Microeconomics Quiz 1

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

A demand curve shows the relationship between:

If, in response to an increase in the price of chocolate, the quantity demanded of chocolate decreases economists would describe this as:

The law of demand implies, holding everything else constant, that:

The phrase "demand has increased" means that:

Which of the following will not shift the demand curve for a good?

A movement along the demand curve for toothpaste would be caused by:

Suppose that when the price of hamburgers decreases, the Ruiz family increase their purchases of ketchup:

A supply schedule:

If in the market for apples the supply has decreased then:

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

One would speak of a movement along a supply curve for a good, rather than a change in supply, if:

Which of the following would cause a decrease in the supply of milk?

Which of the following would shift the supply curve for MP3 players to the right?

The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions:

An electronics manufacturer can produce either MP3 players or cell phones. As the result of a decrease in the price of cell phones, the firm produces more MP3 players and fewer cell phones. An economist would explain this by saying

If the market for blue tooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will

When there is a surplus of a product in an unregulated market, there is a tendency for:

Which of the following will definitely occur when there is a simultaneous increase in demand and an increase in supply?

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Which of the following will definitely occur when there is a decrease in demand for and an increase in supply of potato chips?

SCENARIO 3.2: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves. Refer to Scenario 3.2. As a result of the recall, you would expect that:

SCENARIO 3.2: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves. Refer to Scenario 3.2. The mustard recall would have caused the equilibrium price of mayonnaise to ________ and the equilibrium quantity of mayonnaise to ________.

SCENARIO 3.2: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves. Refer to Scenario 3.2. If at the same time of the mustard recall, consumer income also decreased. Then, ceteris paribus, in the market for mustard this would have caused:

The demand curve diagram has: