Q&A Hero

Q: Refer to the following table to answer the following questions.PriceQuantity DemandedQuantity Supplied$10.0010100$8.0020 80$6.0030 60$4.0040 40$2.0050 20$0.0060 0If the price of this good is $2.00, there would be a ________ of ________ units.a. shortage; 20 b. surplus; 50 c. shortage; 30d. surplus; 30e. surplus; 20

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Q: Refer to the following figure to answer the following questions.According to the accompanying figure, if the price is $10, there is a ________ of ________ units.a. shortage; 15 b. surplus; 15 c. shortage; 30d. surplus; 30e. surplus; 22

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Q: Refer to the following figure to answer the following questions.Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?a. (15, $10) b. (15, $6) c. (22, $8)d. (30, $6)e. (30, $10)

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Q: If the price of Gatorade increases, the equilibrium price of Powerade, a substitute good, will ________ because of a shift in ________.a. increase; demand b. increase; supply c. decrease; demandd. decrease; supplye. decrease; demand

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Q: Refer to the accompanying graph. If a tax is placed on a good and all else is held constant, we would assume that the supply curve woulda. shift from S1 to S3. b. remain at S1. c. shift from S1 to S2.d. shift from S2 to S1.e. shift from S2 to S3.

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Q: When the price of ground beef increases and all else is held constant, we would expect the supply of hamburgers to ________, causing the price to ________.a. decrease; increase b. decease; decrease c. stay the same; stay the samed. increase; increasee. increase; decrease

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Q: James specializes in college-level economics tutoring. He knows that during the two weeks before finals he can charge more for an hour of private tutoring. Expecting this price increase, James will a. supply less tutoring now, shifting supply to the left. b. supply more tutoring now, shifting supply to the right. c. supply less tutoring now, shifting supply to the right. d. supply more tutoring now, shifting supply to the left. e. change the price of tutoring without any shift in supply.

Q: 18. Use the accompanying graph to answer the following questions. a. What is the equilibrium price and equilibrium quantity in this market?b. Draw an increase in demand and explain what happens to the equilibrium price and equilibrium quantity.c. This is a special type of supply curve that we call an inelastic supply curve. What special property does it have?

Q: Old Navy stocks more Bermuda shorts during the summer months than in the winter months. The resulting shift in supply explainsa. the change in technology. b. the change in income. c. price expectations.d. the change in input cost.e. the number of firms in a market.

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Q: Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will a. increase, causing demand to increase. b. increase, causing the supply to shift down. c. decrease, causing the supply to decrease. d. decrease, causing the supply to increase. e. increase, causing the supply to increase.

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Q: Which of the following situations would cause the demand curve to shift to the right? a. a decrease in the number of consumers b. a decrease in the number of producers c. an increase in the price of a complement d. an increase in the price of a substitute e. a change in tastes and preferences

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Q: When the number of firms in a market decreases, a. the demand curve shifts to the left. b. the demand curve shifts to the right. c. the supply curve shifts to the right. d. the supply curve shifts to the left. e. both the supply and the demand curves shift to the left.

Q: 14. Use the accompanying graph to answer the questions. a. What is the equilibrium price and equilibrium quantity?b. At the price of $5, is there a shortage or a surplus? What is the amount of this shortage or surplus?c. At the price of $15, is there a shortage or a surplus? What is the amount of this shortage or surplus?

Q: When the government places a tax on a good and all else is held constant, which of the following would most likely happen? a. The overall consumption of the good decreases, assuming the good does not have a vertical demand curve. b. The price the buyer pays for the good decreases, assuming the good does not have a horizontal demand curve. c. The supply curve shifts to the right. d. The government receives no tax revenue if the tax is more than 20 percent. e. The price and quantity adjust back to the competitive market equilibrium point.

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Q: In 1993, the government increased the tax on gasoline producers from 14.1 cents per gallon to 18.4 cents per gallon. Our model of supply and demand predicts that a. the demand for gasoline decreased. b. the supply for gasoline increased. c. the demand for gasoline increased. d. the supply for gasoline decreased. e. both the supply and demand for gasoline decreased.

