Quiz 2 Micro
Which panel shows the changes in the market for cigarettes when:1) the government increases subsidies for the production of tobacco(Google subsidy if you don't know what that is.) and 2) at the same time smoking becomes less cool because the government removes the age restriction?
(Supply Increases and Demand Decreases)
If the government required the actual market price to be fixed at $6 per unit,
A binding or effective price ceiling would result.
If a price is above equilibrium,
A surplus will cause the price to fall and the quantity supplied to decrease.
Peanut butter and jelly are complements. A decrease in the price of one will result in
An increase in the demand (shift of the demand curve) for the other.
An increase in the equilibrium price of electricity can be caused by which of the following?
An increase in the demand for electricity.
Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
An increase in the demand for pens.
Peanut butter and jelly are complements. A decrease in the price of one will result in
An increase in the demand for the other.
An increase in the price of solar panels above equilibrium will
Cause a surplus of solar panels
What would happen if consumer confidence in the economy improves?
Demand Curve (rightward)
Since baseballs and wooden bats are bought together (complements), we can expect the following to happen in the market for baseballs!
Demand for baseballs to decrease (shifts entire demand curve left).
It states that the amount of a good being demanded (the quantity demanded) does what in response to price changes?
Increases as its price falls, ceteris paribus
When the number of buyers in a market changes, the market demand curve shifts even if individual demand curves do not shift.
True
How is a change in the "quantity demanded" represented on our graphs?
Means that price has changed and there is movement along the demand curve.
Consumers would never pay _________ for a product than the cost value of the alternative uses of their money. Sellers are not willing to sell a product for _________ than the value of their best forgone alternative.
More, Less
Which determinant of demand changes in the personal computer market as more individuals become interested in "surfing the Internet"?
Number of buyers
Which of the following is not held constant along a given demand curve for a good?
Price of the good itself
In regards to the supply curve, the graph models that a change in the price of a good or service does what to supply?
Results in a change in quantity supplied.
Ceteris paribus, for a farmer, corn and wheat are which of the following if they can plant one or the other but not both?
Substitutes in production.
The market supply increase?
The supply of organs doesn't change with the imposition of a zero price ceiling.
In the market for labor (labor market), what line represents an employer?
The demand curve
The market demand increase?
The demand for organs doesn't change with the imposition of a zero price ceiling.
The equilibrium price change?
The equilibrium price does not change.
An increase in the supply of gasoline with a shift to the right of the supply curve will cause
The equilibrium price to fall and equilibrium quantity to rise.
If the graph below represents the labor market for fence painters, and the government has imposed a price floor (minimum wage) above the equilibrium price for fence painters, what happens to the quantity demanded?
The quantity demanded decreases.
The quantity of organs demanded increase?
The quantity of organs demanded increases from qE to qd.
The quantity of organs supplied decrease?
The quantity of organs supplied decreases from qE to qa.
shift in supply is defined as a change in
The supply curve because of a change in a determinant of supply.
Which curve shifts and in which direction when the following events occur in the iPhone market?
a. Samsung comes out with a really awesome phone. (demand decreases) b. The economy is in a recession. (demand decreases) c. Apple moves its manufacturing facilities to locations that have lower wages. (supply increases)
Individual consumers supply ____ and purchase ____.
factors of production; final goods and services
Business firms supply goods and services to ____ and purchase factors of production in ____.
product markets; factor markets
