Economics Chapter 3 Mp3 Players This Year Observe Higher Prices

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251. Multiple Choice: Good X and good Y are related goods. ...

Question Good X and good Y are related goods. If the price of good X increases and the

demand for good Y shifts left, these goods are:

252. Multiple Choice: Suppose oranges and clementines are c...

Question Suppose oranges and clementines are considered to be substitutes. Holding

everything else constant, if the price of oranges increases, then the:

253. Multiple Choice: Good X and good Y are related goods. ...

Question Good X and good Y are related goods. Holding everything else constant, if the price

of X decreases and the demand for Y increases, then this most likely means that X

and Y are:

254. Multiple Choice: Good X and good Y are substitutes. Ho...

Question Good X and good Y are substitutes. Holding all other things constant, this means

that when the price of good X increases, the:

Answer demand for good X will increase.

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255. Multiple Choice: Holding all other things constant, if…

Question Holding all other things constant, if ramen noodles are an inferior good to Vanessa,

then as her income increases, her demand curve for ramen noodles:

256. Multiple Choice: If Benjamin considers sushi to be a n...

Question If Benjamin considers sushi to be a normal good and if his income increases by

20%, his purchases of sushi will:

Answer decrease by 20%.

257. Multiple Choice: The demand for a good will increase if:

Question The demand for a good will increase if:

Answer there is a decrease in the price of the good.

258. Multiple Choice: A market is composed of three individ...

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Question A market is composed of three individuals, Nicholas, Benjamin, and Alexander. Their

individual demand schedules are given below and are as follows:

Based on this information, which of the following market demand schedules

accurately portrays this market?

Answer

259. Multiple Choice: The horizontal summation of individua...

Question The horizontal summation of individual demand curves for a particular product,

holding the quantity demanded constant, is referred to as:

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260. Multiple Choice: Milk is an important ingredient in th…

Question Milk is an important ingredient in the production of ice cream. If the price of milk

increases, then one would expect, holding all other things constant:

261. Multiple Choice: High-fructose corn syrup, which is de...

Question High-fructose corn syrup, which is derived from corn, is an important ingredient in

the production of many soft drinks. If the price of corn increases, one would expect:

262. Multiple Choice: All of the following would result in …

Question All of the following would result in an increase in the supply of a good except:

Answer a decrease in resource prices.

263. Multiple Choice: A farmer finds that when he produces …

Question

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A farmer finds that when he produces more corn, he also has more corn stalks that

he can sell as decorations. To the farmer, corn and corn stalks are:

264. Multiple Choice: Substitutes in production suggest tha…

Question Substitutes in production suggest that a producer with a fixed set of resources

initially will need to reduce production of one good when the producer:

Answer produces less of the other good.

265. Multiple Choice: Researchers find a new strain of gene…

Question Researchers find a new strain of genetically modified seeds that results in a higher

yield for corn producers. Holding all other things constant, this research will:

Answer shift the supply curve for corn left.

266. Multiple Choice: If suppliers expect prices for their ...

Question If suppliers expect prices for their product to rise next year, then one would expect:

Answer that this will shift the demand curve for the product right this year.

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267. Multiple Choice: The market for good Y, a perfectly co...

Question The market for good Y, a perfectly competitive good, is made up of 15 producers

who each produce the same amount of good Y. If the price of good Y is currently

$100 and the total quantity supplied is 150, how many units of good Y is each

producer supplying?

268. Multiple Choice: When a market is in equilibrium, one ...

Question When a market is in equilibrium, one will find that the:

Answer quantity demanded is equal to zero.

269. Multiple Choice: Reference: Ref 3-19 (Table: Competit...

Question

Reference: Ref 3-19

(Table: Competitive Market for Good Z) Look at the table Competitive Market for

Good Z. If the current price of good Z is $15, there will be:

Answer excess demand of 25 units.

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270. Multiple Choice: Reference: Ref 3-19 (Table: Competit...

Question

Reference: Ref 3-19

(Table: Competitive Market for Good Z) Look at the table Competitive Market for

Good Z. A surplus of the good will occur at a price of ________.

Answer $0

271. Multiple Choice: Reference: Ref 3-19 (Table: Competit...

Question

Reference: Ref 3-19

(Table: Competitive Market for Good Z) Look at the table Competitive Market for

Good Z. The equilibrium price and quantity in this market are, respectively:

Answer $5 and 40 units.

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272. Multiple Choice: Reference: Ref 3-19 (Table: Competit...

Question

Reference: Ref 3-19

(Table: Competitive Market for Good Z) Look at the table Competitive Market for

Good Z. If the demand curve for good Z is linear, it can be expressed as:

Answer Qd = 3P.

