Macro Midterm Part 1
The relative price of a Wii game in terms of textbooks is
.5
A smartphone and a text message are ______. A text message and an email are ______.
C; S
French fries and baked potatoes are _______.
Substitutes but not substitutes in production
Low-fat milk and cream are _______.
complements in production for a dairy
The market for pasta is a competitive market
if many people buy and many firms sell pasta, so no single buyer or seller can influence the price
A demand curve that illustrates the law of demand ______.
is Downward sloping
A demand curve that illustrates the law of demand ______.
shows that the quantity demanded increases as the price falls
Diet coke and regular coke are _______.
substitutes for consumers and substitutes in production for producers
French fries and baked potatoes are
substitutes or substitutes in production
The price at which the quantity demanded equals the quantity supplied is the equilibrium price because _______.
the plans of producers and consumers are coordinated and there is no influence on the price to change
The relative price of a pack of microwave popcorn is an opportunity cost because ______.
the relative price tells us how many boxes of ramen noodles we must give up to get a pack of microwave popcorn
he price of a music dash streaming subscription falls. What is the effect on the price and quantity of smartphones? The equilibrium quantity of smartphones _______ and the equilibrium price _______.
Increases; rises
A demand curve
Is a willingness-and-ability-to-pay curve
The expected price of a smartphone next year rises? What is the result of this event
The demand for smartphones today increases
All of the following are consequences of scarcity faced by people in the United States except deciding _______.
Whether or not Pluto should be classified a planet
If the price is $ 9 a magazine, there is a ______ of magazines, so the price of a magazine ______.
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Pizza and sausage are ______. Wheat and corn are ______.
C;S
Bottled water and health club memberships are _______.
Complements
f the price of a Upper T dash shirt decreases, the demand for tank tops will _______.
Decrease, and the demand curve for tank tops will shift leftward
Choose the correct statements about competitive markets. 1. Upper A competitive market has many buyers. 2. Upper A single seller in a competitive market cannot influence the price. 3. In a competitive market comma prices are eventually driven down to zero. 4. All competitive markets are physical places where buyers and sellers meet.
Statements 1 and 2 are correct
Choose the correct statements about competitive markets. 1. All competitive markets are physical places where buyers and sellers meet. 2. Upper A competitive market has many sellers. 3. Upper A competitive market has many buyers. 4. Upper A competitive market is a market for goods but not for services.
Statements 2 and 3 are correct
Explain why a relative price is an opportunity cost. The money price of a box of ramen noodles is $0.80 and the money price of a pack of microwave popcorn is $4.00. The opportunity cost of a pack of microwave popcorn is _______.
5.00 boxes of ramen noodles, which is the relative price of a pack of microwave popcorn
What is the equilibrium price of a hamburger and the equilibrium quantity of hamburgers per day
50 2 Picture
The graph illustrates the market for tea. The market equilibrium is at point A. After one or more changes, the market equilibrium moves to point B. You predict that the market for tea was most likely influenced by _______.
A rise in household income and a rise in the number of plantations Picture
Taking a smartphone to the gym when you work out becomes more popular. What is the result of this event?
The demand for smartphones increases
If the price of an amusement park ticket falls from $80 to $20, while all other influences on selling plans are unchanged, the quantity of amusement park tickets supplied _______ .
Decrease from 16 million to 4 million
This news clip illustrates a decrease in ______ and ______ in the market for cars.
Demand; a decrease in the quantity supplied
As the average income in China continues to increase, we would expect the demand for beef to _______ and the demand for rice to _______.
Increase if beef is a normal good; decrease if rice is an inferior good
An increase in the price of soap, a substitute in production of shampoo, will ______ the equilibrium price of shampoo and ______ the equilibrium quantity of shampoo.
Increase; Decrease
A fire destroys some factories that produce gum and the quantity of gum supplied decreases by 40 million packs a week at each price.
Picture
Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of supply. Then draw an arrow to indicate what happens to the quantity of smartphones supplied when the price of a smartphone rises. A rise in the price of a smartphone ______ the quantity supplied and ______ supply.
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If the price of a movie ticket is $10, 2 million movie tickets a year are bought. Draw a point at this combination of price and quantity. If the price of a movie ticket falls to $6, 10 million movie tickets are bought. Draw a point at this combination of price and quantity. Draw a demand curve for movie tickets that is consistent with this information. Label the curve.
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If the price of a printer falls from $80 to $40, while all other influences on buying plans are unchanged, the quantity of printers demanded _______.
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Over what range of prices does a shortage arise? What happens to the price when there is a shortage? The graph shows the demand curve and the supply curve in the market for football tickets. Draw a horizontal line at a price at which there is a shortage of football tickets. Label it Shortage. When a shortage arises, the price ______ to its equilibrium, which _______.
Picture
Read the news clip, then illustrate the events described. In the left graph, show the effect in the market for popcorn. Draw a new curve and label it. Draw a point at the new equilibrium price and new equilibrium quantity. In the right graph, show the effect in the market for movie tickets. Draw a new curve and label it. Draw a point at the new equilibrium price and new equilibrium quantity.
Picture
The figure shows the demand curve for DVD rentals. Suppose that the price of renting a DVD falls but all other influences on renters' plans remain the same. Show the effect in the graph. Draw either an arrow on the demand curve showing the direction of change or a new demand curve. If the price of renting a DVD falls, a ______ the demand curve occurs. If any factor that influences buying plans other than the price changes, then a ______ the demand curve occurs.
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The graph illustrates the market for jackets. Suppose the current price of a jacket is $30 and 3 million jackets a year are bought. What do you predict will happen to the price of a jacket?
