Microeconomics Ch. 3

If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will

A) decrease the demand for the iPhone.
B) increase the demand for the Galaxy.
C) increase the quantity demanded for the Galaxy.
D) increase the quantity demanded for the iPhone.

B) increase the demand for the Galaxy.

What is the difference between an "increase in demand" and an "increase in quantity demanded"?

A) There is no difference between the two terms; they both refer to a shift of the demand curve.
B) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.
C) There is no difference between the two terms; they both refer to a movement downward along a given demand curve.
D) An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve.

B) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.

The demand by all the consumers of a given good or service is the ________ for the good or service.

A) market demand
B) quantity demanded
C) law of demand
D) scheduled demand

A) market demand

If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as

A) a decrease in demand.
B) a decrease in quantity demanded.
C) a change in consumer income.
D) a decrease in consumers’ taste for chocolate.

B) a decrease in quantity demanded.

The law of demand implies, holding everything else constant, that

A) as the price of bagels increases, the quantity of bagels demanded will decrease.
B) as the price of bagels increases, the demand for bagels will decrease.
C) as the price of bagels increases, the quantity of bagels demanded will increase.
D) as the price of bagels increases, the demand for bagels will increase.

A) as the price of bagels increases, the quantity of bagels demanded will decrease.

If a demand curve shifts to the right, then

A) demand has increased.
B) quantity demanded has increased.
C) demand has decreased
D) quantity demanded has decreased.

A) demand has increased.

If a demand curve shifts to the left, then

A) demand has increased.
B) quantity demanded has increased.
C) demand has decreased.
D) quantity demanded has decreased.

C) demand has decreased.

Holding everything else constant, an increase in the price of MP3 players will result in

A) a decrease in the quantity of MP3 players supplied.
B) a decrease in the demand for MP3 players.
C) an increase in the supply of MP3 players.
D) a decrease in the quantity of MP3 players demanded.

D) a decrease in the quantity of MP3 players demanded.

A change in all of the following variables will change the market demand for a product except

A) the price of the product.
B) population and demographics.
C) income.
D) tastes.

A) the price of the product.

If the price of music downloads was to decrease, then

A) the demand for MP3 players would decrease.
B) the demand for MP3 players would increase.
C) the supply of MP3 players would increase.
D) the quantity demanded of MP3 players would decrease.

B) the demand for MP3 players would increase.

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family

A) hamburgers and chicken nuggets are complements.
B) hamburgers and chicken nuggets are inferior goods.
C) hamburgers and chicken nuggets are normal goods.
D) hamburgers and chicken nuggets are substitutes.

D) hamburgers and chicken nuggets are substitutes.

Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone

A) strawberries and whipped cream are complements.
B) strawberries and whipped cream and substitutes.
C) strawberries and whipped cream are normal goods.
D) strawberries are a normal good and whipped cream is an inferior good.

A) strawberries and whipped cream are complements.

A supply schedule

A) is a table that shows the relationship between the price of a product and the quantity of the product supplied.
B) is a curve that shows the relationship between the price of a product and the quantity of the product supplied.
C) is the relationship between the supply of a good and the cost of producing the good.
D) is a table that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

A) is a table that shows the relationship between the price of a product and the quantity of the product supplied.

If in the market for peaches, the supply curve has shifted to the left

A) the supply of peaches has increased.
B) the supply of peaches has decreased.
C) the quantity of peaches supplied has increased.
D) the quantity of peaches supplied has decreased.

B) the supply of peaches has decreased.

If, in the market for oranges, the supply has increased then

A) the supply curve for oranges has shifted to the right.
B) the supply curve for oranges has shifted to the left.
C) there has been a movement upwards along the supply curve for oranges.
D) there has been a movement downwards along the supply curve for oranges.

A) the supply curve for oranges has shifted to the right.

Last year, the Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced

A) a decrease in supply.
B) an increase in supply.
C) an increase in the quantity supplied.
D) a decrease in the quantity supplied.

A) a decrease in supply.

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

A) There is no difference between the two terms; they both refer to a shift of the supply curve.
B) There is no difference between the two terms; they both refer to a movement along a given supply curve.
C) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased.
D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

Which of the following would shift the supply curve for MP3 players to the right?

A) an increase in the price of a substitute in production
B) an increase in consumer income (assuming that all MP3 players are normal goods)
C) a decrease in the number of firms that produce MP3 players
D) a decrease in the price of an input used to produce MP3 players

D) a decrease in the price of an input used to produce MP3 players

If a firm has an incentive to increase supply now and decrease supply in the future, the firm expects that the

A) price of its product will be lower in the future than it is today.
B) price of its product will be higher in the future than it is today.
C) price of inputs will be lower in the future than they are today.
D) demand for the product will be lower in the future than it is today.

A) price of its product will be lower in the future than it is today.