273. Multiple Choice: Reference: Ref 3-19 (Table: Competit...

Question

Reference: Ref 3-19

(Table: Competitive Market for Good Z) Look at the table Competitive Market for

Good Z. If the supply curve for good Z is linear, it can be expressed as:

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274. Multiple Choice: Figure: The Market for Candy Referenc…

Question Figure: The Market for Candy

Reference: Ref 3-20

(Figure: The Market for Candy) Look at the figure The Market for Candy. Equilibrium

occurs at a price of ________, and the equilibrium quantity is equal to ________.

Answer P1; Q5

275. Multiple Choice: Figure: The Market for Candy Referenc…

Question

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Figure: The Market for Candy

Reference: Ref 3-20

(Figure: The Market for Candy) Look at the figure The Market for Candy. A surplus

of the good will exist at a price of:

276. Multiple Choice: Suppose the demand curve for good Z i...

Question Suppose the demand curve for good Z is downward sloping. If the price of good Z

decreases because of a shift in the supply of good Z, this will cause:

Answer an increase in the demand for good Z.

277. Multiple Choice: Suppose people expect the price of MP...

Question Suppose people expect the price of MP3 players to rise next year. As a result of

this expectation, people will most likely:

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278. Multiple Choice: An increase in the price of sugar (an...

Question An increase in the price of sugar (an ingredient for soft drinks) and an increased

concern about tooth decay caused by the consumption of soft drinks will result in

which of the following in the soft drink market?

Answer There will be an increase in both the equilibrium price and quantity.

279. Multiple Choice: An increase in the price of wheat, an…

Question An increase in the price of wheat, an important ingredient in the production of

bread, combined with an increase in the number of people consuming bread, will

result in which of the following changes in the bread market?

Answer Both the equilibrium price and quantity will increase.

280. Multiple Choice: Gasoline, a derivative of oil, is a l…

Question Gasoline, a derivative of oil, is a large part of transportation costs for many

producers. If the price of oil increases at the same time that incomes fall for many

consumers, one would expect the equilibrium price of many normal goods to

________, while their equilibrium quantities would ________.

Answer fall; rise

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281. Multiple Choice: Rice and potatoes are substitutes. If...

Question Rice and potatoes are substitutes. If the price of rice rises and there is a bumper

crop of potatoes, in the market for potatoes one would expect the:

282. Multiple Choice: A beneficial technological change enh...

Question A beneficial technological change enhances the production of cranberries. At the

same time, scientists discover the health benefits of cranberries. This will result in:

Answer an increase in both the equilibrium price and quantity in the cranberry market.

283. Multiple Choice: The market demand for singing dolls i...

Question The market demand for singing dolls is initially made up of 50 buyers. Suppose

there is a decrease in the number of buyers by 10. Holding everything else

constant, one would expect:

Answer the supply curve to shift left.

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284. Essay: Explain the law of demand. What does ...

Question Explain the law of demand. What does it tell us about the shape of a demand

curve?

285. Essay: Why are economists so particular abou...

Question Why are economists so particular about the difference between an increase in

“quantity demanded” and an increase in “demand”? Aren’t they the same thing?

286. Essay: A small private college increases tui...

Question A small private college increases tuition while a large public university in the same

state does not. What will happen to the demand (enrollment) for both schools?

287. Essay: How would each of the following event…

Question How would each of the following events affect the demand for new textbooks?

a) The price of a used textbook rises.

b) The price of college tuition rises.

c) More high school graduates decide to attend college.

288. Essay: Suppose the supply curve for soap bub…

Question Suppose the supply curve for soap bubbles has a slope of +1 and intersects the

vertical axis at a price of $2 per bottle. Interpret the meaning of both the y-intercept

and the slope.

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289. Essay: How would each of the following event…

Question How would each of the following events affect the supply of compact cars?

a) The price of steel rises.

b) The production technology for car manufacturing improves.

c) The price of sport utility vehicles falls.

290. Essay: Why do many clothing stores have big ...

Question Why do many clothing stores have big after-Christmas sales on their merchandise?

291. Essay: You read that college tuition is risi...

Question You read that college tuition is rising every year, and yet more students attend

college every year. Isn’t this a violation of the law of demand?

292. Essay: In the Midwestern United States, the ...

Question In the Midwestern United States, the price of an ear of corn is always lowest in the

summer. This seems odd, because consumers really enjoy eating ears of corn in

the summer. Can you explain this?

293. Essay: In August 2005, Hurricane Katrina dam…

Question In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of

Mexico, refineries along the Gulf coast, and the pipeline infrastructure that

transports oil and gas to customers across the eastern United States. The winter

of 2005 was also unusually cold in many parts of the country. How did these

events affect the market for natural gas and heating oil?

Points: 0

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