978-0133460629 Chapter 04 Part 3

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61) A huge 50 percent of sale on golf clubs is advertised for next week. What happens this

week in the market for golf clubs?

A) The supply of golf clubs increases.

B) The supply of golf clubs decreases.

C) The demand for golf clubs increases.

D) The demand for golf clubs decreases.

E) The demand for and the supply of golf clubs decreases.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

62) You are just about to inish college and are about to start a high paying job. Because of

this new job, what is the most likely outcome in the market for cars?

A) Your demand for cars will decrease.

B) The market supply of cars will increase.

C) Your demand for cars will increase.

D) The market supply of cars will decrease.

E) The demand and the supply for cars will decrease.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

63) Which of the following increases the demand for a good?

A) a rise in the price of a complement

B) the expectation that future income will be higher

C) an increase in income, assuming the good is an inferior good

D) a decrease in the number of buyers

E) a fall in the price of a substitute

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

64) Suppose that tattoos gained immense popularity with retired people as well as college

students. This gain in popularity best relects which of the following inluences on buying

plans?

A) the price of a substitute good

B) income

C) expectations

D) preferences

E) the price of a complement good

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

65) Consider the market for cellular phones. Which of the following shifts the demand

curve leftward?

A) studies showing using cellular phones can cause brain cancer

B) a decrease in the price of cellular phones

C) a decrease in the quantity demanded of cellular phones

D) an increase in the services provided by cellular phones, such as text messaging

E) an increase in the price of cellular phones

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

66) Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of

the igures above best illustrates how this fall in price afects the demand curve for

scooters?

A) Figure A

B) Figure B

C) Figure C

D) Figure D

E) None of the above answers is correct because the change in the price of a bicycle will

afect the supply curve not the demand curve.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

67) Scooters are a normal good and buyers’ incomes decrease. Which of the igures above

best illustrates how this change afects the demand curve for scooters?

A) Figure A

B) Figure B

C) Figure C

D) Figure D

E) None of the above answers is correct because the decrease in income will afect the

supply curve not the demand curve.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

68) Over the next few years more and more people prefer to ride on scooters. Which of the

igures above best illustrates how this change afects the demand curve for scooters?

A) Figure A

B) Figure B

C) Figure C

D) Figure D

E) None of the above answers is correct because the change in tastes will afect the supply

curve not the demand curve.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

69) A scooter uses much less gasoline than does a car. Suppose the price of gasoline rises

substantially. Which of the igures above best illustrates how this change afects the

demand curve for scooters?

A) Figure A only

B) Figure B only

C) Figure C only

D) Figure D only

E) Both Figure A and Figure D

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

70) In the above igure, the movement from point a to point b relects

A) a decrease in the price of pizza.

B) an increase in the demand for pizza.

C) an increase in the number of people who eat pizza.

D) an increase in the price of the tomato sauce used to produce pizza.

E) a decrease in the number of irms producing pizza.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

71) In the above igure, the shift in the demand curve from D to D1 can be the result of

A) an increase in the price of pizza.

B) an increase in the price of a sub sandwich, a substitute for pizza.

C) an increase in the price of soda, a complement to pizza.

D) a change in quantity demanded.

E) a decrease in income if pizza is a normal good.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

72) In the above igure, the shift in the demand curve from D to D2 can be the result of

A) an increase in income if pizza is a normal good.

B) an increase in the price of a sub sandwich, a substitute for pizza.

C) an increase in the price of soda, a complement to pizza.

D) a change in quantity demanded.

E) a decrease in the supply of pizza that raises the price of pizza.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

73) The igure above shows the market for iPods. Which of the following creates a

movement from point A to point B?

A) a requirement that all students at universities have an iPod

B) a decrease in the price of iPods

C) a decrease in the price of Zunes, a substitute for iPods

D) an increase in the price of iPods

E) an increase in people’s incomes

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

74) The igure above shows the market for iPods. Which of the following shifts the demand

curve from D0 to D1?

A) a decrease in the price of Zunes, a substitute for iPods

B) an increase in the price of iPods

C) a requirement that all students at universities have an iPod

D) a decrease in the price of iPods

E) an increase in people’s incomes

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

75) The igure above shows the market for iPods. Which of the following shifts the demand

curve from D0 to D2?

A) a decrease in the price of Zunes, a substitute for iPods

B) an increase in the price of iPods

C) a requirement that all students at universities have an iPod

D) a decrease in the price of iPods

E) a decrease in people’s incomes if iPods are a normal good

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

76) Pizza is a normal good. In the above igure, the shift in the demand curve from D to D2

can be the result of

A) a decrease in the price of soda, a complement to pizza.

B) an increase in the price of hamburgers, a substitute for pizza.

C) a decrease in income.

D) a study that shows that pizza is a very healthy food.

E) an increase in the cost of producing pizza.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

77) In the above igure, the shift in the demand curve from D to D1 can be the result of

A) a decrease in income if pizza is a normal good.

B) a decrease in the price of a sub sandwich, a substitute for pizza.

C) an increase in the price of soda, a complement to pizza.

D) an increase in the number of teenagers, all of whom demand more pizza than do other

age groups.

E) new technology that increases the proit from producing pizza.

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

78) In the above igure, ________ will shift in the demand curve from D to D1.

A) an increase in income if pizza is an inferior good

B) a decrease in the price of a sub sandwich, a substitute for pizza

C) buyers’ expectation that pizza will be less expensive next week

D) a scientiic article published that demonstrates eating pizza is good for one‘s health

E) a fall in the cost of producing pizza

Skill: Level 3: Using models

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

79) Which of the following brings only an increase in the quantity demanded of a good?

A) a decrease in income, assuming the good is an inferior good

B) a rise in the price of a substitute good

C) a fall in the price of the good itself

D) an expectation that the good’s price will rise in the future

E) a decrease in income, assuming the good is a normal good

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

80) People consume more soup as temperatures falls. So, as cold weather approaches,

A) the quantity of soup demanded increases.

B) the demand for soup increases.

C) people move closer to their demand curve for soup.

D) people move farther beyond their demand curves.

E) both the demand for and the quantity of soup demanded increase.

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Relective thinking

81) The impact of an increase in the price of a particular good is illustrated as a

A) leftward shift in its demand curve.

B) rightward shift in its demand curve.

C) movement upward and to the left along its demand curve.

D) movement downward and to the right along its demand curve.

E) rightward shift in its demand curve and a movement upward and to the left along its

demand curve.

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking

82) Which of the following events will increase the quantity demanded of bottled water?

A) a fall in the price of soda

B) a rise in the price of a itness club membership

C) an increase in the number of buyers of bottled water

D) a fall in the price of bottled water

E) a rise in the price of bottled water

Skill: Level 2: Using deinitions

Section: Checkpoint 4.1

Status: Old

AACSB: Analytical thinking