Macroeconomics: Chapter 3

According to the law of demand, the quantity of a good demanded in a given time period:

Ceteris paribus, if the price of a digital camera rises, then we can expect:

Ceteris paribus, if the price of Swiss cheese falls, then we will see:

Ceteris paribus, which of the following is most likely to cause an increase in the quantity demanded of candles?

Ceteris paribus, if the price of basketballs rises, then we will see:

Which of the following would generally cause an increase in the demand for automobiles (outward shift in the demand curve or a shift to the right in the demand curve)?

If buyers expect the price of baseballs to fall in the future, then right now (currently) there should be:

Assume Pepsi and Coke are substitutes. An increase in the demand of one will result in:

If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business?

Peanut butter and jelly are complements. A decrease in the price of one will result in:

Given a downward-sloping market demand curve for web design services, if the price of web design services is decreased from $12 per hour to $9 per hour, then:

An increase in the price of a good causes a:

Which of the following is most likely to cause an increase in the quantity supplied of candles (movement along the same curve)?

Which of the following events would cause a rightward shift in the market supply curve for automobiles?

If corn and wheat are alternative pursuits for a farmer, a change in the supply of corn will take place when:

Which of the following can change without shifting either demand or supply curves,

If there is a surplus at a given price, then:

In most markets, the equilibrium price is achieved:

If the quantity demanded of a good is greater than the quantity supplied of the good at the current price, then, in the long run (remember! without govt. intervention/interference in this market),

Assuming the demand curve remains the same, an increase in the number of sellers of running shoes causes equilibrium price to:

Assume peanut butter and jelly are complements. An increase in the price of peanut butter will cause the equilibrium price for jelly to:

A rightward shift of the market supply curve causes equilibrium price to:

Suppose a hurricane hits Florida causing widespread damage to houses and businesses. The governor of Florida places a price ceiling on all building materials to keep the prices reasonable. What is the most likely result?

After a major snowstorm last winter, some college students earned extra money by clearing driveways of snow for $25. Town officials determined that $25 was too high and set a price ceiling of $15 for this service. What is the most likely result?

Assuming Coca-Cola & Pepsi-Cola are substitute goods, the effect of an increase in the price of Coca-Cola would cause which of the following:

Decreasing the level of a subsidy (a supply curve shifter!) to an industry by the government would result in:

The law of supply states that when the price of a commodity rises, the quantity supplied of that commodity rises too and vice versa, ceteris paribus, which means that:

Decreasing a tax on an industry by the government would result in:

When the number of buyers in a market changes, the market-demand curve for goods and services shifts.

A decrease in the price of personal computers would shift the demand curve for personal computers to the right (increase in demand).

There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.