Question 1

If a press release reports that the future price of new homes is expected to decrease and demanders respond more to the change in the expected future price than suppliers, which of the following is true?

Accepted Answer

If demanders respond more to the change in the expected future price than suppliers, this suggests that the decrease in demand will be greater than the decrease in supply. As a result, the equilibrium quantity will decrease, and since there is a surplus of homes, the equilibrium price will decrease as well. Therefore, the correct answer is A - Both the equilibrium quantity and price will decrease.

Question 2

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in supply is greater than the shift in demand, which of the following is true?

Accepted Answer

The decrease in production cost increases supply, shifting the supply curve rightward, while the shift in consumer tastes away from frozen chicken nuggets decreases demand, shifting the demand curve leftward. If the shift in supply is greater than the shift in demand, this leads to a lower equilibrium price due to increased supply and potentially a higher equilibrium quantity if the increase in supply outweighs the decrease in demand.

Question 3

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is greater than the shift in supply, which of the following is true?

Accepted Answer

When the cost to produce frozen chicken nuggets decreases, this leads to an increase in supply. However, if consumer tastes shift away from frozen chicken nuggets, this leads to a decrease in demand. If the shift in demand is greater than the shift in supply, the overall effect will be a decrease in both the equilibrium quantity and price.

Question 4

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases and the shift in demand is equal to the shift in supply, which of the following is true?

Accepted Answer

When the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases and the shift in demand is equal to the shift in supply, the equilibrium quantity will increase and the equilibrium price will remain the same. This is because the increase in both demand and supply will result in a larger quantity of electric cars being available in the market, but without a significant change in price as the forces of demand and supply balance each other out. Therefore, choice D is the correct answer.

Question 5

If a press release reports that the future price of new homes is expected to decrease and demanders and suppliers respond equally to the change in the expected future price, which of the following is true?

Accepted Answer

If both demanders and suppliers respond equally to the expectation of future price decreases, demand will decrease as buyers wait for lower prices, and supply will increase as sellers try to sell before prices drop. This leads to a surplus at the current price, causing the price to decrease. However, the equal response from both sides means the quantity demanded and supplied at the new lower price point remains the same, thus the equilibrium quantity stays unchanged.

Question 6

A technological advancement in the production of hybrid cars will cause a________ the supply curve for hybrid cars and a(n)________in the equilibrium price of hybrid cars.

Accepted Answer

A technological advancement in the production of hybrid cars would cause the supply curve to shift to the right, indicating an increase in supply. This shift would typically lead to a decrease in the equilibrium price, as more cars are available at every price level.

Question 7

If the price of hot dogs increases, this will cause a________ the demand curve for hot dog buns and a ________the supply curve of hot dog buns.

Accepted Answer

If the price of hot dogs increases, it will lead to a decrease in the quantity demanded of hot dogs. This movement along the demand curve will then lead to a shift in the demand curve for hot dog buns. Since hot dogs and hot dog buns are complements, an increase in the price of hot dogs will decrease the demand for hot dog buns, causing a leftward shift in the demand curve. Additionally, there will be no direct effect on the supply curve of hot dog buns since the price of hot dogs does not affect the production or cost of producing hot dog buns. Therefore, the supply curve will only experience a movement along the curve in response to any changes in the price of hot dog buns themselves.

Question 8

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, which of the following is true?

Accepted Answer

When both demand and supply increase, the equilibrium quantity of electric cars in the market will increase. This is because more people want to buy electric cars and more suppliers are willing to sell them, leading to a higher quantity of transactions.

Question 9

-Refer to the figure above. If Good Z is a normal good and consumers' incomes decrease at the same time as the number of suppliers of Good Z decreases and the shift in supply is greater than the shift in demand, the equilibrium price will be _________ than $100 and the equilibrium quantity will be ________than 100.

Accepted Answer

When consumers' incomes decrease, demand for a normal good decreases, shifting the demand curve leftward. A decrease in the number of suppliers reduces supply, shifting the supply curve leftward. If the shift in supply is greater than the shift in demand, this results in a higher equilibrium price due to the reduced supply being more significant. However, the equilibrium quantity decreases because both the reduced demand and supply contribute to fewer transactions.

Question 10

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is equal to the shift in supply, which of the following is true?

Accepted Answer

The decrease in production costs will cause a shift in the supply curve to the right, which will decrease the equilibrium price and potentially increase the equilibrium quantity. However, the shift in consumer tastes away from frozen chicken nuggets will cause a shift in the demand curve to the left, which will decrease the equilibrium quantity. Since the two shifts are equal, the equilibrium quantity will not change, but the equilibrium price will decrease. Therefore, choice C is the correct answer.

