Quiz 3: Supply and Demand

The market for corn in Kansas is considered to be competitive. This means there are _____ buyers and _____ sellers of corn in Kansas. A) many; few B) few; many C) many; many D) few; few

The law of demand states that, other things equal, as the price: A) increases, the quantity demanded will increase. B) decreases, the demand curve will shift to the right. C) increases, demand will decrease. D) increases, the quantity demanded will decrease.

A negative relationship between quantity demanded and price is called the law of: A) demand. B) increasing returns. C) market clearing. D) supply.

Which statement illustrates the law of demand? A) An increase in tuition encourages more students to enroll in college because the quality of education has risen. B) Consumers buy more personal computers because prices have fallen. C) Oil companies drill for new sources because prices are higher. D) Fewer people play golf because incomes are lower.

_____ illustrates an inverse relationship between price and quantity. A) A demand curve B) A supply curve C) A production possibility frontier D) Equilibrium

A negative relationship between the quantity demanded and price is called the law of: A) demand. B) marginality. C) efficiency. D) supply.

The law of demand is illustrated by a demand curve that is: A) horizontal. B) downward sloping. C) vertical. D) upward sloping.

The law of demand implies that: A) consumers are not responsive to price changes. B) consumers will buy more at lower prices. C) sellers will offer more on the market at higher prices. D) sellers will offer less on the market at lower prices.

The _____ apples will decrease when apple prices rise. A) demand for B) quantity demanded of C) supply of D) equilibrium of

A decrease in the price of a good will result in: A) an increase in demand. B) an increase in supply. C) an increase in the quantity demanded. D) more being supplied.

Which factor would result solely in a movement along the demand curve for a particular good? A) a change in the prices of related goods B) a change in the price of that good C) a change in the size of the population D) both a change in the price of that good and a change in the size of the population

A decrease in the price of eggs will result in an increase in the: A) demand for eggs. B) supply of eggs. C) quantity of eggs supplied. D) quantity of eggs demanded.

Which statement BEST exemplifies the law of demand? A) As income taxes rise, fewer new cars are purchased. B) As the price of corn rises, more acres of corn are planted. C) As the price of a car rental rises, fewer cars are rented. D) As the population rises, more electricity is consumed.

Which statement is CORRECT? A) A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift of the demand curve. B) Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions. C) Both a change in quantity demanded and a change in demand are shifts of the demand curve, only in different directions. D) A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve.

In much of the country, homeowners choose to heat their houses with either natural gas or heating oil, both of which are normal goods. Which factor would cause an increase in the demand for natural gas? A) an increase in the price of natural gas B) a decrease in the price of natural gas C) a decrease in the price of heating oil D) an increase in consumer incomes

Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would expect to see: A) an increase in demand for Raclette cheese. B) an increase in demand for new potatoes. C) no effect on the demand for either of the Raclette ingredients since this is a traditional dish and its consumption does not depend on the prices of the ingredients. D) an increase in demand for both Raclette cheese and new potatoes.

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which statement provides one possible explanation for this phenomenon? A) Air travel and travel by car are complementary goods. B) Air travel and travel by car are both normal goods. C) Air travel is a normal good and travel by car is an inferior good. D) Air travel is an inferior good and travel by car is a normal good.

A shift of the demand curve for thin-crust pizza would NOT be caused by a change in: A) buyers' incomes. B) the price of thin-crust pizza. C) the price of thick-crust pizza. D) the popularity of thin-crust pizza.

If goods A and B are substitutes, a decrease in the price of good B will: A) increase the demand for good A. B) increase the demand for good B. C) decrease the demand for good A. D) increase the demand for good B and decrease the demand for good A.

If goods A and Z are complements, an increase in the price of good Z will: A) increase the demand for good A. B) decrease the demand for good A. C) decrease the demand for good Z. D) decrease the demand for both good A and good Z.

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _____ for tattoos has _____. A) quantity demanded; increased B) demand; decreased C) demand; increased D) quantity demanded; decreased

Which factor will NOT cause an increase in demand for good X? A) a decrease in income if good X is an inferior good B) an increase in income if good X is a normal good C) a decrease in the price of good X D) an increase in the popularity of good X with consumers

Which statement is TRUE of a normal good? A) When income increases, the demand for the good remains unchanged. B) When income increases, the demand for the good decreases. C) When income increases, the demand for the good increases. D) Income and the demand are unrelated.

Which statement is TRUE of an inferior good? A) When income increases, demand remains unchanged. B) When income increases, demand decreases. C) When income increases, demand increases. D) Income and demand are unrelated.

The demand curve for monthly subscriptions to HBO has shifted to the right. What could have caused it? A) a fall in the price of HBO subscriptions B) an increase in the price of HBO subscriptions C) an increase in the supply of HBO subscriptions D) an increase in the incomes of buyers

If people demand more of product A when the price of B falls, then A and B are: A) not related. B) substitutes. C) complements. D) inferior goods.

If the demand for tires goes down when the price of gas goes up, then tires and gas are: A) substitutes. B) complements. C) both expensive. D) both inexpensive.

An increase in the price of hamburger would probably result in _____ in the demand for hamburger buns. A) a decrease B) an increase C) no change D) random fluctuations

An announcement that smoking will harm your ability to think clearly will MOST likely result in: A) an increase in the quantity of cigarettes demanded. B) a decrease in the demand for cigarettes. C) no change in smoking habits. D) an increase in the price of cigarettes.

