Which of the following would most likely be considered complements? A. plastic wrap and aluminum foil B. tennis rackets and tennis balls C. butter and margarine D. rental cars and taxis The law of supply states that other things being equal, A. supply will increase to meet demand if demand increases. B. supply will increase if productivity increases. C. as price increases, quantity supplied increases. D. supply creates its own demand. Market supply is obtained by A. observing how the supply curve shifts. B. summing the amount supplied by individual producers at various prices. C. the law of supply. D. summing the amount demanded by individual consumers at various prices. A subsidy to carrot farmers will A. leave both the supply and demand of carrots unchanged. B. increase the quantity of carrots demanded. C. decrease the quantity of carrots supplied. D. increase the supply of carrots. Which one of the following would cause an increase in the supply of planes? A. a decrease in the demand for planes B. an increase in the price of planes C. an increase in taxes applied to plane producers D. an improvement in the technology used to produce planes A change in the ceteris paribus conditions for supply will lead to a A. change in quantity supplied. B. change in quantity supplied and a change in supply. C. change in supply. D. change in how consumers view the quality of the good. Equilibrium in a market occurs when A. quantity supplied and quantity demanded are equal at the market clearing price. B. demand and supply indicate a small surplus of a good. C. the market price leads to a decrease in quantity demanded. D. price is at its minimum. Another term for intermediaries who specialize in reducing transaction costs is A. consultants. B. service providers. C. middlemen. D. free riders. Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market for ground meat? A. Market clearing price will rise, and equilibrium quantity will fall. B. Market clearing price will fall, and equilibrium quantity will fall. C. Market clearing price will rise, and equilibrium quantity will rise. D. Market clearing price will fall, and equilibrium quantity will rise. f both buyers and sellers expect the price of a commodity to fall in the future, it is likely that the market clearing price________ and the equilibrium quantity ________. A. will fall, cannot be predicted B. cannot be predicted, will rise C. will rise, cannot be predicted D. cannot be predicted, will fall Suppose the price of steel decreases. In the market for automobiles, we would expect which of the following to occur? A. both the market clearing price and the equilibrium quantity will rise. B. the market clearing price will fall and the equilibrium quantity will rise. C. both the market clearing price and the equilibrium quantity will fall. D. the market clearing price will rise and the equilibrium quantity will fall