Module 2 pt 2 Quiz

If the market price of smartphones increases and the market quantity also increases, then which of the answer choices best explains this? A. Demand for smartphones decreased. B. Demand for smartphones increased. C. Supply of smartphones decreased. D. Supply of smartphones increased.

B. Demand for smartphones increased.

Suppose that DVD prices are lower this year than last year and fewer DVDs are sold in the market this year than last year. Based on this information, it can best be concluded that _____. A. the law of demand is invalid B. demand for DVDs decreased C. this situation has nothing to do with the law of demand D. supply of DVDs decreased

B. demand for DVDs decreased

Consider the market for potato chips. Suppose that the price of pretzels increases. If potato chips and pretzels are substitutes in production, then other things being equal, in the market for potato chips, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

The demand for housing increased substantially between 1999 and 2007 because low interest rates increased the number of people who could afford homes. The model of supply and demand leads to the prediction that low interest rates cause a(n) _____. A. increase in the price of housing and a decrease in the number of homes purchased B. decrease in the price of housing and an increase in the number of homes purchased C. increase in both housing prices and the number of homes purchased D. decrease in both housing prices and the number of homes purchased

C. increase in both housing prices and the number of homes purchased

Potato chips and pretzels are substitutes in consumption. If the price of potato chips decreases, then the demand for _____. A. potato chips decreases and the market price of potato chips increases B. potato chips increases and the market price of potato chips decreases C. pretzels decreases and the market price of pretzels decreases D. pretzels increases and the market price of pretzels increases

C. pretzels decreases and the market price of pretzels decreases

If the market price of apples increases and the market quantity decreases, then which of the answer choices best explains this? A. Demand for apples increased. B. Demand for apples decreased. C. Supply of apples increased. D. Supply of apples decreased.

D. Supply of apples decreased.

Consider the market for cable television. Cable television, also known as "Pay-TV," has recently been at odds with programmers who have been moving more of their content to online video, transmitted through a high-speed internet connection. For example, in January, World Wrestling Entertainment (WWE) announced plans to start its own WWE Network, a subscription-only, online video channel for a monthly fee of $9.99. Like Netflix, MLB.tv, and Amazon.com, WWE's plan continues the trend of direct-to-consumer service with prices lower than those charged by cable television operators. If cable television and online video are substitutes in consumption, then in the market for cable television, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

D. decreases...decreases

A newspaper ran the headline "Fishermen in Alaska, Awash in Salmon, Strive to Stay Afloat." The salmon fishermen flooded the market, which drove prices to record lows. This was caused because _____. A. demand increased B. supply decreased C. demand decreased D. supply increased

D. supply increased

A newspaper ran the headline "Carbs and Fats and Trends in Snacking All Conspire against Oreo and Others." Which of the answer choices best describes the likely effect of this trend on the Oreo market? A. Demand decreases leading to a decrease in market price and quantity. B. Quantity demanded decreases leading to a decrease in market price and quantity. C. Supply decreases leading to an increase in market price and a decrease in market quantity. D. Demand and supply both decrease leading to a decrease in market price and market quantity.

A. Demand decreases leading to a decrease in market price and quantity.

In the publishing industry, print versions of newspapers, magazines, and books are typically more expensive than digital versions. However, Hearst Magazines--publisher of magazines, such as Cosmopolitan and Road & Track--is seeking to reverse this industry trend by boosting circulation revenue from digital editions, primarily those for tablet computers. In January, Hearst reported success in this effort. For the year ending 2012, Hearst amassed nearly 800,000 new digital subscribers. This was despite the fact that Hearst's average digital subscription price of $19.99 annually was twice that of its average print subscription price of $10. Which of the answer choices best explains this occurrence? A. Unlike its print versions, Hearst's digital versions can be updated in almost real time, giving users access to current content. Hearst is betting that its digital offerings have content that subscribers will get excited about such that they are willing to pay premium prices, allowing Hearst to redefine its subscription offerings at differing prices. B. Tablet computers, such as Apple's iPad and Google's Nexus, have redefined the publishing industry. Digital versions on these tablets do not require the expensive labor inputs necessary for print versions, such as layout editors and delivery. These lower costs enable Hearst to move to digital versions where a higher potential profit exists. C. Hearst's competitor in the publishing industry, Time, Inc., publisher of Time and Sports Illustrated, sells its digital versions and print versions for the same price. Since Time's magazines are consumer substitutes to Hearst's magazines, Hearst reacted by charging a higher price for its digital versions with the intent of gaining market share against Time. D. Besides its publishing company, Hearst also operates Hearst Television, a group that owns 29 local broadcast television stations, such as WESH TV-2 (NBC affiliate) in Orlando. Because broadcast TV viewership has declined in recent years as more viewers watch cable programs, Hearst is increasing supply of digital magazines to offset losses at its television company.

