Review terms and definitions
Focus your studying with a path
Take a practice test
Get faster at matching termsHow do you want to study today?
Flashcards
Learn
Test
Match
Terms in this set (14)
If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will
decrease the demand for the iPhone.
increase the demand for the Galaxy.
increase the quantity demanded for the
Galaxy.
increase the quantity demanded for the iPhone.
increase the demand for the Galaxy.
If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as
a decrease in demand.
a decrease in quantity demanded.
a change in consumer income.
a decrease in consumers' taste for chocolate.
a decrease in quantity demanded.
The law of demand implies, holding everything else constant, that
as the price of bagels increases, the quantity of bagels demanded will decrease.
as the price of bagels increases, the demand for bagels will decrease.
as the price of bagels increases, the quantity of bagels demanded will increase.
as the price of bagels increases, the demand for bagels will increase.
as the price of bagels increases, the quantity of bagels demanded will decrease.
If a demand curve shifts to the left, then
demand has increased.
quantity demanded has increased.
demand has decreased.
quantity demanded has decreased.
demand has decreased.
Which of the following would cause a decrease in the supply of milk?
an increase in the price of cookies (assuming that milk and cookies are complements)
a decrease in the price of milk
an increase the price of a product that producers sell instead of milk
an increase in the number of firms that produce milk
an increase the price of a product that producers sell instead of milk
In October, market analysts predict that the price of platinum will fall in
November. What happens in the platinum market in October, holding everything else constant?
The supply curve shifts to the right.
The supply curve shifts to the left.
The quantity demanded and the quantity supplied of platinum increase.
The demand curve shifts to the right.
The supply curve shifts to the right.
In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.?
The supply curve shifted to the left.
The supply curve shifted to the right.
The demand curve shifted to the right.
The demand curve shifted to the left.
The supply curve shifted to the left.
Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintenance services affected by this?
There is an increase in the supply of pool maintenance services.
There is a decrease in the demand for pool maintenance services.
There is a decrease in the quantity of pool maintenance services supplied.
There is a decrease in the supply of pool maintenance
services.
There is a decrease in the supply of pool maintenance services.
In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops. In the market for citrus fruit
the supply curve shifted to the right resulting in an increase in the equilibrium price.
the supply curve shifted to the left resulting in an increase in the equilibrium price.
the demand curve shifted to
the right resulting in an increase in the equilibrium price.
the demand curve shifted to the left resulting in a decrease in the equilibrium price.
the supply curve shifted to the left resulting in an increase in the equilibrium price.
Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?
a decrease in the price of
flour
an increase in the price of flour
an increase in the price of rye bread, a substitute for white bread
an increase in the price of butter, a complement for white bread
a decrease in the price of flour
An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery. The first development concerned side effects from the surgery, including blurred vision. The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries, these two developments
decreased demand and decreased supply, resulting in a decrease in the equilibrium quantity and an increase in the equilibrium price of laser eye surgeries.
decreased demand and increased supply resulting in an increase in both the equilibrium quantity and the equilibrium price of laser eye
surgeries.
decreased demand and increased supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of laser eye surgeries.
decreased demand and increased supply, resulting in a decrease in both the equilibrium price and the equilibrium quantity of laser eye surgeries.
decreased demand and increased supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of laser eye surgeries.
An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise. Holding everything else constant, how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)?
The supply of gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
The demand for
gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.
The demand for gasoline-powered automobiles would decrease because consumers could afford to buy fewer gasoline-powered automobiles.
The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.
In a perfectly competitive market, there are ________ buyers and ________ sellers.
many; few
few; many
many; many
few; few
many; many
In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many orange growers were not able to supply fruit to the market. At the pre-hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see
a surplus of oranges.
the quantity demanded equal to the quantity supplied.
a shortage of oranges.
an increase in the demand for oranges.
a shortage of oranges.
Recommended textbook solutionsPrinciples of Microeconomics
7th EditionN. Gregory Mankiw
830 solutions
Principles of Economics
1st EditionTimothy Taylor
895 solutions
Macroeconomics
21st EditionCampbell R. McConnell, Sean M. Flynn, Stanley L. Brue
549 solutions
Microeconomics
8th EditionDaniel Rubinfeld, Robert Pindyck
376 solutions
Sets with similar termsChapters 3 and 4 Supply and Demand
25 terms
juliabourassa
Lesson 3 ECON 104
30 terms
amanda_sab5
Econ 202 Chapter 5 Quizzes
25 terms
camdenwolf
Homework 3
20 terms
whitneynouhan13
Sets found in the same folderMicro econ Chapter 1
18 terms
justin_m_aldrich
Chapter 2 Micro econ
15 terms
justin_m_aldrich
chapter 4 micro econ
5 terms
justin_m_aldrich
chapter 4 micro econ
12 terms
justin_m_aldrich
Other sets by this creatorBA 370 Business Information Systems Vipin final
68 terms
justin_m_aldrich
BA 333 Final CH: 21-28
72 terms
justin_m_aldrich
comm 111 final
51 terms
justin_m_aldrich
ethics relativism
8 terms
justin_m_aldrich
Verified questionsECONOMICS
What is the role of the IRS in relationship to federal taxes?
Verified answer
ECONOMICS
When workers' wages rise, their decision about how much time to spend working is affected in two conflicting ways-as you may have learned in courses in microeconomics. The income effect is the impulse to work less because greater incomes mean workers can afford to consume more leisure. The substitution effect is the impulse to work more because the reward for working an additional hour has risen (equivalently, the opportunity cost of leisure has gone up). Apply these concepts to Blanchard's hypothesis about American and European tastes for leisure. On which side of the Atlantic do income effects appear larger than substitution effects? On which side do the two effects approximately cancel? Do you think it is a reasonable hypothesis that tastes for leisure vary by geography? Why or why not?
Verified answer
ECONOMICS
In contrast to the capital asset pricing model, arbitrage pricing theory: a. Requires that markets be in equilibrium. b. Uses risk premiums based on micro variables. c. Specifies the number and identifies specific factors that determine expected returns. d. Does not require the restrictive assumptions concerning the market portfolio.
Verified answer
QUESTION
Define inflation, and explain why an increase in the price of donuts does not indicate that inflation has occurred.
Verified answer
Other Quizlet setsKIN 270
22 terms
Julissa-Salmon
Nutrition Final
82 terms
kaitlyn37382
Bio 2 exam 1
60 terms
mae11022
Corrections Final
193 terms
Alessia_Giancaspro
Related questionsQUESTION
If you were to make 5% interest on your savings in a bank account, using the Rule of 70 your money will double in value
2 answers
QUESTION
this change in planned investment spending occurs because the higher interest rates mean that
5 answers
QUESTION
If Americans want to purchase more European imports, then the...
9 answers
QUESTION
The Federal Reserve System has the greatest amount of direct control over:
3 answers