Question 11

A decrease in consumer incomes will shift the demand curve for designer handbags to the and both the equilibrium price ________and________ quantity of designer handbags.

Accepted Answer

A decrease in consumer incomes will result in fewer people being able to afford designer handbags. This will cause a leftward shift in the demand curve for designer handbags, leading to a decrease in both the equilibrium price and quantity of designer handbags.

Question 12

If a press release reports that the future price of gasoline is expected to rise and suppliers respond more to the change in the expected future price than demanders, which of the following is true?

Accepted Answer

If suppliers respond more to the change in the expected future price than demanders, they will reduce their current supply in anticipation of future higher prices, leading to a decrease in equilibrium quantity. At the same time, the increase in expected future price will lead to an increase in equilibrium price. Therefore, the correct choice is (C) - The equilibrium price will increase and the equilibrium quantity will decrease.

Question 13

If consumers' incomes increase at the same time there is a decrease in the cost to produce granite counter tops, which of the following is true?

Accepted Answer

An increase in consumers' incomes will shift the demand curve to the right, causing an increase in both equilibrium price and quantity if supply is unchanged. However, the decrease in the cost to produce granite counter tops will shift the supply curve to the right, causing a decrease in equilibrium price and an increase in equilibrium quantity. Since both the demand and supply curves are shifting to the right, it is certain that the equilibrium quantity will increase.

Question 14

An increase in consumer incomes will shift the ________demand curve for luxury vehicles to the and________ both the equilibrium price and quantity of luxury vehicles.

Accepted Answer

With an increase in consumer incomes, the demand for luxury vehicles, a normal good, will increase. This will shift the demand curve to the right, leading to an increase in both equilibrium price and quantity of luxury vehicles.

Question 15

A technological advancement in the production of engineered diamonds will cause the equilibrium price of engineered diamonds to ________and the equilibrium quantity to ________.

Accepted Answer

The technological advancement in the production of engineered diamonds will reduce the cost of production, resulting in an increase in the supply of engineered diamonds. This shift in supply will cause a decrease in the equilibrium price and an increase in the equilibrium quantity. Therefore, choice B is the correct answer.

Question 16

A bad state of nature for the production of tomatoes will shift the supply curve for tomatoes to the ________and________ the equilibrium price of tomatoes.

Accepted Answer

A bad state of nature for the production of tomatoes, such as a drought or pest infestation, would decrease the supply of tomatoes. This decrease in supply is represented by a leftward shift of the supply curve. With a lower supply of tomatoes and assuming demand remains constant, the equilibrium price of tomatoes would increase due to the scarcity.

Question 17

An increase in the cost of flour will shift the supply curve for bread to the _________ and ________the equilibrium quantity of bread.

Accepted Answer

An increase in the cost of flour, an input in bread production, will lead to a decrease in supply and shift the supply curve to the left. This will result in a decrease in equilibrium quantity.

Question 18

If the number of demanders for granite counter tops increases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is greater than the shift in supply, which of the following is true?

Accepted Answer

When demand increases more significantly than supply decreases, the overall effect is an increase in both the equilibrium price and quantity. The increased demand pushes the price and quantity up, and although the decrease in supply tends to increase price further, it might not reduce quantity significantly if the demand increase is larger.

Question 19

-Refer to the figure above. If the number of demanders for Good Z increases at the same time as the number of suppliers of Good Z decreases and the shift in supply is greater than the shift in demand, the equilibrium price will be ________than $100 and the equilibrium quantity will be ________than 100.

Accepted Answer

When the number of demanders increases, demand shifts rightward, increasing the equilibrium price and quantity. Conversely, when the number of suppliers decreases, supply shifts leftward, increasing the price but decreasing the quantity. If the shift in supply is greater than the shift in demand, the equilibrium price will rise, but the equilibrium quantity will decrease.

Question 20

-Refer to the figure above. If the number of demanders for Good Z increases at the same time as the number of suppliers of Good Z decreases and the shift in demand is greater than the shift in supply, the equilibrium price will be ________than $100 and the equilibrium quantity will be________ than 100.

Accepted Answer

When the demand for a good increases more than the supply decreases, the equilibrium price rises due to higher demand. The equilibrium quantity also increases because the increase in demand outweighs the decrease in supply.

Quiz 2: Demand and Supply

If a press release reports that the future price of new homes is expected to decrease and demanders respond more to the change in the expected future price than suppliers, which of the following is true?

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in supply is greater than the shift in demand, which of the following is true?

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is greater than the shift in supply, which of the following is true?

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases and the shift in demand is equal to the shift in supply, which of the following is true?

