Chapter 3 quiz demand and supply
The law of supply states that there is a blank relationship between the price in the blank
Positive the quantity supplied
What if the increase in demand were larger than the increase in supply?
The equilibrium price and quantity increase
Based on the table below which of the following is true : money prices 2003 2004 Hospital room (day). $200 $225 Hospital suite (1night). $300. $325
The money prices of both goods increased the relative price of hospital rooms increase in the relative price of hotel suites decrease
Thus as the price decreases,
The quantity produced by firms decreases
Last year, the price of chicken was $6 per pound and the price of fish was $7 per pound This year, the price of chicken is $10 per pound and the price of fish is $11 per pound
The relative price of chicken has increased so Brian would be expected to purchase less
A decrease in the price of complement good Y will lead to a
An outward shift in the demand for a good X
The relative price of any commodity is its price in terms of
Another commodity
The law of demand states that
As price increases quantity demanded increases all other things equal
Identify which of the following would generate a decrease in the market demand for e-book reader's which are a normal good
1,2,3
The law of supply then implies that a___________the supply curve occurs due to a change in market price.
Movement along
The following table indicates the demand schedules for four types of consumers A B,C,Dand the number of consumers in each group top row. The quantity demanded by each type of the consumer is shown from market prices ranging from $10 down to $4 dollars. What is the combined quantity demanded at a much price five dollars?
8300 input numbers (multiply) add em up)
The movement B to C represents a change in
Demand
At equilibrium there is neither excess quantity supplied nor excess quantity demanded
True
The price of which quantity demanded equals quantity supplier and at which the demand curve intersects the supply curve is called the market clearing price
True
Which of the following will cause the demand curve to shift
A change in consumer income
Consider in the graph to the right the demand curve for bananas. The movement from point A to point B could have been caused by
A decrease in the price for bananas
Which of the following is consistent with the law of demand
A doubling of the price of salt lead to 5% drop in the quantity of self purchased
If the current price of a good is less than the equilibrium price there will be
A shortage of the good and it's price will increase
If the current price of a good is greater than the equilibrium price there will be
A surplus of the good and its price will decrease
All of the following will decrease the supply of bus trips except
A technological change that makes buses safer and more fuel efficient
Which of the following will cause an outward shift in supply
A technological improvement
Which of the following is consistent with the law of supply
An increase in the market price of MP3 players causes and increase in the production of MP3 player
Which of the following is consistent with the law of supply
An increase in the market price of oranges causes an increase in the production of oranges
Which of the following would cause a decrease in supply of pork
An increase in the price of inputs to pork production
The law of supply states that
As price increases quantity supplied increases all other things equal
Suppose that paper is necessary to produce books if the price of paper rises the supply curve of
Books shifts to the left
Identity which of the following would generate an increase in the market demand for tablet devices which are a normal good LA decrease in the incomes of consumers of tablet devices I. An increase in the price of ultrathin computers, which are substitutes I. An increase in the price of online apps, which are complements IV. An increase in the number of consumers in the market for tablet devices
Both 2 and 4
A leftward shift in the supply curve for a good may be caused by any of the following except
Consumer expectation of an increase in their future income
Consider in the graph to the right the demand curve for bananas. The movement from point A to C represents a change in
Demand
When there is a normal good a decrease in consumer income will result in the
Demand curve shifting to the left
When there is a normal good an increase in consumer income will result in the
Demand curve shifting to the right
According to the text firms encounter rising cost when the attempt to produce more in the same time period. As a consequence it must be offered a higher price to be willing to incur these higher cost. Resulting relationship between price and quantity supplied is
Direct (or positive) and is called the law of supply
What if the increase in demand were smaller than the increase in supply?
Equilibrium price falls and quantity rises.
If the demand and supply curves increase (shift outward) by identical proportions then
Equilibrium price stays the same and quantity rises
According to the law of demand the quantity demand it of any commodity is blank related to its price other things being equal
Inversely
According to the law of supply as the price of the good decreases it causes
Movement downward along the supply curve
Which of the following is an implication of the law of supply? The law of supply then implies that a ___ the supply curve occurs due to a change in market price.
Producers will offer more units at a higher price and few units at a lower price. movement along
The law of demand states that
Quantity demanded will rise as price falls other things being equal
Other things remaining equal the law of demand says that higher prices will lead to a
Smaller quantity and lower prices to a larger quantity demanded
Other things remaining eight for the love of the manses the higher prices will lead to a
Smaller quantity demanded and lower prices to a larger quantity demanded
An increase in the number of pizza producers or a decrease in the cost of mozzarella cheese used to make pizza will shift the
Supply curve for pizza outward
A decrease in the number of pizza producers or an increase in the cost of mozzarella cheese used to make pizza will shift the
Supply curve fr pizza outward ******* right answer
Last year the price of hamburger $5 per pound and the price of trout was $6 per pound this year the price of hamburger is $8 per pound and the price of trout is $9 per pound. All other things equal and assuming that Phillip purchased both items before what would you expect to happen to his purchases of hamburger this year
The relative price of hamburger has increased so Phillip would expect to purchase less
Consider the market for laptop computers. Click on the graph to the right to determine how the following event will impact this market. Do this by illustrating the event on the graph and then assess its impact on the equilibrium quantity and the market price.
The supply increases causing the equilibrium quantity to rise and the market price to fall
Event: The price of machinery used to produce laptop computers decreases. (Graph)
The supply increases causing the equilibrium quantity to rise in the market price to fall
Consider the figure to the right at a price of two dollars
There is a tendency for price to rise. (Graph is just a regular intersection
Assume the cost of living in use by Sergeant companies increases which of the following correctly describes The resulting effects in the market for canned soft drinks
Two and three The quantity of soft drinks to me to decreases the quantity of soft drinks decreases
A demand schedule shows
Various quantities of a good or service demanded at various prices
All of the following pairs of goods are substitutes except
We observe the price of bacon increases in the demand for egg decreases
All of the following pairs of shoes a complement except
We observe the price of coffee decreases and the demand for tea decreases
Which of the following describes an inferior good?
When consumer income increases the demand for eggs decreases