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Q: On January 30, 2012, Starbucks India announced plans to open 50 cafs. What would you expect to happen to the market for coffee in India, assuming all other factors are held constant? a. The demand for coffee will increase in India. b. The demand for coffee will decrease in India. c. Both the supply and demand for coffee will increase in India. d. The supply for coffee will increase in India. e. The supply for coffee will decrease in India.

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Q: When the government places a tax on the producer of a good or service a. the demand curve for the good or service shifts to the right. b. the demand curve for the good or service shifts to the left. c. the supply curve for the good or service shifts to the right. d. the supply curve for the good or service shifts to the left. e. both the supply and demand curves for the good or service shifts to the left.

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Q: A subsidy a. is a payment made by the government to encourage consumption or production of a good or service. b. is a payment taken by the government to discourage consumption or production of a good or service. c. shifts the demand curve of a product. d. is designed to decrease the available supply of a good or service. e. raises the cost of doing business.

Q: 9. We are given the following supply schedule:PriceQuantity Demanded $0 0 $415 $830 $1245 $1660 a. Graph the information from the supply schedule. Be sure to label everything.b. Now graph the following supply schedule:PriceQuantity Demanded$0 0$410$825$1240$1655c. What happened to the supply curve?d. List five things that could make the supply curve reflect your answer in part c.

Q: Which of the following could cause the supply curve for the market for oranges to shift to the left? a. an increase in the income of consumers of oranges b. a decrease in the cost of workers c. an increase in the price of orange juice d. a new study saying that eating oranges will give one heart disease e. a severe hurricane in Florida

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Q: If a new french frycutting machine works twice as fast as the old machine, McDonalds would a. be willing to produce and sell fewer french fries at every price. b. be making less profit. c. be willing to produce and sell more french fries at every price. d. lose customers. e. pay its employees more.

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Q: An improvement in technology a. is one way to shift the demand curve. b. always increases producers profits. c. allows a producer to decrease output with the same amount of input. d. allows a producer to increase output with the same amount of input. e. shifts the supply curve to the left.

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Q: Which following change in the coffee market would shift the supply curve to the right? a. A study finds that drinking coffee leads to higher grades. b. The wage for employees in the coffee business decreases. c. The income in the economy increases. d. Firms expect the price of coffee to increase in the future. e. Fifty Starbucks coffee shops close down.

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Q: If the price of rubber were to increase by 20 percent over the fiscal year and if all else were held constant, what would we expect to happen to the supply curve of tires that are sold separately from automobiles? a. The supply curve would shift to the right. b. The quantity supplied would increase. c. The supply curve would shift to the left. d. The supply curve would shift down. e. Nothing; the cost of rubber has no impact on the supply of tires.

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Q: If the cost of flour increases from $3 to $5 a bag, we could predict the supply curve for bagels toa. shift to the right. b. shift to the left. c. become steeper.d. become flatter.e. increase.

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Q: Higher input costs a. reduce profits. b. increase profits. c. shift the demand curve. d. always happen during a recession. e. provide an incentive to hire more workers.

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Q: Inputs are a. goods that are used together. b. goods that are used in place of one another. c. goods that one demands more of as ones income increases. d. goods that one demands less of as ones income increases. e. resources that firms use in the production of final goods and services.

Q: A change in quantity supplied a. is represented by a shift in the supply curve. b. is represented by a movement along the supply curve. c. happens only when the price increases. d. happens only when the price decreases. e. is positive if the price of the good decreases.

Q: Which of the following will cause a movement along a goods supply curve? a. The price of an input increases. b. The price of the good increases. c. The production process of the good becomes more efficient. d. More firms enter the market. e. The government places a subsidy on the producer of the good.

Q: SHORT ANSWER1. Compare and contrast the differences between a competitive market and an imperfect market, and give an example of an imperfect market.

Q: Which of the following is both a shift in supply and a shift in demand?a. the number of firms in an industry b. tastes and preferences c. income changesd. expectations of future pricese. the number of buyers

Q: What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

Q: The government recently imposed a number of regulations on companies that will make it more expensive for companies to hire workers. What consequence will this have on market? a. These regulations raise the cost of labor and shift supply to the left. b. These regulations raise the cost of labor and shift supply to the right. c. These regulations raise the cost of labor and cause a rightward movement along the supply curve. d. These regulations raise the cost of labor and cause a leftward movement along the supply curve. e. These regulations will not affect the supply curve.

Q: As the owner of a business, Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen. She has noticed, however, that her employees are distracted by being able to watch movies while at work. How would an economist describe this situation? a. As people watch movies, they become less productive and efficient and there is a leftward movement along the supply curve. b. As people watch movies, they become less productive and efficient and there is a rightward movement along the supply curve. c. As people watch movies, they become less productive and efficient and there is a rightward shift of the supply curve. d. As people watch movies, they become less productive and efficient and there is a leftward shift of the supply curve. e. As people watch movies, they become less productive and efficient and there is a rightward shift of and movement along the supply curve.

Q: As computers and Internet access have become cheaper, businesses have offered these to employees. What impact would this have on the market for what these businesses sell? a. The technology will lead to a leftward shift of the supply curve. b. The technology will lead to a rightward shift of the supply curve. c. The technology will lead to a leftward shift of the demand curve. d. The technology will lead to a leftward movement along the supply curve. e. There will be no change in supply or quantity supplied.

Q: Roger currently runs a restaurant on a busy street filled with many other restaurants. The local health inspector, however, has plans to shut down many of these restaurants. What impact will the closure of restaurants have? a. There will be an increase in quantity supplied. b. There will be a decrease in quantity supplied. c. There will be an increase in supply. d. There will be a decrease in supply. e. There will be no change in quantity supplied or supply.

Q: When Paul listened to the presidential candidate debates, he heard one candidate proposing to increase taxes and the other candidate responding that this would cause firms to decrease production. How would this be described by an economist? a. As taxes increase, there is a decrease in quantity supplied. b. As taxes increase, there is an increase in quantity supplied. c. As taxes increase, there is an increase in supply. d. As taxes increase, there is a decrease in supply. e. As taxes increase, there is an increase in supply and in quantity supplied.

Q: When the price falls, what happens? a. There is no change in the quantity supplied or supply. b. There is an increase in the supply. c. There is a decrease in the supply. d. There is an increase in the quantity supplied. e. There is a decrease in the quantity supplied.

Q: At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50?a. 12,000 b. 16,000 c. 4,000d. 28,000e. 25,000

Q: How does the market supply reflect the law of supply? a. As the price increases, each and every seller sells a larger quantity of the product. b. As the price decreases, each and every seller sells a larger quantity of the product. c. As the price increases, each and every seller initially sells a larger quantity of the product but eventually sells less. d. As the price decreases, each and every seller initially sells a larger quantity of the product but eventually sells more. e. The market supply curve does not reflect the law of supply.

Q: What is market supply? a. the subtraction of the individual quantities supplied by each seller in a market at each price b. the addition of the individual prices of the product at each level of quantity c. the multiplication of the price of each product by the individual quantities supplied by each supplier in a market d. the division of the total sales by an individual seller with the price paid for the product e. the addition of the individual quantities supplied by each seller in a market at each price

Q: Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market, a quarter of these suppliers supply 40 widgets to the market, and a quarter of these suppliers supply 50 widgets to the market. What is the market supply for widgets?a. 100 b. 125 c. 400d. 4,000e. 1,750

Q: Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to the table below, if the price of nachos is $6, the market will supply ________ nachos.Price of NachosFirm 1u2019s SupplyFirm 2u2019s Supply 0 00$1 10$2 11$3 21$4 42$5 53$6 64$7 74$8105a. 41 b. 6 c. 2d. 4e. 10

Q: Refer to the accompanying figure. When the price changes from P1 to P2, we will see a(n)a. decrease in supply from Q1 to Q2.b. increase in supply from Q2 to Q1.c. decrease in quantity supplied from Q1 to Q2.d. increase in quantity supplied from Q2 to Q1.e. shift of the supply curve.

Q: A supply schedule a. is a curve representing the relationship between the price of a good or service and the quantity supplied. b. is a list of goods and services supplied at different prices. c. is a table representing the relationship between the price of a good or service and the quantity supplied. d. can be used only to analyze individuals supplies for a good or service. e. can be used only to analyze the entire markets supply for a good or service.

