Question 1

An expectation of a lower price in the future will:

Accepted Answer

An expectation of a lower price in the future means that consumers will delay their purchase in the hope of getting a lower price later. This reduces the current demand, leading to a decrease in the demand curve.

Question 2

A supply schedule:

Accepted Answer

A supply schedule is a table that lists the quantity of a good or service supplied at different prices. It helps to illustrate the relationship between the price of a good or service and the quantity that suppliers are willing to produce and sell. It can be used to analyze individuals' supply as well as the entire market's supply for a good or service.

Question 3

Refer to the accompanying graph.If consumers expect the price of a good to decrease in the future and all else is held constant,we would assume that the demand curve would:

Accepted Answer

The answer of Refer to the accompanying graph.If consumers expect...

Question 4

Refer to the accompanying diagram.An increase in the number of buyers would cause the demand curve to:

Accepted Answer

An increase in the number of buyers would cause an increase in demand, resulting in a shift of the demand curve to the right. Therefore, the new demand curve would be D₂.

Question 5

Inputs are:

Accepted Answer

The answer of Inputs are:
...

Question 6

Higher input costs:

Accepted Answer

Higher input costs mean that the cost of producing goods or providing services goes up, which in turn reduces profits as higher expenses eat into revenue.

Question 7

Which of the following is both a shift in supply and a shift in demand?

Accepted Answer

Expectations of future prices can both shift the supply curve and the demand curve. If sellers expect higher prices in the future, they might hold off on selling now, shifting the supply curve to the left. Similarly, if buyers expect higher prices in the future, they might increase their purchases now, shifting the demand curve to the right.

Question 8

As more people migrated West during the gold rush,what do you think happened to the demand curve in most Western markets,holding all else constant?

Accepted Answer

With more people migrating West during the gold rush, there would be an increase in population, which would lead to an increase in demand for goods and services. This would result in a rightward shift of the demand curve, indicating a higher quantity demanded at any given price level.

Question 9

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

Accepted Answer

The answer of Assume there are 100 suppliers of widgets...

Question 10

As the life expectancy in the United States increases,which of the following could likely happen to the demand curve for items such as health care,cancer treatments,and nursing facilities,holding all else constant,and why?

Accepted Answer

As life expectancy increases, there will be more elderly individuals in the population who require health care, cancer treatments, and nursing facilities. This will increase the number of buyers in these markets, leading to an increase in demand, holding all else constant. Option A is incorrect because although individuals may be healthier, they will still require medical attention as they age. Option B is incorrect because the cost of these items is not falling, and in fact, may increase due to the increased demand. Option D is incorrect because Social Security benefits are not directly related to the demand for health care, cancer treatments, and nursing facilities. Option E is incorrect because changes in life expectancy will affect the demand curve, not the supply curve.

Question 11

Which of the following will cause a movement along a good's supply curve?

Accepted Answer

According to the law of supply, as the price of a good increases, the quantity supplied of that good will increase, so there will be a movement along the supply curve.

Question 12

Changes in population can:

Accepted Answer

The answer of Changes in population can:
...

Question 13

Refer to the accompanying figure.When the price changes from P₁ to P₂,we will see a(n):

Accepted Answer

The answer of Refer to the accompanying figure.When the price...

Question 14

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

Accepted Answer

The law of supply indicates that there is a direct relationship between price and quantity supplied: as the price increases, sellers are willing to supply more, and as the price decreases, they are willing to supply less.

Question 15

If the cost of flour increases from $3 to $5 a bag,you could predict the supply curve for bagels to:

Accepted Answer

An increase in the cost of flour, one of the main ingredients in bagels, would increase the cost of production for bagels. As a result, producers would be less willing to supply bagels at the original price, causing the supply curve to shift to the left.

Question 16

If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant,what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

Accepted Answer

An increase in the price of rubber, which is a key component of tire production, would raise the costs of tire manufacturers. In turn, this would lead to a decrease in the supply of tires as manufacturers would be less willing or able to produce and sell them at the same quantity and price as before. As a result, the supply curve of tires would shift to the left, indicating a decrease in the quantity supplied at each price level.

