ECON 2301 - Unit 2
Which of the following shifts the supply curve of popcorn leftward?
a decrease in the number of popcorn suppliers
A decrease in supply will lead to
an increase in equilibrium Price and a decrease in equilibrium Quantity
Starting at equilibrium, what happens to equilibrium price and quantity if demand decreases
equilibrium price will fall and equilibrium quantity will fall
Starting at equilibrium, an increase in demand will have what effect on equilibrium price and quantity
equilibrium price will rise and equilibrium quantity will increase
Which of the following is NOT a reason for the downward slop of the demand curve
expected profit effect
The market supply curve is the
horizontal sum of the individual supply curves
The law of supply states that, other things remaining constant
if the price of a good increases, the quantity supplied increases
If vacations are a normal good then an increase in income will
increase demand of vacations
The price of a major input in the production of metal decreases in price. This price decrease will
increase the supply of metal
If the price of Taco Villa increases then the demand for Rosa's will
increase, shift to the right
An increase in the number of fast-food restaurants
increases the supply of fast-food meals
A supply schedule
is a table that shows the relationship between the quantity supplied and the price of a good
Starting in equilibrium, an increase in demand will
lead to an increase in equilibrium price and equilibrium quantity
Which of the following increase the supply of a product
lower prices for the resources used to produce the product
Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same
market demand for soda increases
The reason that PF Chang's would rather locate in Dallas than Pecos is because
number of buyers
The Law of Demand refers to the fact that, other things remaining constant,
price and quantity demanded move in opposite directions
The supply side of the market represents
producers
If the price of carrots is below the equilibrium price, the
quantity demanded of carrots exceeds the quantity supplied and a shortage exists
When there is a shortage of parking spaces at your college, the
quantity of parking spaces demanded is greater than the quantity of parking spaces supplied
The quantity supplied of a good or service is the
quantity produced at one price
An example of a price ceiling is
rent control
The downward slope of a demand curve
represents the law of demand
The law of market forces is the tendency for the price to
rise when there is a shortage and fall when there is a surplus
An increase in the number of buyers of a product will do what to demand
shift the demand curve to the right
Price $8 $7 $6 $5 Quantity Demanded 10 40 70 100 Quantity Supplied 90 80 70 60 Using the data in the table above, if the price of a stapler is $5, then there is a ______ of staplers and the quantity of staplers demanded ____ the quantity of staplers supplied
shortage; is greater than
A supply curve
slopes upward
Goods that can be used in place of one another are called
substitute goods
Market demand curves are obtained by
summing the quantities every consumer is willing to buy at each different price
Price $8 $7 $6 $5 Quantity Demanded 10 40 70 100 Quantity Supplied 90 80 70 60 Using the data for staplers above, if the price of a stapler is $8, then there is a ____ of staplers and the quantity demanded _____ the quantity of staplers supplied.
surplus; is less than
Suppose that scooters become popular with old people because it makes them feel cool. This gain in popularity best reflects which of the following influences on buying plans
tastes and preferences
The factor of demand that deals with how we feel about a product is
tastes and preferences
Which of the following does not impact the supply curve
tastes and preferences
The main reason that technology increases supply is
technology increases productivity
Demand is
the amount of a good or service that consumers are willing to buy at all prices in a given period
Supply is
the amount of a good or service that producers will make available for sale at all prices
What is the quantity demand
the amount of a good people are willing and able to buy during a specific time period and at a given price
Hot dogs and hot dog buns are complements, if the price of a hot dog falls, then
the demand for hot dog buns will increase
An inferior good is one that
the demand for will fall as income rises
If the demand for a good increases when people's incomes increase
the good is a normal good
If consumers preferences for a good increase, then
the good's demand curve shifts rightward
An example of a price floor is
the minimum wage
When a surplus occurs
the price falls
In a supply schedule, which of the following changes
the price of the good
When a shortage occurs
the price rises
Market equilibrium occurs when
the quantity demanded equals the quantity supplied
The law of demand refers to how
the quantity demanded of a good changes when the price of a good changes
According to the law of demand, if the price of hamburgers increases then
the quantity demanded of hamburgers will fall
A surplus occurs when
the quantity supplied is greater than the quantity demanded
A shortage occurs when
the quantity supplied is less than the quantity demanded
Quantity demand refers to
the specific amount that a consumer will buy at a specific price
The market demand curve for mangos is
the sum of the individual demand curves for all the buyers
If the automobile worker's union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of SUV automobiles.
the supply decreases
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses
the supply decreases so that the supply curve shifts leftward
If hot dogs are considered an inferior good
then the demand for hot dogs will decrease when people's income increases
If the price is below the equilibrium price,
there is a shortage
Given this demand schedule, if the price of the good is $1 what is the quantity demanded? P Q 3 .5 2 1 1 2
2 (Since you can't see the question this is the answer)
Sonic raises its prices and more people start going to Stars (demand for Stars increases) then Sonic and Stars are
Substitutes
Price $100 $80 $50 $20 Quantity Demanded 50 55 60 100 Quantity Supplied 100 80 60 40 Using this table for cell phones, the equilibrium quantity and equilibrium price for a cell phone is
60,000 and $50
Price $8 $7 $6 $5 Quantity Demanded 10 40 70 100 Quantity Supplied 90 80 70 60 Using the table above for staplers, the equilibrium quantity and equilibrium price for a stapler is
70,000 and $6
A change in the price of a good can cause
(NOT) A change in demand
The law of demand implies that, other things remaining the same
(NOT) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases
An increase in business regulations would tend to
(NOT) increase supply
An increase in supply can be represented by
A shifting of the supply curve rightward
An increase in the number of pineapple growers results in
An increase in the supply of pineapples and a rightward shift in the supply curve of pineapples
Anything that increases the costs of production and makes it more expensive to produce will
Decrease supply (shift the supply curve leftward)
During the great recession as people suffered a loss of income, the sale of Big Macs increased. Big Macs are
Inferior goods
A hurricane is approaching the Florida coast. From prior experience the people of Florida know that stores will be closed for several days and they will not be able to get food. What happens to the demand for food today
It increases
Starting at equilibrium, an increase in supply will do what to equilibrium price and quantity
P will fall and Q will rise
Starting in equilibrium, a decrease in supply will do what to equilibrium price and quantity
P will rise and Q will fall
A decrease in demand is shown as
a leftward shifting of the demand curve
A price ceiling is
a maximum legal price
An increase in supply is shown as
a rightward movement of supply
An increase in demand is represented as
a rightward shift of the demand curve
A change in demand causes
a shifting of the demand curve
A change in demand can be shown as a
a shifting of the entire demand curve
Price $100 $80 $50 $20 Quantity Demanded 50 55 60 100 Quantity Supplied 100 80 60 40 Using the table above for cell phones, at a price of $80 a phone
a surplus of 25,000 cell phones occurs
A price floor makes prices
below the price floor illegal
To be part of the supply for a good, a producer must be
both able and willing to supply the good
An increase in the price of a good or service will
cause a movement up the demand curve
Goods that are used together are called
complements
Mulch is shredded and is a by-product in the production of lumber. Because these two goods are produced together, they are
complements in production
The demand side of the market represents
consumers
Advances in productivity increases supply because they
decrease the cost of production
The graphical representation of the demand schedule is called the
demand curve
Car insurance and cars are complements. If the price of car insurance increases, the
demand for cars decreases
A table showing the various prices and associated quantity demand is called a
demand schedule
People come to expect that the price of a gallon will rise next week. As a result
today's demand for gasoline increases
Supply curves are
upward sloping