Reference no: EM132488610
1) A(n) ________ in equilibrium ________ will occur when there is a simultaneous increase in demand and supply.
- A. increase; price
- B. decrease; price
- C. increase; quantity
- D. decrease; quantity
2)An economist tells us that there has been a decrease in the quantity demanded of Pepsi. Which of the following best explains why the quantity demanded of Pepsi decreased?
- A. The price of Coca-Cola increased
- B. Pepsi advertising was not as effective as in the past
- C. The price of Pepsi increased
- D. Income of Pepsi consumers increased
3)________ causes a shift to the right in the demand curve for Big Macs.
- A. A rise in the price of Big Macs
- B. A fall in the price of Big Macs
- C. No change in the price of Big Macs
- D. An increase in the price of Burger King Whoppers
4)Which of the following is held constant along the demand curve?
- A. Price of the good
- B. Quantity
- C. Income
- D. Price of the good and quantity
8)The change in the price of a good leads to a change in ________, which leads to a ________.
- A. quantity supplied; movement along a supply curve
- B. quantity supplied; shift of the supply curve
- C. supply; movement along a supply curve
- D. supply; shift of the supply curve
9)Equilibrium is the condition that exists when
- A. there is no government intervention in the market.
- B. the demand curve intersects the price axis.
- C. quantity demanded equals quantity supplied.
- D. the demand curve intersects the quantity axis.
13)A ________ in the price of ________ will cause a decrease in demand for cameras.
- A. rise; a substitute good.
- B. rise; cameras.
- C. rise; a complementary good.
- D. fall; cameras.
14)DVD players and DVDs are complements. A rise in the player price would cause which of the following in the market for DVDs? The equilibrium price
- A. and quantity of DVDs would rise.
- B. and quantity of DVDs would fall.
- C. of DVDs would rise and the equilibrium quantity would fall.
- D. of DVDs would fall and the equilibrium quantity would rise.
17)A hurricane destroys approximately a quarter of the Louisiana sugar cane crop. Ceteris paribus, the
- A. supply of sugar will decrease and the price of sugar will increase.
- B. supply of sugar will decrease and the price of sugar will decrease.
- C. demand for sugar will increase and the price of sugar will increase.
- D. demand for sugar will decrease and the price of sugar will decrease.
18)The price of mozzarella cheese increases. In the market for pizza you would expect that the
- A. demand for pizza would increase and the price of pizza would increase.
- B. demand for pizza would decrease and the price of pizza would fall.
- C. supply of pizza would decrease and the price of pizza would increase.
- D. supply of pizza would increase and the price of pizza would decrease.
19)Improvements in technology have reduced the cost of producing personal computers. As a result, you accurately predict that in the market for personal computers, there will be a(n)
- A. increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded.
- B. increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded.
- C. increase in the supply of personal computers, a reduction in the price, and an increase in the demand.
- D. decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.
20)A(n) ________ in equilibrium ________ will occur when there is a simultaneous decrease in demand and supply.
- A. increase; price
- B. decrease; price
- C. increase; quantity
- D. decrease; quantity