Ch 3

An increase in the price of the product would be represented by a change from A. A to B. B. B to A. C. S1 to S2. D. S2 to S1.

A to B.

Technological advancements have led to lower prices and an increase in the sale of color laser printers. How does this affect the market for traditional inkjet​ printers? A. The demand curve for inkjet printers shifts to the left. B. The quantity of inkjet printers demanded decreases. C. The quantity of inkjet printers demanded increases. D. The demand curve for inkjet printers shifts to the right.

A. The demand curve for inkjet printers shifts to the left.

Factory incentives on cell phones have encouraged consumers to upgrade their phones. How does this affect the market for bluetooth​ headsets? A. The demand for bluetooth headsets increases. B. The demand for bluetooth headsets decreases. C. The quantity of bluetooth headsets demanded increases. D. The quantity of bluetooth headsets demanded decreases.

A. The demand for bluetooth headsets increases.

The phrase​ "demand has​ increased" means that A. a demand curve has shifted to the right. B. a demand curve has shifted to the left. C. there has been a downward movement along a demand curve. D. there has been an upward movement along a demand curve.

A. a demand curve has shifted to the right.

Government intervention in agricultural markets in the U.S. began A. during the Great Depression. B. during World War II to ensure that enough food was available for domestic consumption. C. during the Korean War. D. after World War I in order to assist farmers to adjust from a warminus−time economy to a peaceminus−time economy.

A. during the Great Depression.

A change in which variable will change the market demand for a​ product? A. expected future prices B. the price of the product C. the number of firms in the market D. the quantity of the product supplied

A. expected future prices

The​ ________ effect of a price change refers to the impact of a change in the price of a good on a​ consumer's purchasing power. A. income B. demographics C. ceteris paribus D. substitution

A. income

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that A. the demand for personal trainers has increased. B. personal trainers are deliberately charging high prices because they provide services for wealthy clients. C. the law of demand has been violated. D. the number of personal trainers has increased.

A. the demand for personal trainers has increased.

Which of the following will not shift the demand curve for a​ good? A. a decrease in the price of a substitute good B. an increase in the price of the good C. an increase in population D. an increase in consumer incomes

B. an increase in the price of the good

he market for smartwatches is becoming very competitive. The increase in competition in this market is an example of how the market responds to A. increases in income. B. changes in consumer tastes. C. changes in population. D. decreases in the price of smartphones​ (a substitute for the​ product).

B. changes in consumer tastes.

A​ ________ demand curve for shampoo would be caused by a change in the price of shampoo. A. rightward shift of the B. movement along the C. positively sloped D. leftward shift of the C. positively sloped D. leftward shift of the

B. movement along the

If you are considering buying either an Apple Watch or a Samsung Gear​ S2, and you choose the Samsung only because the price is​ lower, then you consider A. the Apple Watch and the Samsung Gear S2 to be complements. B. the Apple Watch and the Samsung Gear S2 to be substitutes. C. the Apple Watch to be an inferior good and Samsung Gear S2 to be a normal good. D. the Apple Watch to be a normal good and the Samsung Gear S2 to be an inferior good.

B. the Apple Watch and the Samsung Gear S2 to be substitutes.

Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that A. the number of lawn care service companies has increased. B. the demand for lawn care service has decreased. C. the law of supply has been violated. D. lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns.

B. the demand for lawn care service has decreased.

_____ means the supply curve has shifted to the​ right, while​ ________ refers to a movement along a given supply curve in response to an increase in price. A. An increase in​ supply; a decrease in supply B. A decrease in​ supply; an increase in supply C. An increase in​ supply; an increase in quantity supplied D. A decrease in​ supply; a decrease in quantity supplied

C. An increase in​ supply; an increase in quantity supplied

Let D ​= demand, S​ = supply, P​ = equilibrium​ price, Q ​= equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar​ panels? A. D no​ change, S​ increases, P​ decreases, Q decreases B. D​ increases, S no​ change, P and Q increase C. S​ increases, D no​ change, P​ decreases, Q increases D. D and S​ increase, P and Q decrease

C. S​ increases, D no​ change, P​ decreases, Q increases

Prices of commercial airline tickets​ (assume that this is a normal​ good) have fallen in recent months. Over this same​ period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling prices of airline​ tickets? A. The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left. B. The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right. C. The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left. D. The demand curve and the supply curve for airline tickets have both shifted to the right.

