The Kansas market for corn is considered a competitive market. This means there are ________ buyers and ________ sellers of corn in Kansas.
a) few; many
b) few; few
c) many; many
d) many; few
c) many; many
The law of demand states that, other things equal:
a) as the price increases, the quantity demanded will decrease.
b) as the price increases, the demand will decrease.
c) as the price increases, the quantity demanded will increase.
d) as the price decreas
a) as the price increases, the quantity demanded will decrease.
Which of the following factors cause a movement along the demand curve?
a) change in the price of the good
b) change in the prices of related goods
c) change in the population
d) both a change in the price of the good and a change in the population
a) change in the price of the good
Raclette 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:
a) an increase in demand for the cheese and for new potatoes.
b) an increase i
b) an increase in demand for new potatoes.
When the economy suffers a downturn, vacationers are more likely to take car trips than to fly. Which of the following provides the most reasonable explanation for this phenomenon?
a) Air travel is a normal good and vacation travel by car is an inferior g
a) Air travel is a normal good and vacation travel by car is an inferior good.
A shift of the demand curve for Luis's Pizza would not be caused by a change in the:
a) popularity of Luis's Pizza.
b) price of Humberto's Pizza.
c) buyers' incomes.
d) price of Luis's Pizza.
d) price of Luis's Pizza.
If goods A and B are substitutes, a decrease in the price of good B will:
a) decrease the demand for good A.
b) increase the demand for good A.
c) increase the demand for good B and decrease the demand for good A.
d) increase the demand for good B.
a) decrease the demand for good A.
Suppose oranges and clementines are considered to be substitutes. Holding everything else constant, if the price of oranges increases, then the:
a) demand for clementines will increase.
b) demand for clementines will decrease.
c) demand for oranges will i
a) demand for clementines will increase.
If goods A and Z are complements, an increase in the price of good Z will:
a) increase the demand for good A.
b) decrease the demand for good Z.
c) decrease the demand for good A and decrease the demand for good Z.
d) decrease the demand for good A.
d) decrease the demand for good A.
The law of demand is illustrated when:
a) higher incomes cause more people to adopt golf as a sport.
b) an increase in tuition encourages more students to enroll in college because the quality of education has risen.
c) higher oil prices causes oil compan
d) an increase in the purchases of personal computers results from lower prices.
Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:
a) a decrease in the demand for beef.
b) a decrease in the quantity demanded of beef.
c) an increase in the demand for beef.
d) no change in
a) a decrease in the demand for beef.
If Benjamin considers sushi to be a normal good, then this would mean that if his income increases by 20%, his purchases of sushi will:
a) decrease by 20%.
b) not change.
c) decrease.
d) increase.
d) increase.
Which of the following would shift the demand curve for new textbooks to the right?
a) a fall in the price of new textbooks
b) a decrease in the price of paper
c) an increase in college enrollments
d) a fall in the price of used textbooks
c) an increase in college enrollments
The ________ apples will decrease due to higher apple prices.
a) quantity demanded of
b) equilibrium for
c) supply for
d) demand for
a) quantity demanded of
Which of the following influences does not shift the supply curve?
a) development of new technology
b) a rise in the wages paid to workers
c) people deciding that they want to buy more of the product
d) a decrease in the price firms expect to receive in t
c) people deciding that they want to buy more of the product
Consider the supply curve for cotton shirts. An increase in the price of cotton will:
a) decrease the demand for cotton shirts.
b) not shift the supply curve for cotton shirts.
c) decrease the supply of cotton shirts.
d) increase the supply of cotton shir
c) decrease the supply of cotton shirts.
A decrease in supply means:
a) less will be demanded at every price.
b) moving downward (to the left) along the supply curve with lower prices.
c) more will be supplied at every price.
d) a shift to the left of the entire supply curve.
d) a shift to the left of the entire supply curve.
The primary difference between a change in supply and a change in the quantity supplied is that:
a) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
b) a change in quantity suppl
b) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.