A. Unlike its print versions, Hearst's digital versions can be updated in almost real time, giving users access to current content. Hearst is betting that its digital offerings have content that subscribers will get excited about such that they are willing to pay premium prices, allowing Hearst to redefine its subscription offerings at differing prices.

An increase in demand for a good is most likely to cause _____. A. excess demand (a shortage) before the price increases B. excess demand (a shortage) before the price decreases C. excess supply (a surplus) before the price increases D. excess supply (a surplus) before the price decreases

A. excess demand (a shortage) before the price increases

Consider the market for cigarettes. In an effort to raise revenue, the government increases taxes on suppliers of cigarettes. Other things being equal, in the market for cigarettes, the market price _____ and the market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

A. increases...increases

Consider the market for nickel. Nickel is a hard but ductile (stretchable) metal that is a vital component in the steel industry. Because of its chemical properties, nickel is added to strengthen steel and to bolster its resistance to corrosion. In January, Indonesia implemented an export ban on all nickel mined in the country. [An "export ban" is a complete stoppage of goods sent out of a country.] The prospect of reduced availability of nickel sent futures prices soaring 4% to $13,784 a metric ton, with steel producers expecting nickel prices to be even higher in the future. In the market for nickel today, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

A. increases...increases

Consider the market for opioid pain medication. Because of stricter regulations on opioid pain medication, such as oxycodone, users (prescription and recreational) expect the future price of opioid pain medication to increase. Other things being equal, in the market for opioid pain medication today, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

A. increases...increases

Consider the market for quadrivalent flu vaccines. Last year, about 42% of Americans got a flu vaccine. This percentage is considered low by public-health officials. One reason why more Americans do not get flu vaccines is because of an ineffectiveness in protecting against the majority of "Type B" flu-causing viruses. Flu vaccines have traditionally offered protection against three kinds of viruses-two varieties of Type A and one variety of Type B. However, for the first time, the Food and Drug Administration has approved for 2013 a "quadrivalent" flu vaccine, which includes protection against a second Type B virus. This quadrivalent flu vaccine is expected to increase effectiveness by 20 percent. If individuals prefer the quadrivalent flu vaccine and its effectiveness, then in the quadrivalent flu vaccine market, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

A. increases...increases

Consider the market for vintage wardrobe clothing. AMC's "Mad Men," PBS's "Downton Abbey," and HBO's "Boardwalk Empire" are a few of the recent television series called "period pieces." Period pieces are shows that are set in earlier time periods. For example, "Mad Men," a show about advertising executives, is set in the 1960s. This explosion of period pieces has sent more wardrobe supervisors racing to buy vintage pieces, such as fedoras, hoop skirts, corsets, frock coats, and spats. In the market for vintage wardrobe clothing, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

A. increases...increases

Consider the market for waffles. Suppose that the price of bagels increases. If waffles and bagels are substitutes in consumption, then other things being equal, in the market for waffles, the market price _____ and the market quantity _____. A. increases...increases B. increases...decreases C. decreases...decreases D. decreases...increases

