1. Consumers believe an advert that claims that the price of orange juice soon will decrease significantly.Simultaneously, there is an outstanding Florida orange crop.The equilibrium price level will __________ and the equilibrium quantity level will __________.

Select one:

a. be indeterminate; become higher

b. become lower; be indeterminate

c. be indeterminate; become lower

d. become higher; be indeterminate

2. There is a surplus in the market for lettuce.We would expect

Select one:

a. the quantity supplied to increase.

b. the quantity demanded to decrease.

c. the demand to increase.

d. the price to decrease.

3. To study the effect of a change in the price of coffee on the quantity of coffee demanded, we must hold constant

Select one:

a. the quantity demanded of coffee.

b. both the price and the quantity demanded of coffee.

c. everything except the price and the quantity demanded of coffee.

d. the price of coffee.

4. An effective price floor is set _______ the equilibrium price and results in a _________.

Select one:

a. above; shortage

b. below; surplus

c. below; shortage

d. above; surplus

5. Which of the following will decrease the demand for OkraCoke?

Select one:

a. An increase in income (if OkraCoke is a normal good).

b. A decrease in the price of OkraCoke.

c. An expected increase in the price of OkraCoke.

d. An increase in the supply of PensaCola (a substitute for OkraCoke).

6. Which of the following will increase the supply of OkraCoke?

Select one:

a. A decrease in the cost of an important resource used in producing OkraCoke.

b. The imposition of a per-unit tax on OkraCoke.

c. An increase in consumers' income (if OkraCoke is a normal good).

d. An increase in the price of OkraCoke.

7. The market for roller blades is in equilibrium.Now an effective price floor is established.Considering the demand and supply diagram for the roller blade market, we would predict

Select one:

a. a surplus of roller blades and no change in supply.

b. a shortage of roller blades and an increase in supply.

c. a shortage of roller blades and no change in supply.

d. a surplus of roller blades and an increase in supply.

8. Coke and Pepsi are substitutes.Which of the following will not cause the demand curve for Pepsi to shift?

Select one:

a. A decrease in the price of Coke.

b. An increase in the price of Pepsi.

c. A greater preference for Pepsi relative to Coke.

d. An increase in the price of Coke.

9. When there is a surplus, quantity supplied _________ quantity demanded.Price will ________.

Select one:

a. is less than; rise

b. exceeds; fall

c. exceeds; rise

d. is less than; fall

10. Diet OkraCoke and OkraCoke are soft drinks that are consumption substitutes.Sugar is an ingredient in OkraCoke but it is not an ingredient in Diet OkraCoke.A large increase in the price of sugar will result in

Select one:

a.an increase in the price of OkraCoke and an increase in the price of Diet OkraCoke.

b.an increase in the price of Diet OkraCoke and a decrease in the price of OkraCoke.

c.an increase in the price of OkraCoke but no change in the price of Diet OkraCoke.

d.an increase in the price of OkraCoke and a decrease in the price of Diet OkraCoke.