Question 1

How does the decreasing use of traditional cameras affect the market for traditional camera film?
A)The demand curve for traditional camera film shifts to the right.
B)The quantity of traditional camera film demanded decreases.
C)The quantity of traditional camera film demanded increases.
D)The demand curve for traditional camera film shifts to the left.

Accepted Answer

The answer of How does the decreasing use of traditional...

Question 2

If the price of refillable butane lighters was to decrease,then
A)the demand for butane would decrease.
B)the demand for butane would increase.
C)the quantity of butane demanded would increase.
D)the quantity of butane demanded would decrease.

Accepted Answer

The answer of If the price of refillable butane lighters...

Question 3

Table 3-2
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Caviar } \
\text { Price per oz. } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Ari's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Sonia's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Rest of } \
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} \
\hline \$ 75 & 6 & 0 & 46 & \
\hline 65 & 18 & 6 & 64 & \
\hline 55 & 28 & 14 & 136 & \
\hline 45 & 36 & 24 & 170 & \
\hline 35 & 44 & 36 & 220 & \
\hline
\end{array}$$
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $55,the quantity demanded in the market would be
A)42 oz.
B)136 oz.
C)178 oz.
D)233 oz.

Accepted Answer

To find the total quantity demanded in the market at a price of $55, we need to add up the quantities demanded by Ari, Sonia, and the rest of the market. At $55, Ari demands 14 oz, Sonia demands 24 oz, and the rest of the market demands 140 oz (found by subtracting the quantities demanded by Ari and Sonia from the total market demand at that price of 178 oz). Adding these up, we get a total quantity demanded of 178 oz. Therefore, the best choice is C.

Question 4

A change in which variable will change the market demand for a product?
A)the price of the product
B)population
C)technology
D)the prices of substitutes in production

Accepted Answer

Population is a variable that can change the market demand for a product. If the population increases, there will be more potential consumers of the product, leading to an increase in demand. Conversely, a decrease in population would lead to a decrease in demand.

Answer: C 
 Technology is another variable that can change the market demand for a product. If new technology is introduced that makes a product easier, faster or cheaper to produce, the supply curve may shift, which can lead to changes in price and therefore demand. Additionally, if new technology makes a substitute product more appealing or accessible, this could also lead to a change in demand for the original product.

Question 5

The market for smartwatches is becoming very competitive.The increase in competition in this market is an example of how the market responds to
A)changes in consumer tastes.
B)increases in income.
C)changes in population.
D)decreases in the price of smartphones (a substitute for the product).

Accepted Answer

The increase in competition in the smartwatch market is a response to changes in consumer tastes. As consumers become more interested in wearable technology and the various features that smartwatches offer, companies are responding by offering more options and improving their products to meet these changing tastes. This is a common trend in markets where consumer preferences can shift quickly.

Question 6

If the price of gasoline decreases,what will be the impact in the market for public transportation?
A)The demand curve for public transportation shifts to the right.
B)The quantity of public transportation demanded increases.
C)The demand curve for public transportation shifts to the left.
D)The quantity of public transportation demanded decreases.

Accepted Answer

The answer of If the price of gasoline decreases,what will...

Question 7

The phrase "demand has decreased" means that
A)a demand curve has shifted to the left.
B)there has been an upward movement along a demand curve.
C)there has been a downward movement along a demand curve.
D)a demand curve has shifted to the right.

Accepted Answer

When demand decreases, it means that consumers are willing to purchase less of a product at a given price. This leads to a shift in the demand curve to the left, indicating a decrease in demand across all prices.

Question 8

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,economists would describe this as
A)an increase in demand.
B)an increase in quantity demanded.
C)a change in consumer income.
D)an increase in consumers' taste for coffee.

Accepted Answer

This is an example of a change in quantity demanded, which refers to a movement along a demand curve in response to a change in price. An increase in demand, on the other hand, would refer to a shift of the demand curve itself due to non-price factors, such as changes in consumer income or taste.

