Filters
Question type
Study Flashcards

Figure 3-5 Figure 3-5 -Refer to Figure 3-5.At a price of $5,the quantity sold A) is 2 units. B) is 4 units. C) is 6 units. D) cannot be determined. -Refer to Figure 3-5.At a price of $5,the quantity sold


A) is 2 units.
B) is 4 units.
C) is 6 units.
D) cannot be determined.

Correct Answer

verifed

verified

Table 3-4  Rest of  Cashews  Jordy’s  Amy’s  Market  Market  Tea  Quantity  Quantity  Quantity  Quantity  Price per lb.  Demanded  Demanded  Demanded  Demanded  (dollars)   (lbs.)   (lbs.)   (lbs.)   (lbs.)  $10115082370635954591282814156\begin{array}{|c|c|c|c|c|}\hline&&&\text { Rest of }\\\text { Cashews }&\text { Jordy's } & \text { Amy's }&\text { Market }&\text { Market }\\\text { Tea } & \text { Quantity } & \text { Quantity }& \text { Quantity }& \text { Quantity }\\\text { Price per lb. }&\text { Demanded } &\text { Demanded } &\text { Demanded } &\text { Demanded } \\ \text { (dollars) } & \text { (lbs.) } & \text { (lbs.) } & \text { (lbs.) }& \text { (lbs.) } \\\hline \$ 10 & 1 & 1 & 50 \\\hline 8 & 2 & 3 & 70 \\\hline 6 & 3 & 5 & 95 \\\hline 4 & 5 & 9 & 128 \\\hline 2 & 8 & 14 & 156 \\\hline\end{array} -Refer to Table 3-4.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market.If the price of cashews rises from $4 to $6,the market quantity demanded would


A) decrease by 33 lbs.
B) increase by 39 lbs.
C) increase by 33 lbs.
D) decrease by 39 lbs.

Correct Answer

verifed

verified

Figure 3-2 Figure 3-2 -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from A) A to B. B) B to A. C) S₁ to S₂. D) S₂ to S₁. -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from


A) A to B.
B) B to A.
C) S₁ to S₂.
D) S₂ to S₁.

Correct Answer

verifed

verified

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes,accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions,will result in


A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price.
B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity.
C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease.
D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.

Correct Answer

verifed

verified

In July,market analysts predict that the price of gold will rise in August.What happens in the gold market in July,holding everything else constant?


A) The supply curve shifts to the right.
B) The supply curve shifts to the left.
C) The quantity demanded and the quantity supplied increase.
D) The demand curve shifts to the left.

Correct Answer

verifed

verified

A ________ demand curve for shampoo would be caused by a change in the price of shampoo.


A) rightward shift of the
B) leftward shift of the
C) movement along the
D) positively sloped

Correct Answer

verifed

verified

A decrease in the equilibrium quantity for a product will result


A) when the quantity demanded for the product exceeds the quantity supplied.
B) when there is a decrease in supply and a decrease in demand for the product.
C) when there is an increase in supply and a decrease in demand for the product.
D) when there is a decrease in demand and an increase in the number of firms producing the product.

Correct Answer

verifed

verified

Assume that smartphones are a normal good,and that the prices of smartphones have fallen in recent years.Over this same period,the price of the components used to produce smartphones has also fallen and consumer incomes have risen.Which of the following best explains the falling prices of smartphones?


A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.
B) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.
C) The demand curve and the supply curve for smartphones have both shifted to the left.
D) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.

Correct Answer

verifed

verified

Last year,the Pottery Palace supplied 8,000 ceramic pots at $40 each.This year,the company supplied the same quantity of ceramic pots at $55 each.Based on this evidence,The Pottery Palace has experienced


A) a decrease in supply.
B) an increase in supply.
C) an increase in the quantity supplied.
D) a decrease in the quantity supplied.

Correct Answer

verifed

verified

If the demand for a product increases and the supply of the same product decreases,the equilibrium price will increase.

Correct Answer

verifed

verified

Which of the following would shift the supply curve for smartphones to the right?


