Question 1

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

Accepted Answer

The answer of 
-New technology for producing plywood is developed.Which...

Question 2

If good weather conditions result in a larger than normal crop of peaches,then the

Accepted Answer

An increase in supply of peaches due to good weather conditions will shift the supply curve to the right, resulting in a lower equilibrium price and an increase in the equilibrium quantity of peaches. This is because at the lower price, consumers will be willing and able to purchase more peaches. Therefore, the correct answer is B.

Question 3

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ________ and the equilibrium quantity of cream cheese ________.

Accepted Answer

Since bagels and cream cheese are complementary goods, an increase in the price of flour (leading to higher costs for producing bagels, and likely higher prices for bagels) would decrease the demand for both bagels and their complement, cream cheese. This would lead to a fall in the equilibrium price of cream cheese and a decrease in the equilibrium quantity of cream cheese.

Question 4

-The number of logging firms increases.Which of the figures above best illustrates this change?

Accepted Answer

The answer of 
-The number of logging firms increases.Which of...

Question 5

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Accepted Answer

The answer of 
-Contractors can use plywood or brick to...

Question 6

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange ________ and the equilibrium quantity ________.

Accepted Answer

A freeze destroying oranges before they are harvested would reduce the supply of oranges. This decrease in supply, with demand remaining constant, would lead to an increase in the equilibrium price and a decrease in the equilibrium quantity.

Question 7

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Accepted Answer

Since taco chips and salsa are complements, an increase in the price of salsa will decrease the quantity demanded for salsa. As a result, the demand for taco chips will also decrease since consumers typically consume them together. This decrease in demand for taco chips will shift the demand curve to the left, which will lower the equilibrium price and decrease the equilibrium quantity of taco chips.

Question 8

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

Accepted Answer

If people no longer find scooters fun, the demand for scooters will decrease. This will lead to a decrease in the equilibrium price of the scooters and a decrease in the equilibrium quantity of scooters, as suppliers will produce less in response to the decrease in demand. Thus, choice D (falls; decreases) is the correct answer.

Question 9

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

Accepted Answer

Raising taxes on gasoline increases the costs for suppliers, leading to a decrease in supply. This shift in supply, with demand remaining constant, results in a higher equilibrium price and a lower equilibrium quantity of gasoline.

Question 10

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Accepted Answer

With the entry of new firms, the supply of Web pages in the market increases. This leads to a shift in the supply curve to the right. As a result, the equilibrium price falls from $200 to a lower level, as the market now has more Web pages than before. This is shown by the movement from point A to point B on the diagram below:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Price
|
|
|
|
|      B
|          /
|        / 
|     /
|  /         
|/___
A          Quantity

Therefore, choice A is the correct answer.

Question 11

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

When supply increases but demand remains constant, the equilibrium price falls due to the surplus of goods, and the equilibrium quantity increases as more of the good is available at a lower price.

Question 12

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts __________,the equilibrium price will ______.

Accepted Answer

When the supply curve shifts rightward, it indicates an increase in supply. This leads to a decrease in the equilibrium price as more movie tickets become available at every price level.

Question 13

Which of the following lower the equilibrium price of a canoe?

Accepted Answer

An increase in the supply of canoes would increase the quantity of canoes available in the market, which would put downward pressure on the price of canoes, lowering the equilibrium price. An increase in demand or a decrease in supply would have the opposite effect, raising the equilibrium price of canoes. Therefore, option A is the correct answer.

Question 14

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Accepted Answer

The price of personal computers fell as a result of technological advances in their production, which made them more efficient and cost-effective to manufacture. This increased supply and created competition, which further drove down the price. The other choices are incorrect; the demand for personal computers actually increased over time, and personal computers are not an inferior good.

Question 15

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Accepted Answer

The answer of 
-A construction boom occurs and many of...

Question 16

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________.

Accepted Answer

Fresh orange juice and frozen orange juice are substitutes in production, meaning they can be used interchangeably to produce orange juice. When the price of fresh orange juice rises, producers will likely switch to producing more frozen orange juice, causing an increase in demand for frozen orange juice. This increase in demand will lead to a rise in the equilibrium price of frozen orange juice. However, there may also be a decrease in the quantity demanded of orange juice overall due to the rise in price of fresh orange juice, which would cause a decrease in the equilibrium quantity of frozen orange juice. Therefore, the equilibrium price of frozen orange juice rises, but the equilibrium quantity may increase or decrease depending on the change in overall demand for orange juice.

Question 17

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Accepted Answer

In a recession, income falls, and as a normal good, the demand for computer chips decreases. When demand decreases, the price of the computer chip falls as suppliers reduce prices to entice customers to buy. Therefore, the correct answer is option D, where the demand for computer chips decreases, and the price of a computer chip falls.

Question 18

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Accepted Answer

An early frost destroying most of the apple crop would decrease the supply of apples. According to the law of supply and demand, a decrease in supply, with demand remaining constant, leads to an increase in price and a decrease in the quantity sold.

Question 19

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________.

Accepted Answer

An increase in the price of the input, flour, will increase the cost of producing bagels, causing the supply curve to shift to the left. This will result in a higher equilibrium price and a lower equilibrium quantity of bagels, as producers will produce less at the higher cost and consumers will demand less at the higher price.

Question 20

Suppose that the price of bread rises.This rise could be the result of

Accepted Answer

A decrease in the supply of bread would lead to a rise in its price due to the basic economic principle of supply and demand. When supply decreases and demand remains constant, prices tend to increase.

Quiz 4: Demand and Supply

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

If good weather conditions result in a larger than normal crop of peaches,then the

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese and the equilibrium quantity of cream cheese .

-The number of logging firms increases.Which of the figures above best illustrates this change?

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange and the equilibrium quantity .

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter and the equilibrium quantity of scooters .

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline and the equilibrium price of gasoline .

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ,and the equilibrium quantity .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ____,the equilibrium price will .

Which of the following lower the equilibrium price of a canoe?

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice and the equilibrium quantity .

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel and the equilibrium quantity .

Suppose that the price of bread rises.This rise could be the result of