Multiple Choice Questions

The popularity of digital cameras has enticed large discount stores to offer digital photo printing services. How does this affect the digital photo printing market
  • The supply curve has shifted to the right
  • The supply curve for digital photo printing services shifts to the right
  • The firm has an incentive to decrease supply now and increase supply in the future
  • The supply of peaches has decreased
If a firm expects that the price of its product will be higher in the future than it is today then
  • Quantity demanded equals quantity supplied, the market price will then equal the equilibrium price
  • The firm has an incentive to decrease supply now and increase supply in the future
  • An increase in demand is a rightward shift of the curve while increase in quantity demanded is a movement along the curve
  • The price of the good changes
A change in all of the following variables will change the market demand for the product except the
  • Normal good
  • Inferior good
  • Market demand
  • Price
Hurricanes ruined orange crops resulting in a shortage of oranges. If they tried to sell oranges at the pre hurricane cost we would expect to see
  • A decrease in the quantity of MP3 players demanded
  • Decrease in quantity demanded
  • A shortage of oranges
  • Decrease in the price of cattle
Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are
  • Decrease in quantity demanded
  • Increase demand for the Galaxy tab
  • Complements in consumption
  • The price of the good changes
If the quantity supplied exceeds the quantity demanded the market price will fall until
  • Quantity demanded equals quantity supplied
  • Increase demand for the Galaxy tab
  • The firm has an incentive to decrease supply now and increase supply in the future
  • Quantity demanded equals quantity supplied, the market price will then equal the equilibrium price
The demand by all the consumers of a given good or service is the ___ for the good or service
  • Normal good
  • Inferior good
  • Quantity demanded equals quantity supplied, the market price will then equal the equilibrium price
  • Market demand
By drawing the demand curve with ___ on the vertical axis and ___ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ___
  • Price ; quantity ; price
  • A shortage of oranges
  • Complements in consumption
  • Decrease in quantity demanded
A decrease in the price of gps systems will result in
  • Quantity demanded equals quantity supplied
  • The supply curve has shifted to the right
  • A smaller quantity of gps systems supplied
  • Decrease in the price of a complementary good
Which of the following will shift the demand curve for a goid
  • Decrease in the price of a complementary good
  • Quantity demanded equals quantity supplied
  • Decrease in the price of an input used to produce them
  • Decrease in the price of cattle
Holding everything else constant, an increase in the price of MP3 players would result in
  • Decrease in the price of an input used to produce them
  • Decrease in the price of a complementary good
  • A decrease in the quantity of MP3 players demanded
  • An increase in demand is a rightward shift of the curve while increase in quantity demanded is a movement along the curve
What is the difference between increase in demand and increase in quantity demanded
  • Increase in supply means the supply curve has shifted to the right while increase in quantity supplied refers to a movement along the curve in response to price
  • Decrease in the price of an input used to produce them
  • A decrease in the quantity of MP3 players demanded
  • An increase in demand is a rightward shift of the curve while increase in quantity demanded is a movement along the curve
A movement along the demand curve for toothpaste would be caused by
  • A change in the price of toothpaste
  • Decrease in the price of cattle
  • The demand curve for new books shifts to the left
  • Decrease in the price of a complementary good
If a demand curve shifts to the right then
  • Demand has increased
  • A smaller quantity of gps systems supplied
  • Market demand
  • Complements in consumption
If the Apple iPad and Galaxy tab are substitutes, then, other things equal, an increase in the price of the iPad will
  • Increase demand for the Galaxy tab
  • Decrease in quantity demanded
  • Decrease in the price of cattle
  • Quantity demanded equals quantity supplied
The Internet has created a new category in the book selling market called "barely used" how does the availability of barely used books affect the market for new books
  • The demand curve for new books shifts to the left
  • The supply curve for digital photo printing services shifts to the right
  • The supply curve has shifted to the right
  • A change in the price of toothpaste
Ranchers can raise either sheep or cattle, which of the following would cause the supply of sheep to increase
  • Decrease in the price of a complementary good
  • Decrease in the price of an input used to produce them
  • Decrease in quantity demanded
  • Decrease in the price of cattle
One would speak of change in the quantity of a good supplied rather than a change in supply if
  • The price of the good changes
  • The supply of peaches has decreased
  • Decrease in quantity demanded
  • Decrease in the price of cattle
At a products equilibrium price
  • The firm has an incentive to decrease supply now and increase supply in the future
  • The supply curve for digital photo printing services shifts to the right
  • The products demand curve crosses the products supply curve
  • The supply curve has shifted to the right
If, in response to an increase in the price of chocolate, the quantity demanded of chocolate decreases, economists would describe this as
  • Decrease in the price of cattle
  • Decrease in the price of an input used to produce them
  • Increase demand for the Galaxy tab
  • Decrease in quantity demanded
If in the market for peaches the supply curve has shifted to the left
  • The supply of peaches has decreased
  • The price of the good changes
  • Decrease in the price of a complementary good
  • The supply curve has shifted to the right
Which of the following would shift the supply curve for MP3 players to the right
  • Decrease in the price of an input used to produce them
  • Decrease in the price of cattle
  • Quantity demanded equals quantity supplied
  • Decrease in the price of a complementary good
Which of the following is the correct way to describe equilibrium in the market
  • Quantity demanded equals quantity supplied, the market price will then equal the equilibrium price
  • Decrease in the price of an input used to produce them
  • Quantity demanded equals quantity supplied
  • Decrease in the price of a complementary good
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Multiple Choice Questions
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