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bluehyena38Lv1

11 Dec 2019

Complete the following statement. When there is a shortage of a good:

A. consumers compete against one another by bidding the price upward.

B. producers react to shortages by lowering prices.

C. decreasing prices lead to a change in demand.

D. as prices increase, consumers demand more of a particular good.

E. as prices increase, producers are driven to produce less

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Joshua StredderLv10

21 Mar 2021

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Related questions

17. Which of the following is a determinant of supply?

A. Tastes and preferences

B. Price of a complementary good

C. Consumer income

D. Technology

18. A market is in equilibrium:

A. provided there is no surplus of the product

B. at all prices above that shown by the intersection of the supply and demand curves

C. if the amount producers want to sell is equal to the amount consumers want to buy

D. whenever the demand curve is downsloping and the supply curve is upsloping.

19. If the market price is above the equilibrium price:

A. A shortage will occur and producers will produce more and lower prices

B. A surplus will occur and producers will produce less and lower prices

C. A surplus will result and consumers will bid prices up

D. Producers will make extremely high profits

20. The market system automatically corrects a surplus condition in a competitive market by:

A. Raising the price of the commodity in question while increasing the quantity demanded

B. Raising the price of the commodity in question while decreasing the quantity demanded

C. Reducing the price of the commodity in question while increasing the quantity demanded

D. Reducing the price of the commodity in question while decreasing the quantity demanded

21. The price elasticity of demand measures:

A. buyer responsiveness to price changes.

B. the extent to which demand curve shifts as incomes change.

C. the slope of the demand curve.

D. how far business executives can stretch their fixed costs

22. The elasticity of demand for a product is likely to be greater:

A. if the product is a necessity, rather than a luxury good.

B. the greater the amount of time over which buyers adjust to a price change

C. the smaller the proportion of one's income spent on the product.

D. the smaller the number of substitute products available.

23. Market failure is said to occur whenever:

A. private markets do not allocate resources in the most economically desirable way

B. prices rise

C. some consumers who want a good do not obtain it because the price is higher than they are willing to pay

D. government intervenes in the functioning of private markets.

24. A negative externality or spillover cost occurs when:

A. firms fail to achieve allocative efficiency.

B. firms fail to achieve productive efficiency.

C. the price of the good exceeds the marginal cost of producing it.

D. the total cost of producing a good exceeds the costs borne by the producer

violethare146

1)The law of demand states that as the price of a good rise, _____.

A. buyers purchase more of the good because the price of a substitute has risen.

B. buyers purchase less of the good because their real income decreases with an increase in price.

C. buyers purchase more of the good because they expect prices to be even higher in the future

D. buyers purchase less of the good because they expect prices to fall in the future.

2) A movement along a demand curve can be attributed to a change in:

A. the quantity demanded of a good.

B. the demand for a good.

C. the substitution effect of consuming a good.

D. the opportunity cost of producing a good.

3) If we say that demand for a good has increased, we mean that there has been:

A. a leftward shift of the demand curve.

B. a rightward shift of the demand curve.

C. a leftward movement along the demand curve.

D. a rightward movement along the demand curve.

4) Which of the following will cause the demand curve for a normal good to shift to the right?

A. An increase in the price of a complementary good.

B. A decrease in income.

C. A decrease in the price of the good.

D. An increase in the price of a substitute good.

5)Which of the following best defines supply?

A. The amount of a good that is produced at the least possible cost, other things constant

B. The amount of a good that producers are willing and able to sell at each possible price, other things constant.

C. The amount of a good that consumers want to buy at different income levels

D. The amount of a good that producers want to sell at a fixed price

6)The market supply curve of a particular product indicates the total quantities:

A. that are actually sold during a given time period.

B. that sellers are willing to offer for sale at a fixed price.

C. that buyers are willing to purchase at alternative prices.

D. that sellers are willing and able to offer at alternative prices.

7)When quantity demanded of a good exceeds the quantity supplied at the prevailing market price, _____.

