Question

Question 62 pts

Suppose that a new study finds that eating more peanut butter will improve a person's health. As a result,

the demand for peanut butter will fall.

the demand for peanut butter will rise.

the price of peanut butter will fall.

a smaller amount of peanut butter will be purchased.

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Question 72 pts

Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause

an increase in the demand for coffee.

a decrease in the demand for coffee.

a leftward shift of the demand curve for tea.

a leftward shift in the demand for coffee.

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Question 82 pts

If the price of a product increases, we would expect

the level of demand to decrease.

quantity supplied to increase.

the level of supply to increase.

an increase in quantity demanded.

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Question 92 pts

If the price of oil rises, producers of oil will

increase the quantity of oil supplied.

supply less oil.

leave the amount of oil supplied unchanged.

cut the price.

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Question 102 pts

The supply curve will shift to the left when

the supply of the product increases.

the demand for the product decreases.

some producers leave the industry.

the product becomes fashionable.

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Question 112 pts

Suppose that milk producers expect that the price of milk is going to drop next week. This would cause

a decrease in the supply of milk today.

an increase in the supply of milk today.

an increase in the demand for milk today.

the selling price of milk to rise today.

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Question 122 pts

There is a 15 percent increase in the price of lumber used by a firm that builds new homes. This causes

a decrease in the quantity of new homes supplied.

an increase in the supply of new homes.

an increase of the quantity supplied of new homes.

a decrease in the supply of new homes.

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Question 132 pts

A subsidy to carrot farmers will

increase the quantity of carrots demanded.

decrease the quantity of carrots supplied.

increase the supply of carrots.

leave both the supply and demand of carrots unchanged.

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Question 142 pts

An improvement in technology in the production of computers would

increase the demand for computers.

increase the supply of computers.

decrease the demand for computers.

decrease the supply of computers.

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Question 152 pts

Another term for the equilibrium price is

excess demand.

nominal price.

law of demand.

market clearing price.

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Question 162 pts

The equilibrium or market clearing price occurs at the point at which

quantity demanded equals quantity supplied.

the supply curve intersects the horizontal axis.

the demand curve intersects the vertical axis.

there is a shortage of the desired good.

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Question 172 pts

Suppose that the price of wheat is above its equilibrium price. You would expect to see

a shortage on the market that causes prices to increase further.

an increase in quantity demanded because of the high price.

a leftward shift of the demand curve because of the high price.

sellers begin to lower their prices because of the surplus of wheat.

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Question 182 pts

If there is a shortage in a free market, then

consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level.

consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.

suppliers will decrease their output to match demand.

suppliers will accept any price below equilibrium.

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Question 192 pts

A shortage will occur whenever

price is below the equilibrium price.

price is above the equilibrium price.

price is equal to the equilibrium price.

the supply curve is upward sloping.

Answer 1

Q62.B) the study suggests that eating more peanut butter will improve a person health. As the result, the demand for peanut butter will rise.

Q72.A) In the substitute goods, increase in the price of one good cause increase the demand for other goods. So, an increase in the price of tea will cause an increase in the demands for coffee.

Q82.B) If the price of a product increases, we would expect the quantity supplied to increase.

Q92.A) If the price of oil rises, producers of oil will increase the quantity of oil supplied.

Q102.C) if the number of firms in the industry decreases, the supply curve will shift to the left.

Q112.B) if the price of milk is going to drop next week, the producer will increase the supply of milk today.

Q122.D) There is a 15 percent increase in the price of lumber used by a firm that builds new homes. This causes a decrease in the supply of new homes.

Q132.C) A subsidy to carrot farmers will increase the supply of carrots.

Q142.B) An improvement in technology in the production of computers would increase the supply of the computer.

Q152.D) Another term for the equilibrium price is market clearing price.

Q162.A) The equilibrium or market clearing price occurs at the point at which quantity demanded equals to supplied.

Q172.D) Suppose that the price of wheat is above its equilibrium price. You would expect to see sellers begin to lower their prices because of the surplus of wheat.

Q182.B) If there is a shortage in a free market, then consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.

Q192.A) A shortage will occur whenever the price is below the equilibrium price.