Question 1

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S₂ to S₁, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

An increase in supply will shift the supply curve to the right, from S2 to S1. This will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. The new equilibrium price will be $5.00 and the new equilibrium quantity will be 10.

Question 2

When quantity demanded equals quantity supplied,

Accepted Answer

The market is in equilibrium when quantity demanded equals quantity supplied, indicating a balance between buyers and sellers without implying conditions about government intervention or the shapes of the demand and supply curves.

Question 3

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have

Accepted Answer

If there is an excess demand of 6 cheeseburgers, it indicates that the price has not adjusted yet to the new equilibrium, meaning it remains constant at the original price of $5.00.

Question 4

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

Accepted Answer

An increase in production costs due to government regulations would lead to a decrease in the supply of gasoline-powered lawnmowers. This decrease in supply would, according to the law of supply and demand, lead to an increase in the price of gasoline-powered lawnmowers. As the price increases, the quantity demanded by consumers would decrease, following the law of demand.

Question 5

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18 -Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 6

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S_{2 to}S₁, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

A shift in supply that results in a movement from a higher price to a lower price and an increase in the equilibrium quantity suggests that the supply curve has shifted to the right, increasing supply. This would decrease the equilibrium price and increase the equilibrium quantity, matching option D's description.

Question 7

When there is a surplus of a product in an unregulated market, there is a tendency for

Accepted Answer

When there is a surplus of a product in an unregulated market, it means that the quantity supplied exceeds the quantity demanded at the current price. To eliminate this surplus, sellers will lower their prices to attract more buyers, leading to a decrease in price.

Question 8

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Accepted Answer

The unseasonably warm weather would lead to an increase in the supply of peaches (more peaches can grow in warmer conditions), and with all other factors being equal (ceteris paribus), an increase in supply typically leads to a decrease in price, assuming demand remains constant.

Question 9

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00, there will be

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 10

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Accepted Answer

When the price of bluetooth headsets decreases, demand for cell phones increases because they are complements. This leads to an increase in both the equilibrium price and quantity of cell phones.

Question 11

Related to the Economics in Practice on page 67: Consumption of quinoa has been on the rise. A grain called teff has been referred to as quinoa's twin and is often consumed in place of quinoa. This would make teff and quinoa ________, and an increase in the price of quinoa should ________ the demand for teff, ceteris paribus.

Accepted Answer

Teff and quinoa are substitutes because they can be used in place of each other. Therefore, if the price of quinoa increases, consumers will likely switch to teff, increasing the demand for teff, assuming all other factors remain constant (ceteris paribus).

Question 12

Related to the Economics in Practice on page 68: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the ________ of Baltimore newspapers to ________.

Accepted Answer

An increase in the cost of newsprint, a key input for producing newspapers, would make it more expensive to produce newspapers. This would lead to a decrease in the supply of newspapers because producers would be less willing or able to supply the same quantity at previous prices.

Question 13

If the market for bluetooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will

Accepted Answer

In a market with excess demand (where demand exceeds supply), prices tend to increase. This higher price encourages producers to supply more (quantity supplied rises) and discourages consumers slightly, leading to a decrease in the quantity demanded until equilibrium is reached.

Question 14

When there is an excess demand of a product in an unregulated market, the tendency is for

Accepted Answer

When there is excess demand (more demand than supply) in an unregulated market, the price tends to rise. This is because sellers recognize they can charge more due to the high demand, and buyers are willing to pay more to obtain the product.

Question 15

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

The correct answer is A. When supply shifts from S1 to S2, the equilibrium price will increase from $5.00 to $7.00 and the equilibrium quantity will increase from 4 to 7. This is because the increase in supply will lead to a decrease in the price of the good, which will in turn lead to an increase in the quantity demanded.

Question 16

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers ________ while the supply of Baltimore newspapers ________, the equilibrium price will definitely decrease.

Accepted Answer

When demand decreases and supply increases, the equilibrium price will definitely decrease because there is less demand for more available newspapers, leading to a downward pressure on prices.

Question 17

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Accepted Answer

When the price of bacon decreases, it becomes cheaper for producers to make bacon cheeseburgers, leading to an increase in the supply of bacon cheeseburgers. With more bacon cheeseburgers available in the market, the price of bacon cheeseburgers would decrease.

Question 18

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Accepted Answer

Since iPhones are normal goods, a decrease in income leads to a decrease in demand for iPhones. This results in both the equilibrium price and quantity falling in the market.

Question 19

Related to the Economics in Practice on page 67: Increased preference for quinoa would most likely shift the demand curve for quinoa to the ________ and lead to a(n) ________ in the price of quinoa, ceteris paribus.

Accepted Answer

An increased preference for quinoa would shift the demand curve to the right due to higher demand. According to the law of supply and demand, an increase in demand, with supply remaining constant (ceteris paribus), would lead to an increase in the price of quinoa.

Question 20

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

When supply shifts from S1 to S2, the new equilibrium is determined by the intersection of the new supply curve S2 and the demand curve. This results in a higher price of $7.00 and a new equilibrium quantity of 7.

Quiz 3: Demand, Supply, and Market Equilibrium

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S₂ to S₁, the new equilibrium price will be and the new equilibrium quantity will be .

When quantity demanded equals quantity supplied,

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

When there is a surplus of a product in an unregulated market, there is a tendency for

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00, there will be

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Related to the Economics in Practice on page 68: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the of Baltimore newspapers to .

If the market for bluetooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will

When there is an excess demand of a product in an unregulated market, the tendency is for

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers while the supply of Baltimore newspapers , the equilibrium price will definitely decrease.

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Related to the Economics in Practice on page 67: Increased preference for quinoa would most likely shift the demand curve for quinoa to the and lead to a(n) in the price of quinoa, ceteris paribus.

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂, the new equilibrium price will be and the new equilibrium quantity will be .

Quiz 3: Demand, Supply, and Market Equilibrium

When quantity demanded equals quantity supplied,

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

When there is a surplus of a product in an unregulated market, there is a tendency for

Unseasonably warm weather in Georgia resulted in a bumper crop of peaches. Ceteris paribus,

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be

Cell phones and bluetooth headsets are complements. A decrease in the price of bluetooth headsets would cause which of the following in the market for cell phones?

Related to the Economics in Practice on page 68: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the ________ of Baltimore newspapers to ________.

If the market for bluetooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will

When there is an excess demand of a product in an unregulated market, the tendency is for

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers ________ while the supply of Baltimore newspapers ________, the equilibrium price will definitely decrease.

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Related to the Economics in Practice on page 67: Increased preference for quinoa would most likely shift the demand curve for quinoa to the ________ and lead to a(n) ________ in the price of quinoa, ceteris paribus.

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00, there will be

Related to the Economics in Practice on page 68: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the of Baltimore newspapers to .

Related to the Economics in Practice on page 68: Assuming the demand for Baltimore newspapers while the supply of Baltimore newspapers , the equilibrium price will definitely decrease.

Related to the Economics in Practice on page 67: Increased preference for quinoa would most likely shift the demand curve for quinoa to the and lead to a(n) in the price of quinoa, ceteris paribus.