Question 9

If a decrease in income leads to an increase in the demand for sardines,then sardines are
A)an inferior good.
B)a neutral good.
C)a necessity.
D)a normal good.

Accepted Answer

When a decrease in income leads to an increase in demand for a good, that good is typically classified as an inferior good. This is because as consumers' disposable income decreases, they are more likely to shift their consumption towards cheaper options like sardines, even if they may not prefer them as much as other more expensive options. Therefore, sardines are an example of an inferior good.

Question 10

Holding everything else constant,a decrease in the price of bicycles will result in
A)a decrease in the quantity of bicycles demanded.
B)an increase in the demand for bicycles.
C)a decrease in the supply of bicycles.
D)an increase in the quantity of bicycles demanded.

Accepted Answer

According to the law of demand, a decrease in price leads to an increase in quantity demanded, holding everything else constant. Therefore, the decrease in the price of bicycles will result in an increase in the quantity of bicycles demanded.

Question 11

If a decrease in income leads to a decrease in the demand for mac and cheese,then mac and cheese is
A)a normal good.
B)a neutral good.
C)a complement.
D)a necessity.

Accepted Answer

Mac and cheese is a normal good, meaning that as income decreases, the demand for mac and cheese decreases. This is because as consumers have less disposable income, they are less likely to spend money on non-essential items like mac and cheese.

Question 12

Suppose that when the price of hamburgers decreases,the Landry family decreases their purchases of chicken nuggets.To the Landry family
A)hamburgers and chicken nuggets are complements.
B)hamburgers and chicken nuggets are inferior goods.
C)hamburgers and chicken nuggets are normal goods.
D)hamburgers and chicken nuggets are substitutes.

Accepted Answer

When the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets, which shows that hamburgers and chicken nuggets are substitutes. This means that when the price of hamburgers goes down, the Landry family prefers to buy more hamburgers instead of chicken nuggets.

Question 13

If,in response to an increase in the price of pineapples,the quantity of pineapples demanded decreases,economists would describe this as
A)an decrease in demand.
B)a decrease in quantity demanded.
C)a change in consumer income.
D)a decrease in consumers' taste for pineapples.

Accepted Answer

When there is a change in price, it only affects the quantity demanded of a good or service, not the overall demand for it. Therefore, the correct term to apply to this scenario is a decrease in quantity demanded.

Question 14

Table 3-2
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Caviar } \
\text { Price per oz. } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Ari's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Sonia's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Rest of } \
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} \
\hline \$ 75 & 6 & 0 & 46 & \
\hline 65 & 18 & 6 & 64 & \
\hline 55 & 28 & 14 & 136 & \
\hline 45 & 36 & 24 & 170 & \
\hline 35 & 44 & 36 & 220 & \
\hline
\end{array}$$
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.If the price of caviar rises from $65 to $75,the market quantity demanded would
A)decrease by 36 oz.
B)increase by 52 oz.
C)increase by 36 oz.
D)decrease by 52 oz.

Accepted Answer

The answer of Table 3-2
 \[\begin{array} { | c |...

Question 15

A demand curve shows the relationship between
A)the price of a product and the quantity of the product demanded.
B)the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
C)the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer.
D)the price of a produce and the demand for the product.

Accepted Answer

A demand curve shows the relationship between the price of a product and the quantity of the product demanded. It represents the level of demand for a product at varying prices. As the price of a product increases, the quantity demanded of that product generally decreases, and vice versa.

Question 16

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone
A)strawberries and whipped cream are complements.
B)strawberries and whipped cream and substitutes.
C)strawberries and whipped cream are normal goods.
D)strawberries are a normal good and whipped cream is an inferior good.

Accepted Answer

When two goods are complements, their demand is negatively related. This means that when the price of one good falls, the demand for the other good increases. In this case, strawberries and whipped cream are complements, as Simone's demand for whipped cream increases when the price of strawberries decreases.

