Prin. of Microec. HW 2

Refer to Table 4-1. If the law of demand applies to this good, then Q1 could be

0

Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

31 units.

Assume Lianna buys coffee beans in a competitive market. It follows that

Lianna cannot influence the price of coffee beans even if he buys a large quantity of them.

Which of the following changes would not shift the demand curve for a good or service?

A change in the price of the good or service.

Which of the following would shift the demand curve for gasoline to the right?

An increase in consumer income, assuming gasoline is a normal good.

Which of the following is not an example of a market?

In the United States, a sick person cannot legally purchase a kidney.

Which of the following demonstrates the law of demand?

Jayden buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.

Which of the following is not held constant in a demand schedule?

Price

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Students would purchase more than 750 cups per day.

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

The price of olives rises

Which of the following is not a determinant of the demand for a particular good?

The prices of the inputs used to produce the good.

Which of the following is not a characteristic of a perfectly competitive market?

There is no free entry or exit.

A group of buyers and sellers of a particular good or service is called

a market.

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be

a normal good.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

If a seller in a competitive market chooses to charge more than the going price, then

buyers will make purchases from other sellers.

An increase in the price of a good will

decrease quantity demanded.

Refer to Table 4-2. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

decreases by 7 units.

An example of a perfectly competitive market would be the

soybean market.

If something happens to alter the quantity demanded at any given price, then

the demand curve shifts.