Picture
The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 40 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 20 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events. When the increase in demand is greater than the decrease in supply, the equilibrium price _____ and the equilibrium quantity _____.
Picture
The graph shows the market for game consoles. Draw a point at the market equilibrium. Label it 1. Draw a demand curve that shows what happens if the price of a video game falls. Label the curve D1. Draw a supply curve that shows the effect of a technological advance that cuts the cost of producing game consoles. Label it S1. Draw a point at the new market equilibrium. Label it 2. If demand and supply change in the same direction, we _____ the direction of change of the equilibrium quantity and we _____ the direction of change of the equilibrium
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The graph shows the supply curve of lamps. Draw a new supply curve that shows what happens in the market for lamps if the wage rate of workers who make lamps falls but all other influences on selling plans remain the same. Label the curve. Use any prices and quantities you wish, but make your supply curve obey the law of supply.
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The graph shows the supply curve of running shoes. Draw a new supply curve that shows what happens in the market for running shoes if the wage rate of workers who make running shoes rises but all other influences on selling plans remain the same. Label the curve. Use any prices and quantities you wish, but make your supply curve obey the law of supply.
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The table shows the demand and supply schedules for milk. Upper A drought decreases the quantity supplied by 90 cartons a day at each price. Complete the following sentences.
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Think about the demand for three game consoles: XBox One, PlayStation 4, and Wii U. What is the effect of the following events on the demand for Xbox One games and the quantity of Xbox One games demanded, other things remaining the same? The events are A.The price of an Xbox One falls. B. Consumers' incomes increase. C. The expected future price of an XBox One game falls. D. Programmers who write code for XBox One games become more costly to hire.
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To reach equilibrium, the quantity supplied ______, the quantity demanded ______.
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What are the influences on buying plans that change demand, and do these influences increase or decrease demand? Complete the following question about a change in demand. The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if incomes decrease and a coffee maker is a normal good comma but all other influences on buying plans remain the same. Label the curve D1. When an event occurs that changes the demand for coffee makers, _______ if demand increases and ______ if demand decreases.
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What are the influences on buying plans that change demand, and do these influences increase or decrease demand? Complete the following question about a change in demand. The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if the price of ground coffee comma a complement of a coffee maker comma falls but all other influences on buying plans remain the same. Label the curve D1. When an event occurs that changes the demand for coffee makers, _______ if demand increases and ______ if demand decreases.
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What is the effect of the following events on the demand for Xbox One games and the quantity of Xbox One games demanded, other things remaining the same? Event A ______ the ______ XBox One games
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The table shows the demand and supply schedules for milkshakes. Price (dollars per milkshake) Quantity demanded Quantity supplied (milkshakes per week) 4 180 60 6 140 100 8 100 140 10 60 180 12 20 220 Draw a demand curve and a supply curve using the numbers in the table. Label the curves. Draw a point to show the equilibrium price and equilibrium quantity. Now suppose that the price is $ 4 a milkshake. Describe the situation in the milkshake market and explain how the price adjusts. If the price is $ 4 a milkshake, there is a ______ of milkshakes, so the price of a milkshake ______.
Picture Surplus rises
Think of examples of goods whose relative price has risen or fallen by a large amount. In 2007, the price of a gallon of gas was $2.59. In 2017, the price of a gallon of gas was $2.32 In 2007, the price of a dozen eggs was $1.63. In 2017, the price of a dozen eggs was $1.40. Between 2007 and 2017, the relative price of a gallon of gas with respect to a dozen eggs _______ and the relative price of a dozen eggs with respect to a gallon of gas _______.
Rose; fell
Pasta and pizza are ______. A video game and a laptop are ______.
S;C
Stephen graduates from college and his income increases by $20 comma 000 a year. Nothing else changes. Stephen decreases the quantity of donuts and potato chips that he buys and increases the quantity of stuffed olives that he buys. For Stephen, _______.
Stuffed olives are normal goods
If as the price of a cake increases, the quantity of bread that firms plan to sell decreases, then cakes and bread are _______.
Substitutes in production
Coal and oil are ______. A skateboard and roller blades are ______.
Substitutes; Substitutes
The opportunity cost of a textbook in terms of Wii games is ______.
The number of wii games you must give up to get the textbook
The demand for hot dogs does not change when a change in _______ occurs.
The price of a hot dog
Adrienne graduates from college and her income increases by $40 comma 000 a year. Nothing else changes. Adrienne decreases the quantity of hot dogs and bread rolls that she buys and increases the quantity of tickets to orchestra concerts that she buys. For Adrienne, _______.
Tickets to orchestra concerts are normal goods
There is ______ and the price of coffee will ______.
a shortage of coffee; rise to the equilibrium price
An increase in the price of a hot dog _______.
decreases the quantity of hot dogs demanded and results in a movement up along the demand curve for a hot dog
The figure shows the demand curve for DVD rentals. Suppose that the price of renting a DVD rises but all other influences on renters' plans remain the same. Show the effect in the graph. Draw either an arrow on the demand curve showing the direction of change or a new demand curve.
movement up along; shift of Picture
A demand curve
shows us that the highest price that someone is willing to pay for an additional unit of a good or service sh rises as the quantity increases
The law of demand states that other things remaining the same, the _______ the price of a good, the _______.
higher; smaller is the quantity demanded
Over what range of prices does a shortage arise? What happens to the price when there is a shortage? The graph shows the demand curve and the supply curve in the market for bicycles. Draw a horizontal line at a price at which there is a shortage of bicycles. Label it Shortage. When a shortage arises, the price ______ to its equilibrium, which _______.
rises; decreases the quantity demanded and increases the quantity supplied Picture