A. Buyers determine demand, and sellers determine supply.
B. Buyers determine both demand and supply.
C. Buyers determine supply, and sellers determine demand.
D. Sellers determine both demand and supply.
A. specific time and place at which the good or service is traded.
B. group of buyers and sellers.
C. All of the above are correct.
D. high degree of organization present.
A. there are only a few sellers.
B. the forces of supply and demand do not apply.
C. no individual buyer or seller has any significant impact on the market price.
D. an auctioneer helps set prices and arrange sales.
A. the sellers’ profits must increase.
B. other sellers would also raise their prices.
C. buyers will make purchases from other sellers.
D. the owners of the raw materials used in production would raise the prices for the raw materials.
A. No individual buyer can influence the market price.
B. Some sellers can set prices.
C. Firms produce identical products.
D. Buyers are price takers.
A. increase in demand.
B. decrease in quantity demanded.
C. increase in quantity demanded.
D. decrease in demand.
A. the demand curve shifts in the same direction.
B. there is a movement along a given demand curve.
C. the supply curve shifts in the opposite direction.
D. the demand curve shifts in the opposite direction.
A. a decrease in quantity demanded.
B. an increase in demand.
C. a decrease in demand.
D. an increase in quantity demanded.
A. all nonprice determinants of demand are held constant.
B. all determinants of quantity demanded are held constant.
C. only price is held constant.
D. income and price are held constant.
A. shifted to the right.
B. not shifted; rather, the demand curve has become flatter.
C. shifted to the left
D. not shifted; rather, we have moved along the demand curve to a new point on the same curve.
A. slopes upward.
B.represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
C. is found by vertically adding the individual demand curves.
D. represents the sum of the quantities demanded by all the buyers at each price of the good.
A. vertically.
B. and then average them.
C. horizontally.
D. diagonally
A. 6 units.
B. 4 units.
C. 8 units.
D. 12 units.
A. a decrease in demand.
B. an increase in quantity demanded.
C. an increase in demand.
D. a decrease in quantity demanded.
A. people’s incomes must have decreased.
B. firms would be willing to supply less of the good than before at each possible price.
C. people are willing to buy less of the good than before at each possible price.
D. the price of the product has increased, causing consumers to buy less of the product.
A. a decrease in the price of a substitute.
B. a decrease in the price of a complement.
C. an increase in price.
D. a technological advance.
A. buyers expecting the price of the good to fall in the near future.
B. a decrease in income, assuming the good is inferior.
C. a decrease in price.
D. an increase in the price of a complement.
A. decrease in the price of potato chips.
B. announcement by the FDA that potato chips cause cancer.
C. increase in the price of a pretzels.
D. decrease in income, assuming that potato chips are a normal good
A. a change in expectations about the future price of the good or service
B. a change in the price of a related good or service
C. a change in the price of the good or service
D. a change in income
A. for soup falls when the price of a substitute for soup rises.
B. curve for soup slopes upward.
C. for soup falls when income rises.
D. for soup rises when the price of soup falls.
A. substitute goods.
B. complementary goods.
C. inferior goods.
D. normal goods.
A. a decrease in the price of toast
B. a decrease in the price of butter
C. an increase in the price of butter
D. Both a) and b) are correct.
A. an increase in the demand for chocolate pudding.
B. no change in the demand for chocolate pudding.
C. a decrease in the supply of chocolate pudding.
D. a decrease in the demand for chocolate pudding.
A. will not shift; rather, the demand curve for Mustangs will shift to the right next month.
B. shifts to the right.
C.shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information.
D. shifts to the left.
A. expectations about future prices.
B. production technology.
C. input prices.
D. the price of the good or service that is being supplied.
A. an increase in input prices increases supply.
B. the quantity supplied of most goods and services increases over time.
C. as more is produced, total cost of production falls.
D. an increase in price gives producers an incentive to supply a larger quantity.
A. shifted to the left.
B. shifted to the right.
C. not shifted; rather, we have moved along the supply curve to a new point on the same curve.
D. not shifted; rather, the supply curve has become flatter.
A. a change in the price of the good or service
B. a change in input prices
C. a change in production technology
D. a change in expectations about the future price of the good or service
A. account for all determinants of demand.
B. sum the quantities that individual firms are willing and able to supply at that price.
C.calculate the average of the quantities that individual firms are willing and able to supply at that price.
