Question 1 (1 point) Consider the market for french fries. Which of the following events individually would cause an increase in the equilibrium price of french fries?

I. An increase in the price of cooking oil, an input into making french fries

II. An increase in the price of sweet potato fries, a substitute to french fries

III. An increase in the number of producers making french fries

IV. An increase in the price of ketchup, a complement to french fries

Question 1 options:

1. III, IV
2. I, II
3. I, II, IV
4. I

Question 2 (1 point) Given standard demand and supply curves, if the quantity demanded is _____________ the quantity supplied, this means the price is ______________ the equilibrium price.

Question 2 options:

1. Greater than, higher than
2. Greater than, lower than
3. Equal to, higher than
4. Less than, lower than

Question 3 (1 point) The following supply and demand schedules represent a market that starts in equilibrium. Then there is a shock because of which the quantity supplied at each price decreases by 200. What is the decrease in equilibrium quantity caused by the shock? Price Quantity Demanded Quantity Supplied 10 800 200 20 600 400 30 500 500 40 400 600 50 100 1000

Price	Quantity Demanded	Quantity Supplied
10	800	200
20	600	400
30	500	500
40	400	600
50	100	1000

Question 3 options:

1. 400
2. 100
3. 300
4. 200

Question 4 (1 point) Consider the market for oil which starts in equilibrium and has standard demand and supply curves. As countries open up after lockdowns, consumers expect that the price of oil will go up in the future. What effect will this have on the equilibrium price of oil?

Question 4 options:

1. Cannot be determined
2. It will go down
3. It will go up
4. No effect on the equilibrium price because people's expectations are about the future

Question 5 (1 point) Consider the market for newspapers shown below. As this is an election year the demand for newspapers has increased by 100 newspapers at each price. What is the new equilibrium quantity in the market?

Market for Hot Chocolate $7.00 5 $6.00 $5.00 $4.00 Price 53.00 $2.00 $1.00 L $0.00 50 100 150 200 250 Quantity\fMarket for Lemons $12 $11 D $10 + + Price (per pound) + OHNWAULO JO 2 3 4 5 6 7 8 9 10 11 12 Quantity (in hundreds of pounds)