Quiz 4 Flashcards
The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
a. up, the quantity demanded also goes up.
b. up, the quantity demanded goes down.
c. down, the quantity demanded goes down.
d. down, the quantity demanded stays the same.
b. up, the quantity demanded goes down.
According to the law of demand, a decrease in the price of USU football tickets will cause:
a. people to buy fewer USU football tickets.
b. people to buy more USU football tickets.
c. the scarcity of USU football tickets to increase.
d. USU football tickets to grow in abundance.
b. people to buy more USU football tickets.
If the price of pork falls and the price of beef does not change, consumers will respond by:
a. substituting beef for pork.
b. substituting pork for beef.
c. reducing purchases of beef and pork.
d. increasing purchases of beef and pork.
b. substituting pork for beef.
Given that diesel cars get much better gas mileage than the typical gas-powered car, an increase in the price of diesel would be expected to:
a. increase the demand for diesel cars.
b. decrease the demand for gasoline.
c. decrease the demand for diesel cars.
d. decrease the demand for gasoline cars.
c. decrease the demand for diesel cars.
Which of the following would cause quantity demanded to change without changing the demand curve?
a. A change in income
b. A change in the price of the good
c. A change in tastes and preferences
d. A change in the price of a substitute good
b. A change in the price of the good
To derive a market demand curve from individual demand curves, it would be necessary to:
a. take the maximum quantity of each demand curve as the market quantity demanded at each price.
b. sum the curves horizontally, adding quantities demanded at each price.
c. take the demand curve that is the furthest to the right as the market demand curve.
d. multiply the quantities demanded on each demand curve at each price to find the market quantity demanded at each price.
b. sum the curves horizontally, adding quantities demanded at each price.
Suppose farmers can use their land to grow either wheat or corn. The law of supply predicts that a decrease in the market price of wheat will cause:
a. farmers to substitute wheat for the production of corn.
b. farmers to substitute corn for the production of wheat.
c. farmers to decrease the supply of wheat.
d. farmers to raise the production of wheat and corn.
a. farmers to substitute wheat for the production of corn.
According to the law of supply, what will motivate firms to increase their quantity supplied of a product?
a. Production cost
b. Fixed cost
c. Price
d. Supply
c. Price
If the price of steel falls, the law of supply predicts that, other things constant, the:
a. supply of steel will increase.
b. supply of steel will decrease.
c. quantity supplied of steel will increase.
d. quantity supplied of steel will decrease.
d. quantity supplied of steel will decrease.
When applied to labor markets, the law of supply suggests that:
a. an increase in the wages earned by nurses will cause the quantity of nurses supplied to increase.
b. a decrease in the wages earned by nurses will cause the quantity of nurses supplied to increase.
c. an increase in the wages earned by nurses will cause the quantity of nurses demanded to increase.
d. a decrease in the wages earned by nurses will cause the quantity of nurses demanded to increase.
a. an increase in the wages earned by nurses will cause the quantity of nurses supplied to increase.
The more the current price is below the equilibrium price, the:
a. greater the resulting shortage will be.
b. smaller the resulting shortage will be.
c. greater the resulting surplus will be.
d. smaller the resulting surplus will be.
a. greater the resulting shortage will be.
Suppose a market has an excess demand and price starts to rise. What will the rise in price cause?
a. A fall in both quantity supplied and quantity demanded.
b. A rise in both quantity supplied and quantity demanded.
c. A rise in quantity supplied and a fall in quantity demanded.
d. A fall in quantity supplied and a rise in quantity demanded.
c. A rise in quantity supplied and a fall in quantity demanded.
If quantity demanded exceeds quantity supplied, there is a tendency for:
a. price to fall to restore equilibrium.
b. price to rise to restore equilibrium.
c. the demand curve to shift to the left to restore equilibrium.
d. the demand curve to shift to the right to restore equilibrium.
d. the demand curve to shift to the right to restore equilibrium.
