Chapter 3 Econ

Which of the following is consistent with the law of​ demand?

Hospital Room​ (1 day) ​$300----------$325 Hotel Suite​ (1 night) ​$400----------$425

Suppose that at first the price of a bag of coffee is ​$10 and the price of a box of tea is ​$6. ​Then, the price of a bag of coffee changes to ​$20 and the price of a box of tea changes to ​$14. What has happened the money prices and relative prices of these two​ goods?

Indicate whether the following events would cause an​ "increase or a decrease in demand" or an​ "increase or a decrease in the quantity demanded​" for​ cable-based Internet access​ service, which is a normal good. Firms providing wireless​ (an alternative to​ cable) Internet access services reduce their prices. This will cause​ a(n) Firms providing​ cable-based Internet access services reduce their prices. This will cause​ a(n) There is a decrease in the incomes earned by consumers of​ cable-based Internet access services. This will cause​ a(n) Consumers' tastes shift away from using wireless Internet access in favor of​ cable-based Internet access services.

If the price of bacon​ rises, and as a result the demand for sausage​ increases, this implies that these two goods are___ If the price of tennis racquets​ falls, and as a result the demand for tennis balls _______,this implies that these two goods are complements If the price of coffee​ rises, and as a result the demand for sugar​ falls, this implies that these two goods are____ If the price of automobiles_____,and as a result the demand for motorbikes​ falls, this implies that these two goods are substitutes

All of the following pairs of goods are substitutes except

All of the following pairs of goods are complements except

According to the example in the​ book, medical research has shown that grapefruit juice can adversely affect the effectiveness of certain medications. This is likely to affect the demand for grapefruit because According to the same example in the​ book, medical research has shown that grapefruit juice can reduce the effectiveness of certain medications.​ However, there is also evidence that grapefruit consumption can lower cholesterol in young people. The net effect on demand from these two findings

The law of supply states that there is a_________ relationship between the price and _________ ​Thus, as the price increases​,_______ According to the law of​ supply, as the price of the good increases​, it causes________

Which of the following is an implication of the law of​ supply? The law of supply then implies that a___________the supply curve occurs due to a change in market price.

According to the law of​ supply, price and quantity are________ related. When prices​ increase, the quantity supplied________ .

Which of the following will cause an outward​ (rightward) shift in​ supply?

Assume the cost of aluminum used by​ soft-drink companies increases. Which of the following correctly describes the resulting effects in the market for canned soft​ drinks? I. The demand for soft drinks decreases. II. The quantity of soft drinks demanded decreases. III. The supply of soft drinks decreases. IV. The quantity of soft drinks supplied decreases.

Consider the market for laptop computers. Click on the graph to the right to determine how the following event will impact this market. Do this by illustrating the event on the graph and then assess its impact on the equilibrium quantity and the market price. Event​: The number of manufacturers of laptop computers increases.

If the demand and supply curves increase​ (shift outward) by identical proportions then What if the increase in demand were larger than the increase in​ supply? What if the increase in demand were smaller than the increase in​ supply?

Which of the following is consistent with the law of​ demand?

The price of one product in terms of another commodity is called its

A demand schedule

Which of the following would cause a decrease in the demand for fish​?

Which of the following does NOT cause a shift in​ demand?

The law of supply states that

A movement along a supply curve is induced by a change in

Which of the following causes a movement along a supply​ curve?

All of the following will decrease the supply of airline flights except

Given a good sold in a competitive​ market, if the price of an input used to produce that good​ increases, it will lead to

Which of the following will NOT affect the supply of​ trucks?

At the market equilibrium​ price,

Which of the following is true of the activities of ticket​ scalpers?

Suppose a shortage for good A exists. Given this​ information, we know that

Last​ year, the price of steak was ​$4 per pound and the price of salmon was ​$5 per pound. This​ year, the price of steak is ​$6 per pound and the price of salmon is ​$7 per pound. All other things​ equal, and assuming that David purchased both items​ before, what would you expect to happen to his purchases of steak ​(relative to salmon​) this​ year?

If ​Apple's iTunes Music Store increases its​ "fee" for its music​ services, the law of demand predicts

If a bottled of soda and bottled juice are​ substitutes, when the price of the soda​ rises,

Which of the following factors will lead to a shift in the demand​ curve?

According to the​ text, firms encounter rising costs when they attempt to produce more in the same time period. As a​ consequence, they must be offered a higher price to be willing to incur these higher costs. The resulting relationship between price and quantity supplied is

Other things being​ equal, the relationship between price and quantity supplied is

A​ per-unit government tax on producers of a good tends to

When the price of a good​ rises, there is

Another term for the equilibrium price is

The relative price of a good is that price

Which of the following good is an inferior​ good?

an increase in demand occurs when

Which of the following is consistent with the law of​ supply?

The law of supply states that other things being​ equal,

The market supply curve can be derived by

Which of the following will cause an outward​ (rightward) shift in the supply​ curve?

Which of the following would cause an increase in the market supply of​ drones?

A shortage will occur when

A shortage exists