If steak and potatoes are complements, when the price of steak goes up, the demand curve for potatoes: A) shifts to the right. B) shifts to the left. C) stays the same. D) shifts to the right and then moves back.

If chicken and beef are substitutes, then a fall in the price of chicken will bring about: A) an increase in the demand for beef. B) a decrease in the demand for beef. C) an increase in the quantity demanded of beef. D) no change in the demand for beef.

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as: A) inferior. B) direct. C) normal. D) indirect.

An inferior good is one for which a(n) _____ in buyers' incomes causes a(n) _____. A) increase; increase in demand B) increase; increase in quantity demanded C) increase; decrease in demand D) decrease; decrease in demand

Pizza is a normal good. If students' incomes at your college increase, the effect on pizza will be: A) an increase in the demand. B) an increase in the quantity demanded. C) a decrease in the demand. D) no change in the demand.

After graduation from college, you might have an increase in your income from a new job. If as a result you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger is a(n) _____ good. A) normal B) substitute C) complementary D) inferior

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in: A) income. B) consumer expectations. C) consumer preferences. D) prices of other goods.

Which factor would shift the demand curve for new textbooks to the right? A) a decrease in the price of paper B) a fall in the price of used textbooks C) an increase in college enrollment D) a fall in the price of new textbooks

Which factor is likely to cause a rightward shift in the demand for home-delivered pizza? A) a lower price of pizza B) a lower price of fast-food hamburgers C) a higher price of pepperoni D) a larger population

Which two goods are most likely substitutes in consumption? A) loaves of bread and sticks of butter B) loaves of bread and toasters C) loaves of bread and hamburger buns D) loaves of bread and gasoline

The demand for meals at a local Chipotle will shift to the left if: A) Saladworks offers a 10% discount coupon in the local newspaper. B) the price of a meal at Chipotle rises. C) local incomes increase and Chipotle meals are a normal good. D) the price of gasoline falls in the area.

Assuming that tablets are normal goods, which factor will NOT increase demand for tablets? A) an increase in the incomes of tablet users B) cool new computer games that can only be played on tablets C) a very large company that makes tablets going out of business D) the price of laptop computers increasing

In the market for canned pinto beans, _____ will increase if income increases and if pinto beans are a(n) _____ good. A) demand; inferior B) demand; normal C) supply; inferior D) supply; normal

When the price of gas goes down, the demand for tires goes up. A likely possibility is that tires and gas are: A) substitutes. B) complements. C) both inferior goods. D) both inexpensive.

If the price of eggs decreased, it would probably result in _____ in the demand for bacon, a complement good. A) a decrease B) an increase C) no change D) random fluctuations

The demand curve for running shoes has shifted to the right. What could have caused it? A) a fall in the price of running shoes B) an increase in the price of running shoes C) an increase in the supply of running shoes D) an increased enthusiasm among the population for running as exercise

Which factor will NOT cause an increase in the supply of cornflakes? A) an increase in the price of cornflakes B) a cost-saving improvement in the technology of corn production C) a reduction in the price of corn D) the expectation by producers that the price of cornflakes will fall in the future

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the price of coconuts decreased, it would be represented in the figure as a movement from: A) A to B. B) B to A. C) C to A. D) E to B.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts increased, it could be represented in the figure as a movement from: A) A to B. B) B to A. C) C to A. D) E to B.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts decreased, it could be represented in the figure as a movement from: A) A to B. B) B to A. C) C to A. D) E to B.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. An improvement in the technology used to harvest coconuts (e.g., a faster, less expensive coconut picker) would be represented in the figure as a movement from: A) A to C. B) B to A. C) C to A. D) B to E.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. An expectation on the part of coconut suppliers that the price of coconuts will be significantly higher in the very near future would be represented in the figure as a movement from: A) A to B. B) B to A. C) A to C. D) B to E.

Use the following to answer questions: -(Figure: The Supply of Online Movie Rentals) Use Figure: The Supply of Online Movie Rentals. A decrease in the price of online movies sold by movie producers to rental outlets like Amazon and Apple would result in a change illustrated by the move from: A) n to o in panel A. B) p to q in panel B. C) s to t in panel C. D) u to v in panel D.

Use the following to answer questions: -(Figure: The Supply of Online Movie Rentals) Use Figure: The Supply of Online Movie Rentals. A decrease in the price of online movie rentals would result in a change illustrated by the move from: A) n to o in panel A. B) p to q in panel B. C) s to t in panel C. D) u to v in panel D.

Use the following to answer questions: -(Table: Supply of Lemonade) Use Table: Supply of Lemonade. If the price of lemonade is $1 per cup, the total quantity of lemonade supplied will be _____ cups per day. A) 50 B) 80 C) 25 D) 90

Use the following to answer questions: -(Table: Supply of Lemonade) Use Table: Supply of Lemonade. When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be _____ cups per day. A) 40 B) 90 C) 10 D) 25

_____ illustrates a positive relationship between price and quantity. A) A demand curve B) A supply curve C) A production possibility frontier D) Equilibrium

The typical supply curve illustrates that: A) other things equal, the quantity supplied for a good is inversely related to the price of a good. B) other things equal, the supply of the good creates its own demand for the good. C) other things equal, the quantity supplied for a good is positively related to the price of a good. D) price and quantity supplied are unrelated.

When the price of lamps increases, the: A) supply increases. B) quantity supplied increases. C) supply decreases. D) quantity supplied decreases.

When the price of desks increases, the: A) quantity supplied increases. B) supply increases. C) quantity supplied decreases. D) supply decreases.

A decrease in supply of good X means: A) a shift to the left of the entire supply curve for good X. B) a movement down the supply curve as prices of good X go down. C) that less of good X will be demanded at every price. D) that more of good X will be supplied at every price.

The primary difference between a change in supply and a change in the quantity supplied is that: A) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve. B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. C) a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that shift the supply curve. D) a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

If the price of a commodity increases, you can usually expect the: A) supply to increase. B) quantity supplied to increase. C) quantity supplied to decrease. D) supply curve to shift to the right.

In the market for tacos, the factor that does NOT shift the supply curve to the left is: A) an increase in the price of beef. B) an increase in the wages of taco shop workers. C) fewer taco shops. D) a decrease in the price of tacos.

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _____ curve shifts to the _____. A) supply; right B) demand; left C) supply; left D) demand; right

Which factor is NOT a determinant of supply? A) expectations regarding future prices B) the technology of production C) the cost of production D) consumer tastes

Which influence does NOT shift the supply curve? A) people deciding that they want to buy more of the product B) a decrease in the price firms expect to receive in the future C) a rise in the wages paid to workers D) the development of a new production technology

Which factor will NOT cause an increase in the supply of good X? A) an improvement in the technology used to produce good X B) an increase in the number of firms that sell good X C) an increase in the price of inputs used to produce good X D) a decrease in the price of labor used to produce good X

Consider the supply curve for cotton shirts. An increase in the price of cotton will: A) increase the supply of cotton shirts. B) decrease the supply of cotton shirts. C) increase the quantity supplied of cotton shirts. D) decrease the demand for cotton shirts.

Over the past few years, the technology associated with producing flat-panel televisions has improved. This has led to a(n) _____ in the _____ flat-panel televisions. A) increase; supply of B) decrease; demand for C) decrease; supply of D) decrease; quantity supplied of

A technological advance in the production of automobiles will _____ the _____ automobiles. A) decrease; demand for B) increase; supply of C) decrease; demand D) decrease; supply of

Which factor would cause an INCREASE in the supply of a good? A) input prices rising B) a fall in the price of the good C) an increase in the number of sellers D) expectations of future price increases

Which factor would cause an INCREASE in the supply of a good? A) an increase in input prices B) suppliers' expectations of higher prices in the future C) an increase in the price of the good D) a decrease in the price of resources used in production

Which factor would cause a DECREASE in the supply of a good? A) an increase in the price of goods that are used in production B) suppliers' expectations of lower prices in the future C) an advancement in the technology for producing the good D) an increase in the number of producers

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be: A) a decrease in the supply of pizza. B) an increase in the supply of pizza. C) a decrease in the quantity of pizza supplied. D) no change in the supply of pizza.

Which factor would cause an INCREASE in the supply of a good? A) an increase in input prices B) a decrease in the number of sellers in the market C) suppliers' expectations of higher prices in the future D) an advancement in the technology for producing the good

Which factor would cause a DECREASE in the supply of a good? A) a decrease in input prices B) an increase in the number of sellers in the market C) suppliers' expectations of higher prices in the future D) an advancement in the technology for producing the good

Which factor would NOT cause the supply curve to shift? A) a change in the technology of production B) a change in factor costs C) a change in the price of the good D) a change in suppliers' expectations of future prices

Which factor would cause a LEFTWARD shift in the supply curve for a good?: A) an increase in the number of sellers B) a technological improvement in production C) an increase in the cost of an input D) an increase in the number of buyers

Which factor is MOST likely to shift the supply of milk to the right? A) a tax on each gallon of milk produced B) an increase in household income, milk being a normal good C) a decrease in the price of feed given to dairy cows D) the bankruptcy of many small dairy farms

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _____ wheat would _____. A) supply of; increase B) supply of; decrease C) demand for; increase D) demand for; decrease

Use the following to answer questions: -(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. A factor that may have changed supply from S₁ to S₂ is: A) better technology in the production of gasoline. B) increased demand. C) lower labor productivity in gasoline production. D) increased prices of substitutes in production for gasoline.

Use the following to answer questions: -(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. Given the equilibrium after a change in supply from S₁ to S₂: A) at the old price of $2.50, there will be pressure for the price to fall. B) the new price will be $2.00. C) the new quantity will be 600. D) the price will remain constant.

Use the following to answer questions: -Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. The initial equilibrium price and quantity (at intersection of S1 and A) $2.00 and 450 gallons. B) $1.50 and 400 gallons. C) $2.00 and 200 gallons. D) $2.50 and 300 gallons. D) of gasoline are:

Use the following to answer questions: -(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. Given the initial equilibrium of S₁ and D, any price lower than _____ will exert pressure for the price to _____. A) $2.00; fall B) $2.50; rise C) $3.00; rise D) $2.50; fall

Use the following to answer questions: -(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. When the supply curve shifted from the initial equilibrium, the new intersection of supply and demand has a price of _____ and quantity of 400. This supply shift could have resulted from _____. A) $1.50; an increase in consumers' income B) $1.50; an improvement in refining technology C) $2.00; an increase in the number of buyers D) $2.00; an increase in consumers' income

Use the following to answer questions: -(Figure: Demand and Supply of Gasoline) Use Figure: Demand and Supply of Gasoline. What might cause the supply curve to shift from S₂ back to the initial supply curve S₁? A) The Organization of Petroleum Exporting Countries (OPEC) restricts the production of crude oil. B) OPEC increases the production of crude oil. C) U.S. citizens want to buy more gas. D) Technology in the refinement of gasoline greatly improves.

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.60, the price will: A) not change. B) fall to $0.30. C) fall to $0.50. D) rise to $0.70.

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. The equilibrium quantity and the equilibrium price are _____ bags per month and _____. A) 140; $0.40 B) 175; $0.60 C) 175; $0.80 D) 210; $0.50

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly: A) surplus of 140 bags per month. B) shortage of 140 bags per month. C) surplus of 70 bags per month. D) shortage of 70 bags per month.

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A surplus of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag. A) $0.90 B) $0.80 C) $0.60 D) $0.40

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.50, there is a: A) surplus of 35 bags per month. B) shortage of 35 bags per month. C) surplus of 70 bags per month. D) shortage of 70 bags per month.

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag. A) $0.80 B) $0.60 C) $0.40 D) $0.30

What is the difference between a shortage and scarcity? A) Scarcity will almost always exist, but a shortage will exist only if the price is kept below the equilibrium level. B) Scarcity is a result of two or more alternative uses, and quantities of supply and demand adjusting to flexible prices will create shortages. C) A shortage will exist when a good is scarce. D) There is no distinction between the two. They are the same thing.

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _____ of _____ bushels per period will result. A) shortage; 10,000 B) shortage; 8,000 C) surplus; 8,000 D) surplus; 4,000

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A price of _____ will result in a _____. A) $6; shortage B) $9; surplus C) $8; shortage D) $4; surplus

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If there is an increase in demand of 2,000 bushels per period at each price, the equilibrium price and quantity will be _____ and _____ bushels per period, respectively. A) $5; 5,000 B) $6; 7,000 C) $7; 7,000 D) $8; 8,000

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If there is a decrease in supply of 2,000 bushels per period at each price, the equilibrium price and quantity will be _____ and _____ bushels per period, respectively. A) $5; 5,000 B) $7; 5,000 C) $6; 4,000 D) $8; 6,000

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $2 in this market would result in a _____ of _____ bushels per period. A) surplus; 4,000 B) shortage; 8,000 C) shortage; 10,000 D) surplus; 10,000

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. What is the equilibrium quantity in this wheat market each period? A) 12,000 bushels B) 2,000 bushels C) 10,000 bushels D) 6,000 bushels

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If a price of $8 temporarily exists in this market, a _____ of _____ bushels per period will result. A) shortage; 2,000 B) surplus; 4,000 C) shortage; 4,000 D) surplus; 6,000

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _____ of _____ bushels per period. A) surplus; 4,000 B) shortage; 2,000 C) shortage; 4,000 D) surplus; 2,000

Use the following to answer questions: -(Table: The Lemonade Market) Use Table: The Lemonade Market. If the price of lemonade is $1.25 per cup, we expect to see a: A) rising price to eliminate the shortage. B) rising price to eliminate the surplus. C) falling price to eliminate the shortage. D) market in equilibrium.

Use the following to answer questions: -(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. If the rental price of Blu-ray discs rises from $5 to $7: A) demand will decrease from 50 to 30 rentals per weekend. B) the quantity demanded will decrease from 50 to 30 rentals per weekend. C) supply will increase from 50 to 70 rentals per weekend. D) the quantity supplied will increase from 50 to 60 rentals per weekend.

Use the following to answer questions: -(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. At a rental price of $3, there will be: A) equilibrium in the rental market for Blu-ray discs. B) an increase in demand. C) an excess supply of 40 Blu-ray disc rentals. D) an excess demand of 40 Blu-ray disc rentals.

Use the following to answer questions: -(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. At a rental price of $6, there will be: A) equilibrium in the rental market for Blu-ray discs. B) a decrease in demand. C) an excess supply of 20 Blu-ray disc rentals. D) an excess demand of 20 Blu-ray disc rentals.

If the market for buffalo meat is in equilibrium, the price of buffalo meat will probably _____ in the near future. A) increase B) not change C) decrease D) increase considerably

Market equilibrium occurs when: A) there is no incentive for prices to change in the market. B) quantity demanded equals quantity supplied. C) the market clears. D) there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.

The market equilibrium is found at the: A) price where quantity demanded exceeds quantity supplied. B) price where quantity demanded equals quantity supplied. C) price where quantity supplied exceeds quantity demanded. D) highest price possible in the market.

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. Supply in this market is upward sloping. If the price of good Y is $12: A) the quantity demanded will be greater than 150 units. B) the quantity supplied will be less than 150 units. C) there will be an excess demand for good Y. D) there will be an excess supply of good Y.

Excess supply occurs when the: A) price is above the equilibrium price. B) quantity demanded exceeds the quantity supplied. C) price is below the equilibrium price. D) quantity demanded exceeds the quantity supplied and the price is below the equilibrium price.

If in a competitive market the quantity supplied exceeds the quantity demanded, we expect prices to: A) stay the same. B) rise. C) fall. D) rise first, then fall when demand decreases.

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price: A) is above the market equilibrium price. B) will rise to clear the market. C) will either rise or remain unchanged. D) is below the market equilibrium price.

If the supply and demand curves intersect at a price of $47, then any price above that would result in: A) a shortage. B) a surplus. C) equilibrium. D) an increase in demand.

If the supply and demand curves intersect at a price of $14, then any price below that would result in: A) a shortage. B) a surplus. C) equilibrium. D) an increase in demand.

Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units. If the price of good X is $2: A) there will be excess demand for good X. B) there will be an excess supply of good X. C) the market will clear. D) the quantity demanded of good X will be less than 124 units.

The _____ tomatoes will decrease if fertilizer prices rise. A) demand for B) shortage of C) supply of D) equilibrium price of

Which factor will raise the price of milk? A) a shift to the right of the supply curve for milk B) a shift to the right of the demand curve for milk C) an increase in the number of milk suppliers D) a decrease in the number of milk buyers

Use the following to answer questions: -(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve, which of the graphs shows a change that results in a decrease in the quantity of online movie rentals supplied? A) A B) B C) C D) D

Use the following to answer questions: -(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. Which of the graphs illustrates what may happen in the market for online movie rentals if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost to the firm of producing online movie rentals falls? A) A B) B C) C D) D

Use the following to answer questions: -(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. Which of the graphs shows what may happen in the market for online movie rentals if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost of buying content for online movie distributors like Apple (i.e., the price that Apple pays for the online content to sell to consumers) decreases? A) A B) B C) C D) D

Use the following to answer questions: -(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. Which of the graphs shows what may happen if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if some of the online stores that rent online movie rentals close? A) A B) B C) C D) D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating a tomato a day prevents aging. Which panel BEST describes how this will affect the market for tomatoes? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel BEST describes how this will affect the market for oranges? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel BEST describes how this will affect the market for vitamin C tablets, which are a substitute in consumption for oranges? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose the population increases. Which panel BEST describes how this will affect the market for apples? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The graph shows how supply and demand might shift in response to specific events. Suppose a new machine allows restaurants and fast-food outlets to produce french fries at a lower cost. Which panel BEST describes how this will affect the market for french fries? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating pomegranates causes aging. Which panel BEST describes how this will affect the market for pomegranates? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel BEST describes how this will affect the market for peanuts? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's grapefruit crop. Which panel BEST describes how this will affect the market for vitamin B₁₂ tablets, which are a substitute in consumption for grapefruit? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The figure shows how supply and demand might shift in response to specific events. Suppose the birthrate decreases. Which panel BEST describes how this will affect the market for diapers? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The figure shows how supply and demand might shift in response to specific events. Suppose vast new oilfields are discovered offshore of California and gasoline prices fall. Which panel BEST describes how this will affect the market for sport utility vehicles, a complement in consumption to gasoline? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The figure shows how supply and demand might shift in response to specific events. Suppose the technology for producing ethanol fuel improves. Which panel BEST describes how this will affect the market for ethanol? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows the aging process. Which panel BEST describes how this will affect the market for asparagus? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose a wet and sunny year increases the nation's corn crop by 20%. Which panel BEST describes how this will affect the market for corn? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose a spring frost destroys one-third of the nation's artichoke crop. Which panel BEST describes how this will affect the market for mayonnaise, which is a complement to artichokes? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose the technology for producing snowboards improves. Which panel BEST describes how this will affect the market for winter parkas, a complement in consumption of snowboards? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the Surgeon General announces that eating chocolate prevents heart disease. Which panel BEST describes how this will affect the market for chocolate? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel BEST describes how this will affect the market for new houses? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel BEST describes how this will affect the market for gasoline, which is made from oil? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose half of the people in San Diego move to Colorado Springs. Which panel BEST describes how this will affect the market for houses in Colorado Springs? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose half of the people in San Diego pack up and move to Colorado Springs. Which panel BEST describes how this will affect the supply of houses in San Diego? A) Panel A B) Panel B C) Panel C D) Panel D

Use the following to answer questions: -(Figure: Supply and Demand in the Orange Juice Market) Use Figure: Supply and Demand in the Orange Juice Market. The market is in equilibrium at point C. Suppose most people drink orange juice only with champagne. What will be the new equilibrium point in the orange juice market if a law banning alcohol passes? A) A B) B C) D D) E

Use the following to answer questions: -(Figure: Supply and Demand in the Orange Juice Market) Use Figure: Supply and Demand in the Orange Juice Market. The market is in equilibrium at point C. A reputable scientist asserts in a major scientific publication that drinking orange juice will increase your life span. What will be the MOST likely new equilibrium point in the orange juice market? A) A B) B C) D D) E

Which factor ALWAYS results in an increase in price and quantity? A) an increase in supply and a decrease in demand B) an increase in demand with no change in supply C) an increase in supply with no change in demand D) a decrease in demand and supply

The market price of airline flights increased recently. Some economists suggest that the price increased because of an increase in the number of business travelers. They believe that, in the market for flights: A) supply increased. B) supply decreased. C) demand increased. D) demand decreased.

If tortilla chips are a normal good, when there is an increase in income, equilibrium price _____ and equilibrium quantity _____. A) decreases; increases. B) decreases; decreases. C) increases; increases. D) increases; decreases.

In the market for tacos, a normal good, you observe that the equilibrium price and quantity have increased. This can be caused only by: A) an increase in the price of beef. B) an increase in the wages of taco shop workers. C) fewer taco shops. D) an increase in the incomes of people who eat tacos.

Suppose you manage a corner grocery store. If peanut butter is an inferior good, what do you suppose would happen to the price and quantity sold of peanut butter as incomes fell during a recession? A) The price would increase and the quantity would decrease. B) The price and quantity would both increase. C) The price and quantity would both decrease. D) The price would decrease and the quantity would increase.

A newspaper story recently reported that the price of new cars, a normal good, has decreased and the quantity of new cars sold has dropped. The new price and quantity could have been caused by a(n): A) decrease in buyers' incomes. B) increase in buyers' incomes. C) increase in production costs. D) decrease in production costs.

If supply is upward sloping, a shift of a demand curve to the right, all other things unchanged, will: A) increase equilibrium price and quantity. B) decrease equilibrium price and quantity. C) decrease equilibrium quantity and increase equilibrium price. D) increase equilibrium quantity and decrease equilibrium price.

For consumers, pizza and hamburgers are substitutes. A rise in the price of a pizza causes a _____ in the equilibrium price of a hamburger and a(n) _____ in the equilibrium quantity of hamburgers. A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease

If the economy booms and peoples' incomes rise, then the demand curve for a normal good like new houses will _____ and the equilibrium quantity of new houses produced will _____. A) shift to the right; increase B) not shift; not change C) not shift; increase D) shift to the left; decrease

A new wonder diet that results in a dramatic weight loss sweeps through the United States. The key to the diet is to eat large amounts of red meat (beef) but no poultry or carbohydrate-rich foods. As millions of Americans switch to the new diet, we can expect a(n) _____ in the _____ beef, leading to a shift to the _____ in the _____ curve for beef and _____ beef prices. A) increase; demand for; right; demand; higher B) increase; demand for; right; demand; lower C) decrease; supply of; left; supply; higher D) decrease; demand for; left; demand; higher

A new wonder diet that results in a dramatic weight loss sweeps through the United States. The key to the diet is to eat large amounts of red meat (beef) but no poultry or carbohydrate-rich foods. As millions of Americans switch to the new diet, we can expect a(n) _____ in the _____ poultry, leading to a shift to the _____ in the _____ curve for poultry and _____ poultry prices. A) decrease; supply of; left; supply; higher B) increase; supply of; right; supply; higher C) decrease; demand for; right; demand; lower D) decrease; demand for; left; demand; lower

Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price of its motorcycles, we can expect: A) a shift to the right in the supply curve of Hondas and lower prices for Hondas. B) a shift to the left in the supply curve of Hondas and higher prices for Hondas. C) a shift to the right in the demand curve for Hondas and higher prices for Hondas. D) a shift to the left in the demand curve for Hondas and lower prices for Hondas.

If supply is upward sloping, an increase in demand with no change in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

French fries and hamburgers are complements in consumption. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium price of french fries _____ and the equilibrium quantity _____. A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases

If supply is upward sloping, a decrease in demand with no change in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will result in: A) an increase in equilibrium price and quantity. B) a decrease in equilibrium price and an increase in equilibrium quantity. C) a decrease in both equilibrium price and quantity. D) an increase in equilibrium price and a decrease in equilibrium quantity.

If supply is upward sloping, an increase in demand, all other things unchanged, will result in a(n) _____ in equilibrium price and a(n) _____ in equilibrium quantity. A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease

If demand is downward sloping, a decrease in supply with no change in demand will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

If demand is downward sloping, an increase in supply with no change in demand will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _____ Blu-ray players shifting to the _____. A) demand for; right B) demand for; left C) supply of; right D) supply of; left

In the market for corn tortilla chips, what would cause a price increase? A) Doctors tell their patients that tortilla chips are unhealthy. B) There is a technological advance in tortilla chip production. C) A fungus kills much of the corn crop in Nebraska. D) The price of salsa triples.

The market price of airline flights increased recently. Some economists suggest that the price increased because several airlines went out of business. They believe that, in the market for flights: A) supply increased. B) supply decreased. C) demand increased. D) demand decreased.

The market price of airline flights increased recently. Some economists suggest that the price increased because jet fuel is much more expensive than before. As a result, they believe that, in the market for flights: A) supply increased. B) supply decreased. C) demand increased. D) demand decreased.

In the market for grass-fed beef, what would cause a price increase? A) The price of chicken decreases. B) Doctors tell patients that beef is full of saturated fat that causes heart attacks. C) The prices of grass and corn increase. D) There is a movement in the United States toward vegetarianism.

The market for corn is in equilibrium. Which factor is most likely to INCREASE the equilibrium price of corn? A) a bountiful harvest B) increasing production of corn-based ethanol C) decreasing household incomes, with corn being a normal good D) a decrease in the price of wheat, a substitute in consumption

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market _____ will _____, _____ the price and _____ the quantity. A) demand; decrease; decreasing; decreasing B) demand; decrease; increasing; decreasing C) supply; increase; decreasing; increasing D) supply; decrease; increasing; decreasing

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to a(n): A) increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. B) decrease in quantity supplied and lower prices. C) increase in demand and higher prices. D) decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity.

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _____ and the equilibrium quantity _____. A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. You suspect that _____ Blu-ray players shifts to the _____. A) demand for; right. B) demand for; left. C) supply of; right. D) supply of; left.

If the United States increases tariffs on imports of lumber from Canada (which raises the price of lumber in the United States), the equilibrium price of new homes in the United States will _____ and the equilibrium quantity of new homes in the United States will _____. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

Customers used to pay inside before pumping gas. When gas stations introduced paying at the pump, thus decreasing production costs, there was a shift to the _____ in the _____ curve and gas prices _____. A) right; supply; decreased B) left; supply; increased C) right; demand; increased D) left; demand; decreased

Many public utilities burn oil to generate electricity. If the price of oil increases, we expect a shift to the _____ in the _____ curve for _____ and a _____ price for electricity. A) right; supply; electricity; lower B) left; supply; electricity; higher C) right; demand; oil; higher D) left; demand; oil; lower

The market for milk is initially in equilibrium. Milk producers successfully advertise to encourage milk drinking. At the same time, more milk producers enter the market. Standard demand and supply analysis tells us that the: A) equilibrium price and quantity of milk will rise. B) equilibrium price and quantity of milk will fall. C) equilibrium quantity of milk will rise, but we can't determine how the equilibrium price will be affected. D) equilibrium price of milk will rise, but we can't determine how the equilibrium quantity will be affected.

Consider the market for iPads. What happens if a fantastic new alternative tablet is developed by Samsung and, at the same time, a boat carrying a large shipment of iPads is attacked by pirates and sunk? A) Price decreases and quantity increases. B) Price increases and quantity increases. C) The change in price is indeterminate and quantity decreases. D) Price increases and the change in quantity is indeterminate.

Consider the market for corn. What happens if there is an increased demand for corn tortillas and, at the same time, a new corn seed becomes available that dramatically increases the yield per acre? A) Price and quantity decrease. B) The change in price is indeterminate; quantity decreases. C) The change in price is indeterminate; quantity increases. D) Price increases; the change in quantity is indeterminate.

In the local market for coffee, a normal good, the price will _____ and the quantity will _____ if new coffee shops open and consumers' incomes decrease because of a recession. A) increase; be indeterminate B) decrease; be indeterminate C) be indeterminate; increase D) be indeterminate; decrease

Suppose the local real estate market is in equilibrium. A recession causes local household incomes to decline. At the same time, construction of a large subdivision of new homes has just been completed. Given these two changes and assuming that real estate is a normal good, we can predict that the price of real estate will _____ and the quantity of real estate bought and sold will _____. A) fall; fall B) fall; rise C) fall; rise or fall D) rise; fall or rise

Suppose the market for gasoline is in equilibrium. You have heard that the price of crude oil is falling because of new oil discoveries. You are also aware that the number of car and truck drivers is steadily rising. Knowing this, you predict that the price of gasoline will _____ and the quantity of gasoline bought and sold will _____. A) rise; rise B) rise; fall C) rise or fall; rise D) rise or fall; fall

A recent news story reported that the Organization of Petroleum Exporting Countries is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of vacation travel. What would be the combined effect of these two events on the summer market for gasoline? A) an increase in the price and the quantity B) an increase in the price and an unpredictable change in the quantity C) an unpredictable change in both the price and the quantity D) an unpredictable change in the price and a decrease in the quantity

Suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests. At the same time, the price of ceramics used to produce the vests falls. The equilibrium price of bulletproof vests _____ and the equilibrium quantity produced _____. A) increases; increases B) decreases; decreases C) probably changes, but in an ambiguous direction; probably changes, but in an ambiguous direction D) probably changes, but in an ambiguous direction; increases

An increase in the price and an ambiguous change in quantity is MOST likely caused by: A) a shift to the left in demand and no shift in supply. B) a shift to the left in supply and no shift in demand. C) a shift to the right in supply and a shift to the left in demand. D) a shift to the left in supply and a shift to the right in demand.

Suppose that supply increases and demand decreases. What is the MOST likely effect on price and quantity? A) The price will increase, but quantity may increase, decrease, or stay the same. B) The price will decrease, but quantity may increase, decrease, or stay the same. C) The price will decrease and quantity will decrease. D) The price will increase and quantity will increase.

An ambiguous change in price and a decrease in quantity are MOST likely caused by: A) no shift in supply and a shift to the left in demand. B) a shift to the left in supply and a shift to the left in demand. C) a shift to the right in supply and a shift to the left in demand. D) a shift to the left in supply and a shift to the right in demand.

The cost of sensors used in making digital cameras falls, while a successful ad campaign makes digital cameras more fashionable. As a result, the equilibrium price of digital cameras _____ and the equilibrium quantity _____. A) increases; increases B) increases; may increase, decrease, or stay the same C) may increase, decrease, or stay the same; increases D) decreases; increases

A decrease in demand and a decrease in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) decrease; indeterminate change B) indeterminate change; increase C) indeterminate change; decrease D) increase; indeterminate change

An increase in demand and a decrease in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price. A) decrease; decrease B) indeterminate change; increase C) indeterminate change; decrease D) increase; indeterminate change

It is certain that the equilibrium price will fall when: A) the supply curve and the demand curve both shift to the right. B) the supply curve shifts to the right and the demand curve shifts to the left. C) supply and demand both increase. D) supply decreases and demand stays the same.

It is certain that the equilibrium price will rise when the supply curve shifts to the _____ and the demand curve shifts to the _____. A) right; right B) right; left C) left; left D) left; right

It is almost certain that the equilibrium quantity will fall when: A) the supply curve and the demand curve both shift to the right. B) the supply curve shifts to the right and the demand curve shifts to the left. C) the supply curve shifts to the left and demand shifts to the right. D) supply shifts to the left and demand stays the same.

It is certain that the equilibrium quantity will rise when: A) the supply curve and the demand curve both shift to the right. B) the supply curve shifts to the right and the demand curve shifts to the left. C) supply and demand both shift to the left. D) supply shifts to the left and demand stays the same.

