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ECON-100 FA4 Lecture Notes - Lecture 3: Italian Renaissance, Stone Age, Class Stratification

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redhorse403
8 Sep 2016
School
American University
Department
ECON - ECONOMICS
Course
ECON-100 FA4
Professor
wisman

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Document Summary

Show how supply and demand can be put together. When the shirt costs , we are at equilibrium. The amount demanded and supplied are equal at that price. We make models that make it easier for us to understand the topics. General equilibrium- a point from which there is no further pressure for change. In market economies, the forces of supply and demand automatically push prices that they tend toward equilibrium. No one has to tell the market what to do, it just does it on its own. The whole demand curve for the whole market is for each american in the usa. As hunter and gathers (98% of our whole history), we made our shelter. There is no difference between us and apes for a long time. Gathered all the food we could before we had to move. Couldn"t accumulate anything because we had to move around. Made primitive weapons that made economic activity more productive.

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Related Questions

The primary difference between a change in supply and a change in the quantity supplied is:
Choose one answer.
a. a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve.
b. both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
c. a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve.
d. a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.

Question 2
What is the difference between a shortage and scarcity?
Choose one answer.
a. Scarcity will always exist because choices must be made, but a shortage will only exist if the price is kept below the equilibrium level.
b. Scarcity is a result of two or more alternative uses and will always exist, and quantities of supply and demand adjusting to flexible prices will create shortages.
c. A surplus will exist when a good is scarce; a shortage merely implies that there isn't as much of something as people would like, which is nearly always the case.
d. There is no distinction between the two. They are the same thing.

Question 3
A decrease in supply means:
Choose one answer.
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.

Question 4
A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
Choose one answer.
a. an increase; an increase
b. an increase; a decrease
c. a decrease; an increase
d. a decrease; a decrease

Question 5
After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a( n ):
Choose one answer.
a. normal good.
b. substitute good.
c. complementary good.
d. inferior good.

Question 6
There is equilibrium in the market when:
Choose one answer.
a. there is no shortage.
b. there is no surplus.
c. price is established where the supply curve and the demand curve intersect.
d. all of the above are true.

Question 7
Which would not cause the supply curve to shift?
Choose one answer.
a. a change in technology
b. a change in factor costs
c. a change in the price of the good
d. a change in the prices of related goods

Question 8
Given that meat and potatoes are complementary goods, if the price of meat decreases substantially, there would be:
Choose one answer.
a. an increase in the demand for potatoes.
b. an increase in the quantity of potatoes demanded.
c. a decrease in the demand for potatoes.
d. no change in the demand for potatoes.

Question 9
Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for milk?
Choose one answer.
a. The equilibrium price and quantity rise.
b. The equilibrium price rises and the equilibrium quantity falls.
c. The equilibrium price and quantity fall.
d. The equilibrium price falls and the equilibrium quantity rises.

Question 10



A temporary price of $2 in this market would result in:
Choose one answer.
a. a surplus of 8,000 bushels.
b. a shortage of 8,000 bushels.
c. a shortage of 10,000 bushels.
d. a surplus of 10,000 bushels.

Question 11
The price of oranges rises. What happens in the market for apples, which are a substitute for oranges?
Choose one answer.
a. The equilibrium price falls, and the equilibrium quantity rises.
b. The equilibrium price rises, and the equilibrium quantity falls.
c. The equilibrium price and quantity rise.
d. The equilibrium price and quantity fall.

Question 12
A market surplus occurs if the:
Choose one answer.
a. price is below the equilibrium price.
b. price is equal to the equilibrium price.
c. equilibrium price is above the actual price.
d. equilibrium price is below the actual price.

QUESTION 1

The demand for oranges increases while the supply decreases. The equilibrium price of oranges ________, and the equilibrium quantity ________.

falls; increases

falls; perhaps changes but we can't say if it increases, decreases, or stays the same

rises; decreases

rises; perhaps changes but we can't say if it increases, decreases, or stays the same

1 points

QUESTION 2

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity is ________.

rises; increases

falls; decreases

falls; does not change

rises; does not change

1 points

QUESTION 3

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________ and the equilibrium quantity of cream cheese ________.

does not change; does not change

rises; increases

falls; decreases

rises; decreases

1 points

QUESTION 4

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

rise; increase

rise; decrease

fall; increase

fall; decrease

1 points

QUESTION 5

Which of the following shifts the supply curve for oranges?

an increase in income for all orange consumers if oranges are a normal good

disastrous weather that destroys about half of this year's orange crop

an increase in the price of bananas, a substitute in consumption for oranges

a newly discovered increase in the nutritional value of oranges

1 points

QUESTION 6

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

normal goods in production.

an exceptionally cold summer that killed much of the rutabaga crop.

a fall in the price of fertilizer used to grow rutabagas.

an increase in the price of a rutabaga

1 points

QUESTION 7

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

an increase in the supply electric cars so that the supply curve shifts rightward.

an increase in the supply of electric cars so that the supply curve shifts leftward.

a decrease in the supply of electric cars so that the supply curve shifts rightward.

a decrease in the supply of electric cars so that the supply curve shifts leftward.

1 points

QUESTION 8

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

the demand for hot dogs will increase.

the demand for hot dog buns will decrease.

the quantity demanded of hotdogs will decrease.

the demand for hot dog buns will increase.

