Question
11. If hotdogs and mustard are complements , then a decrease in the price of hotdogs would cause: a. the demand curve for mustard to
11.
If hotdogs and mustard are
complements
, then a
decrease in the price of hotdogs
would cause:
a.
the demand curve for mustard to shift to the left.
b.
movement along the demand curve for hotdogs increasing the quantity demanded of
hotdogs.
c.
the supply curve for mustard to shift to the right.
d.
None of the above.
12.
Pierre likes to eat french fries with either apple sauce or mayonnaise (but not both) on them.
Thus, for Pierre, french fries and a
pple sauce are
__________________ while appl
e sauce and
mayonnaise are _______________.
a.
substitutes; complements.
b.
substitutes in production; joint products.
c.
joint products; substitutes.
d.
complements; substitutes.
13.
If coffee and tea are
substitutes
, then an
increase in the price of coffee
would cause:
a.
the demand curve for coffee to shift to the left.
b.
movement along the demand curve for coffee increasing the quantity demanded of coffee.
c.
the demand curve for tea to shift to the right.
d.
both a and b.
e.
None of the above.
14.
If tea is a
normal good
and
income increases
, then we would expect:
a.
movement along the demand curve for tea increasing the quantity demanded of tea.
b.
the demand for tea to increase (the dema
nd curve for tea shifts to the right).
c.
the demand for tea to decrease (the dema
nd curve for tea shifts to the left).
d.
None of the above.
15.
Crappy Motors Inc. produces two car models,
Lemons and Wrecks, on its only production line.
If more Lemons are produced, they take up mo
re slots on the production line and fewer Wrecks
can be produced. Lemons a
nd Wrecks are ________________
. If the
price of Lemons
increases
, the supply curve
of Wrecks will____________________.
a.
joint products; shift to the right.
b.
joint products; shift to the left.
c.
substitutes in production; shift to the right.
d.
None of the above.
16.
Dead Cow Ranch (DCR) produces two
joint products
: ground beef and cowhide boots. If the
price of ground beef increases
, then we would expect:
a.
DCR's supply curve of boots to shift to the right.
b.
movement along DCR's supply curve of boots increasing the quantity supplied of boots.
c.
DCR's supply curve of boots to shift to the left.
d.
movement along DCR's supply curve of boots decreasing the quantity supplied of boots.
17.
If the
technology
used to produce computers
improves
, then we would expect:
a.
a decrease in the supply of computers (that is
, the computer supply curve shifts to the
left).
b.
movement along the computer supply curve increasing the quantity supplied of
computers.
c.
movement along the computer supply curve decreasing the quantity supplied of
computers.
d.
an increase in the supply of computers (that
is, the computer supply curve shifts to the
right).
18.
If the
price of memory chips
(a key
component
of computer production)
decreases
, then we
would expect:
a.
a decrease in the supply of computers (that is
, the computer supply curve shifts to the
left).
b.
movement along the computer supply curve increasing the quantity supplied of
computers.
c.
movement along the computer supply curve decreasing the quantity supplied of
computers.
d.
an increase in the supply of computers (that
is, the computer supply curve shifts to the
right).
19.
If computers and VCRs are
substitutes in production
, then an
increase in the price of VCRs
will
cause:
a.
a decrease in the supply of computers (that is
, the computer supply curve shifts to the
left).
b.
movement along the computer supply curve increasing the quantity supplied of
computers.
c.
movement along the computer supply curve decreasing the quantity supplied of
computers.
d.
an increase in the supply of computers (that
is, the computer supply curve shifts to the
right).
20.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
supply increases
, which of the following is the most
likely change in price and quantity n
eeded to reach the new equilibrium?
a.
9
Price,
9
Quantity.
b.
9
Price,
8
Quantity.
c.
8
Price,
9
Quantity.
d.
8
Price,
8
Quantity.
e.
Cannot determine from given information.
21.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
supply decreases
, which of the following is the most
likely change in price and quantity n
eeded to reach the new equilibrium?
a.
9
Price,
9
Quantity.
b.
9
Price,
8
Quantity.
c.
8
Price,
9
Quantity.
d.
8
Price,
8
Quantity.
e.
Cannot determine from given information.
22.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
demand decreases
, which of the following is the most
likely change in price and quantity needed to reach the new equilibrium?
a.9 Price, 9 Quantity.
b.9 Price, 8 Quantity.
c.8 Price, 9 Quantity.
d.8 Price, 8 Quantity.
e.Cannot determine from given information.
23.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
demand increases, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?
a.9 Price, 9 Quantity.
b.9 Price, 8 Quantity.
c.8 Price, 9 Quantity.
d.8 Price, 8 Quantity.
e.Cannot determine from given information.
24.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
both demand and supply increase
, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?
a.9 Price, Quantity unable to determine.
b.8 Price, Quantity unable to determine.
c. Price unable to determine, 8 Quantity.
d.Price unable to determine, 9 Quantity.
25.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
demand increases while supply decreases
, which of the
following is the most likely change in price a
nd quantity needed to reach the new equilibrium?
a.
9
Price, Quantity unable to determine.
b.
8
Price, Quantity unable to determine.
c.
Price unable to determine,
8
Quantity.
d.
Price unable to determine,
9
Quantity.
26.
Given an initial market equilibrium with a downward sloping market demand curve and an
upward sloping market supply curve, if
both demand and supply decrease
, which of the following is the most likely change in price and quantity needed to reach the new equilibrium?
a.9Price, Quantity unable to determine.
b.8 Price, Quantity unable to determine.
c. Price unable to determine, 8Quantity.
d.Price unable to determine, 9 Quantity.
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