A. increases...increases

Recently, The Wall Street Journal ran the headline "The Cost of Getting Down is Going Up." Down are the soft feathers from geese and ducks that are used as insulation in puffy jackets, bed comforters, and pillows. A pound of white goose down that cost about $12 in 2009 sells for around $28 today. Prices of other down varieties and grades also have increased. Duck down, around $9 a pound in 2009, now costs about $19 a pound. The total amount of down sold in the U.S. decreased from around 300 million pounds last year and is predicted to decrease to around 283 million pounds this year. Which of the answer choices best explains these occurrences in the down market? A. Because of the discovery of mad-cow disease in a California dairy cow in April and of the continuing publicity of "pink slime," beef prices decreased by 7 percent to a low of $1.1157 per pound. As a dietary substitute for consumers, lower beef prices have undercut the consumption of geese and ducks. B. China is the world's largest producer of down, a byproduct of raising geese and ducks for its billion-plus population. As the country's wealth improves, more people are moving from farms to cities, reducing the farming of these livestock. C. Clothing makers, such as Lands' End and The North Face, want more down. Once reserved for cold-weather sports like skiing and mountain climbing, down jackets have become a winter fashion item around the globe. D. The Animal Welfare Institute, an animal-rights group dedicated to reducing animal suffering, condemned as cruel the process of plucking feathers from live birds. Furniture maker IKEA and clothing manufacturer Patagonia have altered product lines to eliminate the use (or possible use) of live-plucked down.

B. China is the world's largest producer of down, a byproduct of raising geese and ducks for its billion-plus population. As the country's wealth improves, more people are moving from farms to cities, reducing the farming of these livestock.

National Oilwell Varco Inc. and Cameron International Corp. are the world's largest companies that produce equipment for oil drilling rigs. These companies provide parts, systems, and expertise for oil rigs, which are built in shipyards for drilling companies, such as Transocean Ltd., the driller responsible for the Deepwater Horizon explosion in the Gulf of Mexico in 2010. The drilling firms are then contracted by energy producers, such Shell and BP. In July 2012, National Oilwell Varco and Cameron International reported record quarterly profits, resulting from the companies' price increases on higher sales to drilling companies. Which of the answer choices best explains this occurrence? A. Environmental groups, such as the Sierra Club, have continually sued oil drilling rig makers over concerns that the rigs sustain environmental damage to flora and fauna of endangered regions, most notably the Bering Sea-region of Alaska. B. Oil rigs--both offshore and on land--are more than 30 years old and ill-suited for drilling in deep waters or inland bedrock, both technically challenging environments for oil exploration. Oil drilling companies, such as Transocean, have necessarily followed with more orders for oil drilling rigs. C. The 2010 Deepwater Horizon explosion prompted the U.S. Department of Energy to remove blowout preventers on oil rigs, the final defense against an out-of-control well. Cameron International, maker of the blowout preventer, complied by removing all preventers on drilling rigs first built before 2010. D. Norway-based Aker Solutions ASA and General Electric Co. appealed to the U.S. Department of the Interior to suspend National Oilwell Varco and Cameron International's claim in the shale rocks of the Marcellus Formation near New York. In their appeal, the two companies cited continuity of market competition as the basis for their action.

B. Oil rigs--both offshore and on land--are more than 30 years old and ill-suited for drilling in deep waters or inland bedrock, both technically challenging environments for oil exploration. Oil drilling companies, such as Transocean, have necessarily followed with more orders for oil drilling rigs.

