Demand
Holding everything else constant, if the price of X decreases and the demand for Y increases, then this most likely means that X and Y are:
a. efficiency goods.
b. substitutes.
c. inferior.
d. normal.
e. complements.
e. complements.
Which of the following 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 and milk is a normal good
c. Removal of milk subsidies that had previously been given to dairy farmers
d. The bankruptcy of many small dairy farms
e. A decrease in the price of feed given to dairy cows
e. A decrease in the price of feed given to dairy cows
Good X and Good Y are substitutes. Holding all other things constant, this means that when the price of Good X increases, the:
a. demand for Good X will increase.
b. demand for Good Y will increase.
c. demand for both Good X and Good Y will increase.
d. demand for Good Y will decrease.
e. demand for Good X will decrease and demand for good Y will increase.
b. demand for Good Y will increase.
Researchers find a new strain of genetically modified seeds results in a higher yield for corn producers. Holding all other things constant, this research will:
a. shift the supply curve for corn left.
b. increase the quantity supplied of corn along the fixed supply curve.
c. decrease the quantity supplied of corn along the fixed supply curve.
d. shift the supply curve for corn to the right.
e. shift the demand curve for corn to the right.
d. shift the supply curve for corn to the right.
A decrease in the price of a good will result in:
a. a rightward shift in the demand curve.
b. a rightward shift in the supply curve..
c. an increase in the quantity demanded along a given demand curve.
d. an increase in the quantity supplied along a given supply curve.
e. a leftward shift in the supply curve.
c. an increase in the quantity demanded along a given demand curve.
Milk is an important ingredient in the production of ice cream. If the price of milk increases, then one would expect, holding all other things constant:
a. the supply curve for ice cream to shift left.
b. the supply curve for ice cream to shift right.
c. no change in the supply curve for ice cream.
d. a movement along the supply curve for ice cream curve, resulting in more ice cream supplied.
e. the demand curve for ice cream to shift to the left.
a. the supply curve for ice cream to shift left.
The law of demand implies that:
a. consumers do not respond to price changes.
b. consumers will buy more at lower prices.
c. sellers will offer more to the market at higher prices.
d. sellers will offer less to the market at lower prices.
e. consumers will buy less at lower prices.
b. consumers will buy more at lower prices.
The competitive market for flour tortillas is in equilibrium. For each of the events below, predict which curve, supply or demand or both curves, will shift. Predict changes to the equilibrium price and quantity of flour tortillas after the shift or shifts.
a. All else equal, the price of corn tortillas, a substitute for flour tortillas, decreases.
b. All else equal, the price of flour increases.
a. Shift Demand of flour tortillas (left)
b. Shift Supply of flour tortillas (left)
Markets that are characterized by many buyers and many sellers are referred to as:
a. inefficient.
b. competitive.
c. foreign.
d. monopolies.
e. corrupt.
b. competitive.
When the price of lamps increases, the:
a. supply increases.
b. quantity supplied increases.
c. supply decreases.
d. quantity supplied decreases.
e. quantity demanded increases.
b. quantity supplied increases.
Consider the demand for apple pie. For each of the following events, will the demand for apple pie increase, decrease, or will demand remain unchanged? Identify the determinant of demand.
a. The price of peach pie has decreased.
b. The government informs consumers that apple pie increases immunity against many viruses.
c. The price of apple pie has increased.
d. Consumer incomes are rising and apple pie is a normal good.
a. Shift left
b. Shift right
c. Slide left
d. Shift right
A farmer finds that when he produces more corn, he also has more corn stalks that he can then sell as decorative ornaments. To the farmer, corn and corn stalks are:
a. complements in production.
b. substitutes in production.
c. unrelated goods in production.
d. inferior goods in production.
e. luxury goods in production.
a. complements in production.
Which of the following 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 tuition rates
d. A fall in the price of new textbooks
e. An increase in college enrollments
e. An increase in college enrollments
A decrease in supply means:
a. a shift to the left of the entire supply curve.
b. moving downward (to the left) along the supply curve with lower prices.
c. less will be demanded at every price.
d. more will be supplied at every price.
e. a shift to the left of the entire demand curve.
a. a shift to the left of the entire supply curve.