Question 1

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to ________,causing the price to ________.

Accepted Answer

When the price of ground beef (an input cost) increases, the supply of hamburgers (made from ground beef) would decrease because it becomes more expensive to produce hamburgers. This decrease in supply, with demand remaining constant, would lead to an increase in the price of hamburgers.

Question 2

A shortage occurs whenever

Accepted Answer

A shortage occurs when the quantity of a good or service demanded by consumers is greater than the quantity supplied by producers at the given price, resulting in excess demand. This leads to a situation where some consumers are unable to purchase the good or service they desire.

Question 3

In the first few months of 2012,the price of gasoline increased by approximately 15 percent.Because of this increase,we would expect the ________ curve in the market for hybrid cars to ________.

Accepted Answer

As the price of gasoline increases, consumers are more likely to seek fuel-efficient alternatives, such as hybrid cars. This increases the demand for hybrid cars, shifting the demand curve to the right.

Question 4

Some studies have shown that eating chocolate before a test can increase brain activity,thereby causing students to score higher on exams.When these findings were announced,the price and quantity sold of chocolate increased in college towns.One reason for this could have been that the

Accepted Answer

The announcement of the study findings caused an increase in demand for chocolate among consumers, leading to an increase in price and quantity sold. The other options (A, C, D, and E) do not align with the scenario described.

Question 5

Refer to the accompanying graph.If a tax is placed on a good and all else is held constant,we would assume that the supply curve would

Accepted Answer

When a tax is placed on a good, the cost of production increases for the suppliers, leading to a decrease in supply. This is shown by a leftward shift in the supply curve. In the graph, the initial supply curve is S₁, and when the tax is imposed, the supply curve shifts leftward to S₂. Therefore, the correct choice is C.

Question 6

The economists at JET Consulting consider Campbell's Soup to be an inferior good.During a recession,when the income in the economy is decreasing,economists at JET Consulting would expect the demand curve for Campbell's Soup to ________,causing the equilibrium price to ________ and the equilibrium quantity to ________.

Accepted Answer

Inferior goods are those for which demand increases when consumer income decreases. During a recession, as incomes fall, consumers tend to buy more of these goods because they are cheaper alternatives to more expensive options. Therefore, the demand curve for Campbell's Soup would shift to the right, causing both the equilibrium price and quantity to increase.

Question 7

Refer to the following table to answer the following questions.
 
-The equilibrium price and quantity in this market are

Accepted Answer

The equilibrium price and quantity occur where the supply and demand curves intersect. Without specific supply and demand equations or a graph, we assume the correct answer is based on typical market equilibrium conditions.

Question 8

The equilibrium price of peanut butter is $5.A study comes out that says the fat in peanut butter is good for the heart.Holding all other factors constant,which of the following scenarios could happen?

Accepted Answer

The study that indicates the health benefits of peanut butter increases the demand for it, which would shift the demand curve to the right. This would result in an increase in both price and quantity, meaning that the new equilibrium point would have a higher price than the original $5. Therefore, the price of peanut butter would increase to $7 due to a demand shift. A supply shift would not make sense in this scenario, as the study has no impact on the supply of peanut butter. There is no evidence to suggest a decrease in the price of peanut butter either, meaning options A and C are ruled out. Option E is incorrect because it suggests both a supply and a demand shift, which is not supported by the information given.

Question 9

Firm A notices that Firm B is making a profit by producing footballs.There is nothing stopping Firm A from entering the football market,so it does.Holding all else constant,the number of firms in the market will

Accepted Answer

When Firm A enters the football market, the number of firms increases. This addition of a new producer increases the overall market supply of footballs, assuming all else remains constant.

Question 10

If the price of Gatorade increases,the equilibrium price of Powerade,a substitute good,will ________ because of a shift in ________.

Accepted Answer

When the price of Gatorade increases, consumers will look for substitutes, increasing the demand for Powerade. This shift in demand causes the equilibrium price of Powerade to increase.

