b.
False
58. Whenever a determinant of supply other than price changes, the supply curve shifts.
a.
True
b.
False
59. A decrease in the price of pizza will shift the supply curve for pizza to the left.
a.
True
b.
False
60. If the producers of canned green beans expect the price of canned green beans to increase in the future due to an
increase in demand, they may put some of their current production into storage and supply less in the market today.
a.
True
b.
False
61. A decrease in the price of sugar will shift the supply curve for cookies to the right.
a.
True
b.
False
62. Individual supply curves are summed vertically to obtain the market supply curve.
a.
True
b.
False
63. The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant
all the other factors that influence producers’ decisions about how much to sell.
a.
True
b.
False
64. A reduction in an input price will cause a change in quantity supplied but not a change in supply.
a.
True
b.
False
65. An increase in the price of ink will shift the supply curve for pens to the left.
a.
True
b.
False
66. If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to
the left.
a.
True
b.
False
67. Advances in production technology typically reduce firms’ costs, which increases the quantity supplied at each price.
a.
True
b.
False
68. If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more
to the market this month.
a.
True
b.
False
69. When a seller expects the price of its product to decrease in the future, the seller’s supply curve shifts left now.
a.
True
b.
False
70. Supply and demand together determine the price and quantity of a good sold in a market.
a.
True
b.
False
71. A market’s equilibrium is the point at which the supply and demand curves intersect.
a.
True
b.
False
72. At the equilibrium price, quantity demanded is equal to quantity supplied.
a.
True
b.
False
73. The equilibrium price is the same as the market-clearing price.
a.
True
b.
False
74. At the equilibrium price, buyers have bought all they want to buy, but sellers have not sold all they want to sell.
a.
True
b.
False
75. The actions of buyers and sellers naturally move markets toward equilibrium.
a.
True
b.
False
76. When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity
supplied.
a.
True
b.
False
77. When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell.
a.
True
b.
False
78. In a market, the price of any good adjusts until quantity demanded equals quantity supplied.
a.
True
b.
False
79. A surplus is the same as an excess demand.
a.
True
b.
False
80. Sellers respond to a surplus by cutting their prices.
a.
True
b.
False
81. Price will rise to eliminate a surplus.
a.
True
b.
False
82. When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market
price will likely rise in the future to eliminate the surplus.
a.
True
b.
False
83. When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity
supplied.
a.
True
b.
False
84. When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.
a.
True
b.
False
85. A shortage is the same as an excess demand.
a.
True
b.
False
86. Sellers respond to a shortage by cutting their prices.
a.
True
b.
False
87. Price will rise to eliminate a shortage.
a.
True
b.
False
88. When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market
price will likely rise in the future to eliminate the shortage.
a.
True
b.
False
89. Surpluses drive price up, while shortages drive price down.
a.
True
b.
False
90. A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium
price.
a.
True
b.
False
91. When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.
a.
True
b.
False
92. Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand
curve.
a.
True
b.
False
93. Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to
sell.
a.
True
b.
False
94. It is not possible for demand and supply to shift at the same time.
a.
True
b.
False
95. A decrease in demand will cause a decrease in price, which will cause a decrease in supply.
a.
True
b.
False
96. An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.
a.
True
b.
False
97. An increase in supply will cause a decrease in price, which will cause an increase in demand.
a.
True
b.
False
98. A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.
a.
True
b.
False
99. If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for
producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is
ambiguous.
a.
True
b.
False
100. Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the
production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium
quantity is ambiguous.
a.
True
b.
False
101. Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the
production of calendars increases. In the market for calendars, if the size of the shift of the demand curve is larger than the
size of the shift of the supply curve, then the equilibrium quantity rises.
a.
True
b.
False
102. A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for
blueberry muffins.
a.
True
b.
False
103. A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.
a.
True
b.
False
104. An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black
pens.
a.
True
b.
False
105. An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the
market for cotton t-shirts.
a.
True
b.
False
106. A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the
market for coffee.
a.
True
b.
False
107. An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for
pancakes.
a.
True
b.
False
108. In a market economy, prices are the signals that guide the allocation of scarce resources.
a.
True
b.
False