Quiz Questions 2

Front 1

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

Back 1

there is a movement up along the demand curve to a smaller quantity demanded.

Front 2

Gasoline prices increase by 50 percent and other things remain the same. As a result, there is

Back 2

a decrease in the quantity of gasoline demanded.

Front 3

An increase in the quantity demanded is shown as

Back 3

a movement along the demand curve.

Front 4

The price of cotton clothing falls. As a result,

Back 4

the quantity demanded of cotton clothing increases.

Front 5

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,

Back 5

the demand for milk increases

Front 6

The market demand curve

Back 6

is the horizontal sum of individual demand curves.

Front 7

Consider the market for burritos. The law of demand can be illustrated by

Back 7

a movement along the demand curve for burritos due to a change in the price of a burrito.

Front 8

When demand increases,

Back 8

consumers are willing to buy more at any price.

Front 9

Changes in which of the following factors do NOT shift the demand curve?

Back 9

the price of the good

Front 10

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

Back 10

demand for Apple computers decreases.

Front 11

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

Back 11

demand for Apple computers decreases.

Front 12

Which of the following increases the demand for a good or service?

Back 12

a rise in the price of a substitute good or service

Front 13

Consider the market for smart phones. Which of the following shifts the demand curve rightward?

Back 13

an increase in the price of land-line phone service, a substitute for smart phones

Front 14

Which of the following shifts the demand curve for movies leftward?

Back 14

a decrease in the price of NetFlix, a substitute for movies

Front 15

Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price of Mountain Water decreases, the fall in price

Back 15

shifts the demand curve for Natural Water leftward.

Front 16

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

Back 16

the demand for hot dog buns will increase.

Front 17

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

Back 17

The demand for bottled water increases.

Front 18

A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?

Back 18

The demand for golf clubs decreases.

Front 19

Which of the following increases the demand for a good?

Back 19

the expectation that future income will be higher

Front 20

The graph illustrates the demand curve for soda. After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded

Back 20

decreases from 2 cans to 0 cans a day.

Front 21

The law of supply states that, other things remaining the same,

Back 21

if the price of a good increases, the quantity supplied increases

Front 22

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

Back 22

a decrease in the quantity of kayaks supplied.

Front 23

A supply curve

Back 23

an increase in the price of movie tickets

Front 24

Which of the following increases the quantity supplied of yoga pants but does NOT increase the supply of yoga pants?

Back 24

an increase in the price of the resources used to produce yoga pants

Front 25

When the price of oranges increases,

Back 25

the quantity of oranges supplied increases

Front 26

A decrease in the price of a complement in production leads to

Back 26

a decrease in the supply of the good in question.

Front 27

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

Back 27

The supply of cheese decreases.

Front 28

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel. If the price of diesel fuel falls, there is

Back 28

an increase in the supply of home heating oil.

Front 29

The United Auto Workers bargained for higher wages and more benefits for autoworkers. As a result of the higher wages and increased benefits,

Back 29

only ii

Front 30

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

Back 30

The supply decreases so that the supply curve shifts leftward.

Front 31

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

Back 31

C) an increase in the supply electric cars so that the supply curve shifts rightward.

Front 32

Which of the following increases the supply of a good?

Back 32

Productivity improves.

Front 33

Which of the following shifts the supply curve for oranges?

Back 33

disastrous weather that destroys about half of this year's orange crop

Front 34

In the above figure, the movement from point a to point b reflects

Back 34

an increase in the price of pizza.

Hint 34

Front 35

In the above figure, the shift in the supply curve from S to S1 reflects

Back 35

a decrease in the supply of pizza.

Hint 35

Front 36

A rise in the price of a substitute in production for a good leads to

Back 36

a decrease in the supply of that good.

Front 37

Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

Back 37

decreases; shifts leftward