If the price of mozzarella cheese (an ingredient in pizza) declines due to a major technological breakthrough in the dairy industry, there would be:
a) an increase in the supply of pizza.
b) a decrease in the supply of pizza.
c) no change in the supply of
a) an increase in the supply of pizza.
Which of the following is most likely to shift the supply of milk to the right?
a) a tax on each gallon of milk produced
b) a decrease in the price of feed given to dairy cows
c) an increase in household income and milk is a normal good
d) the bankruptcy
b) a decrease in the price of feed given to dairy cows
Assume that corn is an input in the production of beef but not in the production of pork. Further, beef and pork are substitutes. A decrease in the price of corn will:
a) decrease the supply of beef and decrease the demand for pork.
b) increase the supply
b) increase the supply of beef and decrease the demand for pork.
In the market for corn tortilla chips, what would cause a price increase?
a) There is a technological advancement in the tortilla chip production process.
b) Your doctor tells you that you cannot have junk food anymore.
c) The price of salsa triples.
d) T
d) There is a fungus that kills much of the corn crop in Nebraska.
In the local market for coffee, what would happen if Joyce's Java and Everyday Joe's coffee shops go out of business?
a) The supply curve shifts to the left.
b) The demand curve shifts to the left.
c) The supply curve shifts to the right.
d) The demand cu
a) The supply curve shifts to the left.
In the market for local Starbucks coffee, the price will ________ and the quantity will ________ if D�j� Vu Coffeehouse opens nearby and consumers' incomes decrease due to a recession.
a) be indeterminate; increase
b) be indeterminate; decrease
c) increas
d) decrease; be indeterminate
The market for corn is currently in equilibrium. Which of the following is most likely to increase the equilibrium price of corn?
a) decreasing household incomes and corn is a normal good
b) increasing production of corn-based ethanol
c) a subsidy given b
b) increasing production of corn-based ethanol
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.
a) a rise; a decrease
b) a fall; an increase
c) a fall; a d
d) a rise; an increase
A new wonder diet that results in a dramatic loss of weight 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 expec
c) an increase in the demand for beef, leading to a shift to the right in the demand curve for beef and higher beef prices.
The Kansas market for corn is considered a competitive market. This means there are ________ buyers and ________ sellers of corn in Kansas.
a) few; many
b) few; few
c) many; many
d) many; few
c) many; many
The law of demand states that, other things equal:
a) as the price increases, the quantity demanded will decrease.
b) as the price increases, the demand will decrease.
c) as the price increases, the quantity demanded will increase.
d) as the price decreas
a) as the price increases, the quantity demanded will decrease.
Which of the following factors cause a movement along the demand curve?
a) change in the price of the good
b) change in the prices of related goods
c) change in the population
d) both a change in the price of the good and a change in the population
a) change in the price of the good
Raclette 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:
a) an increase in demand for the cheese and for new potatoes.
b) an increase i
b) an increase in demand for new potatoes.
When the economy suffers a downturn, vacationers are more likely to take car trips than to fly. Which of the following provides the most reasonable explanation for this phenomenon?
a) Air travel is a normal good and vacation travel by car is an inferior g
a) Air travel is a normal good and vacation travel by car is an inferior good.
A shift of the demand curve for Luis's Pizza would not be caused by a change in the:
a) popularity of Luis's Pizza.
b) price of Humberto's Pizza.
c) buyers' incomes.
d) price of Luis's Pizza.
d) price of Luis's Pizza.
If goods A and B are substitutes, a decrease in the price of good B will:
a) decrease the demand for good A.
b) increase the demand for good A.
c) increase the demand for good B and decrease the demand for good A.
d) increase the demand for good B.
a) decrease the demand for good A.
Suppose oranges and clementines are considered to be substitutes. Holding everything else constant, if the price of oranges increases, then the:
a) demand for clementines will increase.
b) demand for clementines will decrease.
c) demand for oranges will i
a) demand for clementines will increase.
If goods A and Z are complements, an increase in the price of good Z will:
a) increase the demand for good A.
b) decrease the demand for good Z.
c) decrease the demand for good A and decrease the demand for good Z.
d) decrease the demand for good A.
d) decrease the demand for good A.
