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Which of the following could shift the demand curve for music CDs to the left? Question 2 options:
A) A rise in the price of CD's.
B) A rise in people's incomes.
C) A fall in the cost of manufacturing CD's.
D) A fall in the price of downloading digital music files.
The horizontal sum of all the individual demand schedules for lumber Question 3 options:
A) is the market demand for lumber.
B) is the market supply for lumber.
C) will usually be a vertical line.
D) must be an upward sloping curve.
A movement along the demand curve for automobiles is caused by a change in Question 4 options:
A) the price of automobiles.
B) the price of gasoline.
C) the price of steel.
D) consumer's incomes
Which of the following would increase the demand for movie video rentals? Question 5 options:
A) The cost of producing movies rises dramatically.
B) New video rental stores are opened in the community.
C) Local officials levy a new tax on video rentals.
D) Prices on VCR and DVD players fall by 20 percent.
According to the law of supply, there is a direct relationship between the quantity supplied of a good and the Question 6 options:
A) number of sellers.
B) costs of resources.
C) technology used to produce the good.
D) price of the good.
Which of the following would increase the quantity supplied of books but have no impact on the supply of books? Question 7 options:
A) An increase in the price of books.
B) An increase in the cost of paper.
C) An increase in the number of area bookstores.
D) An increase in the royalties paid to authors.
Which of the following would cause a decrease in the supply of 35mm film? Question 8 options:
A) A fall in the price of 35mm film.
B) A fall in the price of developing 35mm film.
C) The introduction of new digital cameras that do not use 35mm film.
D) An increase in the cost of manufacturing 35mm film.
f the price of tea is below its equilibrium level, then Question 9 options:
A) the demand for tea will decrease.
B) the market for tea has cleared.
C) sellers will be stuck with unsold tea.
D) there is a shortage of tea.
The use of a price system tends to eliminate Question 10 options:
A) scarcity.
B) equilibrium.
C) shortages and surpluses
. D) changes in supply and demand.
Describe the effect of each of the following events on the demand or supply of gasoline in the USA. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price (both) when:
a. domestic incomes decrease
b. the price of natural gas rises
c. A new oil field is discovered and put into service.
d. The average price of automobiles declines.
The demand in Japan for gasoline is inelastic and therefore not very sensitive to market prices. Given that, describe the effect of each of the following on the quantity demanded or the demand for gasoline in Japan. Indicate whether the effect of each is an upward or downward movement along a given demand curve or instead involves an outward or inward shift in the demand curve for gasoline. Explain your answers.
a. A sharp increase in the average price of gasoline in Japan.b. A sharp rise in the price of automobiles in Japan.c. A fall in the price of public transportation in Japan.d. A fall in the price of electric-powered cars in Japan.
