Micro: Chapter 3 Quizzes

What effect will each of the following have on the supply of auto tires? a. A technological advance in the methods of producing tires. b. A decline in the number of firms in the tire industry. c. An increase in the prices of rubber used in the production of tires. d. The expectation that the equilibrium price of auto tires will be lower in the future than currently. e. A decline in the price of the large tires used for semi trucks and earth-hauling rigs (with no change in the price of auto tires). f. The levying of a per-unit tax on the producer for each auto tire sold. g. The granting of a 50-cent-per-unit subsidy for each auto tire produced.

Which of the following will cause the demand curve for product A to shift to the left?

From Chart 3.A a. Which buyer demands the most at a price of $7? b. Which buyer's quantity demanded increases the least when the price is lowered from $7 to $6? c. Which direction would the market demand curve shift if Tex withdrew from the market? d. What if Dex doubled his purchases at each possible price? e. Suppose that at a price of $6, the total quantity demanded increases from 23 to 33 units. Is this a 'change in the quantity demanded' or a 'change in demand'?

From Diagram 3.B Which would cause the change in the demand for coffee illustrated by the shift from D1 to D2?

If the price of product L increases, the demand curve for close-substitute product J will:

An increase in the price of product A will:

From Diagram 3.B A decrease in quantity demanded is depicted by a:

Indicate whether a change in the value of each of the following determinants of demand leads to a movement along the demand curve or a shift in the demand curve. i. Change in market price: ii. Change in income: iii. Change in consumer expectations: iv. Change in the price of a related good: v. Change in technology: vi. Change in factor prices:

How do you derive a market supply curve from individual supply curves?

Which statement is consistent with the law of supply?

Which of the following will not cause the demand for product K to change?

In 2007 the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:

Which statement is consistent with the law of demand?

Which of the following characteristics lead to a downward-sloping demand curve?

How do you derive a market demand curve from individual demand curves?

An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the assumption that:

The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is _____.

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Smart car? a. Small automobiles become more fashionable b. The price of large automobiles rises (with the price of small autos remaining the same). c. Income declines and small autos are an inferior good. d. Consumers anticipate that the price of small autos will greatly come down in the near future. e. The price of gasoline substantially drops.

A rightward shift in the demand curve for product C might be caused by:

Indicate whether a change in the value of each of the following determinants of supply leads to a movement along the supply curve or a shift in the supply curve. i. Change in market price: ii. Change in factor productivity: iii. Change in producer expectations: iv. Change in the price of a related good v. Change in technology: vi. Change in factor prices vii. Change in taxes:

In which of the following statements are the terms "demand" and "quantity demanded" used correctly?

A shift to the right in the demand curve for product A can be most reasonably explained by saying that:

The upward slope of the supply curve reflects the:

In 2001 an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the following? a. the supply of cattle hides? b. hide prices c. the supply of leather goods d. the price of leather goods

An improvement in production technology will:

From Diagram 3.C A decrease in supply is depicted by a:

Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates that:

Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:

Other things equal, if the price of a key resource used to produce product X falls, the:

Suppose that at prices of $5, $4, $3, $2, and $1 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices?

A leftward shift of a product supply curve might be caused by:

The law of supply indicates that:

If the price of a product increases, we would expect:

From Diagram 3.C An increase in quantity supplied is depicted by a:

A government subsidy to the producers of a product:

Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:

If a legal price ceiling is set above the equilibrium price:

Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?

At the current price there is a shortage of a product. We would expect price to:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a complement to X will:

A market is in equilibrium

Assume, in a competitive market, price is initially above the equilibrium level. We predict that price will:

From Diagram 3.D Which of the above diagrams illustrate(s) the effect of a decline in the price of personal computers on the market for computer software?

From Chart 3.E a. What is the market equilibrium rental price per month and the market equilibrium number of apartments demanded and supplied? b. If the local government can enforce a rent-control law that sets the maximum monthly rent at $1500, will there be a surplus or a shortage? c. of how many units d. how many units will actually be rented each month e. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that can be charged is $2500 per month. If the government can enforce that price floor, will there be a surplus or a shortage? f. of how many units g. how many units will actually be rented each month? h. Start at the original (correct) equilibrium price and quantity in part (a). Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units would the government have to increase the supply of housing in order to get the market equilibrium rental price to fall to $1500 per month? To $1000 per month? To $500 per month?

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the prices of resources used to produce X will:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in income, if X is a normal good, will:

Economists say "price floors and ceilings stifle the rationing function of prices and distort resource allocation" because

If we say that a price is too high to clear the market, we mean that:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a close substitute for X will:

With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will: