Please enter something

Micro/Macro-Economics Chapter 3B Habbard/O’Brien

question

Table 3-1. (Not shown) The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demand in the market would be
answer

63 LBS.
question

Table 3-1 (Not shown) The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. If the price from of loose leaf tea rises from $3 to$4, the market quantity demanded would
answer

increases by 64 IBS
question

The income effect of a price changes refers to the impact of a change in
answer

the prices of a good on a consumer’s purchasing power
question

Which of the following will shift the demand curve for a good
answer

a decrease in price of a complementary good
question

A movement along the demand curve for toothpaste would be caused by
answer

a change in the price of toothpaste
question

When the Price of a good falls, consumers buy a larger quantity because of the ______________ effect and the _____________ effect
answer

substitution; income
question

If the price grapefruit rises, the substitution effect due to the price change will cause
answer

a decrease in the quantity of a grapefruit demand
question

If the price of an orchids falls, the substitution effect due to the price will cause
answer

an increase in the quantity of orchids demanded
question

The __________ effect refers to the change in quantity demand for a good that results from the effect of a change in the good’s price on a consumer’s purchasing power
answer

income
question

Which of the following generation categories has the largest population in the United States in 2015
answer

the millennials
question

A firm must devote people, and money to designing a new product. Because any firm has only limited resources, it
answer

faces a trade-off, because resources used to develop one product will not be available to develop another product
question

A(n)_________ is represented by a leftward shift of the demand curve while a(n) _________ is represented by a movment along a given demand curve
answer

decreased in demand; increas in quantity demand
question

If, in response to a decreased in the price of grapes, the quantity of grapes demand increases, economists would describe this as
answer

an increas in quantity demand
question

The law of demand implies, holding everything else constant,that as the price of gelato
answer

decreases,the quantity of gelato demanded will increase
question

The phrase “demand has decreased” means that
answer

a demand curve has shifted to the left
question

A supply schedule
answer

is a table that shows the relationship between the price of a product and the quantity of the product supplied
question

If in the market for peaches the supply curve has shifted to the left,
answer

the supply of peaches has decreased
question

If in the market for oranges the supply of oranges the supply has increased,then
answer

the supply curve has shifted to the right
question

Last year, The Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
answer

a decrease in supply
question

What is the difference between an “increase in supply” and an “increase in quantity supplied”?
answer

An “increase in supply” means the supply curve has shifted to the right while an “increase in quantity supplied” refers to a movement along a given supply curve in response to an increas in price
question

One would speak of a changein quantityof a good supplied,rather than a change in supply, if
answer

the price of the good changes
question

Which of the following would cause a decrease in in the supply of milk
answer

an increase the price of a product that producers sell instead of milk
question

Refer to figure 3-2 (not shown) An increase in price of inputs would be represented by a movement from
answer

S2 to S1
question

Refer to figure 3-2 (not shown) An increase in the number of firms in the market would be represented by a movement from
answer

S1 to S2
question

Which of the following is the correct way to describe equilibrium in market
answer

At equilibrium, quantity demand equals quantity supplied
question

At a product’s equilibrium price
answer

the product’s demand curve crosses the product’s supply curve
question

Refers to figure 3-3 (not shown) The figure above shows the supply and demand curves for
answer