If goods are not rationed according to price, if follows that
some non-price rationing device will be used to ration the goods.
The supply curve for watches
shows the relationship between the price of watches and the quantity of watches supplied.
3. Refer to above Figure, an increase in the price of the product would be represented by a movement from
A to B
The demand by all the consumers of a given good or service is the ________ for the good or service.
market demand
If the price of smartphones was to increase, then
the demand for smartphone apps would decrease.
Which of the following will not shift the demand curve for a good?
an increase in the price of the good
7. Refer to above table, the table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be
63 lbs
8. Refer to above Figure, an increase in population would be represented by a movement from
D1 to D2
9. Refer to above Figure, an increase in price of inputs would be represented by a movement from
S2 to S1
What is the difference between an "increase in demand" and an "increase in quantity demanded"?
An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.
price serves as a
a.
rationing device.
b.
transmitter of information.
c.
means of determining who gets what of the available limited resources and goods.
A change in all of the following variables will change the market demand for a product except
the price of the product
Which of the following is false?
When the U.S. government imposed price ceilings on gasoline, the result was a surplus of gasoline.
Holding everything else constant, an increase in the price of MP3 players will result in
a decrease in the quantity of MP3 players demanded
If in the market for peaches the supply curve has shifted to the left
the supply of peaches has decreased
16. Refer to above Figure, an increase in the price of the product would be represented by a movement from
B to A
17. Refer to above Figure, if the product represented is an inferior good, an increase in income would be represented by a movement from
D2 to D1
A decrease in the price of GPS systems will result in
a smaller quantity of GPS systems supplied
If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will
increase the demand for Gear S2
20. Refer to above Figure, a decrease in the price of a substitute good would be represented by a movement from
D2 to D1
How does the increasing use of digital cameras affect the market for traditional camera film?
The demand curve for traditional camera film shifts to the left.
A supply schedule
is a table that shows the relationship between the price of a product and the quantity of the product supplied.
If the absolute price of a new car is $40,000 and the relative price of a laptop computer in terms of cars is 1/40 of a car, it follows that the absolute price of the laptop is
$1,000
The minimum wage is an example of a
price floor
25. Refer to above Figure, an increase in the number of firms in the market would be represented by a movement from
S1 to S2
A supply schedule
...