Module 29:

Which of the following will cause a decrease in the equilibrium price? a. Both supply and demand increase. b. Supply increases and demand decreases. c. Both supply and demand decrease. d. Supply decreases and demand increases.

b. Supply increases and demand decreases.

The cost of making baseball caps decreases at the same time that people are buying fewer baseball hats. As a result, the equilibrium price will ________ and the equilibrium quantity will ________. a. increase, be undetermined b. decrease, be undetermined

b. decrease, be undetermined

The price of wrapping paper is expected to fall after the holidays. As a result, just before the holidays the equilibrium price will ________ and the equilibrium quantity will ________. a. increase, be undetermined b. decrease, be undetermined

b. decrease, be undetermined

Which of the following will cause a decrease in the equilibrium quantity? a. Both supply and demand increase. b. Supply increases and demand decreases. c. Both supply and demand decrease. d. Supply decreases and demand increases.

c. Both supply and demand decrease.

Many companies that sold copper wiring are going out of business. What will happen to the market for copper wiring? a. Supply will increase. b. Equilibrium quantity will increase. c. Equilibrium price will increase. d. All of the above.

c. Equilibrium price will increase.

If more buyers enter the market, the equilibrium price can be expected to _____ and the equilibrium quantity can be expected to _______. a. increase, decrease b. decrease, increase c. increase, increase d. decrease, decrease

c. increase, increase

A national survey of high school students showed that fewer students are buying soda at lunch. How will this shift affect the market for soda? a. Demand will decrease. b. Equilibrium quantity will decrease. c. Equilibrium price will decrease. d. All of above.

d. All of above.

Due to an early spring freeze, lumber companies are expecting the price of lumber to rise next month. Assume that consumers are unaware of this future price increase. Which of the following will happen now? a. Supply will decrease. b. Equilibrium quantity will decrease. c. Equilibrium price will increase. d. All of the above.

d. All of the above.

Which of the following will cause an increase in the equilibrium price? a. Both supply and demand increase. b. Supply increases and demand decreases. c. Both supply and demand decrease. d. Supply decreases and demand increases.

d. Supply decreases and demand increases.

Which of the following will cause an increase in the equilibrium quantity? a. Both supply and demand increase. b. Supply increase sand demand decreases. c. Both supply and demand decrease. d. Supply decreases and demand increases.

a. Both supply and demand increase.

An undetermined effect on equilibrium quantity or price can sometimes be determined if you know which effect is greater. a. True b. False

a. True

Companies that make MP3 players have found a way to decrease the costs of making MP3 players. What will happen to the equilibrium quantity? a. increase b. decrease c. stay the same

a. increase

Question 6/15 If sellers exit the market the equilibrium price can be expected to _____ and the equilibrium quantity can be expected to _______. a. increase, decrease b. decrease, increase c. increase, increase d. decrease, decrease

a. increase, decrease

The Commonwealth of Virginia decides to give a tax rebate of $100 to every citizen of Virginia. How will this affect the market for food in grocery stores? a. Demand will decrease. b. Equilibrium quantity will increase. c. Equilibrium price will decrease. d. All of the above.

b. Equilibrium quantity will increase.

If both supply and demand increase then both the equilibrium price and equilibrium quantity will always increase. a. True b. False

b. False