Micro Ch 3

If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will a. decrease the demand for the iPhone. b. increase the demand for the Galaxy. c. increase the quantity demanded for the Galaxy. d. Increase the quantity demanded for the iPhone.

b. increase the demand for the Galaxy.

Which of the following is evidence of a shortage of walnuts? a) Firms lower the price of walnuts. b) The price of cashews is lowered in order to make up for the walnut shortage. c) The equilibrium price of walnuts falls due to a decrease in demand. d) The quantity demanded of walnuts is greater than the quantity supplied.

a) Firms lower the price of walnuts.

In 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.? a) The supply curve shifted to the left. b) The supply curve shifted to the right. c) The demand curve shifted to the right. d) The demand curve shifted to the left.

a) The supply curve shifted to the left.

Last year, the firm supplied 8K ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The firm has experienced a) a decrease in supply. b) an increase in supply. c) an increase in the quantity supplied. d) a decrease in the quantity supplied.

a) a decrease in supply.

2.The law of demand implies, holding everything else constant, that a) as the price of bagels increases, the quantity of bagels demanded will decrease. b) as the price of bagels increases, the demand for bagels will decrease. c) as the price of bagels increases, the quantity of bagels demanded will increase. d) as the price of bagels increases, the demand for bagels will increase.

a) as the price of bagels increases, the quantity of bagels demanded will decrease.

If a demand curve shifts to the right, the a) demand has increased. b) quantity demanded has increased. c) demand has decreased. d) quantity demanded has decreased.

a) demand has increased.

A change in all of the following variables will change the market demand for a product except a) the price of the product. b) population and demographics c) income. d) tastes.

a) the price of the product.

Which of the following is the correct way to describe equilibrium in a market? a) At equilibrium, D equals S. b) At equilibrium, quantity demanded equals quantity supplied. c) At equilibrium, market forces no longer apply. d) At equilibrium, scarcity is eliminated.

b) At equilibrium, quantity demanded equals quantity supplied.

If an increase in income leads to in an increase in the demand for butter, then butter is a) a neutral good. b) a normal good. c) a necessity. d) a complement.

b) a normal good.

If in the market for peaches, the supply curve has shifted to the left a) the supply of peaches has increased. b) the supply of peaches has decreased. c) the quantity of peaches supplied has increased d) the quantity of peaches supplied has decreased.

b) the supply of peaches has decreased.