ECO 201 CH. 3

Assume that a loaf of bread is an inferior good. If income falls in Martinland, what happens to the demand for bread? Increases Decreases Not enough information

Increases

For this question, you are answering based on the market for paint. Make sure you consider your answer carefully! The most popular home decorating magazines have declared that color is the easiest way to get a new look in your house. At the same time, a law is passed requiring paint manufacturers to produce a lower odor paint, adding an additional step to the production process. Based on this information, what happens to equilibrium price? Increases Decreases Indeterminate change

Increases

For this question, you are answering based on the market for paint. Make sure you consider your answer carefully! (same scenario as above) The most popular home decorating magazines have declared that color is the easiest way to get a new look in your house. At the same time, a law is passed requiring paint manufacturers to produce a lower odor paint, adding an additional step to the production process. Based on this information, what happens to equilibrium quantity? Increases Decreases Indeterminate change

Indeterminate change

A survey indicated that cheddar cheese is America's favorite kind of cheese. The discovery of cheaper synthetic flavoring lowers the price for American cheese. (read carefully!) Which determinant causes the shift? hint: TRIBE and ROTTEN Expectations Other goods: substitutes or complements Technology Government intervention

Other goods: substitutes or complements

A survey indicated that cheddar cheese is America's favorite kind of cheese. New technology for cheese making lowers manufacturers' costs for producing cheddar cheese. What happens to equilibrium price & quantity? Price decreases, quantity decreases Price decreases, quantity increases Price increases, quantity decreases Price increases, quantity increases

Price decreases, quantity increases

A survey indicated that cheddar cheese is America's favorite kind of cheese. A severe drought in the Midwest causes dairy farmers to reduce the number of milk producing cattle in their herds by 1/3. These dairy farmers supply milk that is used to make cheddar cheese. Which determinant causes the curve to shift? hint: remember TRIBE and ROTTEN? Tastes Resources Substitutes Technology

Resources

A survey indicated that cheddar cheese is America's favorite kind of cheese. New technology for cheese making lowers manufacturers' costs for producing cheddar cheese. Which curve shifts and in which direction? Supply moves right Supply moves left Demand moves right Demand moves left

Supply moves right

A survey indicated that cheddar cheese is America's favorite kind of cheese. A severe drought in the Midwest causes dairy farmers to reduce the number of milk producing cattle in their herds by 1/3. These dairy farmers supply milk that is used to make cheddar cheese. Which curve should shift, and in which direction? Supply to the right Supply to the left Demand to the right Demand to the left

Supply to the left

For this question, you are answering based on the market for hot dogs. Make sure you consider your answer carefully! In your town, all hot dog sellers raise the price of potato chips which everyone buys to eat with their hot dogs. At the same time, a major food packaging plant that is responsible for hot dog production has problems hiring enough workers. Which curves move, and in which direction? Supply to the left (decrease) and demand to the left (decrease) Supply to the right (increase) and demand to the left (decrease) Supply to the left (decrease) and demand to the right (increase) Supply to the right (increase) and demand to the right (increase)

Supply to the left (decrease) and demand to the left (decrease)

For this question, you are answering based on the market for paint. Make sure you consider your answer carefully! The most popular home decorating magazines have declared that color is the easiest way to get a new look in your house. At the same time, a law is passed requiring paint manufacturers to produce a lower odor paint, adding an additional step to the production process. Based on this information, which curves move, and in which direction? Supply to the left (decrease) and demand to the right (increase) Supply to the left (decrease) and demand to the left (decrease) Supply to the right (increase) and demand to the right (increase) Supply to the right (increase) and demand to the left (decrease)

Supply to the left (decrease) and demand to the right (increase)

A survey indicated that cheddar cheese is America's favorite kind of cheese. The discovery of cheaper synthetic flavoring lowers the price for American cheese. (read carefully!) Which curve shifts and in which direction? demand moves left demand moves right supply moves left supply moves right

demand movies left

A survey indicated that cheddar cheese is America's favorite kind of cheese. A severe drought in the Midwest causes dairy farmers to reduce the number of milk producing cattle in their herds by 1/3. These dairy farmers supply milk that is used to make cheddar cheese. What happens to equilibrium price and quantity? price increases, quantity increases price increases, quantity decreases price decreases, quantity increases price decreases, quantity increases

price increases, quantity decreases