Soda is still the most popular bottled beverage in the U.S. However, that might soon be changing. No less than seven different companies are now offering "water alternatives" to the market. Talking Rain Company, maker of Sparkling Ice, a carbonated, fruit-flavored, zero calorie spring water sweetened with sucralose, and Kraft Foods, maker of Mio, a concentrated, flavored liquid squirted into water, were two of the ten best-selling new products in grocery stores in 2012. Along with the introduction of these products, the companies producing them are enjoying solid profits, resulting from increased revenue on higher prices. Which of the answer choices best explains this occurrence in the water alternatives market? A. Dasani made by Coca-Cola Company is a bottled water that is the number two best-selling beverage in the U.S. after traditional soda. Last year, Dasani introduced Dasani Drops, a liquid flavoring for water popular with younger consumers. Other companies soon entered the water alternatives market to take away some of the market share controlled by Dasani. B. People who know they should drink more water but don't like the taste are the consumer targets. These "water-haters" now constitute about 20 percent of Americans and include those who complain that water tastes metallic or chlorinated and others who say water is just plain boring. These individuals are showing an increased desire for water alternatives. C. Carbonic acid-created when CO2 in carbonated beverages reacts with an enzyme in the tissue of the tongue-activates several nerves, providing a pleasure sensation and cooling effect on the tongue. Recently, CO2 prices have substantially decreased, lowering the input cost of producing many of these water alternatives. D. Diet sodas, such as Coke Zero, are usually sugar-free, artificially sweetened carbonated beverages, generally marketed toward health-conscious people. Diet sodas and water alternatives occupy related markets in which each is a substitute for consumers. Because of a glut of diet sodas, the price of diet sodas has recently decreased markedly.

B. People who know they should drink more water but don't like the taste are the consumer targets. These "water-haters" now constitute about 20 percent of Americans and include those who complain that water tastes metallic or chlorinated and others who say water is just plain boring. These individuals are showing an increased desire for water alternatives.

Throughout 2013, arabica coffee prices decreased almost 20%, capping the biggest two-year plunge in a decade. Since 2011, prices for arabica coffee-the mild-tasting coffee variety that accounts of the majority of global coffee production-are down nearly 40%. However, global arabica coffee production throughout 2013 increased 7.8% to 144.6 million bags, with an additional 36.3 million bags forecast throughout 2014. Which of the answer choices best explains this occurrence? A. Prices of robusta coffee beans, a variety that often winds up in low-end instant coffees, were up almost 13% in the past year, primarily because of rising global interest, especially among price-conscious consumers in emerging markets like India and Mexico. Robusta and arabica coffee beans are substitutes in production. B. Three years ago, farmers in Brazil and Columbia (two arabica coffee producing countries) ripped out arabica trees that were ravaged by a fungal disease to plant a more productive and less costly variety, leading to good development of coffee cherries. C. Coffee roasters, such as Starbucks and Maxwell House, are the primary buyers of raw coffee beans. Noticing the glut of global coffee production in 2013, these roasters have expected arabica coffee prices to decrease in 2014 to $0.95 per pound from last year's low of $1.14. D. In February 2013, a highly publicized report by Duke Medical School suggested that drinking at least four cups of coffee per day could reduce the risk of liver disease, a condition that affects 30% of American adults. This prompted increased interest and consumption of coffee throughout 2013.

B. Three years ago, farmers in Brazil and Columbia (two arabica coffee producing countries) ripped out arabica trees that were ravaged by a fungal disease to plant a more productive and less costly variety, leading to good development of coffee cherries.

A decrease in the number of consumers in a market causes market demand to _____. A. decrease, resulting in a surplus which will be eliminated as price increases B. decrease, resulting in a surplus which will be eliminated as price decreases C. increase, resulting in a shortage which will be eliminated as price increases D. increase, resulting in a shortage which will be eliminated as price decreases

B. decrease, resulting in a surplus which will be eliminated as price decreases

Consider the market for rental cars. Suppose that train trips and rental cars are substitutes in consumption. If the price of train tickets increases, then in the market for rental cars the _____. A. demand for train tickets will increase B. demand for rental cars will increase resulting in an increase in rental car prices C. demand for train tickets will decrease D. demand for rental cars will decrease resulting in a decrease in rental car prices

