Final Exam Test Bank Answers

but this is often not true of_________. Consumers and producers; price-takers; firms that produce a differentiated product A ________ is an organization that produces goods or services for sale. firm A ________ occurs if all players in a game play their best strategies given what their competitors do. Nash Equilibrium A change in preferences from the MP3 players to the iPod means: the demand curve for iPods will shift to the right. A college student is faced with a difficult decision of how to spend one hour tonight. She could babysit her professor's child at an hourly wage of $7, she could work at the college library at a wage of $6, or she could finish her economics homework assignment. If she chooses to complete her homework assignment, she has incurred an opportunity cost equal to: $7. A college student is faced with a difficult decision of how to spend one hour tonight. She could babysit her professor's child at an hourly wage of $7, she could work at the college library at a wage of $6, or she could finish her economics homework assignment. If she chooses to complete her homework assignment, she has incurred an opportunity cost equal to: $7. A competitive firm facing a price of $15 decides to produce 100 units. If the marginal cost of producing the last unit is $20, the firm should: decrease production. A competitive market for cell phone chargers is currently in equilibrium. If the price is below the equilibrium price in the cell phone charger market, what will happen to producer surplus? producer surplus will fall. A curve that shows the quantity of a good or service supplied at various prices after all long-run adjustments to a price change have been completed is a long-run: industry supply curve. A decrease in buyers’ income will _________ the demand for public transportation, an inferior good. Increase A decrease in buyers’ income will cause the demand for cars, a normal good, to: Shift to the left A decrease in buyers’ income will cause the demand for public transportation, an inferior good, to: Shift to the right A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.: A decrease; a decrease A decrease in the price of a good will result in: an increase in the quantity demanded. A decrease in the price of bagels will _______ the market price and ________ the market quantity of cream cheese, a complement of bagels: Increase; increase A decrease in the price of butter will cause the demand for margarine, a substitute for butter, to: Shift to the left A decrease in the price of corn, an input in the production of ethanol, will _____