Chapter 3 (study lots)

Question 1

A shift in the supply curve for rutabagas occurs if there is:

Answer 1

A change in the price of a good that is a substitute in production for rutabagas 

Question 2

The market for smoothies is an equilibrium, and the price of yogurt rises. In the smoothie market,——-will——,—— the price, and——-the quantity.

Answer 2

Supply. Decrease. Increasing. Decreasing.

Question 3

Suppose there is a free snow storm in Florida that destroys 1/4 of the orange crop. Which best describes the fact that it will have on the market for vitamin C tablets, which are a substitute in orange consumption. 

Answer 3

The demand will increase shifting the line to the right well, the supply stays constant. This will increase the equilibrium points 

Question 4

Suppose he manage a convenience store. If macaroni and cheese is an inferior good, what do you suppose what happened to the price and quantity sold of macaroni and cheese as income fall during a recession?

Answer 4

 The price and quantity would both increase 

Question 5

Suppose a technological improvements lowers the cost of producing guava candy. At the same time, preferences for guava candy decrease. The equilibrium quantity of guava candy will:

Answer 5

Increase, decrease, or remain the same, depending on the relative magnitude of the shift of the demand and supply curves 

Question 6

Suppose the equilibrium price of yogurt is five dollars and the equilibrium quantity is 150 units. The supply curve in the market is upward, sloping, and the demand curve is downward sloping. If the price of yogurt is $12:

Answer 6

There will be an excess supply of yogurt

Question 7

If the price is above the equilibrium price then:

Answer 7

A surplus will exist

Question 8

If the price of beef decreases, you can expect the

Answer 8

Quantity of beef supplied to decrease

Question 9

It is almost certain that the equilibrium quantity will fall, when

Answer 9

Of the quantity demanded is greater than the quantity supplied

Question 10

What is the price of big screen television is decreases, the:

Answer 10

Quantity supplied decreases

Question 11

Which factors would result in a movement among a demand curve?

Answer 11

Amazon opens off-line store fronts to complement. It’s online component.

Question 12

A fall in the price of labor, fertilizer and fuel used to produce and transport bananas, could represent be represented in the figure as movement:

Answer 12

A right words shift because you get more bananas for the same price

Question 13

If supply is upward, sloping, a decrease in demand with no change in supply will lead to a——— in equilibrium quantity, and a——— an equilibrium price.

Answer 13

Decrease. Decrease.

Question 14

The equilibrium quantity will fall, if:

Answer 14

Supply and demand both decrease 

Question 15

The law of demand states that, other things, equal, all of the price:

Answer 15

Decreases, the quantity demanded will increase

Question 16

What would happen to a graph that illustrates the cost of producing Apple TV rentals increased?

Answer 16

The supply line would move to the left demonstrating that the price is higher per quantity, and the demand line would stay the same 

Question 17

What movement would be seen if improvements in technology used harvest, bananas, could be represented in a figure 

Answer 17

The supply line would move to the right showing that the quantity of bananas increased given a certain price

Question 18

If the demand for electric cars falls, when the price of electricity rise, and electric cars and electricity are:

Answer 18

Complements

Question 19

Consider the market for online video streaming services, which of the following would cause the equilibrium price of online streaming services to rise?

Answer 19

An increase in demand, combined with a decrease in supply

Question 20

The market demand curve shows:

Answer 20

The quantity of a good that consumers would like to purchase at different prices

Question 21

If the rental price for Apple movies rises from five dollars to seven dollars what do you think will happen to the demand

Answer 21

The quantity demanded will decrease from 50 to 30 rentals per week however the demand line itself will not change.

Question 22

Which factor would shift the demand curve for new computers to the right?

Answer 22

An increase in student enrollment in college

Question 23

A decrease in the price of raw fish will result in:

Answer 23

Increase in the supply of sushi

Question 24

A supply schedule shows

Answer 24

How much of a good or service would be supplied at different prices

Question 25

A shift of the demand curve for fried chicken would not be caused by a change in:

Answer 25

The price of fried chicken 

Question 26

Market equilibrium occurs when

Answer 26

There is no incentive for prices to change in the market, quantity demand equals quantity supplied, and the market clears.

Question 27

If tennis rackets and tennis balls are compliments, an increase in the price of tennis rackets will cause the equal of tennis balls to——-and the equilibrium quantity of tennis balls to————-. 

Answer 27

Decreases. Decreases (if the price of a compliment increases, demand for the other compliment decreases. Therefore, the overall demand line moves to the left.) 

Question 28

If the price of e-books, a substitute for printed textbooks increases, the:

Answer 28

Demand for printed textbooks will increase. (Not the quantity demanded but the entire line)

Question 29

Suppose Tanisha, here’s a story reporting the price of sky diving lessons has gone up. According to the law of supply, what would she expect as a result?

Answer 29

The quantity of sky diving lessons supplied will increase. (this is not the law of demand which is inverse, they have the same relationship.)

Question 30

Wii consoles, and we video games are compliments. If the price of Wii consoles decreases, the demand curve for Wii video games will:

Answer 30

 Shift to the right

Question 31

Suppose that computers are normal goods. An increase in income:

Answer 31

Increase the demand and price of computers.

Question 32

What would cause a increase in the price of peanut butter?

Answer 32

A decrease in the price of jelly, a complement

Question 33

If skim milk and cream or compliments in production, when the price of cream decreases what happens to the supply for skim milk?

Answer 33

The supply of skim milk decreases

Question 34

If gasoline and heating oil are substitutes in production for an oil refinery, what happens in the market for heating oil when the price of gasoline decreases

Answer 34

The supply of heating oil increases

Question 35

Wii consoles, and we video games are complements. If the price of Wii consoles goes up, the demand curve for Wii video game as will:

Answer 35

Shift to the left

Question 36

What happens to the supply of the other product when the price of a substitute in production increases

Answer 36

The supply of the other product decreases

Question 37

Suppose that students at a big university by season football tickets at the beginning of the fall semester. Everyone expects the team will have a great season. Students sell individual tickets throughout the season and a competitive market. They can sell tickets to later games more exciting matchups immediately or wait for the game day to approach. If students selling individual tickets, think the team will have a great season, what will happen in the market for big university football tickets today the beginning of the fall semester.

Answer 37

The current supply will shift to the left. This means that you will pay more per ticket.