D. sum the costs that individual firms incur to supply the product at that price.
A. suppliers’ responses, in terms of the amounts they will supply, to the demands of buyers.
B. the total quantity supplied at all possible prices.
C. the average quantity supplied by producers at all possible prices.
D. how quantity supplied changes when consumer income changes.
A. Firm B’s and Firm D’s only
B. Firm B’s, Firm C’s, and Firm D’s only
C. Firm A’s only
D. Firm A’s and Firm C’s only
A. 30 units.
B. 4 units.
C. 10 units.
D. 7.5 units.
A. demand for bicycle assembly workers will increase.
B. supply of bicycles will shift to the right.
C. supply of bicycles will shift to the left.
D. firm must increase output to maintain profit levels.
A. increase a firm’s costs and increase its supply.
B. decrease a firm’s costs and decrease its supply.
C. increase a firm’s costs and decrease its supply.
D. decrease a firm’s costs and increase its supply.
A. increase supply in the future but not now.
B. increase supply now.
C. decrease supply now
D. decrease supply in the future but not now.
A. the supply curve to shift to the left.
B. a movement up and to the right along a stationary supply curve.
C. a movement downward and to the left along a stationary supply curve.
D. the supply curve to shift to the right.
A. increase in income.
B. improvement in production technology.
C. increase in input prices.
D. increase in the price of the good.
A. decrease in the labor costs of the workers who pick peaches.
B. increase in income.
C. decrease in the price of pears.
D. increase in the price of peaches.
A. decrease in the price of chocolate cake.
B. decrease in the price of butter.
C. decrease in the number of commercial bakers.
D. improvement in oven technology.
A. Either a) or c) could be correct.
B. is less than the quantity that sellers are willing and able to sell.
C. exactly equals the quantity that sellers are willing and able to sell.
D. is greater than the quantity that sellers are willing and able to sell.
A. P=1; Q=2200
B. P=2; Q=2400
C. P=3; Q=1800
D. P=2; Q=2000
A. the actions of buyers and sellers.
B. government regulations placed on market participants.
C. increased competition among sellers.
D. buyers’ ability to affect market outcomes.
A. quantity demanded exceeds quantity supplied.
B. sellers desire to produce and sell more than buyers wish to purchase.
C. a shortage will exist.
D. buyers desire to purchase more than is produced.
A.raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
B.lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
C.lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
D.raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
A. surplus to exist and the market price of roses to increase.
B. shortage to exist and the market price of roses to increase.
C. surplus to exist and the market price of roses to decrease.
D. shortage to exist and the market price of roses to decrease.
A. the price of a good will eventually rise in response to an excess demand for that good.
B. demand curves and supply curves tend to shift to the right as time goes by.
C. when the supply curve for a good shifts, the demand curve for that good shifts in response.
D. the equilibrium price of a good will be rising more often than it will be falling.
A.
supply predicts that the price will rise by $2 to eliminate the shortage.
B.
supply and demand predicts that the price will fall by $2 to eliminate the shortage.
C.
demand predicts that the price will rise by $2 to eliminate the shortage.
D.
supply and demand predicts that the price will rise by $2 to eliminate the shortage.
supply and demand predicts that the price will rise by $2 to eliminate the shortage.
A. $6 and 60 units.
B. $12 and 30 units.
C. $6 and 30 units.
D. $2 and 50 units.
A. surplus of 45 units would exist, and price would tend to fall.
B. shortage of 20 units would exist, and price would tend to rise.
C. shortage of 25 units would exist, and price would tend to rise.
D. surplus of 25 units would exist, and price would tend to fall.
A. surplus of 15 units would exist, and price would tend to fall.
B. shortage of 25 units would exist, and price would tend to rise.
C. shortage of 40 units would exist, and price would tend to rise.
D. surplus of 25 units would exist, and price would tend to fall.
A. demand decreases and supply increases
B. demand and supply both decrease
C. demand and supply both increase
D. demand increases and supply decreases
A. to decrease and equilibrium quantity to increase.
B. to increase and equilibrium quantity to decrease.
C. and equilibrium quantity to both decrease.
D. and equilibrium quantity to both increase.
A. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
B. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
C. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D.Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
A. The equilibrium price would increase, and the equilibrium quantity would decrease.
B. Both the equilibrium price and quantity would decrease.
C. Both the equilibrium price and quantity would increase.
D. The equilibrium price would decrease, and the equilibrium quantity would increase.
A. Price will rise, and the effect on quantity is ambiguous.
B. Price will fall, and the effect on quantity is ambiguous.
C. Quantity will rise, and the effect on price is ambiguous.
D. Quantity will fall, and the effect on price is ambiguous.
A. x to y.
B. DA to DB
C. DB to DA.
D. y to x.
A. y to x.
B. DA to DB.
C. x to y.
D. DB to DA.