ECON 2002 - Chapter 3 Quiz

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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


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