87
105) Refer to Scenario 3.3. If at the same time of the mustard recall, consumer income also decreased.
Then, ceteris paribus, in the market for mustard this would have caused
A) both the equilibrium price and quantity to decrease.
B) the equilibrium price to increase and the equilibrium quantity to decrease.
C) the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to
decrease.
D) the equilibrium quantity could have increased, decreased, or remained the same and the equilibrium
price to decrease.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
106) Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore,
price restrictions are imposed on mustard producers, prohibiting them from raising the price of mustard.
This will cause
A) an excess demand for mustard.
B) an excess supply of mustard.
C) an increase in the demand for mustard.
D) a decrease in the supply of mustard.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
107) When the supply of blueberries increases while the demand for blueberries also increases, the
equilibrium ________ of blueberries will definitely ________, ceteris paribus.
A) price; increase
B) price; decrease
C) quantity; increase
D) quantity; decrease
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Analytical Thinking
Learning Outcome: Micro-4
88
108) When the supply of bubble gum increases while the demand for bubble gum decreases, the
equilibrium ________ of bubble gum will definitely ________, ceteris paribus.
A) price; increase
B) price; decrease
C) quantity; increase
D) quantity; decrease
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Analytical Thinking
Learning Outcome: Micro-4
109) When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the
equilibrium ________ of Swiss cheese will definitely ________, ceteris paribus.
A) price; increase
B) price; decrease
C) quantity; increase
D) quantity; decrease
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Analytical Thinking
Learning Outcome: Micro-4
110) When the supply of chocolate decreases while the demand for chocolate also decreases, the
equilibrium ________ of chocolate will definitely ________, ceteris paribus.
A) price; increase
B) price; decrease
C) quantity; increase
D) quantity; decrease
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Analytical Thinking
Learning Outcome: Micro-4
111) Related to the Economics in Practice on p. 65: Increased preference for quinoa would shift the
________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.
A) demand; increase
B) demand; decrease
C) supply; increase
D) supply; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
89
112) Related to the Economics in Practice on p. 65: Consumption of quinoa has been on the rise. Many
people put quinoa in their yogurt, which would make yogurt and quinoa ________, and therefore a
decrease in the price of yogurt should ________ the demand for quinoa, ceteris paribus.
A) substitutes; increase
B) substitutes; decrease
C) complements; increase
D) complements; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
113) Related to the Economics in Practice on p. 66: One explanation for the increase in the price of the
Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This
would cause the ________ Baltimore newspapers to ________.
A) demand for; increase
B) quantity demanded of; increase
C) demand for; decrease
D) quantity demanded of; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
114) Related to the Economics in Practice on p. 66: Assuming the demand for Baltimore newspapers
increases while the supply of Baltimore newspapers decreases, the equilibrium ________ will definitely
________.
A) price; increase
B) price; decrease
C) quantity; increase
D) quantity; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
115) A decrease in demand for a product will cause the price of the product to fall and supply of the
product to decrease.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
90
116) A simultaneous decrease in both the supply of and the demand for silk boxer shorts would cause a
decrease in the equilibrium quantity of silk boxer shorts.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
117) If price is above the equilibrium, then quantity supplied will be greater than quantity demanded,
putting downward pressure on price.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
118) An increase in demand for a product will cause the price of the product to rise and supply of the
product to increase.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
119) A simultaneous increase in both the supply of and the demand for vitamin water would cause an
increase in the equilibrium quantity of vitamin water.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
120) If price is below the equilibrium, then quantity supplied will be less than quantity demanded putting
upward pressure on price.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
91
121) If price is below the equilibrium, there will be excess demand for the product.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
122) If price is above the equilibrium, there will be excess supply of the product.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
123) Excess demand results in a surplus.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
124) If the supply and demand for a product both increase at the same time, the equilibrium price and
equilibrium quantity of the product will both increase, ceteris paribus.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4