Econ Quizes 1
A shift in the demand curve is NOT caused by:
technology
Subsidies on domestically produced sport utility vehicles cause a(n) _____ in the supply of _____ sport utility vehicles
increase; domestic
When the supply curve shifts out (to the right) and the demand curve shifts in (to the left), the equilibrium price will:
increases
The table below shows the demand of three individuals in a market. Assuming they are the only buyers, what is total market demand if the price is $20?
5 units
Which of the following is correct regarding Supply and Demand? (MC is marginal cost, MB is marginal benefit, WTS is willingness to sell, and WTP is willingness to pay).
S = MC = WTS; D = MB = WTP.
If both demand and supply decrease, but the decrease in demand is greater than the decrease in supply, then the equilibrium price _____ and equilibrium output _____.
falls; falls
Prices do NOT help consumers decide:
how much of a product to substitute for another
The shift in demand from A to B is called a(n):
increase in quantity demanded.
An increase in supply causes the equilibrium price to _____ and the equilibrium quantity to _____.
rise; fall
The supply curve
shows a positive relationship between price and quantity supplied.
At any price below the equilibrium price:
the quantity demanded exceeds the quantity supplied in the market (and this creates a shortage).
Uvaldo is deciding which brand of energy drink to buy. According to market economics, he would benefit MOST from basing his decision on which brand has the most:
value relative to its price
Which scenario is the MOST likely effect of a decrease in the price of tablet computers on the market for laptop computers (a substitute)?
decreased equilibrium price and decreased equilibrium quantity
Butter is a substitute for margarine. If the price of margarine drops, we would expect to see:
both the price of butter and quantity of butter fall
Which circumstance will cause a movement down along a demand curve?
decrease in product price