If a press release reports that the future price of new homes is expected to decrease and demanders and suppliers respond equally to the change in the expected future price, which of the following is true?

A technological advancement in the production of hybrid cars will cause a the supply curve for hybrid cars and a(n) in the equilibrium price of hybrid cars.

If the price of hot dogs increases, this will cause a the demand curve for hot dog buns and a the supply curve of hot dog buns.

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, which of the following is true?

-Refer to the figure above. If Good Z is a normal good and consumers' incomes decrease at the same time as the number of suppliers of Good Z decreases and the shift in supply is greater than the shift in demand, the equilibrium price will be _ than $100 and the equilibrium quantity will be than 100.

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is equal to the shift in supply, which of the following is true?

A decrease in consumer incomes will shift the demand curve for designer handbags to the and both the equilibrium price and quantity of designer handbags.

If a press release reports that the future price of gasoline is expected to rise and suppliers respond more to the change in the expected future price than demanders, which of the following is true?

If consumers' incomes increase at the same time there is a decrease in the cost to produce granite counter tops, which of the following is true?

An increase in consumer incomes will shift the demand curve for luxury vehicles to the and both the equilibrium price and quantity of luxury vehicles.

A technological advancement in the production of engineered diamonds will cause the equilibrium price of engineered diamonds to and the equilibrium quantity to .

A bad state of nature for the production of tomatoes will shift the supply curve for tomatoes to the and the equilibrium price of tomatoes.

An increase in the cost of flour will shift the supply curve for bread to the _ and the equilibrium quantity of bread.

If the number of demanders for granite counter tops increases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is greater than the shift in supply, which of the following is true?

-Refer to the figure above. If the number of demanders for Good Z increases at the same time as the number of suppliers of Good Z decreases and the shift in supply is greater than the shift in demand, the equilibrium price will be than $100 and the equilibrium quantity will be than 100.

-Refer to the figure above. If the number of demanders for Good Z increases at the same time as the number of suppliers of Good Z decreases and the shift in demand is greater than the shift in supply, the equilibrium price will be than $100 and the equilibrium quantity will be than 100.

Quiz 2: Demand and Supply

If a press release reports that the future price of new homes is expected to decrease and demanders respond more to the change in the expected future price than suppliers, which of the following is true?

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in supply is greater than the shift in demand, which of the following is true?

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is greater than the shift in supply, which of the following is true?

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases and the shift in demand is equal to the shift in supply, which of the following is true?

If a press release reports that the future price of new homes is expected to decrease and demanders and suppliers respond equally to the change in the expected future price, which of the following is true?

A technological advancement in the production of hybrid cars will cause a________ the supply curve for hybrid cars and a(n) ________in the equilibrium price of hybrid cars.

If the price of hot dogs increases, this will cause a________ the demand curve for hot dog buns and a ________the supply curve of hot dog buns.

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, which of the following is true?

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is equal to the shift in supply, which of the following is true?

A decrease in consumer incomes will shift the demand curve for designer handbags to the and both the equilibrium price ________and________ quantity of designer handbags.

If a press release reports that the future price of gasoline is expected to rise and suppliers respond more to the change in the expected future price than demanders, which of the following is true?

If consumers' incomes increase at the same time there is a decrease in the cost to produce granite counter tops, which of the following is true?

An increase in consumer incomes will shift the ________demand curve for luxury vehicles to the and________ both the equilibrium price and quantity of luxury vehicles.

A technological advancement in the production of engineered diamonds will cause the equilibrium price of engineered diamonds to ________and the equilibrium quantity to ________.

A bad state of nature for the production of tomatoes will shift the supply curve for tomatoes to the ________and________ the equilibrium price of tomatoes.

An increase in the cost of flour will shift the supply curve for bread to the _________ and ________the equilibrium quantity of bread.

If the number of demanders for granite counter tops increases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is greater than the shift in supply, which of the following is true?

A technological advancement in the production of hybrid cars will cause a the supply curve for hybrid cars and a(n) in the equilibrium price of hybrid cars.

If the price of hot dogs increases, this will cause a the demand curve for hot dog buns and a the supply curve of hot dog buns.

A decrease in consumer incomes will shift the demand curve for designer handbags to the and both the equilibrium price and quantity of designer handbags.

An increase in consumer incomes will shift the demand curve for luxury vehicles to the and both the equilibrium price and quantity of luxury vehicles.

A technological advancement in the production of engineered diamonds will cause the equilibrium price of engineered diamonds to and the equilibrium quantity to .

A bad state of nature for the production of tomatoes will shift the supply curve for tomatoes to the and the equilibrium price of tomatoes.

An increase in the cost of flour will shift the supply curve for bread to the _ and the equilibrium quantity of bread.