Question 11

James specializes in college-level economics tutoring.He knows that during the two weeks before finals he can charge more for an hour of private tutoring.Expecting this price increase,James will

Accepted Answer

James anticipates higher demand for his tutoring services as finals approach, leading him to withhold some of his current tutoring capacity to take advantage of higher future prices. This action effectively reduces the current supply of his tutoring services, shifting the supply curve to the left.

Question 12

After a new technology is introduced,the price typically falls.What is a possible explanation for this?

Accepted Answer

The answer of After a new technology is introduced,the price...

Question 13

Refer to the following table to answer the following questions.
 
-If the price of this good is $2.00,there would be a ________ of ________ units.

Accepted Answer

At a price of $2.00, the quantity demanded is 50 units and the quantity supplied is only 20 units, resulting in a shortage of 30 units. Therefore, the best choice is C, which identifies a shortage of 30 units. None of the other choices accurately reflect the situation described by the table.

Question 14

Which of the following situations would cause the demand curve to shift to the right?

Accepted Answer

The answer of Which of the following situations would cause...

Question 15

Refer to the following figure to answer the following questions.
 
-According to the accompanying figure,if the price is $10,there is a ________ of ________ units.

Accepted Answer

At a price of $10, the quantity demanded exceeds the quantity supplied, leading to a surplus of 15 units.

Question 16

Refer to the following figure to answer the following questions.
 
-Which of the quantity (Q)and price (P)combinations in the accompanying figure represents the market at competitive equilibrium?

Accepted Answer

The market at competitive equilibrium is where the supply and demand curves intersect. In this figure, the intersection of the supply and demand curves is at point C, which corresponds to a quantity of 22 and a price of $8. This is the only quantity and price combination that represents the market at competitive equilibrium.

Question 17

Old Navy stocks more Bermuda shorts during the summer months than in the winter months.The resulting shift in supply explains

Accepted Answer

Price expectations influence how much of a product a company like Old Navy might stock at different times of the year. Expecting higher demand and potentially higher prices in the summer for Bermuda shorts, Old Navy increases its stock to meet this anticipated demand.

Question 18

When the demand curve shifts to the right and the supply curve is held constant,

Accepted Answer

When the demand curve shifts to the right, it means that for the same price levels, there is a higher demand for the product. As a result, the equilibrium price will increase as suppliers will want to sell at a higher price due to the increased demand. Similarly, the equilibrium quantity will also increase, since the higher demand will result in suppliers producing and selling more to meet the demand. Therefore, the correct answer is D - the equilibrium price and quantity increase.

Question 19

The latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price.How could this have possibly happened?

Accepted Answer

The decline in attendance and the average ticket price suggest a decrease in demand. If there were no change in supply, the prices and attendance would not have fallen. Therefore, there was a decrease in demand and no change in supply.

Question 20

When the price is ________ the equilibrium price,we would expect there to be a ________,causing the market to put ________ pressure on the price until it went back to the equilibrium price.

Accepted Answer

When the price is above the equilibrium price, there is more supply than demand, leading to a surplus. This surplus puts downward pressure on the price as sellers lower prices to clear their excess inventory, moving the price back towards equilibrium.

Quiz 3: The Market at Work: Supply and Demand

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to ,causing the price to .

A shortage occurs whenever

In the first few months of 2012,the price of gasoline increased by approximately 15 percent.Because of this increase,we would expect the curve in the market for hybrid cars to .

Some studies have shown that eating chocolate before a test can increase brain activity,thereby causing students to score higher on exams.When these findings were announced,the price and quantity sold of chocolate increased in college towns.One reason for this could have been that the

Refer to the accompanying graph.If a tax is placed on a good and all else is held constant,we would assume that the supply curve would

The economists at JET Consulting consider Campbell's Soup to be an inferior good.During a recession,when the income in the economy is decreasing,economists at JET Consulting would expect the demand curve for Campbell's Soup to ,causing the equilibrium price to and the equilibrium quantity to .

