ECON 2201 - Ch. 2 The Basics of Supply and Demand Questions and Answers 2025 Latest

ECON 2201 - Ch. 2 The Basics of Supply and
Demand Questions and Answers 2025 Latest
WhenAsupplyAincreases,AtheAsupplyAcurve..A-ACORRECTAANSWERS-shiftsAtoAtheAright.
WhichAofAtheAfollowingAwillAcauseAtheAdemandAforAkeroseneAheatersAtoAincrease?A-
ACORRECTAANSWERS-AAdecreaseAinAtheApriceAofAkerosene.

WhichAofAtheAfollowingAwouldAnotAcauseAtheAdemandAforACoca-ColaAtoAshift?A-
ACORRECTAANSWERS-TheAcostAofAproducingACoca-ColaAincreases.

SupposeAthatAunusuallyAhotAweatherAcausesAtheAdemandAcurveAforAiceAcreamAtoAshiftAtoAt
heAright.AWhyAwillAtheApriceAofAiceAcreamAriseAtoAaAnewAmarket-
clearingAlevel?ATheAhotAweatherAwillA..A-ACORRECTAANSWERS-
shiftAtheAdemandAcurveAtoAtheAright,AinitiallyAcreatingAaAshortageAuntilAtheApriceArisesAtoAwh
ereAquantityAsuppliedAagainAequalsAquantityAdemanded.
WhichAoneAofAtheAfollowingAwouldANOTAoccurAifAtheAmarketApriceAwasAaboveAtheAmarket-
clearingAprice?A-ACORRECTAANSWERS-ConsumersAwouldAbidAupAtheAprice.
AAmarketAisAinAequilibriumAwhen..A-ACORRECTAANSWERS-
theApriceAisAsuchAthatAtheAamountAofAconsumersAwantAtoAbuyAequalsAtheAamountAproducer
sAwantAtoAsell.
EvenAthoughAtheAannualAconsumptionAofAcopperAisAnowAaboutA100AtimesAgreaterAthanAitAw
asAinA1880,AtheArealApriceAofAcopperAhasAremainedArelativelyAunchanged.AWhichAofAtheAfoll
owingAhelpAaccountAforAthisApattern?A-ACORRECTAANSWERS-
AllAofAtheAabove.A(MoreAefficientAtechnologiesAreducedAproductionAcosts,AdemandAforAcop
perAgrewAdramatically,AandAnewAdepositsAthatAwereAcheaperAtoAmineAwereAdiscovered.)
WhatAwouldAhappenAonAaASupply-
DemandAgraphAifAthereAisAaAdecreaseAinAtheApriceAofAmargarineAinAtheAmarketAforAbutter?

SameAthingAViceAVersa?A-ACORRECTAANSWERS-
TheAdemandAcurveAwouldAshiftAtoAtheAleftA(DAtoAD')AandAtheAnewAequilibriumApointAwouldAd
ecrease,AlowerAthanAP1.A(BecauseAtheApriceAofAtheAproductAmargarineAisAaAsubstituteAofAb
utterAandAalsoAaAcompetitorAinAtheAbutterAmarketAsoAtheAdecreaseAinAtheAcompetitor'sAprice
AwouldAresultAinAtheAdecreaseAinAdemandAforAbutterAinAtheAbutterAmarket.)




No,AViceAversaAwouldAresultAinAtheAdemandAcurveAshiftingAtoAtheAright.
SteelAandAaluminumAareAsubstitutes.AIfAtheApriceAofAsteelAdecreases,AotherAthingsAremaini
ngAtheAsame,AweAwouldAexpectAtheApriceAofAaluminumAtoA___AandAtheAequilibriumAquantity
AofAaluminumAtoA___.A-ACORRECTAANSWERS-increase;Aincrease.

WhatAwouldAhappenAonAaASupply-
DemandAgraphAifAthereAisAaAdecreaseAinAtheApriceAofAmilkAinAtheAmarketAforAbutter?

ViceAVersa:AIfAthereAisAanAincreaseAinAtheApriceAofAmilk...A-ACORRECTAANSWERS-
TheAsupplyAcurveAwouldAshiftAtoAtheArightA(SAtoAS')AandAtheAnewAequilibriumApointAwouldAd
ecrease,AlowerAthanAP1.A(BecauseAtheApriceAofAmilkAisAaApartAofAtheAproductionAcostsAsoAifA
theAcompanyAcutAcostsAitAwillAbeAableAtoAincreaseAtheAsupplyAtoAbuyers)

, TheAsupplyAcurveAwouldAshiftAtoAtheAleftAandAtheAnewAequilibriumApointAwouldAincrease,Ahi
gherAthanAP1.
AAproduct'sApriceAandAtheAquantityAconsumedAbothAincreasedAfromAoneAyearAtoAtheAnext.A
WhichAofAtheAfollowingAcouldAhaveAhappened?A-ACORRECTAANSWERS-
DemandAincreasedAandAsupplyAremainedAconstant.
WhatAwouldAhappenAonAaASupply-
DemandAgraphAifAthereAisAanAincreaseAinAaverageAincomeAinAtheAmarketAforAbutter?

ViceAVersa:AIfAthereAisAaAdecreaseAinAaverageAincome...A-ACORRECTAANSWERS-
TheAdemandAcurveAwouldAshiftAtoAtheArightA(DAtoAD')AandAtheAnewAequilibriumApointAwouldAi
ncrease,AhigherA(P1AtoAP2)A

TheAdemandAcurveAwouldAshiftAtoAtheAleftAandAtheAnewAequilibriumApointAwouldAdecrease,A
lowerAthanAP1.
ForAautomobileAdemandAinAtheAU.S.,AtheAincomeAresponseAtendsAtoAbeAlargerAinAthe:

shortArun.
A
A

longArun.
A

TheAincomeAresponseAisAtheAsameAinAtheAlongArunAandAtheAshortArun.
A

WeAdoAnotAhaveAenoughAinformationAtoAanswerAthisAquestion.A-ACORRECTAANSWERS-
shortArun.
SupposeAtheAquantityAofAnursingAservicesAdemandedAexceedsAtheAquantityAofAnursingAser
vicesAsupplied.ATheAnursingAwageArateAwill:A

notAchange.
A
A

decrease.
A

increase.
A

noneAofAtheAaboveA-ACORRECTAANSWERS-increase.
FromA1970AtoA2010,AtheArealApriceAofAaAcollegeAeducationAincreased,AandAtotalAenrollment
Aincreased.AWhichAofAtheAfollowingAcouldAhaveAcausedAthisAincreaseAinApriceAandAenrollme

nt?A

AAshiftAtoAtheAleftAinAtheAsupplyAcurveAforAcollegeAeducationAandAaAshiftAtoAtheAleftAinAtheAde
A

mandAcurveAforAcollegeAeducation.
A

AAshiftAtoAtheArightAinAtheAsupplyAcurveAforAcollegeAeducationAandAaAshiftAtoAtheAleftAinAtheAd
emandAcurveAforAcollegeAeducation.
A

AAshiftAtoAtheAleftAinAtheAsupplyAcurveAforAcollegeAeducationAandAaAshiftAtoAtheArightAinAtheAd
emandAcurveAforAcollegeAeducation.
A

noneAofAtheAaboveA-ACORRECTAANSWERS-
AAshiftAtoAtheAleftAinAtheAsupplyAcurveAforAcollegeAeducationAandAaAshiftAtoAtheArightAinAtheAd
emandAcurveAforAcollegeAeducation.