Economics Test #1
An inward shift of a nation's PPF can occur die to
a natural disaster like a hurricane or bad earthquake
Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?
Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price
If the two countries specialize and trade, who should export digital cameras?
South Korea
Refer to Figure 2-1. Point B is
Technically efficient
The attainable production points on a production possibility curve are
The points alone and inside the PPF
Which of the following would shift the supply curve for MP3 players to the right?
a decrease i nthe number of firms that produce MP3 players
If the price of oranges, a substitute for apples, decreases and the wages of apple workers increase, how will the equilibrium point change?
move from A to E
Refer to Figure 2-6. Assume a technological advancement greatly reduces the cost to produce hybrid-engine vehicles. This is best represented by the
movement from E to F in Graph A
Refer to Figure 2-6. In response to changing consumer demands, GM has cut back on the production of hybrids and increases its production of gasoline-powered vehicles. This strategy is best represented by the
movement from J to H in Graph B
Refer to Figure 2-6. Assume that in 2011, GM was able to reopen one of its factories after an extensice remodelling which now allows for the production of both types of vehicles. This is best represented by the
movement from L to K in Graph C
If in the market for peaches, the supply curve has shifted to the left,
the supply of peaches has decreased
An increase in population would be represented by a movement from
D1 to D2
What is South Korea's OC of producing one digital camera?
20 pounds of wheat
Refer to Figure 3-2. At a price of $10, how many units will be sold?
200
What is the difference between an "increase in demand" and an "increase in quantity demanded"
An "increase in demand" is reprresented by a rightward shift of the demand curve while an "increase in quanitity demanded"is represented by a movement along a give demand curve
What is the difference between an "increase in supply" and an "increase in quantity supplied"?
An "increase in supply" means the supply curve has shiftted to the right while an "increase in quantity supplied" refers to the movement along a given supply curve in an increase to price
Which of the following would cause a decrease in the supply of milk?
An increase the price of a product that produces sell instead of milk
Refer to Figure 2-4. Consider the following movements: a. from Point V to point W b. from point W to point Y c. from point Y to point Z Which of the movements listed above represents economic growth?
B only
Refer to figure 2-4. Consider the following events: a. an increase in the unemployment rate b. a decrease in a nation's money supply c. a war that kills a significant portion of a nation's population Which of the events listed above could cause a movement from Y to W?
C only
A decrease in taste or preference would be represented by a movement from
D2 to D1
Refer to Figure 2-3. Sergio Vignetto raises cattle and lamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his PPF?
Graph A
The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?
Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans
Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas. Which of the graphs in Figure 2-3 represent his PPF?
Graph C
Refer to Table 2-3. Which of the following statements is true?
Haley has a comparative advantage in making bracelets and Serena in making necklaces
Refer to Table 2-3. Which of the following statements is true?
Haley has an absolute advantage in making bracelets and Serena in making necklaces
Suppose there is no unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
It can increase output without giving up another good.
For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of win for every 25 punds of cheese it produces. Which of the following is true about the comparative advantage between the two countries?
Italy has the comparative advantage in wine
If the PPF is ______, then opportunity costs are constant as more of one good is produced.
Linear
The production possibilites frontier shows the ______ combinations of two products that may be produced in a particular time period with available resources.
Maximum attainable
Studies have shown links between calcium consumption and a reduction in osteoporosis. How does this affect the market for calcium?
The calcium demand curve shifts to the right because of a change in tastes in favor of calcium
In January, buyers of gold ex[ect that the price of gold will rise in February. What happens in the gold market in January, holding all esle constant?
The demance curve shifts to the left
Prices of California Merlot wine have risen in recent years. Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen. Which of the following best explains the rising prices of California Merlots?
The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right
How does the increaseing use of MP3 players affect the market for compact discs?
The demand curve for compact discs shifts to the left
Which of the following is expected to occur as the baby-boom generation ages?
The demand for medical services should increase
Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players?
The new technology causes an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players
Tom Searchinger, a senior attorney at the Environmental Defensse Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat. How does this afect the market for fertilizer?
