, Ceteris paribus, which of the following will cause a rightward shift of the supply curve for
plasma TVs? - CORRECT ANSWERS-A subsidy paid to the producers of plasma TVs
If the equilibrium price of flat-screen monitors falls, but the equilibrium quantity rises,
this would be caused by: - CORRECT ANSWERS-An increase in supply
In a market economy, the _______ determines who gets the goods and services
produced - CORRECT ANSWERS-Market mechanism
Ceteris paribus, an increase in the supply of digital cameras will cause equilibrium price:
- CORRECT ANSWERS-To fall and quantity to rise
A price floor is: - CORRECT ANSWERS-A lower limit on the price of a good
When there is a shortage in a market, prices are likely to: - CORRECT ANSWERS-Rise
because some buyers will offer to pay a higher price
Figure 3.1 - Shifts of supply and demand
Answer the indicated question(s) by selecting the letter of the following diagrams
showing supply and demand shifts that best represent the effect of each event on the
relevant market, ceteris paribus.
Refer to Figure 3.1. Consider the market for corn. A drought destroys a large portion of
the Midwest corn crop. - CORRECT ANSWERS-A
Figure 3.3 - Supply and demand
If the market price is set at $25 per unit in Figure 3.3, there will be a:
inlineImageLabel 17.10.png - CORRECT ANSWERS-Surplus of 4 units
Figure 3.2 - Supply and demand
In Figure 3.2, at a price of $40, there is a: - CORRECT ANSWERS-Surplus of 10 units
If demand is constant, a decrease in the supply of gasoline will cause the equilibrium
price: - CORRECT ANSWERS-To rise and quantity to fall
Which of the following would not cause the market supply of cell phones to change? -
CORRECT ANSWERS-A reduction in the demand for cell phones causes the price to
fall
plasma TVs? - CORRECT ANSWERS-A subsidy paid to the producers of plasma TVs
If the equilibrium price of flat-screen monitors falls, but the equilibrium quantity rises,
this would be caused by: - CORRECT ANSWERS-An increase in supply
In a market economy, the _______ determines who gets the goods and services
produced - CORRECT ANSWERS-Market mechanism
Ceteris paribus, an increase in the supply of digital cameras will cause equilibrium price:
- CORRECT ANSWERS-To fall and quantity to rise
A price floor is: - CORRECT ANSWERS-A lower limit on the price of a good
When there is a shortage in a market, prices are likely to: - CORRECT ANSWERS-Rise
because some buyers will offer to pay a higher price
Figure 3.1 - Shifts of supply and demand
Answer the indicated question(s) by selecting the letter of the following diagrams
showing supply and demand shifts that best represent the effect of each event on the
relevant market, ceteris paribus.
Refer to Figure 3.1. Consider the market for corn. A drought destroys a large portion of
the Midwest corn crop. - CORRECT ANSWERS-A
Figure 3.3 - Supply and demand
If the market price is set at $25 per unit in Figure 3.3, there will be a:
inlineImageLabel 17.10.png - CORRECT ANSWERS-Surplus of 4 units
Figure 3.2 - Supply and demand
In Figure 3.2, at a price of $40, there is a: - CORRECT ANSWERS-Surplus of 10 units
If demand is constant, a decrease in the supply of gasoline will cause the equilibrium
price: - CORRECT ANSWERS-To rise and quantity to fall
Which of the following would not cause the market supply of cell phones to change? -
CORRECT ANSWERS-A reduction in the demand for cell phones causes the price to
fall