B. demand for rental cars will increase resulting in an increase in rental car prices

Consider the market for Diageo's beers. Based in London, Diageo is the largest liquor maker in the U.S. with products including Smirnoff vodka, Johnnie Walker scotch, and Captain Morgan's rum. The company also produces, though at a smaller market share, several well-known beers, such as Guinness and Red Stripe. The U.S. liquor market has proved surprisingly resilient as people have turned to high-end liquor drinks as an affordable luxury. This increase in demand has enabled Diageo to increase prices on its stable of liquors, while reaping a 6 percent increase in U.S. sales. The company's strategy for the rest of the year is to focus and market heavily its liquor division. If Diageo's liquors and beers are substitutes in production, then in the market for Diageo's beers, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for Tiffany & Co.'s white diamonds. Tiffany & Co. is an American jewelry corporation particularly known for its diamond jewelry. Currently, yellow diamonds are in fashion, fueled by rarity and celebrity usage. In her 2011 hit song, "We Found Love," Rihanna signs "Yellow diamonds in the light." During the 2011-2012 season of "American Idol," judge Jennifer Lopez routinely wore a yellow diamond ring. As a result of this yellow diamond popularity, yellow diamond prices have increased by 30% in the last year to almost $6,500 per carat. If yellow diamonds and white diamonds are substitutes in production for Tiffany & Co., then in the market for Tiffany & Co.'s white diamonds, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for Yellow Tail wine. Cansella Wines is the maker of Australia's mass-market Yellow Tail wine, known for its kangaroo logo and inexpensive pricing. In January, Cansella Wines entered talks with its primary lender, National Australia Bank, to secure a loan after the company reported its first loss in more than 20 years at US$31.6 million. Cansella Wines is seeking the loan because of production difficulties. Consecutive wet summers in Australia have soaked the company's vineyards, souring its input of grapes and thus yielding poor vintages. In the market for Yellow Tail wine, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for eBay products. eBay.com is an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services. In April 2013, the U.S. Senate approved the Marketplace Fairness Act, a bill which gives states the ability to require Internet retailers to collect sales taxes on all purchases and send the revenue to the appropriate locality. John Donahoe, president and CEO of eBay, is against the Marketplace Fairness Act, saying that "Expanding Internet sales taxes to all transactions would hurt small business owners who sell in the eBay marketplace and would hurt their ability to fuel the price and service competition that creates value for customers." Assuming that the Marketplace Fairness Act becomes law, then in the market for eBay products, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for renal denervation systems. Renal denervation systems are medical devices designed to work by preventing the kidneys from contributing to high blood pressure. The market consists of four medical device companies: Medtronic, Boston Scientific, Covidien, and St. Jude Medical, each with its own renal denervation systems. In January, Medtronic reported that its system, Symplicity RDS, failed to provide a benefit compared with a placebo (fake) procedure. Medtronic has stopped enrolling new patients in other clinical trials of the system and pulled Symplicity RDS from the market. In the market for renal denervation systems, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for whipped cream. Suppose that the price of strawberries increases. If whipped cream and strawberries are complements in consumption, then other things being equal, in the market for whipped cream, the market price _____ and the market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

B. increases...decreases

Consider the market for copper. On May 4, Canada's Royal Canadian Mint ceased production of the Canadian penny. In March, the Canadian government said it would stop minting pennies as a cost-savings measure, since the pennies cost about 1.6 Canadian cents to make. Although only about 5 percent of recently issued pennies are actually copper, those minted before 1997 were all copper. The Royal Canadian Mint will soon start collecting rolls of pennies from banks as consumers deposit or return them. The coins will be melted down and the copper metal sold. There are currently about 20 billion Canadian pennies in circulation. This large amount of copper soon to be on the market has decreased copper owners' and suppliers' expectations of copper prices. In the market for copper today, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

If supply decreases while demand increases simultaneously, the market price _____ and the market quantity _____. A. would be indeterminate...increases B. would be indeterminate...decreases C. increases...would be indeterminate D. decreases...would be indeterminate

C. increases...would be indeterminate

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans). At the same time, the price of diesel fuel, used by fishermen to fuel their boats, decreases. What is the effect on the market for fish? A. A decrease in demand and a decrease in both price and quantity. B. A decrease in both demand and supply; price and quantity both decrease. C. A decrease in demand and an increase in supply; price decreases but the quantity is indeterminate. D. A decrease in both demand and supply; price and quantity both increase.

