RANDOM
Picture the market demand curve for jeans. The price of a substitute good, khakis, has just increased. What will happen to the demand for jeans?
The market demand curve for jeans will increase, shifting right.
Suppose for you ramen is a normal good. What happens to your demand curve of ramen if your boss gives you a raise?
Demand curve for ramen shifts out.
Pencils and Notebooks are most likely to be ______ goods
Complementary Goods
If the price of laundry pods is above equilibrium price, this will result in
a surplus, causing a price decrease.
What happens to the demand for chicken and the demand for turkey stuffing (a food that is typically eaten with turkey but not with chicken) when the price of turkey goes up?
demand for chicken increases, demand for turkey stuffing decreases
Laura won a free ticket to a Lizzo concert. When she won it, she looked up how much it was worth to resell it for and it was 300 dollars. She decides not to sell it. One month later, she spends 25 dollars on Uber to go to the concert. She is in front of the Mercedes-Benz Superdome, excited to see the concert, when Robbie offers her 400 dollars for the ticket. What is her opportunity cost of seeing the concert?
400
If an increase in the price of Nike sneakers leads to an increase in the demand for Nike water bottles, then Nike sneakers and water bottles are
substitutes.
Global warming increases the ocean temperature by 2 degrees Celsius (assume this kills a lot of fish). What happens to the supply curve for fish?
Supply curve for fish shifts in.
As Covid-19 spread across the US, colleges transitioned to virtual learning. Assuming Zoom’s supply curve stayed the same, what happened to the demand, price, and quantity for Zoom throughout the US?
Demand increased, Price increased, Quantity increased.
It would be good if the Biden administration increased the minimum wage.
B
In the winter of 2021, an additional coffee shop opens up on campus to serve Georgetown students. It is also finals week at Georgetown and students want more caffeine as they study later than normal. What happens to equilibrium price/quantity of on-campus coffee?
Price is ambiguous and Quantity increases
Which of these is NOT a shifter of the Demand curve?
Input price
Imagine that more people begin to drink Coca-Cola. Simultaneously, due to some external shock, the price of sugar, a main Coca-Cola ingredient, increases. What will happen to the equilibrium price and quantity of the Coca-Cola market?
price will rise and quantity might increase or decrease.
Fast food is an inferior good. Suppose that people’s incomes rise and the supply of fast food increases. What happens to the equilibrium price and quantity of fast food?
Equilibrium price decreases; equilibrium quantity could increase or decrease.
The government decides to implement a price floor on the price of wheat to help farmers. What happens to the price and quantity of wheat?
Price and quantity of wheat supplied increase, resulting in excess wheat supply.
What happens to the market for apples if there is a new trendy apple pie recipe that everyone wants to bake and there is also a special new fertilizer?
Q increases, effect on P indeterminate
You have just won a free, one-day ticket to Coachella. The ticket has a face value of $350. You and a friend rent a car to drive to the festival for $80 (including gas, round trip). On the way, you each grab lunch for $10, and you and your friend pay $20 total for parking in the garage. When you arrive, a scalper offers to buy your ticket from you for $500. You pass on the offer and enjoy the concert. At the time you walk into the gates of the concert venue, what is the opportunity cost to you of attending the music festival?
$500
Consider a scenario where you can produce two different goods. Which of the following is true if a PPF for those two goods is a straight line?
the opportunity cost of producing an additional unit of each good is constant
Before the Black Death, the social structure was fairly immobile in Medieval Europe. However, when more than a third of the population died, the social structure became somewhat more mobile. Why? (Assume the demand for labor was relatively unaffected.)
The supply curve for labor shifted left, causing a higher wage.
Consumers expect the price of flights to increase in the near future. At the same time, there is a technological breakthrough in fuel conservation for airplanes. What happens to the equilibrium price and quantity in the market for airline flights?
equilibrium quantity increases, equilibrium price cannot be determined
Which of the following goods has the least elastic demand?
Insulin
Dasani brand water
Housing
Cheerios
Insulin
Which of the following would NOT shift the demand curve for cookies?
a decrease in the price of flour
Imagine the market for cookies is a perfectly competitive market, with many firms producing identical cookies. The government recently imposed a price ceiling on the sale of cookies meaning the price at which sellers can sell cookies cannot go higher than a certain price. (Suppose that price was lower than equilibrium price.) What will the relation be between the quantity demanded and the quantity supplied?
There will be a shortage because quantity demanded is greater than quantity supplied.
Let Qs = P−25 and Qd = 175−3P represent the market for burgers in Burktopia, find the equilibrium price and quantity.
P=30 Q=30
If the price of a good went up 5 percent and the quantity of that good sold decreased by 10 percent, then an estimate of the price elasticity of demand is (be sure you get the sign correct!)
-2