Economics Chapter 3 Points The Market For Grassfed Beef What

Unlock access to all the studying documents.

View Full Document

Figure: The Demand and Supply of Wheat

Reference: Ref 3-9

(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and

Supply of Wheat. A temporary price of $4 in this market would result in:

Answer a surplus of 4,000 bushels.

147. Multiple Choice: Reference: Ref 3-10 (Table: The Lemo...

Question

Reference: Ref 3-10

(Table: The Lemonade Market) Look at the table The Lemonade Market. If the price

of a cup of lemonade is $1.00, there will be ________ in the market.

Answer equilibrium

Points: 0

148. Multiple Choice: Reference: Ref 3-10 (Table: The Lemo...

Question

Reference: Ref 3-10

(Table: The Lemonade Market) Look at the table The Lemonade Market. If the price

of lemonade is $1.25 per cup, we would expect to see:

Answer a rising price to eliminate the shortage.

149. Multiple Choice: Figure: The DVD Rental Market Referen...

Question

Points: 0

Figure: The DVD Rental Market

Reference: Ref 3-11

(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The

figure shows the weekend rental market for DVDs in Collegetown. The equilibrium

price for DVD rentals is ________ and the equilibrium quantity is ________.

150. Multiple Choice: Figure: The DVD Rental Market Referen...

Question Figure: The DVD Rental Market

Reference: Ref 3-11

(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. If the

rental price of DVDs rises from $5 per rental to $7 per rental, then:

Answer demand will decrease from 50 to 30 rentals per weekend.

Points: 0

151. Multiple Choice: Figure: The DVD Rental Market Referen...

Question Figure: The DVD Rental Market

Reference: Ref 3-11

(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. At a

rental price of $3, there will be

Answer equilibrium in the rental market for DVDs.

152. Multiple Choice: Figure: The DVD Rental Market Referen...

Question

Points: 0

Figure: The DVD Rental Market

Reference: Ref 3-11

(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. At a

rental price of $6, there will be:

Answer equilibrium in the rental market for DVDs.

153. Multiple Choice: Which of the following always results...

Question Which of the following always results in an increase in price and quantity?

Answer an increase in supply and a decrease in demand

154. Multiple Choice: The market price of airline flights i...

Question The market price of airline flights increased recently. Some economists suggest

that the price increased because there has been an increase in the number of

business travelers. They believe that in the market for flights:

Answer supply increased.

Points: 0

155. Multiple Choice: If tortilla chips are a normal good, ...

Question If tortilla chips are a normal good, what happens to equilibrium price and quantity

when there is an increase in income?

Answer Equilibrium price decreases and equilibrium quantity increases.

156. Multiple Choice: In the market for tacos, you observe ...

Question In the market for tacos, you observe that the equilibrium price and quantity have

increased. This can be caused only by:

Answer an increase in the price of beef.

157. Multiple Choice: Suppose you manage a corner grocery s...

Question Suppose you manage a corner grocery store. If peanut butter is an inferior good,

what do you suppose would happen to the price and quantity sold of peanut butter

as incomes fall during an economic recession?

Answer The price would increase and the quantity would decrease.

Points: 0

158. Multiple Choice: A newspaper story recently reported t...

Question A newspaper story recently reported that the price of new cars has decreased and

the quantity of new cars sold has dropped. The new price and quantity could have

been caused by:

159. Multiple Choice: A shift of a demand curve to the righ...

Question A shift of a demand curve to the right, all other things unchanged, will:

160. Multiple Choice: For consumers, pizza and hamburgers a...

Question For consumers, pizza and hamburgers are substitutes. A rise in the price of a

pizza causes ________ in the equilibrium price of a hamburger and ________ in

the equilibrium quantity of hamburgers.

161. Multiple Choice: If the economy booms and peoples’ inc…

Question If the economy booms and peoples‘ incomes rise, then the demand curve for a

normal good like new houses will ________ and the equilibrium quantity of new

houses produced will ________.

Points: 0

162. Multiple Choice: A new wonder diet that results in a d...

Question A new wonder diet that results in a dramatic weight loss sweeps through America.

The key to the diet is to eat unlimited amounts of red meat (beef) but no poultry or

carbohydrate-rich foods. As millions of Americans switch to the new diet, we can

expect:

163. Multiple Choice: A new wonder diet that results in a d...

Question A new wonder diet that results in a dramatic weight loss sweeps through America.

The key to the diet is to eat unlimited amounts of red meat (beef) but no poultry or

carbohydrate-rich foods. As millions of Americans switch to the new diet, we can

expect:

164. Multiple Choice: Consider two competing motorcycle man...

Points: 0

Question Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If

Harley–Davidson raises the price of its motorcycles, we can expect:

Answer a shift to the right in the supply curve of Hondas and lower prices for Hondas.

165. Multiple Choice: An increase in demand with no change ...

Question An increase in demand with no change in supply will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

166. Multiple Choice: French fries and hamburgers are compl...

Question French fries and hamburgers are complements. Suppose the cost of the

ingredients used to make hamburgers rises, so that the price of a hamburger rises.

Then the equilibrium relative price of french fries ________ and the equilibrium

quantity ________.

167. Multiple Choice: A decrease in demand, with no change ...

Question A decrease in demand, with no change in supply, will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

Answer an increase; an increase

Points: 0

168. Multiple Choice: Given a supply curve that is positive…

Question Given a supply curve that is positively sloped and a demand curve for a normal

good that is negatively sloped, an increase in income will most likely result in:

169. Multiple Choice: An increase in demand, all other thin...

Question An increase in demand, all other things unchanged, will result in ________ in

equilibrium price and ________ in equilibrium quantity.

170. Multiple Choice: A decrease in supply, with no change ...

Question A decrease in supply, with no change in demand, will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

Answer an increase; an increase

Points: 0

171. Multiple Choice: An increase in supply, with no change…

Question An increase in supply, with no change in demand, will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

Answer an increase; an increase

172. Multiple Choice: You notice that the price of DVD play…

Question You notice that the price of DVD players falls and the quantity of DVD players sold

increases. This set of observations can be the result of the:

Answer demand for DVD players shifting to the right.

173. Multiple Choice: In the market for corn tortilla chips...

Question In the market for corn tortilla chips, what would cause a price increase?

Answer Doctors tell their patients that tortilla chips are unhealthy.

174. Multiple Choice: The market price of airline flights i...

Question The market price of airline flights increased recently. Some economists suggest

that the price increased because several airlines went out of business. They believe

that in the market for flights:

Answer supply increased.

Points: 0

175. Multiple Choice: The market price of airline flights i...

Question The market price of airline flights increased recently. Some economists suggest

that the price increased because jet fuel is much more expensive than before. They

believe that in the market for flights:

Answer supply increased.

176. Multiple Choice: In the market for grass-fed beef, wha...

Question In the market for grass–fed beef, what would cause a price increase?

Answer The price of chicken decreases.

177. Multiple Choice: The market for corn is in equilibrium…

Question The market for corn is in equilibrium. Which of the following is most likely to

increase the equilibrium price of corn?

Answer a bountiful harvest

178. Multiple Choice: The market for lemonade is in equilib...

Points: 0

Question The market for lemonade is in equilibrium and the price of lemons rises. How will

this affect the lemonade market?

Answer Demand will decrease, decreasing the price and decreasing the quantity.

179. Multiple Choice: Suppose the input costs associated wi...

Question Suppose the input costs associated with manufacturing hair replacement

treatments decreases over time. This would lead to:

180. Multiple Choice: The price of microchips used to produ...

Question The price of microchips used to produce computers falls. As a result, the

equilibrium price of computers ________ and the equilibrium quantity ________.

Answer rises; increases

181. Multiple Choice: You notice that the price of DVD play…

Question You notice that the price of DVD players falls and the quantity of DVD players sold

increases. Which of the following may cause this change?

Answer Demand for DVD players shifts to the right.

Points: 0

182. Multiple Choice: If the United States increases tariff...

Question If the United States increases tariffs on imports of lumber from Canada (which

causes the price of lumber to increase in the United States), the equilibrium price

of new homes in the United States will ________ and the equilibrium quantity of

new homes in the United States will ________.

Answer increase; increase

183. Multiple Choice: Consider gas stations where customers...

Question Consider gas stations where customers pay inside before they pump gasoline. If

they introduce a new technology where customers pay at the pump, thus

decreasing production costs, there will be:

184. Multiple Choice: Many public utilities burn oil to gen...

Question Many public utilities burn oil to generate electricity. If the price of oil increases, we

would expect there to be:

Answer a shift to the right in the supply curve of electricity and a lower price for

electricity.

Points: 0

185. Multiple Choice: The market for milk is initially in e…

Question The market for milk is initially in equilibrium. Milk producers engage in an

advertising program to encourage milk drinking, which succeeds in shifting

consumer tastes toward drinking milk. More milk producers enter the market.

