Econ chapter 3 Quizz
A decrease in the price of digital cameras would lead to a(n): A: increase in the price and quantity sold of memory cards. B: decrease in the price and quantity sold of memory cards. C: increase in the price and a decrease in quantity sold of memory cards. D: decrease in the price and an increase in quantity sold of memory cards.
A:
Refer to the above diagram for the milk market. In this market, the equilibrium price is ____ and equilibrium quantity is ___. A: $1.50 per gallon; 28 million gallons B: $1.50 per gallon; 30 million gallons C: $28 per gallon; 150 million gallons D: $1.00 per gallon; 35 million gallons
A:
Refer to the above graph, which shows the market for beef where demand shifted from D1 to D2. The change in equilibrium from E1 to E2 is most likely to result from A: a decrease in consumer incomes. B: an increase in the cost of cattle feed. C: an increase in the price of pork. D: a decrease in the tax on beef products.
A:
Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n) A: increase in supply. B: decrease in supply. C:increase in quantity supplied. D: decrease in quantity supplied.
A:
The law of supply states that, ceteris paribus, if the price of loans (known as "interest rate") rises then the quantity supplied of loans will increase. A: True B: False
A:
A decrease in the price of digital cameras will: A: cause the demand curve for memory cards to become vertical. B: shift the demand curve for memory cards to the right. C: shift the demand curve for memory cards to the left. D: not affect the demand for memory cards.
B
A decrease in the price of digital cameras will cause the demand for memory cards to shift to the left. A: True B: False
B:
In which of the following statements are the terms "demand" and "quantity demanded" used correctly? A: When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell. B: When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell. C: When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell. D: None of these statements use the terms correctly.
B:
Refer to the above diagram illustrating the market for corn. If the price in this market is fixed at $2 per bushel, then: A: sellers will not be able to sell all the corn that they intended to sell. B: sellers will quickly run out of corn that they bring to market. C: buyers will find too much corn in the market. D: buyers will be able to get as much corn as they wish to buy.
B:
Refer to the diagram. A government price support program to aid farmers is best illustrated by: A: quantity E. B: price C. C: price A. D: price B.
B:
Refer to the diagram. The highest price that buyers will be willing and able to pay for 100 units of this product is A: $30. B: $60. C: $40. D: $20.
B:
If products A and B are complements and the price of B decreases, the: A: demand curves for both A and B will shift to the left. B: amount of B purchased will increase, but the demand curve for A will not shift. C: demand for A will increase and the quantity of B demanded will increase. D: demand for A will decline and the demand for B will increase.
C:
Refer to the above diagram for the milk market. If the price were $2 per gallon, then there would be a A: shortage of 20 million gallons. B: shortage of 10 million gallons. C: surplus of 10 million gallons. D: surplus of 30 million gallons.
C:
Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production and successful publicity campaigns by the government on the virtues of bicycling to work? A: 3 B: 4 C: 5 D: 6
C:
Which of the following would cause a leftward shift in the supply curve for car washes? A: an increase in the number of cars in the city B: a decrease in taxes on car washes C: an increase in the price of car washing equipment D: a decrease in the price of water
C:
Assume that the graphs show a competitive market for the product stated in the question. Select the graph that best shows the change in the market for Florida oranges, when a major frost damages the orange crop in California. A: Graph A B: Graph B C: Graph C D: Graph D
D:
If a legal ceiling price is set above the equilibrium price: A: a shortage of the product will occur. B: a surplus of the product will occur. C: a black market will evolve. D: neither the equilibrium price nor the equilibrium quantity will be affected.
D:
One reason that the quantity demanded of a good increases when its price falls is that the: A: price decline shifts the supply curve to the left. B: lower price shifts the demand curve to the left. C: lower price shifts the demand curve to the right. D: lower price increases the real incomes of buyers, enabling them to buy more.
D:
There will be a surplus of a product when: A: price is below the equilibrium level. B: the supply curve is downward sloping and the demand curve is upward sloping. C: the demand and supply curves fail to intersect. D: consumers want to buy less than producers offer for sale.
D:
Which of the following is a determinant of supply? A: tastes and preferences of buyers B: price of a complementary good C: consumer income D: product taxes and subsidies
D:
