Question 1

A decrease in the market demand for a product combined with a rise in prices of inputs with cause which of the following in the short run?

a.an increase in market quantity

b.a decrease in market quantity

c.no change in market quantity

d.one cannot tell

Question 2

If the price of a good that is a substitute for a producer of shirts increases, what will likely happen in the market for shirts?

a.Quantities and prices of shirts will decrease

b.Quantities and prices of shirts will increase

c.Quantities of shirts will decrease and prices of shirts will increase

d.Quantities of shirts will increase and prices of shirts will decrease

e.None of the above is accurate.

Question 3

A decrease in supply combined with a decrease in demand will do what to prices in the market?

a.increase

b.decrease

c.not change

d.We cannot tell without more information.

Question 4

Ricky is shopping for a new outfit when he sees that dress pants are on sale. This information is likely to:

a.shift Ricky's demand for dress pants to the right.

b.shift Ricky's demand for shirts to the right.

c.shift Ricky's demand for dress pants to the left.

Question 5

What is the likely impact of a drought in California on the market for California raisins if nothing else changes?

a.Supply will shift to the left.

b.Supply will shift to the right.

c.Demand will shift to the left.

d.Demand will shift to the right.

Question 6

The table above represents the market for bowling balls. An increase in income shifts the demand curve such that at every price the quantity demanded rises by six bowling balls. What are the new equilibrium price and quantity?

a.$60.00 per bowling ball and 40 bowling balls.

b.$65.00 per bowling ball and 38 bowling balls.

c.$70.00 per bowling ball and 39 bowling balls.

d.$75.00 per bowling ball and 40 bowling balls.

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