Refer to the following table to answer the following questions. -The equilibrium price and quantity in this market are

The equilibrium price of peanut butter is $5.A study comes out that says the fat in peanut butter is good for the heart.Holding all other factors constant,which of the following scenarios could happen?

Firm A notices that Firm B is making a profit by producing footballs.There is nothing stopping Firm A from entering the football market,so it does.Holding all else constant,the number of firms in the market will

If the price of Gatorade increases,the equilibrium price of Powerade,a substitute good,will because of a shift in .

James specializes in college-level economics tutoring.He knows that during the two weeks before finals he can charge more for an hour of private tutoring.Expecting this price increase,James will

After a new technology is introduced,the price typically falls.What is a possible explanation for this?

Refer to the following table to answer the following questions. -If the price of this good is $2.00,there would be a of units.

Which of the following situations would cause the demand curve to shift to the right?

Refer to the following figure to answer the following questions. -According to the accompanying figure,if the price is $10,there is a of units.

Refer to the following figure to answer the following questions. -Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?

Old Navy stocks more Bermuda shorts during the summer months than in the winter months.The resulting shift in supply explains

When the demand curve shifts to the right and the supply curve is held constant,

The latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price.How could this have possibly happened?

When the price is the equilibrium price,we would expect there to be a ,causing the market to put pressure on the price until it went back to the equilibrium price.

Quiz 3: The Market at Work: Supply and Demand

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to ________,causing the price to ________.

A shortage occurs whenever

In the first few months of 2012,the price of gasoline increased by approximately 15 percent.Because of this increase,we would expect the ________ curve in the market for hybrid cars to ________.

Some studies have shown that eating chocolate before a test can increase brain activity,thereby causing students to score higher on exams.When these findings were announced,the price and quantity sold of chocolate increased in college towns.One reason for this could have been that the

Refer to the accompanying graph.If a tax is placed on a good and all else is held constant,we would assume that the supply curve would

Refer to the following table to answer the following questions. -The equilibrium price and quantity in this market are

The equilibrium price of peanut butter is $5.A study comes out that says the fat in peanut butter is good for the heart.Holding all other factors constant,which of the following scenarios could happen?

Firm A notices that Firm B is making a profit by producing footballs.There is nothing stopping Firm A from entering the football market,so it does.Holding all else constant,the number of firms in the market will

If the price of Gatorade increases,the equilibrium price of Powerade,a substitute good,will ________ because of a shift in ________.

James specializes in college-level economics tutoring.He knows that during the two weeks before finals he can charge more for an hour of private tutoring.Expecting this price increase,James will

After a new technology is introduced,the price typically falls.What is a possible explanation for this?

Refer to the following table to answer the following questions. -If the price of this good is $2.00,there would be a ________ of ________ units.

Which of the following situations would cause the demand curve to shift to the right?

Refer to the following figure to answer the following questions. -According to the accompanying figure,if the price is $10,there is a ________ of ________ units.

Refer to the following figure to answer the following questions. -Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?

Old Navy stocks more Bermuda shorts during the summer months than in the winter months.The resulting shift in supply explains

When the demand curve shifts to the right and the supply curve is held constant,

The latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price.How could this have possibly happened?

When the price is ________ the equilibrium price,we would expect there to be a ________,causing the market to put ________ pressure on the price until it went back to the equilibrium price.

When the price of ground beef increases and all else is held constant,we would expect the supply of hamburgers to ,causing the price to .

In the first few months of 2012,the price of gasoline increased by approximately 15 percent.Because of this increase,we would expect the curve in the market for hybrid cars to .

If the price of Gatorade increases,the equilibrium price of Powerade,a substitute good,will because of a shift in .

Refer to the following table to answer the following questions. -If the price of this good is $2.00,there would be a of units.

Refer to the following figure to answer the following questions. -According to the accompanying figure,if the price is $10,there is a of units.

When the price is the equilibrium price,we would expect there to be a ,causing the market to put pressure on the price until it went back to the equilibrium price.