ECON 2002 - Chapter 3 Quiz
Which of the following will shift today's supply curve to the right?
Price are expected to be lower in the future
Which of the following will NOT cause a shift in the demand for rewritable DVDs
a change in the price of rewritable DVDS
All of the following will cause a shift in the supply of jeans except
a decrease in the price of jeans
An increase in demand is shown graphically by
a shift of demand curve to the right
If the price of personal computer rise and demand for printers decrease, they are
complementary goods
Which is not a determinant of demand>
cost of inputs in production
If the price of hot dogs increases, the demand for hot dog buns will
decrease
If the price of margarine falls, the demand for butter will
decrease
A schedule of how much of a good people will purchase for a range of possible prices during a specified time period
demand
A normal good is one for which
demand increases as income increases
The relative price of a good is that price
expressed in terms of the price of another good
The law of demand implies that the demand curve
has a negative slope
Total market supply can be derived by
horizontally summing individual supply curves at each and every price level
Total market supply can be derived by
horizontally summing individual supply curves at each and very price level.
If the price of oil rises, producers of oil will
increase quantity supplied
An improvement in technology in the production of computers would
increase the supply of computers
A shortage creates a situation that forces prices to ___ while a surplus creates a situation that forces prices to ____.
increase; decrease
if the demand of a good is inversely related to income, it must be
inferior good
Substitute goods?
margarine and butter
After the price of milk increases, David buys more eggs and less cereal. For David,
milk and eggs are substitutes, and milk and cereal are complements
A fundamental principle in demand analysis is that a change in price leads to
movement along the demand curve
An increase in quantity demanded is shown by a
movement down along a demand curve
The relationship between a change in price of a complementary good and demand for another complementary good is
negative
Suppose an individual experiences a permanent increase in income. as a result, the individual eats out a restaurants more. Eating out is a
normal good
According to the law of demand,
people buy more of a good when the price falls
Other things equal, the relationship between price and quantity supplied is
positive
A market is in equilibrium when
quantity demanded equals quantity supplied at market clearing prices
when the amount supplied is greater at each price, there is an
rightward shift in supply curve
A change in any of the ceteris paribus conditions for demand leads to a
shift in demand curve
A direct or positive relationship between price and quantity supplied is
supply curve
The law of demand includes the statement "other things being equal." These other things include all of the following except
the price of that good in the law of demand
An increase in supply will occur when
the supply curve shifts downward to the right
When McDonald's runs a special for hamburgers, reducing price of Big Macs
there will be a decrease in demand for Whoppers assuming they are substitutes
Shortage exists
when quantity supplied is less than quantity demanded
The imposition of a per unit tax on a product
will cause the supply curve to shift upward and to the left
Demand is defined as
a schedule of how much of an item people will purchase at any particular price of that item during a specified time period, other things constant.
When there is an excess quantity of a product supplied, there will be
a tendency for price to fall
The demand curve shows the relationship between quantity demanded and
price
Which of the following is not true about equilibrium price
price where a change in quantity supplied occurs
Which o the following is an example of the law of demand?
A decrease in the price of milk is followed by an increase in milk purchases.
Which of the following best represents the law of demand?
As the price increases, quantity demanded increases.
Which of the following statements is consistent with an increase in supply?
advance in technology
Each of the following would cause an increase in supply of baseballs EXCEPT
an expectation that the price of baseballs will rise in the future
Which of the following represents law of supply?
an increase in price of a good causes and increase in quantity supplied of that good
Which of the following will NOT lead to a decrease in demand for a normal good?
an increase in price of an input
Which of the following would cause an increase in the market supply of mountain bikes?
an increase in the number of firms making mountain bikes
An expected increase in the future price of automobiles will lead to
an outward shift in demand today
