Question 1

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?
A)a decrease in demand and an increase in supply
B)an increase in supply
C)an increase in supply and an increase in demand greater than the increase in supply
D)a decrease in demand and a decrease in supply

Accepted Answer

An increase in supply would lead to a surplus in the market, causing sellers to lower their prices in order to sell all of their goods. This would result in a decrease in the equilibrium price of salmon. However, since there is now more salmon being produced and available for sale, consumers will buy more of it at the lower price, resulting in an increase in the equilibrium quantity of salmon. Option A and D would cause a decrease in both equilibrium price and quantity, while option C would lead to an increase in both, so none of them fit the description.

Question 2

Select the phrase that correctly completes the following statement.'A positive change in technology caused an increase in the supply of flat-screen televisions.As a result,________.'
A)the price of flat-screen televisions decreased,and the demand for flat-screen televisions increased
B)the equilibrium quantity of flat-screen televisions decreased
C)the price of flat-screen televisions decreased,and the quantity demanded of flat-screen televisions increased
D)the price of flat-screen televisions decreased.The lower price caused the supply of flat-screen televisions to decrease

Accepted Answer

According to the law of supply, an increase in supply causes a decrease in price and an increase in quantity demanded. Therefore, option C correctly states that the price of flat-screen televisions decreased, and the quantity demanded of flat-screen televisions increased as a result of the increase in supply. Option A is incorrect as it suggests that the demand for flat-screen televisions increased when it was the quantity demanded that increased. Option B is incorrect as it states that the equilibrium quantity decreased, which contradicts the fact that supply increased. Option D is incorrect as it suggests that the supply of flat-screen televisions decreased when it actually increased.

Question 3

A decrease in the equilibrium quantity for a product will result
A)when the quantity demanded for the product exceeds the quantity supplied.
B)when there is a decrease in supply and a decrease in demand for the product.
C)when there is an increase in supply and a decrease in demand for the product.
D)when there is a decrease in demand and a decrease in the number of firms producing the product.

Accepted Answer

The answer of A decrease in the equilibrium quantity for...

Question 4

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the demand curve shifts more than the supply curve.As a result,
A)both the equilibrium price and quantity of MP3 players will increase.
B)the equilibrium price of MP3 players will increase;the equilibrium quantity may increase or decrease.
C)the equilibrium price of MP3 players may increase or decrease;the equilibrium quantity will increase.
D)the equilibrium price of MP3 players will decrease;the equilibrium quantity may increase or decrease.

Accepted Answer

The answer of Assume that both the demand curve and...

Question 5

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant,how would this affect the market for Blu-ray players (a complement to LCD televisions)?
A)The supply of Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.
B)The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would increase.
C)The demand for Blu-ray players would decrease because consumers could afford to buy fewer LCD televisions and Blu-ray players.
D)The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.

Accepted Answer

The answer of Positive technological change in the production of...

Question 6

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₁ (point C).Which of the following changes would cause the equilibrium to change to point B? A)a positive change in the technology used to produce apples and a decrease in the price of oranges,a substitute for apples B)an increase in the wages of apple workers and an increase in the price of oranges,a substitute for apples C)an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D)a decrease in the wages of apple workers and an increase in the price of oranges,a substitute for apples

Accepted Answer

The answer of Figure 3-8 
-Refer to Figure 3-8.The graph...

Question 7

Which of the following statements is true?
A)An increase in demand causes a change in equilibrium price;the change in price does not cause a further change in demand or supply.
B)A decrease in supply causes equilibrium price to rise;the increase in price then results in a decrease in demand.
C)If both demand and supply increase,there must be an increase in equilibrium price;equilibrium quantity may either increase or decrease.
D)If demand decreases and supply increases,one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

Accepted Answer

The answer of Which of the following statements is true?
A)An...

Question 8

Which of the following statements is true?
A)An increase in supply causes a change in equilibrium price;the change in price does not cause a further change in demand or supply.
B)A decrease in supply causes equilibrium price to rise;the increase in price then results in a decrease in demand.
C)If both demand and supply increase,there must be an increase in equilibrium price;equilibrium quantity may either increase or decrease.
D)If demand decreases and supply increases,one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

Accepted Answer

The answer of Which of the following statements is true?
A)An...

Question 9

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B).Which of the following changes would cause the equilibrium to change to point C? A)a positive change in the technology used to produce apples and a decrease in the price of oranges,a substitute for apples B)an increase in the wages of apple workers and an increase in the price of oranges,a substitute for apples C)an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D)a decrease in the wages of apple workers and an increase in the price of oranges,a substitute for apples

Accepted Answer

A positive change in the technology used to produce apples would shift the supply curve to the right, and a decrease in the price of oranges, a substitute for apples, would shift the demand curve to the right. Both of these changes would cause the equilibrium to move to point C.

Question 10

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A).If there is a shortage of apples how will the equilibrium point change? A)The equilibrium point will move from A to B. B)The equilibrium point will move from A to C. C)There will be no change in the equilibrium point. D)The equilibrium point will move from A to E.

Accepted Answer

The answer of Figure 3-8 
-Refer to Figure 3-8.The graph...

Question 11

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A)an increase in demand and an increase in supply
B)an increase in supply
C)an increase in supply and an increase in demand greater than the increase in supply
D)a decrease in demand and an increase in supply

Accepted Answer

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

Question 12

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point A)a positive change in the technology used to produce apples and a decrease in the price of oranges,a substitute for apples B)an increase in the wages of apple workers and a decrease in the price of oranges,a substitute for apples C)an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D)a decrease in the wages of apple workers and an increase in the price of oranges,a substitute for apples E).Which of the following changes would cause the equilibrium to change to point A?

Accepted Answer

The answer of Figure 3-8 
-Refer to Figure 3-8.The graph...

Question 13

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the supply curve shifts more than the demand curve.As a result,
A)both the equilibrium price and quantity of MP3 players will decrease.
B)the equilibrium price of MP3 players will decrease;the equilibrium quantity will increase.
C)the equilibrium price of MP3 players may increase or decrease;the equilibrium quantity will decrease.
D)the equilibrium price of MP3 players will increase;the equilibrium quantity will decrease.

Accepted Answer

When the supply curve shifts more than the demand curve, it means that there is an increase in supply compared to the increase in demand. This will lead to a surplus of MP3 players, which will cause suppliers to decrease the equilibrium price in order to sell off the excess supply. However, the increase in supply will also lead to an increase in the equilibrium quantity of MP3 players. Therefore, the best choice is B - the equilibrium price of MP3 players will decrease, but the equilibrium quantity will increase.

Question 14

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts more than the demand curve.As a result,
A)both the equilibrium price and quantity of MP3 players will decrease.
B)the equilibrium price of MP3 players will decrease;the equilibrium quantity will increase.
C)the equilibrium price of MP3 players may increase or decrease;the equilibrium quantity will decrease.
D)the equilibrium price of MP3 players will increase;the equilibrium quantity will decrease.

Accepted Answer

When the supply curve shifts more than the demand curve, it means that the decrease in the quantity demanded will be more than the decrease in the quantity supplied. This will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. Therefore, the correct answer is D.

Question 15

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₁ (point A).If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks,how will the equilibrium point change? A)The equilibrium point will move from A to B. B)The equilibrium point will move from A to C. C)There will be no change in the equilibrium point. D)The equilibrium point will move from A to E.

Accepted Answer

The answer of Figure 3-8 
-Refer to Figure 3-8.The graph...

Question 16

A decrease in the equilibrium price for a product will result
A)when the quantity demanded for the product exceeds the quantity supplied.
B)when there is a decrease in supply and a decrease in demand for the product.
C)when there is an increase in supply and a decrease in demand for the product.
D)when there is a decrease in demand and a decrease in the number of firms producing the product.

Accepted Answer

When there is an increase in supply and a decrease in demand for the product, the market is flooded with more of the product than consumers are willing to buy. This puts pressure on sellers to lower the price in order to attract more buyers and clear the excess supply, resulting in a decrease in the equilibrium price.

