Angel Rocha
New member
The law of demand states that, other things equal
as the price increases, the quantity demanded will increase.
as the price decreases, the demand curve will shift to the right.
as the price increases, the demand will decrease.
as the price increases, the quantity demanded will decrease
2Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of this cheese decreased, we would expect:
an increase in demand for the cheese.
an increase in demand for new potatoes.
there to be no effect on the demand for either of the Raclette ingredients, since this is a traditional dish and its consumption does not depend on the prices of the ingredients.
an increase in demand for the cheese and for new potatoes.
Question 3
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 of peanut butter as incomes fall during an economic recession? The price would increase and the quantity would decrease.
The price and quantity would both increase.
The price and quantity would both decrease.
The price would decrease and the quantity would increase.
4
A good is normal if: when income increases, the demand remains unchanged.
when income increases, the demand decreases.
when income increases, the demand increases.
income and the demand are unrelated.
5
The primary difference between a change in demand and a change in the quantity demanded is: a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve.
both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
6
Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be: an increase in the demand for beef.
a decrease in the demand for beef.
a decrease in the quantity demanded of beef.
no change in the demand for beef.
7Given a supply curve for armchairs, when the price of armchairs increases, the: quantity supplied increases.
supply increases.
quantity supplied decreases.
supply decreases.
8Which of the following will not cause an increase in the supply of cornflakes? an increase in the price of cornflakes
a cost-saving improvement in the technology of corn production
a reduction in the price of corn
the expectation by producers that the price of cornflakes will fall in the future, because they anticipate the release of a government report that claims that oat bran is healthier than cornflakes
Question 14 A technological advance in the production of automobiles will: increase the demand for automobiles.
increase the supply of automobiles.
decrease the demand for automobiles.
decrease the supply of automobiles.
_Question 19 The primary difference between a change in supply and a change in the quantity supplied is that: a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.
both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply.
a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.
20.Market equilibrium occurs when: there is no incentive for prices to change in the market.
quantity demanded equals quantity supplied.
the market clears.
there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.
24Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price that it charges for its motorcycles, we can expect: a shift to the right in the supply curve of Hondas and lower prices for Hondas.
a shift to the left in the supply curve of Hondas and higher prices for Hondas.
a shift to the right in the demand curve for Hondas and higher prices for Hondas.
a shift to the left in the demand curve for Hondas and lower prices for Hondas.
as the price increases, the quantity demanded will increase.
as the price decreases, the demand curve will shift to the right.
as the price increases, the demand will decrease.
as the price increases, the quantity demanded will decrease
2Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of this cheese decreased, we would expect:
an increase in demand for the cheese.
an increase in demand for new potatoes.
there to be no effect on the demand for either of the Raclette ingredients, since this is a traditional dish and its consumption does not depend on the prices of the ingredients.
an increase in demand for the cheese and for new potatoes.
Question 3
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 of peanut butter as incomes fall during an economic recession? The price would increase and the quantity would decrease.
The price and quantity would both increase.
The price and quantity would both decrease.
The price would decrease and the quantity would increase.
4
A good is normal if: when income increases, the demand remains unchanged.
when income increases, the demand decreases.
when income increases, the demand increases.
income and the demand are unrelated.
5
The primary difference between a change in demand and a change in the quantity demanded is: a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve.
both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
6
Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be: an increase in the demand for beef.
a decrease in the demand for beef.
a decrease in the quantity demanded of beef.
no change in the demand for beef.
7Given a supply curve for armchairs, when the price of armchairs increases, the: quantity supplied increases.
supply increases.
quantity supplied decreases.
supply decreases.
8Which of the following will not cause an increase in the supply of cornflakes? an increase in the price of cornflakes
a cost-saving improvement in the technology of corn production
a reduction in the price of corn
the expectation by producers that the price of cornflakes will fall in the future, because they anticipate the release of a government report that claims that oat bran is healthier than cornflakes
Question 14 A technological advance in the production of automobiles will: increase the demand for automobiles.
increase the supply of automobiles.
decrease the demand for automobiles.
decrease the supply of automobiles.
_Question 19 The primary difference between a change in supply and a change in the quantity supplied is that: a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.
both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply.
a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.
20.Market equilibrium occurs when: there is no incentive for prices to change in the market.
quantity demanded equals quantity supplied.
the market clears.
there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.
24Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price that it charges for its motorcycles, we can expect: a shift to the right in the supply curve of Hondas and lower prices for Hondas.
a shift to the left in the supply curve of Hondas and higher prices for Hondas.
a shift to the right in the demand curve for Hondas and higher prices for Hondas.
a shift to the left in the demand curve for Hondas and lower prices for Hondas.