Refer to the table below for the following question. 8 Good X bost ay A Goode ya B Good ja Table 1 » Price (dollars per bottle) Quantity demanded (bottles per week) 180 140 100 Agnes will see Quantity supplied (bottles per week) 60 100 140 180 220 a male Brenda 4 7) Refer to Table 1. The table shows the demand and supply schedules for shampoo. If the price is $6 a bottle, there is a diarion of shampoo. So the price of a bottle of shampoo _nies the quantity demanded dear and the quantity supplied wujere. The market moves to equilibrium A) shortage: falls, decreases, increases B) surplus, rises, increases, decreases C) shortage, rises, decreases, increases Di surplus: falls; increases: decreases E) shortage; rises: increases; decreases
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Related questions
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
1
The following table shows the market demand schedule and supply schedule for notebooks.
|
Price ($/unit) |
Quantity Demanded (units) |
Quantity Supplied (units) |
|
1 |
20 |
4 |
|
2 |
16 |
6 |
|
3 |
14 |
10 |
|
4 |
12 |
12 |
|
5 |
10 |
14 |
|
6 |
7 |
17 |
|
7 |
4 |
20 |
|
8 |
2 |
22 |
|
9 |
1 |
25 |
Refer to the table above. Assume that the market for notebooks is in equilibrium.
1. Which of the following is likely to happen if there is an increase in the school enrollment rate, everything else remaining unchanged?
A. Both the equilibrium price and quantity of notebooks decrease.
B. The equilibrium price and quantity remain unchanged.
C. Both the equilibrium price and quantity of notebooks increase.
D. The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
2. A shortage occurs in a market when:
A.price is lower than the equilibrium price.
B. price is higher than the equilibrium price.
C. supply exceeds demand.
D. the marginal utility of consumption is negligible.
3. A change in the quantity demanded of a good is:
A. the outcome of a change in income.
B. the outcome of a change in tastes and preferences.
C. represented by a shift to a new demand curve.
D. represented by a movement along the demand curve.
4. The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market.
|
PRICE ($/Bottle) |
Sandra's Demand (Bottles) |
David's Demand (Bottles) |
Mary's Demand (Bottles) |
|
â$8 |
2 |
10 |
|
|
â$6 |
14 |
15 |
18 |
|
â$4 |
23 |
24 |
|
|
â$2 |
24 |
27 |
28 |
Refer to the table above. If the market price of wine is $8/bottle, and the market demand for wine is 19 bottles, David's consumption of wine is:
A. 12 bottles.
B. 9 bottles.
C. 4 bottles.
D. 7 bottles.
5. Which of the following factors will NOT cause a shift in the demand for a good?
A. A change in the number of consumers
B. A change in the market price of the good
C. A change in tastes and preferences
D. A change in consumer incomes
6. Are all markets perfectly competitive?
A. No, there are other market types where firms have considerable power to control the price.
B. Yes, any economic system with a market structure is by definition perfectly competitive.
C. No, there are also command and control markets that are run by a central government.
D. No, in other types of markets, sellers offer identical goods and simply accept the market price.
7. Assume that a seller in a perfectly competitive market charges more than the equilibrium price. It is likely that this seller will:
A. increase his profit.
B. lose only a few buyers.
C. increase his sales.
D. lose almost all of his buyers.
8. The willingness to pay for a commodity:
A. increases as the consumption of the commodity increases.
B. is always less than the market price of the commodity.
C. decreases as the consumption of the commodity increases.
D. is always greater than the market price of the commodity.
9. Which of the following is likely to lead to a right shift in the supply curve of cotton?
A. An increase in labor productivity due to training programs
B. A rise in labor costs due to wage demands by labor unions
C. An increase in the price of cotton
D. A decrease in the price of cotton
10. The buyers of a good will want to purchase it as long as their willingness to pay for the good is:
A. equal to zero.
B. greater than or equal to the price.
C. greater than zero.
D. less than the price.