Question 17

A change in quantity supplied:

Accepted Answer

A change in quantity supplied is a movement along the supply curve, which occurs when there is a change in the price of the product. If the price increases, quantity supplied will increase, and if the price decreases, quantity supplied will decrease. A shift in the supply curve represents a change in the entire supply relationship, such as a change in technology or input prices.

Question 18

In March 2012,the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI)be clearly labeled with a cancer warning.Because of this,both Pepsi and Coke changed their formula to eliminate 4-MI as an ingredient.If Pepsi and Coke did NOT change their formula,holding all else constant,what do you think would have happened to the demand for these goods,assuming Pepsi and Coke were in a competitive market?

Accepted Answer

The addition of a cancer warning label would likely have decreased the demand for both Pepsi and Coke, as consumers would be less likely to purchase a product with a potential health risk. This would result in the demand curve shifting to the left, causing a decrease in price for both products and a decline in profits for both companies.

Question 19

The demand curve for a good will shift to the right if,holding all else constant,

Accepted Answer

A demand curve shifts to the right when there is an increase in demand. If consumers expect future prices to increase, they are more likely to buy the good now to avoid paying a higher price later, thus increasing current demand.

Question 20

Chuck drives past the same gas station every day.He realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week.On Saturday,Chuck turns on the news and hears a report projecting that the price of gasoline is going to increase.Holding all else constant,what do you think would happen to Chuck's demand for gasoline on Monday?

Accepted Answer

The answer of Chuck drives past the same gas station...

Quiz 3: The Market at Work: Supply and Demand

An expectation of a lower price in the future will:

A supply schedule:

Refer to the accompanying graph.If consumers expect the price of a good to decrease in the future and all else is held constant,we would assume that the demand curve would:

Refer to the accompanying diagram.An increase in the number of buyers would cause the demand curve to:

Inputs are:

Higher input costs:

Which of the following is both a shift in supply and a shift in demand?

As more people migrated West during the gold rush,what do you think happened to the demand curve in most Western markets,holding all else constant?

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

As the life expectancy in the United States increases,which of the following could likely happen to the demand curve for items such as health care,cancer treatments,and nursing facilities,holding all else constant,and why?

Which of the following will cause a movement along a good's supply curve?

Changes in population can:

Refer to the accompanying figure.When the price changes from P₁ to P₂,we will see a(n) :

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

If the cost of flour increases from $3 to $5 a bag,you could predict the supply curve for bagels to:

If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant,what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

A change in quantity supplied:

The demand curve for a good will shift to the right if,holding all else constant,

Quiz 3: The Market at Work: Supply and Demand

An expectation of a lower price in the future will:

A supply schedule:

Refer to the accompanying graph.If consumers expect the price of a good to decrease in the future and all else is held constant,we would assume that the demand curve would:

Refer to the accompanying diagram.An increase in the number of buyers would cause the demand curve to:

Inputs are:

Higher input costs:

Which of the following is both a shift in supply and a shift in demand?

As more people migrated West during the gold rush,what do you think happened to the demand curve in most Western markets,holding all else constant?

Assume there are 100 suppliers of widgets in the widget market.Half of these suppliers supply 35 widgets to the market each,a quarter of these suppliers supply 40 widgets to the market each,and a quarter of these suppliers supply 50 widgets to the market each.What is the market supply for widgets?

As the life expectancy in the United States increases,which of the following could likely happen to the demand curve for items such as health care,cancer treatments,and nursing facilities,holding all else constant,and why?

Which of the following will cause a movement along a good's supply curve?

Changes in population can:

Refer to the accompanying figure.When the price changes from P1 to P2,we will see a(n) :

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

If the cost of flour increases from $3 to $5 a bag,you could predict the supply curve for bagels to:

If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant,what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

A change in quantity supplied:

The demand curve for a good will shift to the right if,holding all else constant,

Refer to the accompanying figure.When the price changes from P₁ to P₂,we will see a(n) :