The supply of fertilizer incrases
Auctions in recent years have resulted in higher prices paid for letter written by John Wilkes Booth than those written by ABe Lincoln. What is a reason for this difference in price?
There are more letters available for collectors to buy that were written by AL than there letters that were written by Booth
If there is a shortage of apples how will the equilibrium point change?
There will be no change in the equilibrium point
A movement along the demand curve for toothpaste would be causes by
a change in the price of toothpaste
Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 30 calzones would appear
along Tomaso's PPF
Which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase?
an increase in consumer income
Last year, The Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
an increase in quantity supplied
The law of demand implies, holing everything else constant, that
as the pice of bagels increases, the quantity of bagels demanded will decrease
Comparative advantage means the ability to produce a good or service
at a lower opportunity cost than any other producer
South Korea has a comparative advantage in the production of
both products
In the UNited States during the recession of 2007-2009,
demand for medical servies declined, which resulted in a decline in available jobs in the medical field
If a firm has an incentive to increase supply now and decrease supply in the furture, that firm expects that the
demand for the product will be lower in the future than it is today
According to the Production Possibility model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
fewer goods will be produced for consumption today
Rayburn Reed is a highly talented photographer. He has chosen to specialize in photography because of all of the following except
his OC of pursuing another career is very low
The PPF model shows that
if all the resources are full and efficiently utilized, more of one good can be produced only by producing less of another good
The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
income
If the Apple iPad and the Samsung Galaxy Tab are considered substitures, then, other things equal, an increase in the price of the iPad will
increase the demand for the Galaxy Tab
A PPF with a bowed outward shape indicates
increasing opportunity costs as more and more of one good is produced
Refer to figure 2-1. Point A is
inefficient in that not all resources are being used
During the recession of 2007-2009, despite falling income levels, the fast-food chain Subway experienced increased sales. The increase in demand for Subway sandwiches despite the decline in income indicates that Subway sandwiches are considered
inferior goods
In a PPF model, a point ________ the frontier is productively ineffeicent.
inside
Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 15 calzones would appear
inside Tomaso's PPF
Refer to Figure 3-5. At a price of $5, the quantity sold
is 2 units
Refer to Figure 2-4. A movement from Y to Z
is the result of advancements in plastic production technology
If society decides it wants more of one good and all resources are fully utilized, then
it has to give up some of another good and incur some opportunity costs
In a perfectly competitive market, there are _______ buys and ______ sellers
many;many
Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie,
raspberries and papayas are substitutes
Econocmic decline (negative growth) is represented on a PPF model by the PPF
shifting inward
The supply curve for watches
shows the realtionship between the price of watches and the quantity of watches supplied
If, in the market for oranges, the supply has increased then
the supply curve for oranges has shifted to the right
In October 2005, the U.S. fish and wildlife service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.?
the supply curve shifted to the left
Refer to Figure 2-2. The linear PPF in the figure indicates that
the tradeoff between meat and vegetables is constant
In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected." This statement suggests that
there is a tradeoff between safety and fuel economy
The points outisde the PPF are
unattainable
Refer to Figure 2-1. Point C is
unattainable with current resources
Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
$24,000
What is China's OC of producing one pound of wheat?
.04 units of digital camera
What is South Korea's OC of producing one ppound of wheat?
.05 units of a digital camera
Refer ti Table 2-3. What is Haley's opportunity cost of making a bracelet?
1 1/3 bracelets
Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
1 1/3 vegetables
What is Serena's opportunity cost of making a necklace?
1/2 of a bracelet
What is the OC of producing 1 pound of cashews in Indonesia?
2 2/3 bolts of cotton
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point W?
2 million tons of steel
What is Serena's opportunity cost of making a bracelet?
2 necklaces
What is China's OC of producing one digital camera?
25 pounds of wheat
Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?
25 silk leaves
What is Haley's opportunity cost of making a necklace?
3 bracelets
Refer to Figure 2-5. If the economy is currently producing at point W, what is the opportunity cost of moving to point X?
3 million tons of steel
Refer to Figure 2-2. What is opportunity cost of one pound of vegetables?
3/4 pound of meat
What is opportunity cost of producing 1 bolt of cotton is Indonesia?
