MACROECON CH 3

A. A to B.

A decrease in the price of the product would be represented by a change from A. A to B. B. D2 to D1. C. B to A. D. D1 to D2.

B. D1 to D2.

An increase in population would be represented by a change from A. B to A. B. D1 to D2. C. D2 to D1. D. A to B.

D. S2 to S1.

An increase in price of inputs would be represented by a change from A. S1 to S2. B. A to B. C. B to A. D. S2 to S1.

A. D2 to D1.

If the product represented is an inferior good, an increase in income would be represented by a change from A. D2 to D1. B. A to B. C. B to A. D. D1 to D2.

B. B to A.

A decrease in the price of the product would be represented by a change from A. S2 to S1. B. B to A. C. S1 to S2. D. A to B.

C. a change in the price of toothpaste.

A movement along the demand curve for toothpaste would be caused by A. a change in the price of toothbrushes. B. a change in consumer income. C. a change in the price of toothpaste. D. a change in population.

C. S1 to S2.

A technological advancement would be represented by a movement from A. A to B. B. B to A. C. S1 to S2. D. S2 to S1.

the equilibrium price may increase or decrease. D. an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease.; C. a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease.

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 weather reducing the number of fishermen trapping lobster, will result in A. a decrease in the equilibrium quantity of lobster and no change in the equilibrium price. B. an increase in the equilibrium price of lobster and no change in the equilibrium quantity. C. a decrease in the equilibrium quantity of lobster

the equilibrium quantity will decrease. B. the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. C. the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase. D. both the equilibrium price and quantity of MP3 players will decrease. ; A. the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts more than the demand curve. As a result A. the equilibrium price of MP3 players will increase

C. Panel (c)

Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt. Which panel describes what happens in the market for frozen yogurt when the price of icecream, a substitute product, increases? A. Panel (a) B. Panel (b) C. Panel (c) D. Panel (d)

C. 600

At a price of $20, how many units will be sold? A. 400 B. 500 C. 600 D. 800

D. complements in consumption.

Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are A. both inferior goods. B. both luxury goods. C. substitutes in consumption. D. complements in consumption.

A. a shortage of gasoline.

Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to maintain normal deliveries. At the pre−hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see A. a shortage of gasoline. B. the quantity demanded equal to the quantity supplied. C. an increase in the demand for gasoline. D. a surplus of gasoline.

B. demand has increased.

If a demand curve shifts to the right, then A. demand has decreased. B. demand has increased. C. quantity demanded has decreased. D. quantity demanded has increased.

C. the supply curve for oranges has shifted to the right.

If in the market for oranges the supply has increased, then A. there has been a movement downwards along the supply curve for oranges. B. the supply curve for oranges has shifted to the left. C. the supply curve for oranges has shifted to the right. D. there has been a movement upwards along the supply curve for oranges.

B. increase the demand for the Gear S2.

If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will A. increase the quantity demanded for the Gear S2. B. increase the demand for the Gear S2. C. increase the quantity demanded for the Apple Watch. D. decrease the demand for the Apple Watch.

C. there would be a shortage of 600 units.

If the price is $10, A. there would be a surplus of 600 units. B. there would be a shortage of 200 units. C. there would be a shortage of 600 units. D. there would be a surplus of 200 units.

A. the market is in equilibrium.

If the price is $20, A. the market is in equilibrium. B. quantity demanded is zero. C. there is a surplus of 600 units. D. there is a shortage of 600 units.

D. there is a surplus of 300 units.

If the price is $25, A. there is a surplus of 200 units. B. there is a shortage of 300 units. C. there is a shortage of 200 units. D. there is a surplus of 300 units.

C. D1 to D2.

If the product represented is a normal good, an increase in income would be represented by a change from A. A to B. B. B to A. C. D1 to D2. D. D2 to D1.

B. quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until A. all consumers will be able to afford the product. B. quantity demanded equals quantity supplied. The market price will then equal the equilibrium price. C. quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. D. the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.

A. The demand curve shifts to the right.

In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant? A. The demand curve shifts to the right. B. The quantity demanded increases. C. The demand curve shifts to the left. D. The supply curve shifts to the right.

A. D increases, S no change, P and Q increase

Let D = demand, S = supply, P = equilibrium price, and Q = equilibrium quantity. What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower bad levels of cholesterol? A. D increases, S no change, P and Q increase B. S increases, D no change, P decreases, Q increases C. D no change, S increases, P decreases, Q decreases D. D and S increase, P and Q decrease

C. S decreases, D no change, P increases, Q decreases.

Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged? A. D no change, S decreases, P increases, Q increases. B. D and S decrease, P and Q increase. C. S decreases, D no change, P increases, Q decreases. D. D decreases, S no change, P and Q decrease.

D. the price of the good changes.

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if A. the cost of producing the good changes. B. prices of substitutes in production change. C. supplier expectations about future prices change. D. the price of the good changes.

B. a decrease in the price of cattle

Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase? A. an increase in the price of sheep B. a decrease in the price of cattle C. an increase in the demand for cattle D. an increase in the price of sheep feed

A. increases, the quantity of yogurt demanded will decrease.

The law of demand implies, holding everything else constant, that as the price of yogurt A. increases, the quantity of yogurt demanded will decrease. B. decreases, the demand for yogurt will increase. C. increases, the demand for yogurt will increase. D. decreases, the quantity of yogurt demanded will decrease.

A. 200

At a price of $10, how many units will be sold? A. 200 B. 400 C. 600 D. 800

they both refer to a shift of the demand curve. C. There is no difference between the two terms; they both refer to a movement downward along a given demand curve. D. An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantitydemanded" is represented by a movement along a given demand curve.; D. An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantitydemanded" is represented by a movement along a given demand curve.

What is the difference between an "increase in demand" and an "increase in quantity demanded"? A. An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantitydemanded" is represented by a rightward shift of the demand curve. B. There is no difference between the two terms

they both refer to a shift of the supply curve. B. There is no difference between the two terms; they both refer to a movement along a given supply curve. C. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. D. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.; D. An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

What is the difference between an 'increase in supply' and an 'increase in quantity supplied'? A. There is no difference between the two terms

C. There are many buyers and sellers.

Which of the following describes a characteristic of a perfectly competitive market? A. There are many sellers but few buyers. B. Equilibrium is achieved when demand for the product sold in the market equals the supply. C. There are many buyers and sellers. D. There are many buyers but few sellers.

B. At equilibrium, quantity demanded equals quantity supplied.

Which of the following is the correct way to describe equilibrium in a market? A. At equilibrium, scarcity is eliminated. B. At equilibrium, quantity demanded equals quantity supplied. C. At equilibrium, market forces no longer apply. D. At equilibrium, demand equals supply.

D. a decrease in the price of a complementary good

Which of the following will shift the demand curve for a good? A. an increase in the price of the good B. a change in the technology used to produce the good C. a decrease in the price of the good D. a decrease in the price of a complementary good

C. an increase the price of peanuts

Which of the following would cause a decrease in the supply of peanut butter? A. a decrease in the price of jelly (assuming that peanut butter and jelly are complements) B. a decrease in the price of peanut butter C. an increase the price of peanuts D. an increase in the technology used to produce peanut butter

A. an increase in supply and an increase in demand greater than the increase in supply

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity ofwatermelons? A. an increase in supply and an increase in demand greater than the increase in supply B. an increase in supply C. a decrease in demand and an increase in supply D. an increase in demand and an increase in supply