C. A decrease in demand and an increase in supply; price decreases but the quantity is indeterminate.

A recent Wall Street Journal story, "Shipping Rates Rise as China Steps on Pedal," tells how the cost of hiring a ship to haul cargo rose from $30,000 to $45,000 a day because of a rise in demand for imported commodities in China. Which of the answer choices most accurately describes the shipping market as presented? A. Supply increased causing an increase in quantity demanded and a decrease in market price. B. Supply decreased causing an increase in demand and market quantity and a decrease in market price. C. Demand increased causing an increase in market price and quantity. D. Demand decreased causing a decrease in supply and market quantity and an increase in market price.

C. Demand increased causing an increase in market price and quantity.

Consider the ice cream market. Suppose that the price of sugar, an input used in making ice cream, decreases. Additionally, suppose that it has been very hot lately causing people to prefer more ice cream. What will be the effect on the market price and quantity of ice cream? A. Both price and quantity will increase. B. Price will increase but the quantity will decrease. C. Quantity will increase but price could either increase, decrease, or stay the same. D. Price will increase but quantity could either increase, decrease, or stay the same.

C. Quantity will increase but price could either increase, decrease, or stay the same.

Volkswagen is a German automobile manufacturer headquartered in Wolfsburg, Germany, and is the maker of the Volkswagen Passat and Audi A4. The company has made a strong push to dominate the American auto market, declaring that it will be the top-selling automaker in the U.S. by 2018. To this end, Volkswagen opened in 2011 a $1 billion factory in Chattanooga, Tennessee. However, Volkswagen's gamble in the U.S. has not fared well. For the first eight months of the year, Volkswagen's sales decreased by 1.6% from the same period a year ago, while its average price per vehicle declined almost 2%. Which of the answer choices best explains this occurrence? A. The United Auto Workers (UAW) met with Volkswagen management about setting up a labor contract for workers at the Chattanooga plant. The UAW is looking to unionize Volkswagen's U.S. labor force, which effectively will increase Volkswagen's production costs. B. Peugeot Citroen, a competing automaker in Europe, closed its Aulnay-sous-Bois production facility in France last month. This closing enabled Volkswagen to capture an additional 12% of the European market, which necessitated a decrease in production in the U.S. American-produced Volkswagen cars and European-produced Volkswagen cars are substitutes in production. C. Volkswagen redesigned its American-produced cars, including the Passat, with interior plastics and other materials of lesser quality than those used in the European-produced versions. Similar changes resulted in simpler suspensions that delivered a less precise ride and decreased fuel efficiency, two factors dominate in the purchasing decisions of American car buyers. D. Ford Motor Company and Honda Motor Company, two competing automakers with large networks in the U.S., introduced more expensive models to their car lineups, notably the Ford Fusion and Honda Accord. These two car models, with respective sales increases of 13.4% and 17.5% respectively, have been effective substitutes in consumption to Volkswagen's cars.

C. Volkswagen redesigned its American-produced cars, including the Passat, with interior plastics and other materials of lesser quality than those used in the European-produced versions. Similar changes resulted in simpler suspensions that delivered a less precise ride and decreased fuel efficiency, two factors dominate in the purchasing decisions of American car buyers.

