Econ Quizes 1

A shift in the demand curve is NOT caused by:

technology

Subsidies on domestically produced sport utility vehicles cause a(n) _____ in the supply of _____ sport utility vehicles

increase; domestic

When the supply curve shifts out (to the right) and the demand curve shifts in (to the left), the equilibrium price will:

increases

The table below shows the demand of three individuals in a market. Assuming they are the only buyers, what is total market demand if the price is $20?

5 units

Which of the following is correct regarding Supply and Demand? (MC is marginal cost, MB is marginal benefit, WTS is willingness to sell, and WTP is willingness to pay).

S = MC = WTS; D = MB = WTP.

If both demand and supply decrease, but the decrease in demand is greater than the decrease in supply, then the equilibrium price _____ and equilibrium output _____.

falls; falls

Prices do NOT help consumers decide:

how much of a product to substitute for another

The shift in demand from A to B is called a(n):

increase in quantity demanded.

An increase in supply causes the equilibrium price to _____ and the equilibrium quantity to _____.

rise; fall

The supply curve

shows a positive relationship between price and quantity supplied.

At any price below the equilibrium price:

the quantity demanded exceeds the quantity supplied in the market (and this creates a shortage).

Uvaldo is deciding which brand of energy drink to buy. According to market economics, he would benefit MOST from basing his decision on which brand has the most:

value relative to its price

Which scenario is the MOST likely effect of a decrease in the price of tablet computers on the market for laptop computers (a substitute)?

decreased equilibrium price and decreased equilibrium quantity

Butter is a substitute for margarine. If the price of margarine drops, we would expect to see:

both the price of butter and quantity of butter fall

Which circumstance will cause a movement down along a demand curve?

decrease in product price