3/8 of a pound of cashews
What is the opportunity cost of producing 1 bolt of cotton is Pakistan?
5/8 pounds of cashews
At a product's equilibrium price
the product's demand curve crosses the product's supply curve
In recent years the cst of producing organic produce in the u.s. has decreased largely due technological advancement. at the same time, more and more Americans prefer organic produce over conventional produce. Whcih of the following best explains the effect of these events in the organic produce market?
Both the uspply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price
If the price of automobiles was to increase, then
the quantity demanded of gasoline would decrease
Which country has a comparative advantage in the production of cotton?
Indonesia
The slope of a PPF
Measures the opportunity costs of producing one more unit of a good
Which panel describes what happens in this market as a result of a decrease in income?
Panel C
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curve for bicycle helmets. Which panel best describeswhat happens in this market if there is a substantial increase in the price of bicycles?
Panel D
What happens in this market if buyers expect the price of rice to fall?
Panel D
What panel decribes what happens in this market when the price of steak rises?
Panel D
Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. Tomaso faces ______ opportunity cost in the prodcution of pizzas and calzones
constant
Refer to Figure 3-6. The firgure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?
There is a surplus that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25
Does either China or South Korea have an absolute advantage and if so, in what product?
South Korea has an absolute advantage in both products
When the price of a good falls, consumers buy a larger quantity because of the ____ effect and the _______ effect
Substitution;income
Buyers rush to purchase stocks in California vineyards following a forexast of a 30% decline in this year's grape harvest. what happens in the California wine market as a result of this announcement?
The demand curve for California wine shifts to the right in anticipation of higher prices in the future
Technological advancements have led to lower prices and an increase in the sale of digital cameras. How does this affect the digital photo printing paper market?
The demand curve for digital photo printing paper shifts to the right
The internet has created a new category in the book selling market, namely, the "barely used" book. How does the availability of barely used books affect the market for new books?
The demand curve for new books shifts to the left
Technological advances have resulted in lower prices for digital cameras. What is the impact of this on the market for traditional (non-digital) cameras?
The demand curve for traditional cameras shifts to the left
Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events owuld cause the price differences in these letters to get smaller?
The demand for Lincoln letters decreases and the demand for Booth letters incrases
Positive technological change in the production of LCD televisions caused the price of LCD TVs to fall. Holding everything else constant, how would this affect the market for Blu-ray pkayers?
The demand for blu-ray players would increase and the equilibrium price of blu-ray players would increase
Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Compare the conditions in the market when the price is $50 and when the price is $35. Which of the following describes how the market differs at these prices?
The difference between quantity supplied and quantity demanded is greater at $50 than at $35
The PPF model assums which of the following?
The economy only produces two products
"Because apples and oranges are substitutes, an incrrase in the price of oranges will cause the demand for apples to incrase.........etc."
The statement is false because a change in the price of apples would not change the demand for apples
"The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light buls decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incadescent light bulbs decreased even furhter.: Evaluate this statement
The statement is false. A decrease in the price of light bulbs would decrease the demand for incandescent light bulbs, but a decrase in the price of incandescent light bulbs would not cause the demand for incadescent light bulbs to decrease
Danielle Ocean pays for monthly pool maintance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintance services affected by this?
There is a decrease in the supply of pool maintenance services
Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the price of tote bags is $15. At this price:
There is a shortage, equal to 55 tote bags, that will be eliminated when the price rises to $25.
Refer to Figure 3-2. If the price is $10,
There would be a shortage of 600 units
Refer to Figure 3-5. At a price of $15,
There would be a surplus of 4 units
Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quanitity of salmon?
an increase in supply
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weatherreducing the number of fisherman trapping lobster, will result in
an increase in the equilibrium price of lobster, the equilibrium quantity may increase or decrase
Which of the following will shift the demand curve for a good?
