Econ Post Test QUICK PASS 2023

Econ Post Test QUICK PASS 2023 When the price of good A rises, people start to drink good B. In this case. - CORRECT ANSWER Good B is a substitute good. An increase in the price of a good would be illustrated on a demand graph as a: - CORRECT ANSWER Movement along the demand curve upward. If the number of consumers in the market for good A increases, what will happen to the equilibrium price and quantity of good A? - CORRECT ANSWER Equilibrium price and quantity will both increase According to the law of demand, as a price of a good or service increases, the - CORRECT ANSWER Quantity demanded of the good or service will decrease. If producers expect the price of a good to rise, what will happen to the good's equilibrium price and quantity? - CORRECT ANSWER Equilibrium price will increase and equilibrium quantity will decrease If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the demand for the good. - CORRECT ANSWER False If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other. - CORRECT ANSWER True If consumers expect higher coffee prices in the future: - CORRECT ANSWER The demand for coffee will increase now. If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity. - CORRECT ANSWER False If the price of one of the resources used to produce a good decreases: - CORRECT ANSWER The supply curve for that good would shift right. If the price of peanut butter were to increase, what would likely happen to the demand for jelly? - CORRECT ANSWER The demand for jelly would decrease—the demand curve would shift left If good A is considered to be an inferior good, when incomes rise: - CORRECT ANSWER The demand for good A will decrease and the demand curve will shift to the left. If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of the good - CORRECT ANSWER Equilibrium price will increase and equilibrium quantity will decrease A decrease in the price of a good would be illustrated on a supply graph as a: - CORRECT ANSWER Movement along the supply curve downward. A government-imposed price floor, above equilibrium price, in the market for a good or service will result in: - CORRECT ANSWER A surplus of the good or service An increase in the average income of consumers will result in: - CORRECT ANSWER An increase in t