A) an increase in the price of a substitute in production
B) an increase in consumer income (assuming that all smartphones are normal goods)
C) a decrease in the number of firms that produce smartphones
D) a decrease in the price of an input used to produce smartphones

Correct Answer

verifed

verified

If consumers believe the price of hybrid vehicles will decrease in the future,this will cause the demand for hybrid vehicles to decrease now.

Correct Answer

verifed

verified

A firm has an incentive to decrease supply now and increase supply in the future if it expects that


A) more firms will enter the market in the future.
B) the prices of inputs used to produce the product will rise in the future.
C) the price of its product will be lower in the future than it is today.
D) the price of its product will be higher in the future than it is today.

Correct Answer

verifed

verified

In 2004,hurricanes damaged a large portion of Florida's orange crop.As a result of this,many orange growers were not able to supply fruit to the market.If,following the hurricane,the price remained at its pre-hurricane level,we would expect to see


A) a surplus of oranges.
B) the quantity demanded equal to the quantity supplied.
C) a shortage of oranges.
D) an increase in the demand for oranges.

Correct Answer

verifed

verified

If consumers believe the price of LCD televisions will decrease in the future,this will cause the demand for LCD televisions to increase now.

Correct Answer

verifed

verified

Figure 3-1 Figure 3-1 -Refer to Figure 3-1.A decrease in the expected future price of the product would be represented by a movement from A) A to B. B) B to A. C) D₁ to D₂. D) D₂ to D₁. -Refer to Figure 3-1.A decrease in the expected future price of the product would be represented by a movement from


A) A to B.
B) B to A.
C) D₁ to D₂.
D) D₂ to D₁.

Correct Answer

verifed

verified

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall.Holding everything else constant,how would this affect the market for wheat (a substitute for corn) ?


A) The supply of wheat would increase and the equilibrium price of wheat would decrease.
B) The demand for wheat would decrease and the equilibrium price of wheat would decrease.
C) The demand for wheat would increase because consumers could afford to buy more wheat and corn.
D) The demand for wheat would decrease and the equilibrium price of wheat would increase.

Correct Answer

verifed

verified

If the price of gasoline increases,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.

Correct Answer

verifed

verified

A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease.Holding everything else constant,how would this affect the market for video game consoles (a complement to LCD televisions) ?


A) The supply of video game consoles would increase and the equilibrium price of video game consoles would decrease.
B) The demand for video game consoles would decrease and the equilibrium price of video game consoles would decrease.
C) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles.
D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase.

Correct Answer

verifed

verified

Assume that potatoes are an inferior good.Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes to decrease?


A) an increase in consumer income
B) a freeze that sharply reduces potato output
C) a decrease in consumer income
D) a technological advancement that results in a bumper crop of potatoes

Correct Answer

verifed

verified

Showing 321 - 340 of 476

Related Exams

Exam 1

Economics: Foundations and Models

459 Questions

Exam 2

Trade-Offs, Comparative Advantage, and the Market System

495 Questions

Exam 4

Market Efficiency and Market Failure

464 Questions

Exam 5

The Economics of Health Care

337 Questions

Exam 6

Firms, The Stock Market, and Corporate Governance

456 Questions

Exam 7

Consumer Choice and Elasticity

384 Questions

Exam 8

Technology,Production,and Costs

274 Questions

Exam 9

Firms in Perfectly Competitive Markets

297 Questions

Exam 10

Monopoly and Antitrust Policy

279 Questions

Exam 11

Monopolistic Competition and Oligopoly

410 Questions

Exam 12

GDP: Measuring Total Production and Income

261 Questions

Exam 13

Unemployment and Inflation

290 Questions

Exam 14

Economic Growth, The Financial System, and Business Cycles

251 Questions

Exam 15

Aggregate Demand and Aggregate Supply Analysis

286 Questions

Exam 16

Money,Banks,and the Federal Reserve System

278 Questions

Exam 17

Monetary Policy

280 Questions

Exam 18

Fiscal Policy

292 Questions

Exam 19

Comparative Advantage, International Trade, and Exchange Rates

443 Questions

Show Answer