question
If the price of ground beef decreases, which of the following will occur?
answer
There will be a movement down the demand curve for ground beef.
question
Which of the following will cause a movement along the demand curve for apple juice?
answer
an increase in the price of apple juice
question
Which of the following will cause a movement down the demand curve for frozen chicken nuggets?
answer
a decrease in the price of frozen chicken nuggets
question
Which of the following will cause a movement up the demand curve for digital printing services?
answer
an increase in the price of digital printing services
question
If an increase in consumers' incomes results in a leftward shift of the demand curve for a good, which of the following is true?
answer
The good is an inferior good.
question
If Goods X and Y are complements, if the price of Good X decreases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.
answer
down; rightward
question
If Goods X and Y are substitutes, if the price of Good X decreases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.
answer
down; leftward
question
If Goods X and Y are substitutes, if the price of Good X increases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.
answer
up; rightward
question
What can cause a rightward shift in the demand curve?
answer
1. an increase in the price of a substitute for Good Z
2. a decrease in income if Good Z is an inferior good
3. an effective marketing campaign that changes preferences towards Good Z
4. an increase in the number of demanders for Good Z
5. an increase in the expected future price of Good Z
2. a decrease in income if Good Z is an inferior good
3. an effective marketing campaign that changes preferences towards Good Z
4. an increase in the number of demanders for Good Z
5. an increase in the expected future price of Good Z
question
What can cause a leftward shift in the demand curve?
answer
1. a decrease in the expected future price of Good Z
2. a decrease in the price of a substitute for Good Z
3. an increase in income if Good Z is an inferior good
4. an increase in the price of a complement for Good Z
5. a decrease in income if Good Z is a normal good
2. a decrease in the price of a substitute for Good Z
3. an increase in income if Good Z is an inferior good
4. an increase in the price of a complement for Good Z
5. a decrease in income if Good Z is a normal good
question
T/F: If an increase in the price of Good X causes the demand for Good Y to shift rightward, Goods X and Y are complements.
answer
False
question
T/F: If a decrease in the price of Good X causes the demand for Good Y to shift rightward, Goods X and Y are complements.
answer
True
question
T/F: An increase in the number of demanders for a good will cause a downward movement along the demand curve.
answer
False
question
T/F: A news report discussing a medical study that found conclusive evidence of the positive health benefits of
farm−raised eggs is likely to cause a rightward shift of the demand curve for
farm−raised eggs.
farm−raised eggs is likely to cause a rightward shift of the demand curve for
farm−raised eggs.
answer
True
question
If the price of avocados increases, which of the following will occur?
answer
There will be a movement up the supply curve for avocados.
question
If the price of tomato juice decreases, which of the following will occur?
answer
There will be a movement down the supply curve for tomato juice.
question
Toyota's factory in Georgetown, Kentucky can use its assembly lines to produce either the Toyota Camry or the Camry Hybrid.
1) For this Toyota factory, the Camry and the Camry Hybrid are ____________ in production
2) A decrease in the price of the Camry Hybrid would ______ the supply of the Camry
1) For this Toyota factory, the Camry and the Camry Hybrid are ____________ in production
2) A decrease in the price of the Camry Hybrid would ______ the supply of the Camry
answer
1) substitutes
2) increase
2) increase
question
What is the effect of each of the following changes on the supply curve of jeans?
1. A fall in the price of transporting the jeans from Thailand, where they are made, to the United States, where they are sold.
2. A fall in the wages paid to the workers who sew jeans.
3. A fall in the price of jeans.
4. An increase in the number of companies manufacturing jeans.
1. A fall in the price of transporting the jeans from Thailand, where they are made, to the United States, where they are sold.
2. A fall in the wages paid to the workers who sew jeans.
3. A fall in the price of jeans.
4. An increase in the number of companies manufacturing jeans.
answer
1. Rightward shift of the curve
2. Rightward shift of the curve
3. Downward movement along the curve
4. Rightward shift of the curve
2. Rightward shift of the curve
3. Downward movement along the curve
4. Rightward shift of the curve
question
According to the law of supply, a rise in the price of a product
answer
increases the quantity supplied.
question
T/F: Moving upward along a supply curve, both the price and the quantity supplied increase.
answer
True
question
A technological advance in the production of computer chips
answer
increases the supply of computer chips.
question
T/F: Bakeries can use their equipment to produce either bread or cookies, so bread and cookies are substitutes in production.
answer
True
question
T/F: An increase in the expected future price of oil increases the current supply of oil.
answer
False
question
An increase in the ____ shifts the supply curve of raisins to the left.
answer
price of grapes, an input used to produce raisins,
question
An increase in the price of a substitute in production shifts the supply curve to the ____; an increase in the price of a complement in production shifts the supply curve to the ____.
answer
left; right
question
T/F: A drought in the corn growing areas in Iowa causes the supply curve of corn to shift to the left.
answer
True
question
If the price in a market is less than the equilibrium price, what happens to restore the equilibrium price?
answer
1. Whenever the product is offered for sale, it rapidly sells out.
Your answer is correct.
2.
The price rises until it reaches the equilibrium price.
Your answer is correct.
3.
Managers find it hard to keep the product in inventory, so they raise the price.
Your answer is correct.
2.
The price rises until it reaches the equilibrium price.
Your answer is correct.
3.
Managers find it hard to keep the product in inventory, so they raise the price.
question
At any price higher than the equilibrium price, there is a ____ and the price will ____.
answer
surplus; fall
question
If the equilibrium price of ammonia is $600 per metric ton and the actual price is $560 per metric ton, the quantity demanded ____ the quantity supplied.
answer
is greater than
question
T/F: At the equilibrium price, the quantity demanded is equal to the equilibrium quantity.
answer
True
question
T/F: The equilibrium price is determined using only the demand function, and the equilibrium quantity is determined using only the supply function.
answer
False
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