1> In a competitive market, the price of the product is

Choose one:

A.set by market supply and demand.

B.set by the market leader and then copied by other sellers.

C.jointly set after a meeting of all sellers in the market.

D.independently set by each competing seller.

2>The situations below include an event, in plain text, and a market, in bold. For each situation,determine whether the demand or supply curves shift to the right or to the left for the market, and sort the situation into the appropriate category.

• the profits of pizzerias in your home town increase: the pizza restaurant
• the government pays a subsidy to ethanol producers
• the price of sweet potatoes falls: turkey
• the price of jet fuel rise: airplane flights
• consumer incomes decrease: housing
• the population ages: home health car

which one of these is DEMAND DEMAND SUPPLY SUPPLY

3> Suppose consumers suddenly start preferringsocceroverfootball. How does this change affect consumer demand forfootball?

Choose one:

A.Demand increases.

B.Demand decreases.

C.Demand does not change.

4> Which of the following will cause a rightward shift in the supply curve forbeer?

Choose one:

A.an improvement in the technology used in the production ofbeer

B.an increase in taxes onbeer

C.a decrease in the number ofbrewersin the market

D.removal of government subsidies tobrewers

5> Suppose there is a shortage of a product. What must happen to the market price for the shortage to be eliminated?

Choose one:

A.price must fall

B.price may rise or fall depending on the size of the shortage

C.price must stay the same

D.price must rise

7> Which of the following willdecreasethe supply of laptop computers?

Choose one or more:

A.The cost of plastic (an input for the production of laptop computers) rises.

B.The governmentremovesa subsidy for the manufacture of laptop computers.

C.The number of sellers increases.

D.The price of laptop computers rises.

E.Alessefficient manufacturing technology for constructing laptop computers is used.

8> Which of the following will cause a change in the quantity ofstreaming videossupplied?

Choose one or more:

A.anticipation of a change in the price ofstreaming videos

B.a change in the technology or the production process of makingstreaming videos

C.the price ofstreaming videos

D.the wages of those involved in producingstreaming videos

9> Suppose that atyphoon devastates the Philippinesand damages thericecrop. As a result, the_______________

ricewill________________. This change will cause the equilibrium price to___________ supply of

increase increase

decreas

decrease demand of

10> Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more fish while using the same number of crew members as before. Second, a new study shows that eating fish at least three times a week helps prevent heart attacks.

As a result, the equilibrium price for fish will________________ while the equilibrium quantity of fish will

increase

decrease

have an ambiguous change

.