LearningCurve - Chapter 3: Supply and Demand

The supply curve for lemonade has a positive slope because as the price increases the: supply of lemonade decreases. supply of lemonade increases. quantity of lemonade supplied decreases. quantity of lemonade supplied increases.

quantity of lemonade supplied increases.

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a shortage of 6 bicycles if the price is, in numerals, $_____.

100

Suppose that the table represents demand and supply for lobsters in a competitive market. There will be a surplus of 1000 lobsters if the price is, in numerals, $_____.

25

Suppose that the number of students enrolled at Big University decreases. In the local market for college textbooks demand will: A) decrease. B) increase. C) remain the same. D) increase and then shift back to its original level.

decrease.

Suppose that the graph represents the demand and supply of bicycles in a small town. True or False: If the market for bicycles is competitive and the price is $300, the price will increase. This is _____.

False

Suppose that the table represents demand and supply for lobsters in a competitive market. True or False: If the price is $25, there is a shortage of 1000 lobsters. This is _____. A) True B) False

False

Suppose Jeremy hears a news story reporting that the price of sky-diving lessons has gone up. According to the law of supply, what would he expect as a result? A) The supply curve of sky-diving lessons will become flatter. B) The supply curve of sky-diving lessons will become steeper. C)The quantity of sky-diving lessons supplied will remain unchanged, because there are only a certain number of people who know how to teach this skill. D) The quantity of skydiving lessons supplied will increase.

The quantity of skydiving lessons supplied will increase.

If the price of an input increases the quantity supplied: A) at any given price will be greater than before.. B) at any given price will be less than before. C) increases and there is a movement along the supply curve. D) decreases and there is a movement along the supply curve.

at any given price will be less than before.

Suppose that imitation gemstones are an inferior good._____. If incomes increase, the demand for imitation gemstones will: remain the same, but quantity demanded will increase. increase. remain the same, but quantity demanded will decrease. decrease.

decrease.

Since price and quantity supplied are directly related, the supply curve: is vertical. is horizontal. has a negative slope. has a positive slope.

has a positive slope.

The supply curve has a positive_____ slope because: the demand curve has a negative slope. the supply of a product increases over time. producers are willing to sell more at higher price. the supply of a product decreases over time.

producers are willing to sell more at higher price.

The amount of a good that producers are willing to sell at some specific price is known as: A) quantity supplied. B) quantity demanded. C) supply. D) demand.

quantity supplied.

Wii consoles and Wii video games are complements. If the price of Wii consoles goes up, the demand curve for Wii video games will: shift to the left. stay the same. shift to the right. shift to the right and then back to its original position.

shift to the left.

The downward slope of the demand curve shows that a(n): increase in price causes a decrease in demand. decrease in price causes an increase in demand. decrease in price causes a decrease in quantity demanded. increase in price causes a decrease in quantity demanded.

increase in price causes a decrease in quantity demanded.

Wii consoles and Wii video games are complements. If the price of Wii consoles goes up, the demand curve for Wii video games will: shift to the left. shift to the right. stay the same. shift to the right and then back to its original position.

shift to the left.

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a shortage of 4 bicycles if the price is, in numerals, $_____.

150

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a surplus of _____ bicycles if the price is $300.

2

Suppose that the table represents demand and supply for lobsters in a competitive market. There will be a surplus of 500 lobsters if the price is, in numerals, $_____.

20

Suppose that the table represents demand and supply for lobsters in a competitive market. There will be a surplus of 500 lobsters if the price is, in numerals, $_____.

20

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a shortage of 2 bicycles if the price is, in numerals, $_____.

200

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a surplus of _____ bicycles if the price is $350.

4

Suppose that the table represents demand and supply for lobsters in a competitive market. Using a numeral/numerals, if the price is $_____, there is a shortage of 1000 lobsters.

5

Suppose that the graph represents the demand and supply of bicycles in a small town. The equilibrium quantity is: A) 5 bicycles . B) 6 bicycles. C) 4 bicycles. D) 3 bicycles.

5 bicycles.

Suppose that the graph represents the demand and supply of bicycles in a small town. There is a surplus of _____ bicycles if the price is $400.

6

Assume that the health insurance premiums of auto workers increase. What will happen in the market for automobiles? A) The supply of automobiles will shift to the left. B) The quantity supplied of automobiles will decrease. C) The quantity supplied of automobiles will increase. D) The supply of automobiles will increase.

The supply of automobiles will shift to the left.

If skim milk and cream are complements in production, when the price of skim milk increases, what happens in the market for cream? The demand for cream increases. The demand for cream decreases. The supply of cream decreases. The supply of cream increases.

The supply of cream increases.

If gasoline and heating oil are substitutes in production for an oil refiner, what happens in the market for heating oil when the price of gasoline increases? The quantity supplied of heating oil increases. The quantity supplied of heating oil decreases. The supply of heating oil decreases. The supply of heating oil increases.

The supply of heating oil decreases.

If gasoline and heating oil are substitutes in production for an oil refiner, what happens in the market for heating oil when the price of gasoline decreases? The quantity supplied of heating oil decreases. The supply of heating oil increases. The quantity supplied of heating oil increases. The supply of heating oil decreases.

The supply of heating oil increases.

If skim milk and cream are complements in production, when the price of cream decreases, what happens in the market for skim milk? The supply of skim milk decreases. The demand for skim milk decreases . The demand for skim milk increases. The supply of skim milkincreases.

The supply of skim milk decreases.

Suppose that the price of cotton used to make game-day t-shirts decreases. Which of the following will occur? The quantity supplied of t-shirts will decrease. The supply of t-shirts will increase. The demand for t-shirts will increase. The supply of t-shirts will decrease.

The supply of t-shirts will increase.

