AP Econ Module 5 & 6

When the price of corn is rising, we would expect:

The quantity of corn to also be rising

an increase of supply is caused by:

an advancement in the technology for producing the good

A shift to the left of a supply curve is caused by

an increase in the cost of an input

the demand curve for flat screen televisions has shifted to the right. this could be caused by:

an increase in the incomes of buyers

A decrease in the price of a good will result in

an increase in the quantity demanded

When the market is at equilibrium, one will find that the:

quantity demanded is equal to quantity supplied

when the price of computers increases, the:

quantity supplied increases

Researchers find a new strain of genetically modified seeds that result in a higher yield for corn producers. holding all other things constant, this research will:

shift the supply curve for corn to the right

If steak and potato are complements, when the price of steak goes up, the demand curve for potatoes:

shifts to the left

If suppliers expect prices to rise next year for their product, then one would expect:

that this will shift the supply curve for the product to the left this year

Excess supply occurs when

the price is above the equilibrium

Which of the following would shift the demand curve for new textbooks to the right

an increase of college enrollment

Markets that are characterized by many buyers and many sellers are referred to as

competative

A farmer finds that when he produces more corn, he also has more corn stalks that he can sell as decorative ornaments. to the farmer, corn and corn stalks are

complements in production

an increase in the demand for gasoline today caused by concerns that gasoline prices will be higher in a week from today is most likely attributable to which of the following

consumer expectations

a negative relationship between the quantity demanded and the price is called the law of:

demand

a decrease in the price of eggs will result in a(n):

greater quantity of eggs demanded

after graduation from college, you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steaks and less hamburger, then for you hamburger would be considered a(n):

inferior good

a direct relationship between the price and quantity is represents by:

the supply curve

Milk is an important ingredient in the production of icecream. if the price of milk increases, then one would expect:

the supply curve for icecream to shift left