A. the demand curve shifts rightward until the surplus is eliminated

B. the market is in equilibrium.

C. the price of the good will tend to increase.

D. the price of the good will decrease

8)A shortage of textbooks is most likely to cause:

A. an increase in the price of textbooks.

B. a decrease in the supply of textbooks.

C. a decrease in the price of paper.

D. an increase in the cost of printing.

9)The most important characteristic of the equilibrium price is that it:

A. maximizes the quantity demanded.

B. clears the market, leaving neither a surplus nor a shortage.

C. minimizes the quantity demanded.

D. guarantees that producers earn the profit.

10)If both demand and supply increases in a market that is initially in equilibrium, the price will:

A. increase only if demand increases more than supply.

B. increase only if supply increases more than demand.

C. remain unchanged while quantity will increase.

D. remain unchanged while quantity will decrease.

lavendertrout13

1. Which of the following would most likely cause the demand for veggie-burgers to increase?

a. A decline in the price of veggie-burgers.

b. An increase in the price of tofu-burgers perceived as a substitute for veggie-burgers.

c. An increase in the price of burger buns.

d. A technological innovation that lowers the cost of producing veggie-burgers.

2. Suppose a new chip has been invented which makes the computer (a normal good) cheaper to manufacture while, at the same time, the incomes of consumers decreased. What would be the result in the home computer industry?

a. Quantity unambiguously decreases while the price change is uncertain.

b. Quantity unambiguously increases while the price change is uncertain.

c. Price unambiguously decreases while the quantity change is uncertain.

d. Price unambiguously increases while the quantity change is uncertain.

3. "The winds of the recent hurricanes in Florida are bringing soothing financial gains to California citrus growers. Due to the extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever."

Which of the following statements best explains the economics of the quotation?

a. The supply of Florida oranges has decreased, causing their prices to increase and the demand for the substitute California oranges to also increase.

b. The supply of Florida oranges has decreased, causing the supply of California oranges to increase and their prices to rise.

c. The demand for Florida oranges has been reduced by the hurricanes, causing a greater demand for the California oranges and an increase in their price.

d. The demand for Florida oranges has been reduced causing their prices to fall and therefore increasing the demand for the substitute California oranges.

4. Which of the following best describes the economic concept of demand?

a. A relation showing the quantities of a good that consumers are willing and able to buy at various prices during a given period of time, other things constant.

b. A relation showing the quantities of a good that producers are willing and able to supply at various prices during a given period of time, other things constant.

c. A relation showing the quantity of a good that consumers would most prefer to have during a given period of time, regardless of price.

d. None of the above.

5. Increases in demand for ethanol fuel has likewise driven up the demand for corn. As a result, corn prices have risen. The production of beer uses other agricultural crops, such as barley, which can be grown in the same climate and land conditions as corn. The likely impact of this event on the beer market is

a. An increase in the demand for beer driving beer prices higher.

b. A decrease in the demand for beer driving beer prices lower.

c. An increase in the supply of beer driving beer prices lower.

d. A decrease in the supply of beer driving beer prices higher.

6. Which of the following goods is most likely to be an inferior good?

a. Rib Eye Steak

b. A Trek bicycle

c. Hot Dogs

d. French Wine

7. Which of the following is most likely to decrease the supply of pink salmon?

a. A decline in the price of salmon.

b. An increase in the price of white wine, a complement good.

c. A virus that results in decreased egg production in pink salmon.

d. A technological advance in fishing techniques.

8. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer shuttle to SummerFest from $6 to $9. After this price increase was put into effect, however, the County Executive found that revenue from the Flyer actually decreased. We can conclude that the demand for the Frequent Flyer Shuttle is:

a. elastic

b. inelastic

c. unit elastic

d. zero elastic

9. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer Shuttle to SummerFest from $6 to $9. The percentage change in the price of the Frequent Flyer Shuttle was:

a. $3

b. 50%

c. 33%

d. Impossible to determine with the information given.