Econ Homework 3
Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is
0 units
Refer to Table 4-4. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is
28 units
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
Which of the following would shift the supply of Green Bay Packers football jerseys to the left?
The cost of the fabric used to make the jerseys increases
Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets?
The demand curve shifts to the right
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
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would notbe a direct result of this event?
Buyers would not be willing to buy as much as before at each relevant price
Refer to Figure 4-10. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?
Point A to Point B
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
Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 300 cases when the price is $3.00, which of the following statements is correct?
The market is in equilibrium at a price of $3.00
Which of the following demonstrates the law of supply?
When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.
If a surplus exists in a market, then we know that the actual price is
above the equilibrium price, and quantity supplied is greater than quantity demanded.
When we move along a given supply curve,
all nonprice determinants of supply are held constant.
Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?
an increase in the price of grapes, an input into jelly
If a decrease in income increases the demand for a good, then the good is
an inferior good
The line that relates the price of a good and the quantity demanded of that good is called the demand
curve, and it usually slopes downward
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.
In a perfectly competitive market,
every seller takes the price of its product as set by market conditions.
Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires
is unaffected, and the supply of tires could increase, decrease, or stay the same
A likely example of substitute goods for most people would be
pencils and pens
refer to Table 4-6 . If the price were $8, a
surplus of 25 units would exist, and price would tend to fall
Refer to Figure 4-7. At a price of $35, there would be a
surplus of 400 units
When the quantity demanded has increased at every price, it might be because
the price of a complementary good has decreased
If something happens to alter the quantity supplied at any given price, then
the supply curve shifts
If the supply of a product increases, then we would expect equilibrium price
to decrease and equilibrium quantity to increase