an increase in the price of the good
If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
an inferior good
Which of the following is the correct way to describe equilibrium in a market
at equilibrium, quantity demanded equals quantity supplied
Assume that both the demand curve and the supply curve for MP3 players shifts to the right but the demand curve shifts more than the supply curve. As a result
both the equilibrium price and quantity of MP3 players will increase
You have an absolute advantage whenever you
can produce more of something than others with the same resources
During the recession of 2007-2009
casual dining resturants like Olive Garden and Red Lobster experienced decreased demand and fast-food restaurnats like McDonalds and subway experienced increase demand
Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are
complements in consumption
Let D=Demands, s=supply, p=equilibrium price, q=equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be loged?
s decreases, d no change, p increases, q decreases
All else equal, a shortage of display scrren used in the manufacture of tablet computer would
shift the supply curve for tablet computers to the left
If the best surgeion in twon is also the best at cleaning swimming pools, then according to economic reasoning, this person should
specialize in being a surgeion because its OC is lower
What is OC of producing 1 pound of cashews in Pakistan?
1 3/5 bolts of cotton
The table above shows the demand schedules for loose-leaf tea of two individuals and the rest of the market. At a price of $5, the quantity demanded in the market would be
63 lbs
Refer to Figure 2-2. Suppose Mendonca is currently producing 60 punds of vegetables per period. How much meat is it also producing, assumung that resources are fully utilized?
75 pounds of meat
Refer to Figure 2-4. Consider the following events: a. a decrease in the unemployement rate b. general technological advancement c. an increase in consumer wealth Which of the events listed above could cause a movement from V to W?
A Only
Refer to Figure 2-4. Consider the following events: a. a reduction in the patent protection period to no more than 2 years b. a war that destroys a substanial portion of a nation's capital stock c. the lack of secure and enforceable property rights system Which of the events listed above could cause a movement from W to V?
A and C only
Which of the following changes would cause the equilibrium to change to point A?
A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
Increasing opportunity cost is represented by a ______ PPF
Bowed out
if the two countries specialize and trade, who should export wheat?
China
Refer to Figure 2-1. If the product represented is an inferior good, an increase in income would be represented by a movement form
D1 to D2
Refer to Figure 3-1. A decrease in the price of the product would be repesented by a movement form
D2 to D1
If more insurance companies decide to cover part of the price of voluntray laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for alser eye surgery as a result of these two factors?
Demand and supply both increase
What would happen in the market for laser eye surgery if insuarance companies statrted to cover a portion of the price of voluntary procedures>?
Demand will increase, but this will not shift the supply curve
______ marginal opportunity costs implies that the more resources already devoted to any activity, the payoff from allocating yet more resouces to that activity increases by progressively smaller amounts.
Increasing
If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of cotton?
Indonesia
Which country has a comparative advantage in the production of cashews?
Pakistan
Which panel best describes what happens in this market when the wages of seamstresses rise?
Panel B
Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases>
Panel D
Which of the following is evidence of a surplus of bananas?
The price of bananas is lowered in order to increase sales
The Popularity of digital cameras has enticed large discount stores like wal-mart and costco to offer digital photo printing services. How does this affect the digital photo printing market?
The supply curve for digital photo printing services shifts to the right
In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?
The sypply curve shifts to the right
Without an increase in the supplies of factors of production, how can a nation acheive economic growth?
Through technological advancement which enables more output with the same quantity of resources
True or False. Individuals who have never been the best at doing anything can still have a comparative advantage in producing some product
True
Refer to Figure 2-4. A movement from X to Y
could occur because of an influx of immigrant labor
If, in response to an increase in the price of chocolate, the quantity demanded of chocolate decreases economists would describe this as
a decrease in quantity demanded
Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?
a decrease in the price of cattle
Which of the following would causes the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?
