Exam 3: Where Prices Come From: the Interaction of Demand and Supply

If some consumers are 'first adopters', that is, they value having the latest technology products, a firm introduces new products because:

(Multiple Choice)

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Question 21

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

(Multiple Choice)

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Question 22

An increase in consumer income causes a decrease in the demand for soft drinks (an inferior good here), accompanied by an increase in the supply of soft drinks as a result of falling sweetener prices, will result in:

(Multiple Choice)

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Question 23

If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase.

(True/False)

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Question 24

If a demand curve shifts to the right, then:

(Multiple Choice)

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Question 25

If the quantity of chocolate demanded decreases as the price of chocolate increases, economists would describe this as:

(Multiple Choice)

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Question 26

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that:

(Multiple Choice)

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Question 27

If an increase in leather prices caused a decrease in the supply of baseball gloves, ________.

(Multiple Choice)

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Question 28

Figure 3.1 -Refer to Figure 3.1. An increase in the expected future price of the product would be represented by a movement from:

(Multiple Choice)

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Question 29

Which of the following is evidence of a shortage of macadamias?

(Multiple Choice)

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Question 30

In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?

(Multiple Choice)

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Question 31

What is the difference between a 'supply schedule' and a 'supply curve'? _ _

(Essay)

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Question 32

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

(Multiple Choice)

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Question 33

A positive technological change will cause the supply of a good to increase.

(True/False)

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Question 34

'Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase. This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right.' Which of the following correctly comments on this statement?

(Multiple Choice)

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Question 35

Figure 3.5 -Refer to Figure 3.5. At a price of $10, the quantity sold is:

(Multiple Choice)

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Question 36

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for rice. What happens in this market if buyers expect the price of rice to fall?

(Multiple Choice)

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Question 37

The law of demand implies, holding everything else constant, that as the price of ice cream:

(Multiple Choice)

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Question 38

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?

(Multiple Choice)

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Question 39

The 'income effect' of a price change refers to the impact of a change in:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 201

If some consumers are 'first adopters', that is, they value having the latest technology products, a firm introduces new products because:

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

An increase in consumer income causes a decrease in the demand for soft drinks (an inferior good here), accompanied by an increase in the supply of soft drinks as a result of falling sweetener prices, will result in:

If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase.

If a demand curve shifts to the right, then:

If the quantity of chocolate demanded decreases as the price of chocolate increases, economists would describe this as:

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that:

If an increase in leather prices caused a decrease in the supply of baseball gloves, ________.

Figure 3.1 -Refer to Figure 3.1. An increase in the expected future price of the product would be represented by a movement from:

Which of the following is evidence of a shortage of macadamias?

In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?

What is the difference between a 'supply schedule' and a 'supply curve'? _ _

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

A positive technological change will cause the supply of a good to increase.

Figure 3.5 -Refer to Figure 3.5. At a price of $10, the quantity sold is:

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for rice. What happens in this market if buyers expect the price of rice to fall?

The law of demand implies, holding everything else constant, that as the price of ice cream:

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?

The 'income effect' of a price change refers to the impact of a change in:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 3: Where Prices Come From: the Interaction of Demand and Supply

If some consumers are 'first adopters', that is, they value having the latest technology products, a firm introduces new products because:

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

An increase in consumer income causes a decrease in the demand for soft drinks (an inferior good here), accompanied by an increase in the supply of soft drinks as a result of falling sweetener prices, will result in:

If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase.

If a demand curve shifts to the right, then:

If the quantity of chocolate demanded decreases as the price of chocolate increases, economists would describe this as:

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that:

If an increase in leather prices caused a decrease in the supply of baseball gloves, ________.

Figure 3.1 -Refer to Figure 3.1. An increase in the expected future price of the product would be represented by a movement from:

Which of the following is evidence of a shortage of macadamias?

In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?

What is the difference between a 'supply schedule' and a 'supply curve'? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

A positive technological change will cause the supply of a good to increase.

Figure 3.5 -Refer to Figure 3.5. At a price of $10, the quantity sold is:

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for rice. What happens in this market if buyers expect the price of rice to fall?

The law of demand implies, holding everything else constant, that as the price of ice cream:

Figure 3.7 -Refer to Figure 3.7. Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?

The 'income effect' of a price change refers to the impact of a change in:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

What is the difference between a 'supply schedule' and a 'supply curve'? _ _