peanuts will​ ________.

decrease the quantity supplied of peanuts

El Nino takes toll on U.S. rice farmers Dry weather has delayed rice planting and harvests will be low. But wheat is enjoying a bumper crop.Using the demand and supply​ model, explain how the prices of rice and wheat will change and how the markets for rice and wheat will influence each other. A poor rice harvest will​ _____ rice and​ ____ its price. A bumper wheat crop ​ ____ wheat and​ ____ its price. The markets of wheat and rice influence each other because wheat and rice​ are______.

decrease the supply​ of; raise increases the supply​ of; lowers ​substitutes, so a higher price of rice will increase the demand for wheat

Airline profits​ soar, yet no relief for passengers Airplanes are more crowded than ever and fares are at a​ five-year high.Does this news clip imply that the law of demand​ doesn't work in the real​ world? Explain why or why not. The news clip implies that the law of demand​ ______ work in the real world because​ ______.

does; "other things have not remained the​ same" as some event must have increased the demand for airline travel

When the price of a good increased by 3 ​percent, the quantity demanded of it decreased 6 percent. Demand for this good is​ ______.

elastic

When the price of a good increased by 5 ​percent, the quantity demanded of it decreased 10 percent. Most​ likely, this good​ ______ and ​ ______.

is a luxury; has good substitutes

Pump prices slide as crude oil falls to​ six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to​ $2.50 a gallon. The price of crude oil dropped to​ $43.46 per barrel on March​ 17, the lowest since March 2009.Explain the effect of a lower crude oil price on the supply of gasoline. A fall in the price of crude oil will​ ______.

lower the cost of producing gasoline and increase the supply of gasoline

A substitute in production is a good that is​ _____ another​ good, and a complement in production is a good that is​ _____ another good.

produced in place​ of; produced together with

A demand schedule is a list of the​ ______ at each different price when all other influences on buying plans remain the same. A demand curve is a graph of​ _____ .

quantities​ demanded; a demand schedule

A supply schedule is a list of the​ ______ at each different price when all other influences on selling plans remain the same. A supply curve is a graph of​ _____ .

quantities​ supplied; a supply schedule

Heavy rain has delayed the planting of corn and soybean and soggy conditions have slowed the winter wheat harvest.Explain how heavy rain and soggy conditions will change the prices of​ corn, soybean, and wheat. Heavy rain and soggy conditions will​ _______.

raise the prices of corn and soybean because the delayed plantings will decrease the supply of corn and soybean

When floods wiped out the banana crop in Central​ America, the equilibrium price of bananas​ ______ and the equilibrium quantity of bananas​ ______.

rose; decreased

Many Americans are selling their used cars and buying new​ fuel-efficient hybrids. Other things remaining the​ same, in the market for used​ cars, ______ and in the market for hybrids​ ______.

supply increases and the price​ falls; demand increases and the price rises

The United States does not allow oranges from Brazil​ (the world's largest producer of​ oranges) to enter the United States. If Brazilian oranges were sold in the United​ States, oranges and orange juice would be cheaper. Use the laws of demand and supply to explain whether the above statement is true or false.If Brazilian oranges are sold in the U.S.​ market, the​ _________ will increase because​ _________.

supply of​ oranges; will​ fall, and the statement is true supply of orange​ juice; the cost of producing orange juice will fall and the quantity demanded will increase

In market​ equilibrium, at the equilibrium price and equilibrium quantity​, ​_____ .

the quantity demanded equals the quantity supplied and equals the quantity bought and sold

Demand is​ _____, when all other influences on buying plans remain the same.

the relationship between the quantity demanded of a good and the price of the good

Supply is​ _____, when all other influences on buying plans remain the same.

the relationship between the quantity supplied of a good and the price of the good

A decrease in the demand for chocolate with no change in the supply of chocolate will create a​ ______ of chocolate at​ today's price, but gradually the price will​ ______.

​surplus; fall