Consider the market for cookies. If the price of flour (an input in producing cookies) decreases, then in the market for cookies, the market price _____ and the market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for junior tablets. A "junior tablet" is an Internet-connectable children's tablet computer. The junior tablet market is dominated by three companies: Techno Source's "The Kurio 7," Lexibook Ltd.'s "The Lexibook," and Oregon Scientific's "The Meep." All three of these junior tablets are sold at Toys "R" Us. In October, Toys "R" Us will sell its own new junior tablet named "The Tabeo," which will be sold only at Toys "R" Us stores. The Tabeo is the toy retailer's first move into private-label ("store-brand") electronics. The Tabeo, which uses Google Inc.'s Android operating system, comes loaded with 50 free game applications and an app store with 7,000 titles developed exclusively by Toys "R" Us. In the market for junior tablets, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for mobile apps. The number of mobile apps developers increases. Other things being equal, in the market for mobile apps, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for parking apps. Designed for smartphones and tablets, parking apps relay to drivers available parking spaces and other road conditions. Everyday Giant's iSpotSwap and Tap Tapas' ParkingMate are two leading companies in the parking apps market. Recently, Streetline announced plans to enter the market by introducing Parker, an app that connects to wireless sensors in the ground of individual parking spaces that can detect the presence of cars. Streetline believes its new parking app will better serve the market since the app provides real time data on available parking spaces. In the market for parking apps, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for satellite communications. Based in McLean, Virginia, Iridium Communications is a satellite-communications provider. Iridium is now replacing its original fleet of satellites, which started operations in 1998, with a new, advanced fleet of satellites called Iridium Next. Iridium, which mainly offers satellite phone and data services, said it will expand an ongoing $3 billion network modernization with dozens of additional satellites on which it will sell or lease capacity to private customers. In the market for satellite communications, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for shale oil. Shale oil is an unconventional oil produced from sedimentary rocks that converts organic matter within the rock into synthetic oil (i.e., not pumped from the ground). In 2012, BHP Billiton, the world's largest mining company, acquired almost $17 billion of exploration assets of shale oil in the U.S. Over the year, BHP Billiton ramped up production of shale oil, such that shale oil prices dropped. Other mining companies in the shale oil market expect that because of BHP Billiton's action, shale oil prices will be even lower in the future. In the market for shale oil today, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

C. decreases...increases

Consider the market for American-brand luxury automobiles. At the Detroit Auto Show in January, Germany's luxury-car makers displayed new, lower-priced models designed to draw younger, less-affluent Americans away from American-brand luxury models, such as GM's Cadillac and Chrysler's 300. BMW unveiled a new version of its 3 Series, Mercedes-Benz displayed its new CLA, and Audi released its new A3 compact. Each of these German-brand luxury automobiles will be priced in the high $20,000 range, significantly lower than current prices of luxury brands. If German-brand luxury automobiles and American-brand luxury automobiles are substitutes in consumption, then in the market for American-brand luxury automobiles, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

D. decreases...decreases

Consider the market for Keurig Coffee Makers. Keurig is an American manufacturer of coffee brewers, best known as the maker of Keurig Coffee Makers. Utilizing the "K-Cup" system, Keurig Coffee Makers are designed to brew a single cup of coffee. From Mexico to Panama, Central America has the world's rarest and most prized coffee beans. Recently, an orange-colored fungus called roya is hurting coffee bean production, causing crop losses of $500 million in Central America this year. As a result, roya is driving up prices of the coffee beans. Coffee companies are bracing for the effects as these higher bean prices work their way through the coffee market. If Central American coffee beans and Keurig Coffee Makes are complements in consumption, then in the market for Keurig Coffee Makers, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

D. decreases...decreases

Consider the market for LCD TVs. Consumers expect the future price of LCD TVs to decrease. Other things being equal, in the market of LCD TVs today, the market price _____ and the market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

D. decreases...decreases

Consider the market for advertising on AMC Networks. AMC Networks Inc. is an entertainment network distributing shows such as "Mad Men," "The Walking Dead," and "Breaking Bad." In August, Dish Network Corp. dropped AMC's programs from its satellite-TV service. Dish Network provided 13 percent of AMC's average viewer base. Advertisers desire to reach as many viewers as possible. The prospect that AMC will permanently lose the satellite service of Dish as a distributor has decreased the number of advertisers purchasing slots on AMC. In the market for advertising on AMC, the market price _____ and market quantity _____. A. increases...increases B. increases...decreases C. decreases...increases D. decreases...decreases

D. decreases...decreases

Consider the market for rice. Suppose that rice and pasta are substitutes in consumption. If the price of pasta decreases, then in the market for rice, the market price _____ and market quantity _____. A. increases...increases B. increases...increases C. decreases...increases D. decreases...decreases

D. decreases...decreases

If the wage (i.e., the price of labor) increased and the number of workers employed decreased, then _____. A. demand for labor increased B. demand for labor decreased C. supply of labor increased D. supply of labor decreased

D. supply of labor decreased