A technological advancement for Good A will shift the ________ curve of Good A to the ________, making the equilibrium price ________.
supply; right; decrease
Which of the following could cause the supply curve for the market for oranges to shift to the left?
a severe hurricane in Florida
What would we expect to happen to the price and quantity of Pepsi if the price of Coke increases and Pepsi develops a new technology that makes its production process more efficient?
The equilibrium price will be indeterminate and the equilibrium quantity will go up.
When the price falls, what happens?
There is an increase in demand.
As the owner of a business, Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen. She has noticed, however, that her employees are distracted by being able to watch movies while at work.
As people watch movies, they become less productive and efficient and there is a leftward shift of the supply curve.
Higher input costs
reduce profits
Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to the table below, if the price of nachos is $6, the market will supply ________ nachos.
10
According to the law of demand, all other things being equal,
the quantity demanded falls when the price rises, and the quantity demanded rises when the price falls.
When the government places a tax on a good and all else is held constant, which of the following would most likely happen?
The overall consumption of the good decreases, assuming the good does not have a vertical demand curve.
The government offers numerous educational subsidies through grants and low-cost equipment to schools. They also provide a lot of incentives to go to school. Because of this, we expect that the equilibrium price of education will ________ and the equilibr
be indeterminate; go up
Refer to the accompanying figure. What event would cause the supply curve to shift out?
Firms entered the market.
A decrease in demand is represented by a
shift of the demand curve to the left
If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?
$6 and 4 units
If the price of this good is $2.00, there would be a ________ of ________ units.
shortage; 30
Which of the following scenarios would represent a monopoly?
In a city, there is one Ethiopian restaurant.
When supply shifts right and demand shifts left,
the equilibrium price always falls.
Refer to the table below:
Price of
iPhones Christy's
Demand Lori's
Demand
$700.00 0 0
$650.00 1 0
$500.00 1 1
$450.00 2 1
$300.00 4 2
$275.00 5 3
$250.00 6 4
$100.00 7 4
$50.00 10 5
Assume that the market for iPhones has only two consumers: Christy and Lo
8
Something is an inferior good if the demand for the good
increases as the consumer's income decreases.
After a new technology is introduced, the price typically falls. What is a possible explanation for this?
More firms produce the product.
The demand curve for a good will shift to the right if, holding all else constant,
consumers expect future prices to increase.