Econ Topic 3
How many slices of pizza per day would you expect a pizzeria in this market to sell if it were pricing its slices at $3.50?
175
Based on this diagram, which of the following situations reflects the substitution effect resulting from a special sale on Z-Ball brand golf balls?
Consumers purchase Z-Balls rather than the brand they normally buy.
Which of the following describes the relative elasticity in demand for the product shown in a period of economic change?
Demand is inelastic because it is a low-cost necessity.
Which of the following is generally true after a shift in supply or demand?
Equilibrium is gradually restored.
A new variety of apple from imported apple trees has proved popular with American consumers. What challenge does this represent to the apple growers and their desire to take advantage of this development?
Supply of fruits such as apples is inelastic in the short run.
According to this table, which of the following explains why the owner of the beanbag factory would be willing to accept an increase in variable cost from $63 per hour to $82 per hour?
The increase will make possible an increase in the factory's profit.
Suppose a new commercial development is built, leading to the opening of several new fast-food restaurants in a market. Which of the following is the likely result of such a development?
The supply curve shifts to the right.
Which of the following BEST restates the point made in the statement below?
The way markets respond to a change in price is highly predictable.
Look at the above information from a supply and demand schedule. To restore this market to equilibrium, the quantity demanded and quantity supplied would change so that they were both
between 170 and 225.
When warfare cut off some of the supply of a rare metal used in making cellphones, one firm's marginal cost rose higher than its marginal revenue. Which of the following events in the graph is the most likely result of this event?
the shift of the supply curve to the left
Which of the following price / output pairs would appear on the supply schedule used to create the individual supply curve below?
$1.00 / 100
According to this table, what number of beanbags per hour would be the BEST level of production from a firm's point of view? Why?
10 beanbags per hour; profit is at its highest level
Which of the following price / output points would be found on the market supply schedule used to create the market supply curve below?
5.00 / 3,000
How are price ceilings and price floors similar?
Both bring about disequilibrium in the market.
Which of the following BEST explains how the situation shown in the graph affects producers and consumers?
It benefits neither, because consumers must pay more and producers must throw out excess supply.
What can you say about the Larvines' demand for meals at the Japanese restaurant?
It is elastic; a small increase in price resulted in a large decrease in consumption.
How would a new government subsidy for rice farmers affect the market for rice?
It would increase the supply by decreasing rice farmers' production costs.
Jenna is a plant lover. She could afford to buy a new houseplant every three months. Something happened in Jenna's life that caused her demand curve for plants to shift to the right. Using the graphs below, identify which of the following is the most likely explanation for the result.
Jenna now buys a new houseplant every month.
Study the demand curves below. If the price of a slice of pizza decreased from $4.00 to $2.00, how would that change the number of slices of pizza demanded each day by the market?
The demand would increase by 100 slices per day.
Which of the following is the likely result of a successful advertising campaign for an electronic game?
a demand curve that has shifted to the right
Which of the following BEST describes equilibrium?
a point that moves continually in response to market changes in quantity supplied and demanded
A wildfire has put a major lumber producer out of business. How might an economist show one consequence of this in a graph?
a supply curve that has shifted to the left
Falling prices caused quantity demanded to rise and quantity supplied to fall until, once again, they were equal.Which of the following might have forced a firm to cut prices in this scenario?
a surplus in the market
Use this diagram to identify which of the following would cause consumers to demand fewer slices of pizza.
an increase in the price of pizza slices
If you used this schedule to graph the demand for watermelons, where would the equilibrium point appear?
at a price of $3.00 and a quantity supplied of 200
A change in the cost of an input can decrease quantity supplied. As the supply curve shifts to the left, suppliers raise their prices, and the quantity demanded falls. After the movement described above, where will the new equilibrium point be?
at a spot along the demand curve above and to the left of the original equilibrium point
Which of the following goods would be considered a complement to flashlights in the context of a demand for goods?
batteries
In a market-based economy, consumers rely on prices to help them
choose among similar products.
For a consumer who loves almonds but has a limited budget, what is this new headline likely to trigger?
income effect leading to lower demand for several goods
Based on this graph, after adding the eighth worker, what is the beanbag company's owner MOST LIKELY going to do?
reduce the workforce
Based on these graphs, which of the following BEST describes equilibrium?
the point at which the demand and supply both equal 200