1 points

QUESTION 9

Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________.

upward; increases

downward; decreases

upward; decreases

downward; increases

1 points

QUESTION 10

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

The quantity of bottled water demanded increases.

The demand for bottled water increases.

The quantity of bottled water demanded decreases.

The demand for bottled water decreases.

1 points

QUESTION 11

If the price of carrots is below the equilibrium price, the

quantity supplied of carrots exceeds the quantity demanded and a shortage exists.

quantity demanded of carrots exceeds the quantity supplied and a shortage exists.

quantity supplied of carrots exceeds the quantity demanded and a surplus exists.

quantity demanded of carrots exceeds the quantity supplied and a surplus exists.

1 points

QUESTION 12

Which of the following is true regarding demand?
i. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii. Demand refers to one quantity at one time.
iii. "Demand" and " quantity demanded" are the same thing.

both i and ii

i only.

ii only.

iii only.

1 points

QUESTION 13

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

There is a shortage, so the price rises and quantity demanded decreases.

There is a shortage, so the price rises and quantity demanded increases.

There is a shortage, so the price falls and quantity demanded increases.

There is a surplus, so the price falls and quantity demanded increases.

1 points

QUESTION 14

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

decreases; shifts leftward

decrease; shifts rightward

increases; shifts rightward

increases; shifts leftward

1 points

QUESTION 15

Market equilibrium

i. can never occur because there are always people who want a good but cannot afford it.

ii. occurs at the intersection of the supply and demand curves.

iii. is the point where the price equals the quantity.

iii only

ii and iii

ii only

i only

1 points

QUESTION 16

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese.

The supply of cheese decreases.

The supply of cheese stays the same and there is no change in the quantity supplied of cheese.

The supply of cheese increases.

1 points

QUESTION 17

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

demand for Dell computers decreases.

demand for Apple computers increases.

demand for Apple computers decreases.

demand for Dell computers increases.

1 points

QUESTION 18

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

surplus, so the price rises and quantity demanded increases.

shortage, so the price rises and quantity demanded decreases.

surplus, so the price falls and quantity demanded increases.

shortage, so the price falls and quantity demanded increases.

1 points

QUESTION 19

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

The supply increases so that the supply curve shifts rightward.

The quantity supplied increases but there is no shift in the supply curve.

The supply decreases so that the supply curve shifts leftward.

The quantity supplied decreases but there is no shift in the supply curve.

1 points

QUESTION 20

In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?

The store is trying to increase its customers' demand for the product.

The law of demand is being used to increase the quantity demanded.

The store manager must be trying to drive away customers by selling low quality products.

The store is trying to increase its consumer's incomes by increasing their purchasing power.

1 points

QUESTION 21

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________.

rises; increases

rises; decreases

falls; increases

falls; decreases

1 points

QUESTION 22

If both the supply and demand curves shift simultaneously, we can always predict what will happen to

either the price or the quantity, but not both.

only the quantity.

only the price.

both the price and the quantity.

1 points

QUESTION 23

If income increases and the demand for bus rides decreases,

bus rides are a substitute good.

consumers are behaving irrationally.

bus rides are an inferior good.

bus rides are a normal good.

1 points

QUESTION 24

A surplus of cardboard boxes means that

at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium..

the current price of a cardboard box is less than the equilibrium price.

at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.

at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.

1 points

QUESTION 25

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________.

rises; increases

rises; decreases

falls; increases

falls; decreases

1 points

PLEASE EXPLAIN ANSWER: I give best asnwer at the end of the time limit!!!


The more certain private property rights are,

a. A. the less people need to invest in education or human capital development.

b. tB. The less entrepreneurship there will be.

c. C/ the more capital accumulation there will be.

D/ d. the more an economy must grow to maintain a certain living standard.


In general, who will benefit as the result of a tariff?

Domestic Producers
Domestic Consumers
The domestic government

a. I only

b. II only

c. both I and III

d. both II and III

e. All of these are correct


In the long run, imports will most likely be paid for with:

a. a. Aexports.

b. tB. The sale of real and financial assets.

c. C/ the extension of credit.

d. D. higher domestic unemployment.


The World Trade Organization is a successor organization to the

a. A.United Nations.

b. B.World Bank.

c. C.International Court of Justice.

d. D.GATT.

A new industry develops, and our government wants to protect it from foreign competition. Which one of the following arguments would appropriately describe this type of protection?

A. ANational security

B. BCartelization

C. CInfant industry

D. DProtecting American jobs


If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?

a. ADemand decreased.

b. Supply increased.

c. CSupply decreased.

d. DDemand increased.


Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?

a. B/Both the market clearing price and equilibrium quantity will rise.

b. A.The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.

c. C.The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will increase.

d. F.The market clearing price will fall, but the equilibrium quantity will rise.


Price Qd Qs

$2 5,000 1,000
$4 4,000 2,000
$6 3,000 3,000
$8 2,000 4,000
$10 1,000 5,000

Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?

a. A/ no change, equilibrium would prevail

b. B.The quantity demanded of garbanzo beans would fall to zero.

c. C. shortage of 2000 garbanzo beans

d. D/ surplus of 2000 garbanzo beans