a decrease in the price of flour
If the price of a grapefruit rises, the substitution effect due to the price change will cause
a decrease in the quantity demanded of grapefruit
Holding everything else constant, an increase in the price of MP3 players will result in
a decrease in the quantity of MP3 players demanded
A decrease in the price of GPS system will result in
a larger quantity of GPS systems supplied
If opportunity costs are constant, the production possibilities frontier would be graphed as
a negatively sloped straight line
If an increase in income leads to an increase in the demand for peanut butter, then peanut butter is
a normal good
The Great Depression of the 1930s with a large number of workers and factories unemployed would be represented in a PPF graph by
a point inside the frontier
Refer to Figure 3-5. In a free market such as that depicted above, a surplus is eliminated by
a price decrease, decreasing the quantity supplied and increasing the quantity demanded
Refer to Figure 3-2. If the current market price is $10, the market will achieve equilibrium by
a price increase, increasing the quantity supplied and decreased the quantity demanded
In 2004, hurricanes damaged a large portion of Florida's orange crops. As a result of this, many orange growers were not able to supply fruit to the market. At the pre-hurricane equilibrium price, we would expect to see
a shortage of oranges
The table above shows the demand schedules for loose-leaf tea of two indiciduals and the rest of the market. If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would
decrease by 32 lbs
An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery, inlcuding blurred vision. The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries, these two developments
decresaed demand and increased supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of laser eye surgeries
China has a comparative advantage in the production of
digital cameras
Which of the following would shift a nation's PPF outward?
discovering a cheap way to convert sunshine into electricity
An outward shift of a nation's PPF represents
economic growth
The opportunity cost of taking a semester-long economics class is
equal to the highest value of an alternative use of the time and money spent on the class
BMW recently decided to build a manufacturing plant in Shenyang, China. At this plant, BMW is able to take advantage of paying lower wages to its Chinese workers than it pays its German workers, but it also sacrifices the high levels of technical training possessed by its German workers. In decided to open the Shenyand plant, BMW
faced a trade-off between higher cost and lower precision
Suppose that when the price of hamburgers decrease, the Ruiz family increase their purchases of ketchup. To the Ruiz family,
hamburgers and ketchup are complements
A supply schedule
is atable that shows the relationship between the price of a product and the quantity or the product supplied
The demand by all the consumers of a given good or service is the ______ for the good or service
market demand
When deciding on which new products to develop, a firm must devote people, time, and money to designing a new product. Because any firm has only limited resouces, it
must be certain that the product it chooses to develop will be successful or it will not be able to stay in business
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substiture for apples, the equilibrium could move to which point?
none of the points shown
Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. A Combination of 36 pizzas and 30 calzones would appear
outside Tomaso's PPF
By drawing a demand curve with ________ on the vertical axis and _______ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ______ of the good
price;quantity;price
Specializing in the production of a good or servie in which one has a comparative advantage enables a country to do all of the following except
produce a combination of goods that lies outside its own PPF
If, for a product, the quantity supplied exceeds the quantity ddemanded, the market price will fall until
quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
If a demand curve shifts to the right, then
quantity demanded has increased
Olive Oil producers want to sell more olive oil at a higher price. Which of the following events would have this effect?
research finds that consumption of olive oil reduces the risk of heart disease
Scarcity
stems from the incompatibility between limited resouces and unlimited wants
The market for tablet computers has grown rapidly over the past few years, due in part to the overwhelming success of the Apple ipad. following the successful launch of the ipad in 2010, companies such as toshiba, samsung, dell, and amazon have all introduced products to compete with the ipad. the tablet computers iintroduced to compete with the ipad would be considered
substitutes for the ipad
One would speak of a change in the quantity of a good supplied, rather than a change in supply, if
supplier expectations about future prices change
Assume that the hourly price for the services of tarot card readers has risen and sales of these servies have also risen. One can conclude that
the demand for tarot card readers has increased
The principle of opportunity cost is that
the economic cost of using a factor of production is the alternatice use of that factor that is given up
If a firm expects that the price of its product will be higher in the future than it is today
the firm has an incentive to increase suppy now and decrease supply in the future
The income effect of a price change refers to the impact of a change in
the price of a good on a consumer's purchasing power
Select the phrase that correctily completes the following statment. "A positive change in technology caused an increase in the supply of flat-screen TVS. As a result________"
the price of flat-screen TVs decreased and the quantity demanded of flat-screen tvs increased
A change in all of the following variables will change the market demand for a product except
the price of the product
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the market for citrus fruit,
the supply curve shifted to the left resulting in an increase in the equilibrium price
The demand for lobster is higher in the summer than in the spring. If the price of lobster is lower in summer tha in spring then
the supply of lobster is lower in spring than in summer