Question 17

A(n)________ is represented by a rightward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.
A)increase in demand;decrease in demand
B)increase in demand;increase in quantity demanded
C)decrease in demand;decrease in quantity demanded
D)increase in quantity demanded;increase in demand

Accepted Answer

An increase in demand is represented by a rightward shift of the demand curve, indicating that at any given price, more of the product is now demanded. An increase in quantity demanded, on the other hand, is represented by a movement along a given demand curve, indicating that at a lower price, consumers are willing and able to buy more of the product.

Question 18

If you are considering buying either an Apple Watch or a Samsung Gear S2,and you choose the Samsung only because the price is lower,then you consider
A)the Apple Watch to be a normal good and the Samsung Gear S2 to be an inferior good.
B)the Apple Watch to be an inferior good and Samsung Gear S2 to be a normal good.
C)the Apple Watch and the Samsung Gear S2 to be complements.
D)the Apple Watch and the Samsung Gear S2 to be substitutes.

Accepted Answer

Choosing between two similar products based solely on price indicates that the products are substitutes. Therefore, the best choice is D.

Question 19

Table 3-2
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Caviar } \
\text { Price per oz. } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Ari's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Sonia's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Rest of } \
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} \
\hline \$ 75 & 6 & 0 & 46 & \
\hline 65 & 18 & 6 & 64 & \
\hline 55 & 28 & 14 & 136 & \
\hline 45 & 36 & 24 & 170 & \
\hline 35 & 44 & 36 & 220 & \
\hline
\end{array}$$
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.If the price of caviar falls from $45 to $35,the market quantity demanded would
A)decrease by 50 oz.
B)increase by 70 oz.
C)increase by 50 oz.
D)decrease by 70 oz.

Accepted Answer

The answer of Table 3-2
 \[\begin{array} { | c |...

Question 20

Table 3-2
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Caviar } \
\text { Price per oz. } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Ari's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Sonia's } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Rest of } \
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} & \begin{array} { c } 
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (oz.) }
\end{array} \
\hline \$ 75 & 6 & 0 & 46 & \
\hline 65 & 18 & 6 & 64 & \
\hline 55 & 28 & 14 & 136 & \
\hline 45 & 36 & 24 & 170 & \
\hline 35 & 44 & 36 & 220 & \
\hline
\end{array}$$
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $75,the quantity demanded in the market would be
A)6 oz.
B)46 oz.
C)52 oz.
D)127 oz.

Accepted Answer

At a price of $75, Ari's quantity demanded is 6 oz., Sonia's quantity demanded is 46 oz., and the rest of the market's quantity demanded is 80 oz. Therefore, the total quantity demanded in the market would be 6+46+80=132 oz.

Quiz 3: Where Prices Come From: the Interaction of Demand and Supply

How does the decreasing use of traditional cameras affect the market for traditional camera film?

If the price of refillable butane lighters was to decrease,then

A change in which variable will change the market demand for a product?

The market for smartwatches is becoming very competitive.The increase in competition in this market is an example of how the market responds to

If the price of gasoline decreases,what will be the impact in the market for public transportation?

The phrase "demand has decreased" means that

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,economists would describe this as

If a decrease in income leads to an increase in the demand for sardines,then sardines are

Holding everything else constant,a decrease in the price of bicycles will result in

If a decrease in income leads to a decrease in the demand for mac and cheese,then mac and cheese is

Suppose that when the price of hamburgers decreases,the Landry family decreases their purchases of chicken nuggets.To the Landry family

If,in response to an increase in the price of pineapples,the quantity of pineapples demanded decreases,economists would describe this as

A demand curve shows the relationship between

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone

A(n) is represented by a rightward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

If you are considering buying either an Apple Watch or a Samsung Gear S2,and you choose the Samsung only because the price is lower,then you consider