1)A(n) ________ in equilibrium ________ will occur when there is a simultaneous increase in demand and supply.

• A.increase; price
• B.decrease; price
• C.increase; quantity
• D.decrease; quantity

2)An economist tells us that there has been a decrease in the quantity demanded of Pepsi. Which of the following best explains why the quantity demanded of Pepsi decreased?

• A.The price of Coca-Cola increased
• B.Pepsi advertising was not as effective as in the past
• C.The price of Pepsi increased
• D.Income of Pepsi consumers increased

3)________ causes a shift to the right in the demand curve for Big Macs.

• A.A rise in the price of Big Macs
• B.A fall in the price of Big Macs
• C.No change in the price of Big Macs
• D.An increase in the price of Burger King Whoppers

4)Which of the following is held constant along the demand curve?

• A.Price of the good
• B.Quantity
• C.Income
• D.Price of the good and quantity

8)The change in the price of a good leads to a change in ________, which leads to a ________.

• A.quantity supplied; movement along a supply curve
• B.quantity supplied; shift of the supply curve
• C.supply; movement along a supply curve
• D.supply; shift of the supply curve

9)Equilibrium is the condition that exists when

• A.there is no government intervention in the market.
• B.the demand curve intersects the price axis.
• C.quantity demanded equals quantity supplied.
• D.the demand curve intersects the quantity axis.

13)A ________ in the price of ________ will cause a decrease in demand for cameras.

• A.rise; a substitute good.
• B.rise; cameras.
• C.rise; a complementary good.
• D.fall; cameras.

14)DVD players and DVDs are complements. A rise in the player price would cause which of the following in the market for DVDs? The equilibrium price

• A.and quantity of DVDs would rise.
• B.and quantity of DVDs would fall.
• C.of DVDs would rise and the equilibrium quantity would fall.
• D.of DVDs would fall and the equilibrium quantity would rise.

17)A hurricane destroys approximately a quarter of the Louisiana sugar cane crop. Ceteris paribus, the

• A.supply of sugar will decrease and the price of sugar will increase.
• B.supply of sugar will decrease and the price of sugar will decrease.
• C.demand for sugar will increase and the price of sugar will increase.
• D.demand for sugar will decrease and the price of sugar will decrease.

18)The price of mozzarella cheese increases. In the market for pizza you would expect that the

• A.demand for pizza would increase and the price of pizza would increase.
• B.demand for pizza would decrease and the price of pizza would fall.
• C.supply of pizza would decrease and the price of pizza would increase.
• D.supply of pizza would increase and the price of pizza would decrease.

19)Improvements in technology have reduced the cost of producing personal computers. As a result, you accurately predict that in the market for personal computers, there will be a(n)

• A.increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded.
• B.increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded.
• C.increase in the supply of personal computers, a reduction in the price, and an increase in the demand.
• D.decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.

20)A(n) ________ in equilibrium ________ will occur when there is a simultaneous decrease in demand and supply.

• A.increase; price
• B.decrease; price
• C.increase; quantity
• D.decrease; quantity