Q: The law of supply states that, all other things being equal, a. the quantity supplied falls when the price falls, and the quantity supplied rises when the price rises. b. the quantity supplied falls when the price rises, and the quantity supplied rises when the price falls. c. the supply falls when the price falls, and the demand rises when the price rises. d. the supply falls when the price rises, and the demand rises when the price falls. e. price and quantity are always negatively correlated.

Q: Refer to the accompanying diagram for the following questions.If consumers expect the price of a good to decrease in the future and all else is held constant, we would assume that the demand curve woulda. shift from D1 to D3. b. remain at D1. c. shift from D1 to D2.d. shift from D2 to D1.e. shift from D2 to D3.

Q: Refer to the accompanying diagram for the following questions.An increase in the number of buyers would cause the demand curve toa. shift from D1 to D3. b. remain at D1. c. shift from D1 to D2.d. shift from D2 to D1.e. shift from D2 to D3.

Q: Refer to the accompanying diagram for the following questions that follow.As the life expectancy in the United States increases, which of the following could likely happen to the demand curve for items such as health care, cancer treatments, and nursing facilities, holding all else constant, and why?a. There would be a decrease because individuals are healthier.b. There would be an increase because the cost of these items is falling.c. There would be an increase because there will be more buyers in these markets.d. There would be a decrease because Social Security benefits are running out.e. They will stay the same because these changes would affect the supply curve and not the demand curve.

Q: Refer to the accompanying diagram for the following questions that follow.As more people migrated West during the gold rush, what happened to the demand curve in most western markets, holding all else constant?a. The demand curve shifted to the right.b. The demand curve shifted to the left.c. There was no shift, but there was an increase in quantity demanded.d. There was no shift, but there was a decrease in quantity demanded.e. There was no shift, nor any increase or decrease in quantity demanded.

Q: Refer to the accompanying diagram for the following questions that follow.Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure?a. an increase in an input priceb. a decrease in the number of buyers in a marketc. an increase in the price of a substitute goodd. an increase in the expected future pricee. a negative technological change

Q: Refer to the accompanying diagram for the following questions that follow.The demand curve shift shown in the figure was caused by a(n)a. increase in the input cost of the good.b. increase in the price of a substitute of the good.c. decrease in the number of firms selling the good.d. decrease in the number of buyers in the market for the good.e. expectation that the future price of this good will be higher than it is currently.

Q: Changes in population can a. alter the supply of a good or service in an area. b. shift the supply curve of a good or service in an area. c. cause the price of a good or service to increase in an area but cannot cause the price to decrease. d. cause the price of a good or service to decrease in an area but cannot cause the price to increase. e. shift the demand curve of a good or service in an area.

Q: Katarina drives past the same gas station every day. She realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week. On Saturday, Katarina turns on the news and hears a report projecting that the price of gasoline is going to increase. Holding all else constant, what do you think would happen to Katarinas demand for gasoline on Monday? a. Her demand would shift to the right. b. Her demand would shift to the left. c. We would see a movement down on her demand curve but no shift. d. We would see a movement up on her demand curve but no shift. e. We would see nothing happen to her demand curve until the price changed on Tuesday.

Q: The demand curve for a good will shift to the right if, holding all else constant, a. consumers expect future prices to decrease. b. an input cost of the item goes up. c. consumers expect future prices to increase. d. the price of the good goes down. e. the price of a substitute good goes down.

Q: An expectation of a lower price in the future will a. increase current demand. b. decrease current demand. c. not change demand. d. cause demand to stay the same but increase the quantity demanded. e. cause demand to stay the same but decrease the quantity demanded.

Q: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?PriceQuantity Demanded $8.00200$10.00175$12.00150$14.00100$16.00 50a.d.b.e.c.

Q: Which of the following will cause the demand curve for burgers to shift to the right? a. The price of burgers decreases. b. The price of burgers increases. c. The price of burger buns increases. d. A study is published by the National Association for Burger Research that says eating burgers can reduce the risk for bad acne. e. The price of steak decreases.

Q: Companies use advertising to shift consumer demand. On which of the following demand shifters do advertisers most often rely? a. changes in income b. the price of related goods c. changes in tastes and preferences d. the number of buyers e. expectations regarding the future price