C. The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left.

Prices of smartphones​ (assume that this is a normal​ good) have fallen in recent years. Over this same​ period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the following best explains the falling prices of​ smartphones? A. The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right. B. The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left. C. The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right. D. The demand curve and the supply curve for smartphones have both shifted to the left.

C. The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.

Last​ month, the Tecumseh Corporation supplied 400 units of threeminus−ring binders at​ $6 per unit. This​ month, the company supplied the same quantity of binders at​ $4 per unit. Based on this​ evidence, Tecumseh has experienced A. a decrease in supply. B. a decrease in the quantity supplied. C. an increase in supply. D. an increase in the quantity supplied.

C. an increase in supply.

Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except A. a decrease in the price of​ lithium, which is used in the electric car batteries. B. an increase in the number of manufacturers of electric cars. C. an increase in the price of gasoline. D. technological advancement in the production of electric car batteries.

C. an increase in the price of gasoline.

A black market is a market where buying and selling take place A. on foreign soil. B. in nonminus−licensed shops and warehouses. C. at prices that violate government price regulations. D. after regular office hours.

C. at prices that violate government price regulations.

A(n) ________ is represented by a rightward shift of the demand curve while​ a(n) ________ is represented by a movement along a given demand curve. A. decrease in​ demand; decrease in quantity demanded B. increase in​ demand; decrease in demand C. increase in​ demand; increase in quantity demanded D. increase in quantity​ demanded; increase in demand

C. increase in​ demand; increase in quantity demanded

A demand curve shows the relationship between A. the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer. B. the price of a produce and the demand for the product. C. the price of a product and the quantity of the product demanded. D. the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.

C. the price of a product and the quantity of the product demanded.

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for​ gasoline, A. the supply curve shifted to the right resulting in an increase in the equilibrium price. B. the demand curve shifted to the left resulting in a decrease in the equilibrium price. C. the supply curve shifted to the left resulting in an increase in the equilibrium price. D. the demand curve shifted to the right resulting in an increase in the equilibrium price

C. the supply curve shifted to the left resulting in an increase in the equilibrium price.

Buyers scrambled to secure stocks of Australian wool following a forecast of an 11 percent decline in wool production. What happens in the Australian wool market as a result of this​ announcement? A. The quantity of Australian wool demanded increases in anticipation of higher prices in the future. B. The quantity of Australian wool demanded decreases in anticipation of lower quantities in the future. C. The demand curve for Australian wool shifts to the left in anticipation of higher prices in the future. D. The demand curve for Australian wool shifts to the right in anticipation of higher prices in the future.

D. The demand curve for Australian wool shifts to the right in anticipation of higher prices in the future.

Holding everything else​ constant, a decrease in the price of GPS systems will result in A. a decrease in the supply of GPS systems. B. an increase in the demand for GPS systems. C. an decrease in the quantity of GPS systems demanded. D. an increase in the quantity of GPS systems demanded.

D. an increase in the quantity of GPS systems demanded.

Let D ​= demand, S​ = supply, P​ = equilibrium​ price, Q ​= equilibrium quantity. What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic​ mercury? A. S​ decreases, D no​ change, P​ increases, Q decreases B. D and S​ decrease, P and Q decrease C. D no​ change, S​ increases, P​ decreases, Q decreases D. D​ decreases, S no​ change, P and Q decrease

D​ decreases, S no​ change, P and Q decrease

A decrease in the price of inputs would be represented by a movement from A. A to B. B. B to A. C. S1 to S2. D. S2 to S1.

S1 to S2.

A technological advancement would be represented by a movement from A. A to B. B. B to A. C. S1 to S2. Your answer is correct.D. S2 to S1.

S1 to S2.

A decrease in the number of firms in the market would be represented by a change from A. A to B. B. B to A. C. S1 to S2. D. S2 to S1.

S2 to S1.

An increase in the expected future price of the product would be represented by a movement from A. A to B. B. B to A. C. S1 to S2. D. S2 to S1.

S2 to S1.

When​ ________ in a​ market, the total net benefit to society is maximized. A. consumer surplus is minimized B. deadweight loss is maximized C. producer surplus is minimized D. a competitive equilibrium is achieved

a competitive equilibrium is achieved

The law of demand​ implies, holding everything else​ constant, that as the price of yogurt A. ​increases, the demand for yogurt will increase. B. ​decreases, the quantity of yogurt demanded will decrease. C. ​increases, the quantity of yogurt demanded will decrease. D. ​decreases, the demand for yogurt will increase.

​increases, the quantity of yogurt demanded will decrease.