Microeconomics ch3 review questions
What effect will each of the following have on the supply of auto tires? D. The expectation that the equilibrium price of auto tires will be lower in the future than currently
Increase
What effect will each of the following have on the supply of auto tires? E. A decline in the price of large tires used for semi-trucks and earth-hauling rigs, a substitute in production. (with no change in the price of auto tires)
Increase
What effect will each of the following have on the supply of auto tires? G. The granting of a 50-cent-per-unit subsidy for each auto tire produced
Increase
What effect will each of the following have on the demand for small cars such as the Mini Cooper and Fiat 500? E. The price of gasoline substantially drops
Cannot be determined
What effect will each of the following have on the demand for small cars such as the Mini Cooper and Fiat 500? D. Consumers anticipate that the price of small autos will greatly come down in the near future:
Decrease
What effect will each of the following have on the supply of auto tires? B. A decline in the number of firms in the tire industry
Decrease
What effect will each of the following have on the supply of auto tires? C. An increase in the prices of rubber used in the production of tires
Decrease
What effect will each of the following have on the supply of auto tires? F. The levying of a per-unit tax on each auto tire sold
Decrease
True or False: A "change in quantity demand" is a shift of the entire demand curve to the right or to the left.
False
What effect will each of the following have on the demand for small cars such as the Mini Cooper and Fiat 500? A. Small cars become more fashionable
Increase
What effect will each of the following have on the demand for small cars such as the Mini Cooper and Fiat 500? B. The price of large automobiles rises (with the price of small autos remaining the same).
Increase
What effect will each of the following have on the demand for small cars such as the Mini Cooper and Fiat 500? C. Income declines and small autos are an inferior good
Increase
What effect will each of the following have on the supply of auto tires? A. A technological advance in the methods of producing tires
Increase