Econ Practice 3Le Quiz - MCQGeeks.com

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

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C. increases today.
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A. decide whether the fires affected demand or supply.
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D. Buyers determine demand, and sellers determine supply.
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D. could rise, fall, or remain unchanged.

When quantity demanded has increased at every price, it might be because

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A. a decrease in the price of butter
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A. the price of a complementary good has decreased.
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D. Buyers determine demand, and sellers determine supply.
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a. TRUE

Which of the following would increase in response to a increase in the price of ironing boards? A. the equilibrium price of irons B. the equilibrium quantity of irons C. the quantity of irons demanded at each possible price of irons D. None of the above is correct.

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D. could rise, fall, or remain unchanged.
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D. None of the above is correct.
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D. Buyers determine demand, and sellers determine supply.
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B. production technology.

Price will rise to eliminate a shortage. a. TRUE b. FALSE

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a. TRUE
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b. FALSE
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D. decrease in demand.
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B. production technology.

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change. a. TRUE b. FALSE

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A. the price of a complementary good has decreased.
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D. demand.
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b. FALSE
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a. TRUE

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

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B. Price will fall, and the effect on quantity is ambiguous.
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B. Both the equilibrium price and quantity would increase.
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A. decide whether the fires affected demand or supply.
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D. could rise, fall, or remain unchanged.

The graphs show the demand for cigarettes. In Panel (a), the arrows are consistent with which of the following events?

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D. decrease in the number of commercial bakers.
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C. The price of cigarettes increased.
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C. Point A to Point B
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C. a change in consumer preferences toward watching movies in movie theaters rather than at home

You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought and that this will cause the price of peanuts to double by the end of the year. As a result, your demand for peanut butter

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C. increases today.
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D. decrease in demand.
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D. inferior good.
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A. decide whether the fires affected demand or supply.

Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

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B. Point C to Point D
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C. a change in consumer preferences toward watching movies in movie theaters rather than at home
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A. Panel (a)
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C. Point A to Point B

Which of the following events would cause the price of oranges to fall?

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C. the expected future price of gasoline.
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A. the price of a complementary good has decreased.
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D. Buyers determine demand, and sellers determine supply.
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C. The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges.

All else equal, the approach of Thanksgiving would cause a move from

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D. decrease in the number of commercial bakers.
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A. DB to DA.
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C. Point A to Point B
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B. Point C to Point D

Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

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B. Point C to Point D
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C. Point A to Point B
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C. a change in consumer preferences toward watching movies in movie theaters rather than at home
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A. Panel (a)

Which of the following would cause a movement along the supply curve for cupcakes?

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B. there is a movement along a given supply curve.
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B. the law of demand.
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B. a decrease in the price of cupcakes
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A. a decrease in income, assuming the good is inferior.

A decrease in the price of pizza will shift the supply curve for pizza to the left. a. TRUE b. FALSE

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a. TRUE
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D. inferior good.
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b. FALSE
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A. a decrease in the price of butter

A decrease in the price of sugar will shift the supply curve for cookies to the right. a. TRUE b. FALSE

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b. FALSE
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a. TRUE
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A. a decrease in the price of butter
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D. inferior good.

The line that relates the price of a good and the quantity supplied of that good is called the supply

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D. could rise, fall, or remain unchanged.
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C. the expected future price of gasoline.
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C. curve, and it usually slopes upward.
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A. a decrease in the price of butter

An increase in demand shifts the demand curve to the left. a. TRUE b. FALSE

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a. TRUE
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C. the expected future price of gasoline.
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C. normal goods to decrease.
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b. FALSE

A movement upward and to the left along a given demand curve is called a decrease in demand. a. TRUE b. FALSE

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b. FALSE
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D. demand.
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A. a decrease in the price of butter
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a. TRUE

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

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a. TRUE
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b. FALSE
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C. increases today.
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A. a decrease in the price of butter

If something happens to alter the quantity demanded at any given price, then the demand curve shifts. a. TRUE b. FALSE

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b. FALSE
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a. TRUE
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A. a decrease in the price of butter
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D. demand.

A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: If only members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

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D. decrease in the number of commercial bakers.
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B. $20
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A. DB to DA.
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B. Point C to Point D

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

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B. Quantity will rise, and the effect on price is ambiguous.
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B. Price will fall, and the effect on quantity is ambiguous.
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D. could rise, fall, or remain unchanged.
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A. decide whether the fires affected demand or supply.

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

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B. Price will fall, and the effect on quantity is ambiguous.
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B. Quantity will rise, and the effect on price is ambiguous.
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A. decide whether the fires affected demand or supply.
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D. The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls. a. TRUE b. FALSE

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D. None of the above is correct.
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D. could rise, fall, or remain unchanged.
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b. FALSE
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a. TRUE

The shift from S' to S in the market for chocolate cake could be caused by a(n)

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D. decrease in the number of commercial bakers.
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A. Panel (a)
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D. surplus of 3 units.
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C. The price of cigarettes increased.

The movement from point A to point B on the graph shows a(n)

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B. a decrease in the price of cupcakes
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b. FALSE
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A. increase in quantity demanded.
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B. the law of demand.

If Max experiences a decrease in his income, then we would expect Max's demand for

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A. a decrease in the price of butter
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B. production technology.
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C. normal goods to decrease.
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C. curve, and it usually slopes upward.

At a price of $16, there is a

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C. a change in consumer preferences toward watching movies in movie theaters rather than at home
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C. The price of cigarettes increased.
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D. surplus of 3 units.
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C. Point A to Point B

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

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B. Price will fall, and the effect on quantity is ambiguous.
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B. Both the equilibrium price and quantity would increase.
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A. decide whether the fires affected demand or supply.
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C. increases today.

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

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D. demand.
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b. FALSE
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A. a decrease in the price of butter
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a. TRUE

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

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a. TRUE
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C. increases today.
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b. FALSE
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D. could rise, fall, or remain unchanged.

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks?

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B. Both the equilibrium price and quantity would increase.
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D. None of the above is correct.
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D. The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.
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B. Price will fall, and the effect on quantity is ambiguous.

Each of the following is a determinant of demand except

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D. Buyers determine demand, and sellers determine supply.
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D. for pizza rises when income rises.
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B. production technology.
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C. The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges.

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of

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a. TRUE
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b. FALSE
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D. inferior good.
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D. demand.

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