Question 17

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁and S₁ (point A).If there is an increase in the wages of apple workers and an increase in the price of oranges,a substitute for apples,the equilibrium could move to which point? A)none of the points shown B)B C)C D)E

Accepted Answer

The answer of Figure 3-8 
-Refer to Figure 3-8.The graph...

Question 18

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts less than the demand curve.As a result,
A)both the equilibrium price and quantity of MP3 players will decrease.
B)both the equilibrium price and quantity of MP3 players will increase.
C)the equilibrium price of MP3 players may increase or decrease;the equilibrium quantity will decrease.
D)the equilibrium price of MP3 players will increase;the equilibrium quantity will decrease.

Accepted Answer

The answer of Assume that the demand curve for MP3...

Question 19

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A).If the price of oranges,a substitute for apples,decreases and the wages of apple workers increase,how will the equilibrium point change? A)The equilibrium point will move from A to E. B)The equilibrium point will move from A to B. C)The equilibrium point will move from A to C. D)The equilibrium will first move from A to B,then return to A.

Accepted Answer

The decrease in the price of oranges will decrease the demand for apples (shift D1 left), and the increase in wages will decrease the supply of apples (shift S1 left), moving equilibrium from A to E.

Question 20

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₂ (point B).If there is a decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks,how will the equilibrium point change? A)The equilibrium point will move from B to A. B)The equilibrium point will move from B to C. C)There will be no change in the equilibrium point. D)The equilibrium point will move from B to E.

Accepted Answer

A decrease in the price of fertilizer will shift the supply curve to the right, causing a new equilibrium point at the intersection of DS1U1B11S1U1B0 and SS1U1B12S1U1B1 (point C). A decrease in tastes for sugar-sweetened soft drinks will shift the demand curve to the left, causing a new equilibrium point at the intersection of DS1U1B10S1U1B0 and SS1U1B11S1U1B0 (point E). However, since both changes occur simultaneously, the new equilibrium will be at the intersection of DS1U1B10S1U1B1 and SS1U1B12S1U1B0 (point B to C).

Quiz 3: Where Prices Come From: the Interaction of Demand and Supply

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

Select the phrase that correctly completes the following statement.'A positive change in technology caused an increase in the supply of flat-screen televisions.As a result,________.'

A decrease in the equilibrium quantity for a product will result

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the demand curve shifts more than the supply curve.As a result,

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant,how would this affect the market for Blu-ray players (a complement to LCD televisions) ?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₁ (point C) .Which of the following changes would cause the equilibrium to change to point B?

Which of the following statements is true?

Which of the following statements is true?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B) .Which of the following changes would cause the equilibrium to change to point C?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A) .If there is a shortage of apples how will the equilibrium point change?

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the supply curve shifts more than the demand curve.As a result,

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts more than the demand curve.As a result,

A decrease in the equilibrium price for a product will result

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts less than the demand curve.As a result,

Quiz 3: Where Prices Come From: the Interaction of Demand and Supply

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

Select the phrase that correctly completes the following statement.'A positive change in technology caused an increase in the supply of flat-screen televisions.As a result,________.'

A decrease in the equilibrium quantity for a product will result

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the demand curve shifts more than the supply curve.As a result,

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant,how would this affect the market for Blu-ray players (a complement to LCD televisions) ?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C) .Which of the following changes would cause the equilibrium to change to point B?

Which of the following statements is true?

Which of the following statements is true?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S2 (point B) .Which of the following changes would cause the equilibrium to change to point C?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A) .If there is a shortage of apples how will the equilibrium point change?

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S2 (point

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the supply curve shifts more than the demand curve.As a result,

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts more than the demand curve.As a result,

A decrease in the equilibrium price for a product will result

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts less than the demand curve.As a result,

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₁ (point C) .Which of the following changes would cause the equilibrium to change to point B?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B) .Which of the following changes would cause the equilibrium to change to point C?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A) .If there is a shortage of apples how will the equilibrium point change?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point