ECON130

If garden gnomes regain popularity, what will happen to the equilibrium price and quantity of garden gnomes? A. Equilibrium price and quantity both rise. B. Equilibrium price and quantity both fall. C. Equilibrium price rises and quantity falls. D. Equilibrium price falls and quantity rises.

A. Equilibrium price and quantity both rise.

If sellers of music downloads negotiate a reduction in the royalties they must pay for each song they sell, what is the effect on the equilibrium price and quantity of music downloads? A. Equilibrium price falls and equilibrium quantity rises. B. Equilibrium price and quantity both rise. C. Equilibrium price rises and equilibrium quantity falls. D. Equilibrium price and quantity both fall.

A. Equilibrium price falls and equilibrium quantity rises.

If sellers of music downloads negotiate a reduction in the royalties they must pay for each song they sell and the price of music CDs falls, what is the effect on the equilibrium price of music downloads? A. Equilibrium price falls. B. Equilibrium price rises. C. Equilibrium price may rise or fall.

A. Equilibrium price falls.

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods? A. Prices and quantities both rise. B. Prices fall and quantities rise. C. Prices rise and quantities fall. D. Prices and quantities both fall.

A. Prices and quantities both rise.

Which of the following would shift the demand curve for new college textbooks to the right? A. an increase in the price of used college textbooks B. a decrease in the wealth of college students C. an increase in the price of new college textbooks D. a decrease in the price of new college textbooks E. a decrease in the population of college students

A. an increase in the price of used college textbooks

An increase in ________ will cause a movement along a given demand curve, which is called a change in ________. A. supply, quantity demanded B. demand, quantity supplied C. demand, supply D. supply, demand

A. supply, quantity demanded

What is the effect of a fall in the price of music CDs on the equilibrium price and quantity of music downloads? A. Equilibrium price falls and equilibrium quantity rises. B. Equilibrium price and quantity both fall. C. Equilibrium price and quantity both rise. D. Equilibrium price rises and equilibrium quantity falls.

B. Equilibrium price and quantity both fall.

As airlines increase the number of premium seats for sale (all else equal), what happens to the equilibrium price and quantity of premium seat tickets? A. Equilibrium price rises and equilibrium quantity falls. B. Equilibrium price falls and equilibrium quantity rises. C. Equilibrium price and quantity both fall. D. Equilibrium price and quantity both rise.

B. Equilibrium price falls and equilibrium quantity rises.

The law of demand says that A. price and quantity supplied are inversely related B. price and quantity demanded are inversely related C. income and quantity demanded are directly related D. quantity supplied equals quantity demanded E. the customer is always right

B. price and quantity demanded are inversely related

A change in which of the following will NOT shift the demand curve for hamburgers? A. the price of hamburger buns B. the price of hamburgers C. the income of hamburger consumers D. the price of hot dogs

B. the price of hamburgers

Which of the following will cause an increase in the demand for autos? A. McDonald's increases its hamburger production in response to consumer trends. B. Price of car tires increases because of a Malaysian rubber shortage. C. Gasoline prices drop by 50% when OPEC nations increase production. D. Concrete steel reinforcing rods are replaced by aluminum along the Atlantic coast to prevent rusting.

C. Gasoline prices drop by 50% when OPEC nations increase production.

Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets? A. The demand curve shifts to the left. B. The supply curve shifts to the right. C. The demand curve shifts to the right. D. The supply curve shifts to the left.

C. The demand curve shifts to the right.

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? A. an increase in the price of Marshmallow Fluff, a substitute for jelly B. an increase in consumers' incomes, as long as jelly is a normal good C. an increase in the price of grapes, an input into jelly D. an increase in the price of peanut butter, a complement to jelly

C. an increase in the price of grapes, an input into jelly

In a competitive market, when price is below the equilibrium level, the price will be driven upward due to A. government intervention B. competition among suppliers C. excess demand (shortage) D. excess supply (surplus) E. technical inefficiency

C. excess demand (shortage)

When the price of petroleum goes up, the demand for natural gas ______, the demand for coal ______, and the demand for solar power ______. (Assume these goods are substitutes for petroleum.) A. decreases; decreases; decreases B. decreases; decreases; increases C. increases; increases; increases D. increases; increases; decreases

C. increases; increases; increases

If the supply of coffee falls due to bad weather conditions in coffee-exporting countries, then the A. price will fall and quantity will rise B. price and quantity will fall C. price will rise and quantity will fall D. price and quantity will rise E. quantity will fall, but price may rise or fall

C. price will rise and quantity will fall

If automobiles are like most goods and the price of automobiles rises, then holding all else constant, the A. demand for automobiles will rise B. supply of automobiles will fall C. quantity demanded of automobiles will fall D. quantity demanded of automobiles will rise E. demand for automobiles will fall

C. quantity demanded of automobiles will fall

Procter & Gamble Co. is a major soap producer. All of the following, except one, would shift its supply curve of liquid soap to left. Which is the exception? A. an increase in the price of a key ingredient of liquid soap B. an increase in the wage rate for factory workers who produce liquid soap C. an increase in the price of bar soap D. a decrease in the price of liquid soap E. environmental regulations force Procter & Gamble to use a more costly technology to produce liquid soap

D. a decrease in the price of liquid soap

An increase in the price of a particular good, with all other variables constant, causes A. a shift to a different supply curve with lower quantities supplied B. no movement along a given supply curve unless demand also changes C. a shift to a different supply curve with higher quantities supplied D. a movement along a given supply curve to a higher quantity supplied E. a movement along a given supply curve to a lower quantity supplied

D. a movement along a given supply curve to a higher quantity supplied

Which of the following could lead to an increase in the equilibrium quantity of a good? A. a decrease in supply and a decrease in demand B. a decrease in technology C. an increase in the price of an input D. an increase in demand and an increase in supply E. a decrease in demand regardless of supply

D. an increase in demand and an increase in supply

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as A. opportunity cost B. supply C. quantity supplied D. quantity demanded E. demand

D. quantity demanded

The discovery of a large new reserve of crude oil will shift the ________ curve for gasoline, leading to a ________ equilibrium price. A. supply, higher B. demand, lower C. demand, higher D. supply, lower

D. supply, lower

Consumers in Mayville consider houses and apartments to be substitutes. There is an increase in the price of houses in Mayville at the same time three new apartment buildings open there. In the market for apartments in Mayville, we can for sure say that: A. the equilibrium price will fall. B. the equilibrium price will rise. C. the equilibrium quantity will fall. D. the equilibrium quantity will rise.

D. the equilibrium quantity will rise.

Which of the following would NOT cause the demand curve for college football tickets to shift? A. an increase in student preferences/tastes for college football tickets B. a drop in student incomes C. a decrease in the price of college basketball tickets D. an increase in the price of professional football tickets E. an increase in the price of college football tickets

E. an increase in the price of college football tickets

If Holly's demand for fast food decreases as her income rises, then A. fast food is a complementary good B. the law of demand must apply C. fast food is a substitute good D. fast food is a normal good for her E. fast food is an inferior good for her

E. fast food is an inferior good for her