Equilibrium quantity will always increase if: A) supply and demand both increase. B) supply increases and demand decreases. C) supply and demand both decrease. D) supply decreases and demand remains unchanged.

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as a: A) shift from D1 to D2 B) movement from point A to point B C) shift from D1 to D3 D) movement from point B to point E

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If coconuts are a normal good and the income level of consumers falls, it will be represented in the figure as a: A) shift from D1 to D2 B) movement from point A to point B C) shift from D1 to D3 D) movement from point B to point C

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If there is an increase in preference for coconuts, it will be represented in the figure as a: A) shift from D1 to D2 B) movement from point A to point B C) shift from D1 to D3 D) movement from point B to point E

Use the following to answer questions: -(Figure: Demand for Coconuts) Use Figure: Demand for Coconuts. If coconuts are a normal good and consumers believe that the price of coconuts will rise significantly in the near future, it will be represented in the figure as a: A) shift from D1 to D2 B) movement from point B to point A C) shift from D1 to D3 D) movement from point B to point E

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts per month when the price of each bag is: A) $0.90. B) $0.80. C) $0.70. D) $0.60.

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. If George, Barbara, and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.80, the total market quantity demanded is _____ bags per month. A) 70 B) 80 C) 105 D) 280

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. If George, Barbara, and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.50, the total market quantity demanded is _____ bags per month. A) 80 B) 105 C) 210 D) 280

Use the following to answer questions: -(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from: A) f to g in Panel A. B) h to i in Panel B. C) j to k in Panel C. D) l to m in Panel D.

Use the following to answer questions: -(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of movie tickets (a substitute) would result in a change illustrated by the move from: A) f to g in Panel A. B) h to i in Panel B. C) j to k in Panel C. D) l to m in Panel D.

When milk consumption decreased, a survey firm wanted to know what was going on, so they interviewed people and found that people thought that rising milk prices were making it hard to justify their milk purchases. This suggests that what is going on is a: A) movement along the demand curve for milk. B) movement along the supply curve for milk. C) shift of the demand curve for milk. D) shift of the supply curve for milk.

A decrease in the price of eggs will result in a(n): A) increase in the demand for eggs. B) increase in the supply of eggs. C) shift in the supply curve for eggs. D) movement along the demand curve for eggs.

A decrease in the price of a good will generally result in a(n): A) increase in demand. B) increase in supply. C) increase in the quantity demanded. D) increase in the quantity supplied.

If the price of corn rises, we generally expect the: A) quantity of corn demanded to rise. B) quantity of corn supplied to rise. C) demand for corn to shift inward. D) supply of corn to shift outward.

Assume that corn is an input in the production of beef but not in the production of pork. Further, beef and pork are substitutes in consumption. A decrease in the price of corn will _____ the supply of beef and _____ the demand for pork. A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease

The market for soybeans is initially in equilibrium, with an upward-sloping supply curve and a downward-sloping demand curve. Because of mad cow disease, producers decide to replace bone meal with soybeans in cattle feed. The likely effect is that the: A) equilibrium price and quantity of soybeans will rise. B) equilibrium price and quantity of soybeans will fall. C) equilibrium quantity of soybeans will rise, but we can't determine what will happen to the equilibrium price. D) equilibrium price of soybeans will rise, but we can't determine what will happen to the equilibrium quantity.

An increase in _____ will have an ambiguous (uncertain) effect on price. A) tastes and preferences B) the price of a substitute C) the price of a complement D) income

Which factor would result in a movement along the demand curve? A) a change in preferences B) an increase in the number of buyers C) an increase in the number of suppliers D) a decrease in income

A competitive market occurs when there are many buyers and sellers of the same good.

The demand curve for season tickets for the Miami Dolphins is the graphical representation of the number of season tickets consumers want to buy at any given price.

An increase in demand for good X can be caused by a decrease in the price of X.

The terms decrease in demand and decrease in quantity demanded can be used interchangeably.

According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

An increase in income will always shift the demand curve to the right.

If coffee and tea are viewed as substitutes in consumption, then an increase in the price of coffee will increase the demand for tea.

After graduation many students' demand for used cars decreases. This may be because used cars are considered a normal good to college graduates.

The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at various prices.

An increase in the price of contact lenses will increase the supply of contact lenses.

A major input into vanilla ice cream is cream. An increase in the price of cream will reduce the quantity of vanilla ice cream supplied, but it will not reduce the supply of vanilla ice cream.

If the input costs associated with supplying gasoline increases in Wisconsin, the supply of gasoline in Wisconsin will decrease.

If there is an excess supply of a good, the problem of scarcity does not apply to that good.

Suppose there is an excess supply of chemical engineers in India. Over time, the salaries for chemical engineers will fall in India.

Use the following to answer questions: -(Figure: Supply, Demand, and Equilibrium) Use Figure: Supply, Demand, and Equilibrium. In the figure, there will be excess demand for the good at a price of P₃.

Use the following to answer questions: -(Figure: Supply, Demand, and Equilibrium) Use Figure: Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P1.

Suppose there is an excess demand for water in Florida. This means that we can expect the price of water to increase in Florida over time.

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply, we expect to see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

"In 2008, air travel decreased substantially, despite significant reductions in ticket prices." If this information is correct, it indicates that the law of demand did not apply to air travel in 2008.