The law of demand is illustrated when:
a) higher incomes cause more people to adopt golf as a sport.
b) an increase in tuition encourages more students to enroll in college because the quality of education has risen.
c) higher oil prices causes oil compan
d) an increase in the purchases of personal computers results from lower prices.
Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:
a) a decrease in the demand for beef.
b) a decrease in the quantity demanded of beef.
c) an increase in the demand for beef.
d) no change in
a) a decrease in the demand for beef.
If Benjamin considers sushi to be a normal good, then this would mean that if his income increases by 20%, his purchases of sushi will:
a) decrease by 20%.
b) not change.
c) decrease.
d) increase.
d) increase.
Which of the following would shift the demand curve for new textbooks to the right?
a) a fall in the price of new textbooks
b) a decrease in the price of paper
c) an increase in college enrollments
d) a fall in the price of used textbooks
c) an increase in college enrollments
The ________ apples will decrease due to higher apple prices.
a) quantity demanded of
b) equilibrium for
c) supply for
d) demand for
a) quantity demanded of
Which of the following influences does not shift the supply curve?
a) development of new technology
b) a rise in the wages paid to workers
c) people deciding that they want to buy more of the product
d) a decrease in the price firms expect to receive in t
c) people deciding that they want to buy more of the product
Consider the supply curve for cotton shirts. An increase in the price of cotton will:
a) decrease the demand for cotton shirts.
b) not shift the supply curve for cotton shirts.
c) decrease the supply of cotton shirts.
d) increase the supply of cotton shir
c) decrease the supply of cotton shirts.
A decrease in supply means:
a) less will be demanded at every price.
b) moving downward (to the left) along the supply curve with lower prices.
c) more will be supplied at every price.
d) a shift to the left of the entire supply curve.
d) a shift to the left of the entire supply curve.
The primary difference between a change in supply and a change in the quantity supplied is that:
a) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
b) a change in quantity suppl
b) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.
If the price of mozzarella cheese (an ingredient in pizza) declines due to a major technological breakthrough in the dairy industry, there would be:
a) an increase in the supply of pizza.
b) a decrease in the supply of pizza.
c) no change in the supply of
a) an increase in the supply of pizza.
Which of the following is most likely to shift the supply of milk to the right?
a) a tax on each gallon of milk produced
b) a decrease in the price of feed given to dairy cows
c) an increase in household income and milk is a normal good
d) the bankruptcy
b) a decrease in the price of feed given to dairy cows
Assume that corn is an input in the production of beef but not in the production of pork. Further, beef and pork are substitutes. A decrease in the price of corn will:
a) decrease the supply of beef and decrease the demand for pork.
b) increase the supply
b) increase the supply of beef and decrease the demand for pork.
In the market for corn tortilla chips, what would cause a price increase?
a) There is a technological advancement in the tortilla chip production process.
b) Your doctor tells you that you cannot have junk food anymore.
c) The price of salsa triples.
d) T
d) There is a fungus that kills much of the corn crop in Nebraska.
In the local market for coffee, what would happen if Joyce's Java and Everyday Joe's coffee shops go out of business?
a) The supply curve shifts to the left.
b) The demand curve shifts to the left.
c) The supply curve shifts to the right.
d) The demand cu
a) The supply curve shifts to the left.
In the market for local Starbucks coffee, the price will ________ and the quantity will ________ if D�j� Vu Coffeehouse opens nearby and consumers' incomes decrease due to a recession.
a) be indeterminate; increase
b) be indeterminate; decrease
c) increas
d) decrease; be indeterminate
The market for corn is currently in equilibrium. Which of the following is most likely to increase the equilibrium price of corn?
a) decreasing household incomes and corn is a normal good
b) increasing production of corn-based ethanol
c) a subsidy given b
b) increasing production of corn-based ethanol
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.
a) a rise; a decrease
b) a fall; an increase
c) a fall; a d
d) a rise; an increase
A new wonder diet that results in a dramatic loss of weight 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 expec
c) an increase in the demand for beef, leading to a shift to the right in the demand curve for beef and higher beef prices.