Standard demand and supply analysis tells us that:

Answer the equilibrium price and quantity of milk will rise.

186. Multiple Choice: Consider the market for iPods. What h...

Question Consider the market for iPods. What happens if a fantastic new alternative MP3

player is developed and at the same time a boat carrying a large shipment of iPods

is attacked by pirates and sunk?

Answer Price decreases and quantity increases.

187. Multiple Choice: Consider the market for corn. What ha...

Question Consider the market for corn. What happens if there is an increased demand for

corn tortillas and at the same time a new corn seed becomes available that

dramatically increases the per–acre yield?

Answer Price and quantity decrease.

Points: 0

188. Multiple Choice: In the market for local coffee, the p...

Question In the market for local coffee, the price will ________ and the quantity will

________ if new coffee shops open and consumers‘ incomes decrease due to a

recession.

Answer increase; be indeterminate

189. Multiple Choice: Suppose the local real estate market ...

Question Suppose the local real estate market is in equilibrium. A recession causes local

household incomes to decline. At the same time, construction of a large

subdivision of new homes has just been completed. Given these two changes, we

can predict the price of real estate will ________ and the quantity of real estate

bought and sold will ________.

Answer fall; fall

190. Multiple Choice: Suppose the market for gasoline is in...

Question Suppose the market for gasoline is in equilibrium. You have heard that the price of

crude oil is falling because of new oil discoveries. You are also aware that the

number of car and truck drivers is steadily rising. Knowing this, you predict that the

price of gasoline will ________ and the quantity of gasoline bought and sold will

________.

Answer rise; rise

191. Multiple Choice: A recent news story reported that OPE…

Points: 0

Question A recent news story reported that OPEC is expected to decrease the supply of oil

next summer. Summer is traditionally a time of increased demand for oil because

of the many families driving and flying to vacation sites. What would be the

combined effect of these two events on the summer market for gasoline?

Answer an increase in the price and the quantity

192. Multiple Choice: Suppose that more police and security…

Question Suppose that more police and security workers become aware that wearing

bulletproof vests can protect them from injury and decide to start wearing

bulletproof vests. At the same time, the price of ceramics used to produce the

vests falls. The equilibrium relative price of bulletproof vests ________ and the

equilibrium quantity produced ________.

Answer increases; increases

193. Multiple Choice: An increase in the price and an ambig...

Question An increase in the price and an ambiguous change in quantity is most likely

caused by:

Answer a shift to the left in demand and no shift in supply.

194. Multiple Choice: Suppose that supply increases and dem…

Question

Points: 0

Suppose that supply increases and demand decreases. What is the most likely

effect on price and quantity?

Answer The price will increase, but quantity may increase, decrease, or stay the

same.

195. Multiple Choice: An ambiguous change in price and a de...

Question An ambiguous change in price and a decrease in quantity are most likely caused

by:

Answer no shift in supply and a shift to the left in demand.

196. Multiple Choice: The cost of sensors used in making di...

Question The cost of sensors used in making digital cameras falls, while a successful ad

campaign makes digital cameras more fashionable. As a result, the equilibrium

relative price of digital cameras ________ and the equilibrium quantity ________.

Answer increases; increases

197. Multiple Choice: A decrease in demand and a decrease i...

Question A decrease in demand and a decrease in supply will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

Points: 0

198. Multiple Choice: An increase in demand and a decrease ...

Question An increase in demand and a decrease in supply will lead to ________ in

equilibrium quantity and ________ in equilibrium price.

Answer a decrease; a decrease

199. Multiple Choice: It is certain that the equilibrium pr...

Question It is certain that the equilibrium price will fall when:

Answer the supply curve and the demand curve both shift to the right.

200. Multiple Choice: It is certain that the equilibrium pr...

Question It is certain that the equilibrium price will rise when:

Answer the supply curve and the demand curve both shift to the right.

201. Multiple Choice: It is certain that the equilibrium qu...

Points: 0

Question It is certain that the equilibrium quantity will fall when:

Answer the supply curve and the demand curve both shift to the right.

202. Multiple Choice: It is certain that the equilibrium qu...

Question It is certain that the equilibrium quantity will rise when:

203. Multiple Choice: Equilibrium quantity will always incr...

Question Equilibrium quantity will always increase if:

204. Multiple Choice: The ________ tomatoes will decrease i...

Question The ________ tomatoes will decrease if fertilizer prices rise.

Answer demand for

Points: 0