4 Flashcards
If buyers believe that the price of gasoline will write soon, which one of the following is the most likely immediate result?
A) an increase in the quantity demanded, due to change in supply
B) I decrease shift to the left in the demand for gasoline, due to a shift to substitutes
C) A decrease shift to the left in the demand for gasoline, due to a change in tastes
D) and increase shift to the right in the demand for gasoline, due to a change in expectations
D
And new technological breakthrough in genetic engineering makes it possible to grow twice as much corn for hectare as had been possible in the past. Which one of the following is the most likely outcome of this development?
A). An increase in the demand for corn, due to greatly reduced price
B) an increase in quantity supplied, due to the increased willingness to Sell corn
C) and increased shift to the right in the supply of corn, due to the reduced cost of production
D) A decrease shift to the left in the supply of corn, due to the increased cost associated with the new technology
C
Which one of the following would cause the demand for pizzas money university students to shift to the right?
A) an increase in financial aid to university students
B) half-price pizzas for anybody with the University ID
C) an increase in the price of a complement i.e. beer
D) A decrease in the price of a substitute, IA hamburgers
A
Which one the following describes the effect of the increase in demand on supply?
A) it would first increase, then decrease overtime
B) it would neither rise nor fall, although quantity supplied would increase
C) it would decrease shift to the left
D) it would increase shift to the right
B
Suppose that the demand for calculators rose even more than the supply had increased. Which one the following describes the changes in equilibrium prices and quantity that would be the net effect of the two increases?
A) an increase in price but a decrease in quantity
B) an increase in quantity but a slight decrease in price
C). Decrease in both quantity and price
D) increase in both quantity and price
D
If equilibrium quantity rises but equilibrium price remains unchanged, which one of the following is the cause?
A) an increase in both supply and demand
B) A decrease in both demand and supply
C) A decrease in demand in an increase in supply
D). an increase in demand in a decrease in supply
A
If equilibrium price rises but equilibrium quantity remains unchanged, which one of the following is the cause?
A). A decrease in demand in an increase in supply
B). An increase in demand in a decrease in supply
C) an increase in both supply demand
D) A decrease in both demand and supply
B
Suppose there is an increase in both the supply and demand for laptop computers. Which one of the following would we expect in the market for laptop computers?
A) an increase in both equilibrium quantity and equilibrium price
B). an increase in equilibrium quantity in a decrease in equilibrium price
C). An increase in equilibrium quantity but the impact on equilibrium price is ambiguous
D) A decrease in equilibrium price but the impact in equilibrium quantity is ambiguous
C
I freeze that destroys have the coffee crops in South America would likely raise the price of coffee. Which one the following would happen in turn?
A) reduced demand for both coffee And tea
B) reduced quantity demanded for both coffee and tea
C) reduced demand for coffee and increased demand for tea
D) reduced quantity demanded for coffee and increased demand for tea
D
Which one of the following describes an inferior good?
A) One for which demand rises as income rises
D). when for which demand falls as income rises
C) One for which demand is unrelated to income
D) One for which demand is low because of the low quality of the good
B
Suppose there is a shortage of parking spaces in downtown Toronto during weekdays. Which one the following explains how the shortage can be eliminated? A) by lowering the price B) by decreasing the supply C). By allowing the price to rise D). By increasing the quantity demanded
C
What are the two main characteristics of a perfectly competitive market
The goods offered for sale are exactly the same and no single buyer or seller has any influence over the price
What are the variables that should affect the amount of the good that consumers wish to buy other than its price?
Income, prices of related goods, tastes, expectations, and numbers of buyers
What are the variables that should affect the amount of a good that producers wish to sell, other than its price?
Input prices, technology, expectations, and number of sellers
Which one of the following would decrease the demand shift the demand curve to the left for beer?
A) The price of a substitute, going, Falls
B). The price of beer increases to five dollars per bottle
C) bars begin giving away spicy snacks to their customers
D) I health Canada study concludes the beer helps to reduce her disease
A
