Question

1. A change in quantity supplied:

A. refers to a shift in the supply curve.

B. results from a change in a determinant of supply.

C. refers to a movement along a given supply curve.

D. is caused by a change in the number of sellers in the industry.

 

2. Which one of the following would most likely cause the supply curve for microwaves to shift to the right:

A. a decrease in the price of microwaves.

B. an increase in the wage rate earned by workers who produce microwaves.

C. a decrease in consumer preferences for microwaves.

D. an increase in the number of firms that produce microwaves

 

3. If the actual price sellers are pricing their goods at is currently above the equilibrium price. There is a ____________. Therefore, we would expect sellers to ____________ the price until the market reaches equilibrium.

A.

surplus; raise

B.

surplus; lower

C.

shortage; raise

D. shortage; lower

4. Suppose the demand and the supply of wine both increase. The net effect of these changes in demand and supply will be

A	an increase in equilibrium quantity, but a decrease in equilibrium price.
B	an increase in equilibrium price and quantity.
C.	an increase in equilibrium price, but the change in equilibrium quantity is indeterminate.
D.	an increase in equilibrium quantity, but the change in equilibrium price is indeterminate.