Suppose that the technology of refining crude oil into heating oil improves. What will happen in the market for heating oil? The demand will increase. The supply will decrease. The supply will increase. The quantity supplied will decrease.

The supply will increase.

During the financial crisis that began in 2008, many commercial banks closed. What effect will this have on the market for loans made by banks to consumers and businesses? The quantity supplied will decrease. The supply will shift to the left. The supply will shift to the right. The quantity supplied will increase.

The supply will shift to the left.

Suppose that the number of bookstores selling textbooks in a university town increases. What will happen in the market for textbooks? The quantity supplied will increase. The supply will shift to the right. The quantity supplied will decrease. The supply will shift to the left.

The supply will shift to the right.

True or False: A technological improvement in the production of a good causes a decrease in price. This is _____. A) True B) False

True

True or False: If producers expect lower prices in the future, the current supply curve will shift to the right. This is _____. True False

True

True or False: A technological improvement in the production of a good causes a decrease in quantity. This is _____. A) False B) True

False

True or False: If producers expect higher prices in the future, the current supply curve will shift to the right. This is _____. True False

False

True or False: If the number of producers increases, market supply will decrease. This is _____. False True

False

True or False: If the price of an input decreases, supply increases and the equilibrium price increases. This is _____. A) False B) True

False

If the price of an input increases supply: A) decreases and the supply curve shifts to the right. B) increases and the supply curve shifts to the left. C) increases and the supply curve shifts to the right. D) decreases and the supply curve shifts to the left.

decreases and the supply curve shifts to the left.

If consumers expect that the price of coffee will be lower in the future the: A) demand for coffee will increase and the demand curve will shift to the right. B) quantity demanded of coffee will decrease, causing a movement along the same demand curve. C) demand for coffee will decrease and the demand curve will shift to the left. D) quantity demanded of coffee will increase.

demand for coffee will decrease and the demand curve will shift to the left.

If the price of e-books, a substitute for printed textbooks, decreases the: quantity demanded of printed textbooks will increase. quantity demanded of printed textbooks will decrease. demand for printed textbooks will decrease. demand for printed textbooks will increase.

demand for printed textbooks will decrease.

If the price of e-books, a substitute for printed textbooks, increases the: demand for printed textbooks will decrease. demand for printed textbooks will increase. quantity demanded of printed textbooks will decrease. quantity demanded of printed textbooks will increase.

demand for printed textbooks will increase.

If the price of e-books, a substitute for printed textbooks, increases the: demand for printed textbooks will increase. demand for printed textbooks will decrease. quantity demanded of printed textbooks will increase. quantity demanded of printed textbooks will decrease.

demand for printed textbooks will increase.

Suppose that computers are normal goods. An increase in incomes will: A) decrease the demand for computers and increase their price. B) decrease the demand for computers and decrease their price. C) increase the demand for computers and increase their price. D) increase the demand for computers and decrease their price.

increase the demand for computers and increase their price.

If the price of an input decreases supply: A) increases and the supply curve shifts to the left. B) increases and the supply curve shifts to the right. C) decreases and the supply curve shifts to the right. D) decreases and the supply curve shifts to the left.

increases and the supply curve shifts to the right.

If the American Medical Association announces that eating a candy bar a day will increase life expectancy by 10 years, the demand for candy bars will: be unaffected. shift to the left. be unaffected, but the supply curve will shift to the right. shift to the right.

shift to the right.

Wii consoles and Wii video games are complements. If the price of Wii consoles decreases, the demand curve for Wii video games will: shift to the left. shift to the right. shift to the left and then back to its original position. stay the same.

shift to the right.

An improvement in production technology for a good: A) shifts the supply curve to the right. B) increases the quantity supplied and causes a movement along the supply curve. C) decreases supply and shifts the supply curve to the left. D) decreases the quantity supplied and shifts the supply curve to the left.

shifts the supply curve to the right.

Suppose that the table represents demand and supply for lobsters in a competitive market. If the price is $10, there will be a: A) shortage of 300 lobsters. B) shortage of 500 lobsters. C) surplus of 500 lobsters. D) surplus of 300 lobsters.

shortage of 500 lobsters.

If the price of a good rises the demand for: A) complement goods will increase. B) substitute goods will increase. C) complement goods will remain unchanged. D) substitute goods will decrease.

substitute goods will increase.

If the price of an input increases: A) the quantity supplied increases and the price decreases. B) supply increases and the equilibrium price decreases. C) supply decreases and the equilibrium price increases. D) the quantity supplied decreases and the equilibrium price increases.

supply decreases and the equilibrium price increases.

A schedule showing the quantity of a product that producers are willing to sell at each possible price is known as a _____ schedule: A) quantity demanded. B) supply. C) quantity supplied. D) demand

supply.

Suppose that students at Big University buy season football tickets at the beginning of the fall semester. Everyone expects that the team will have a great season. Students sell individual tickets throughout the season in a competitive market. They can sell tickets to later games (more exciting match-ups) immediately or wait for the game day to approach. If they think the team will have a great season, what will happen in the market for Big University football tickets? The current quantity supplied will decrease. The current supply will increase. The current supply will shift to the left. The current quantity supplied will increase.

The current supply will shift to the left.

According to the law of demand, if the price of pencils increases from $1 to $1.25 the: A) quantity demanded of pencils will increase. B) demand for pencils will decrease. C) quantity demanded of pencils will decrease. D) demand for pencils will increase.

quantity demanded of pencils will decrease.

Suppose that the graph represents the demand and supply of bicycles in a small town. If the price is $300, there is a: A) surplus of 1 bicycle. B) shortage of 2 bicycles. C) surplus of 2 bicycles. D) shortage of 1 bicycle.

surplus of 2 bicycles.