ECON 102 Study Guide - Quiz Guide: Cream Cheese, Economic Equilibrium, Demand Curve

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Published on 1 Oct 2018
School
University of Illinois
Department
Economics
Course
ECON 102
Professor
Week 2 Quiz
When the price of wine increases, the demand for
wine:
a.) Decreases
b.) Stays the same
c.) Increased
d.) We can’t say
A rightward shift of the demand curve shows that
a.) The price of the product has decreased
b.) Something has happened to cause a lower
quality demanded at every given price
c.) Something has happened to cause a higher
quantity demanded at every given price
d.) The price of the product has increased
When the price of wine decreases, the demand
curve for wine:
a.) Stays the same
b.) Shifts to the right
c.) Rotates outward
d.) Rotates inward
e.) Shifts to the left
The equilibrium price is also known as:
a.) The fair price
b.) The average price
c.) The common price
d.) The market-clearing price
A decrease in buyers’ income will _____ the
demand for public transportation, an inferior good
a.) We cant say
b.) Decrease
c.) Not change
d.) Increase
If there is a widely held expectation that prices of
cotton will be higher next year, then
a.) The demand for cotton will decrease today
b.) The demand for cotton will increase today
c.) There will be no change in the current
demand
d.) The demand for cotton will shift to the left
today
An increase in the price of butter will cause the
demand for margarine, a substitute for butter to:
a.) We can’t say
b.) Shift to the left
c.) Shift to the right
d.) Not change
When the price of bananas increases, the supply
curve for wine:
a.) Stays the same
b.) Shifts to the right
c.) Shifts to the left
d.) Rotates inward
e.) Rotates outward
Good weather will probably _______ the supply for
a crop such as corn.
a) Decrease
b) Increase
c) We can’t say
d) Not change
At any moment the equilibrium price in the market
for cars will be determined by the _________.
a.) The government
b.) Buyers and the sellers of cars
c.) Sellers of cars
d.) Buyers of cars
An increase in the price of bagels will ________ the
market price and _________ the market quantity of
cream cheese, a compliment of bagels.
a.) Decrease; decrease
b.) Decrease; increase
c.) None of the other choices are correct
d.) Increase; increase
e.) Increase; decrease
Say the following 2 events occur at the same time.
1.) a decrease in the price of milk, an input in the
production of cheese; 2.) a decrease in the price of
bagels, a compliment of cheese. The following 2
events would lead to a(n) ________ in the market
price and a(n) ________ in the market quality of
cheese.
a.) Decrease; indefinite change
b.) Indefinite change; indefinite change
c.) Indefinite change; increase
d.) Increase; indefinite change
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Document Summary

When the price of wine increases, the demand for wine: a. ) Stays the same c. ) increased d. ) we can"t say. A rightward shift of the demand curve shows that a. ) The price of the product has decreased b. ) Something has happened to cause a lower quality demanded at every given price c. ) something has happened to cause a higher quantity demanded at every given price d. ) the price of the product has increased. When the price of wine decreases, the demand curve for wine: a. ) Shifts to the right c. ) rotates outward d. ) rotates inward e. ) shifts to the left. The equilibrium price is also known as: a. ) The average price c. ) the common price d. ) the market-clearing price. A decrease in buyers" income will _____ the demand for public transportation, an inferior good a. ) If there is a widely held expectation that prices of cotton will be higher next year, then a. )

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