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A. In the market for a good, there is an increase in demand and a decrease in supply. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

no change: increase

increase: uncertain increase :

no change uncertain: increase

B. In the market for beef, a severe drought increases the price of corn (animal food). You would expect the equilibrium price of beef to _____ and the equilibrium quantity sold to ____.

increase: decrease

decrease: decrease

increase: increase

decrease: increase

C. In the market for pizza, five new restaurants open. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

increase: increase

increase: decrease

decrease: increase

decrease: decrease

D. In the pizza market, the price of hamburgers (a substitute for pizza) has gone up. You would expect the equilibrium price of a pizza to _____ and the equilibrium quantity of pizza sold to ____.

increase: increase

decrease: increase

decrease: decrease

increase: decrease

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Related questions

15 Hamburger and French fries (deep fried potatoes) are complementary goods in consumption. Suppose that the price for potatoes increases after a change in supply for potatoes in the potato market. Given this we would expect that the equilibrium price of hamburgers will and the equilibrium quantity of hamburgers will A. increase increase B. decrease; increase C. decrease; decrease D. not change; increase E. increase; decrease

1. What is the effect of an increase in consumer income on the market for shirts?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

2. What is the effect of an improvement in the technology of producers in the market for shirts?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

3. What is the effect of an increase in the price of chicken sandwiches on the market for hamburgers?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

4. What is the effect of an increase in labor costs on the market for slices of pizza?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

5. What is the effect of a change in the weather in Europe on the market for DVDs in the U.S.?

a) Equilibrium price increases, equilibrium quantity increases
b) Equilibrium price increases, equilibrium quantity decreases
c) Equilibrium price decreases, equilibrium quantity increases
d) Equilibrium price unchanged, equilibrium quantity unchanged

6. What is the effect of an increase in preferences for MP3 players on the market for CDs?

a) Equilibrium price increases, equilibrium quantity increases b) Equilibrium price increases, equilibrium quantity decreases c) Equilibrium price decreases, equilibrium quantity increases d) Equilibrium price decreases, equilibrium quantity decreases

7. What is the effect of a decrease in income of consumers on the market for cars?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

8. What is the effect of an increase in preferences for computers on the market for computers?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

9. What is the effect of a decrease in preference for ice cream on the market for ice cream?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

10. What is the effect of a decrease in the price of chicken sandwiches on the market for slices of pizza?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

Questions 11 to 14 -- Two changes

11. What is the effect of an increase in consumer income and an improvement in technology (see questions 1 and 2)?

a) Equilibrium price increases, change in equilibrium quantity uncertain

b) Equilibrium price decreases, change in equilibrium quantity uncertain

c) Change in equilibrium price uncertain, equilibrium quantity increases

d) Change in equilibrium price uncertain, equilibrium quantity decreases

12 What is the effect of a decrease in the price of substitute good and an increase in the price of labor (see questions 4 and 10)?

a) Equilibrium price increases, change in equilibrium quantity uncertain

b) Equilibrium price decreases, change in equilibrium quantity uncertain

c) Change in equilibrium price uncertain, equilibrium quantity increases

d) Change in equilibrium price uncertain, equilibrium quantity decreases

13 What is the effect of a decrease in consumer income and a decrease in the price of a substitute good (see questions 7 and 10)?

a) Equilibrium price increases, change in equilibrium quantity uncertain

b) Equilibrium price decreases, change in equilibrium quantity uncertain

c) Change in equilibrium price uncertain, equilibrium quantity increases

d) Equilibrium price decreases, equilibrium quantity decreases

14. What is the effect of an increase in preferences for a good and an improvement in technology (see questions 2 and 8)?

a) Equilibrium price increases, change in equilibrium quantity uncertain

b) Equilibrium price decreases, change in equilibrium quantity uncertain

c) Change in equilibrium price uncertain, equilibrium quantity increases

d) Change in equilibrium price uncertain, equilibrium quantity decreases

Questions 15-20 - Inelastic and Elastic Curves

15. With perfectly inelastic demand, what is the effect of an increase in preferences for a good by consumers?

a) Equilibrium price increases, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity unchanged

c) Equilibrium price decreases, equilibrium quantity increases

d) Equilibrium price unchanged, equilibrium quantity decreases

16. With perfectly inelastic demand, what is the effect of an improvement in technology?

a) Equilibrium price unchanged, equilibrium quantity increases

b) Equilibrium price increases, equilibrium quantity decreases

c) Equilibrium price decreases, equilibrium quantity unchanged

d) Equilibrium price decreases, equilibrium quantity decreases

17. With perfectly elastic demand, what is the effect of an increase in labor costs?

a) Equilibrium price unchanged, equilibrium quantity increases

b) Equilibrium price unchanged, equilibrium quantity decreases

c) Equilibrium price increases, equilibrium quantity unchanged

d) Equilibrium price decreases, equilibrium quantity unchanged

18. With perfectly inelastic supply, what is the effect of an increase in consumer income?

a) Equilibrium price unchanged, equilibrium quantity increases

b) Equilibrium price unchanged, equilibrium quantity decreases

c) Equilibrium price increases, equilibrium quantity unchanged

d) Equilibrium price decreases, equilibrium quantity unchanged

19. With perfectly elastic supply, what is the effect of an increase in consumer income?

a) Equilibrium price unchanged, equilibrium quantity increases

b) Equilibrium price unchanged, equilibrium quantity decreases

c) Equilibrium price increases, equilibrium quantity unchanged

d) Equilibrium price decreases, equilibrium quantity unchanged

20. If the demand curve can be represented with the equation QD = 40 รขย€ย“ P and the supply curve can be represented with the equation QS = 5 + 6 P, what is the equilibrium quantity in this market?

a) 5 b) 15 c) 25 d) 35

24. Suppose that the number of buyers in a market decreases and a technological advancement occurs. What would we expect to happen in the market? a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. b. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. c. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. d. Both equilibrium price and equilibrium quantity would increase.

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