ECO 201 Midterm Part 2 Questions and Answers Already Passed Graded A+
each buyer and seller is small, relative to the whole market; no single decision maker has any influence
over the market price. - Answers For a market to be competitive
Prices for electric cars will fall in the future as more companies produce these cars. - Answers As electric
cars have become more acceptable to drivers, more companies are building and selling such cars. What
would we expect to see happen to prices of electric cars in the future?
Ticket prices will be higher because each team is a monopoly in the city. - Answers There is often only
one major league baseball team in a city. What is the consequence of this in terms of ticket prices?
exists when a single company supplies the entire market for a particular good or service - Answers A
monopoly
occur when the buyer or seller has an influence on the price - Answers Imperfect markets
the quantity demanded falls when the price rises, and the quantity demanded rises when the price falls.
- Answers According to the law of demand, all other things being equal,
If I increase taxes on cigarettes, there will be a decrease in demand, which means fewer people are
smoking. - Answers As a government official, Nolan wants fewer people to smoke. He has decided to use
taxes to discourage people from smoking. How would he describe his decision to an economist?
The demand for computers decreases. - Answers When the price for computers is expected to fall in the
future, what happens?
the quantity demanded is 500. - Answers According to the figure below, at the price of $5,
12 - Answers At the price of $3 a pound of pork, Jason buys 8 pounds of pork and Noelle buys 10 pounds
of pork. When the price rises to $5 a pound, Jason buys 5 pounds of pork and Noelle buys 7 pounds of
pork. What is the market demand at $5?
increases as the consumer's income decreases. - Answers Something is an inferior good if the demand
for the good
complements - Answers Two goods that are used together are called
the demand curve for Coke shift to the right. - Answers Pepsi and Coke are considered substitute goods.
Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we
would see
changes in tastes and preferences - Answers Companies use advertising to shift consumer demand. On
which of the following demand shifters do advertisers most often rely?
shift from D1 to D2 (move to the right, up) - Answers An increase in the number of buyers would cause
the demand curve to
each buyer and seller is small, relative to the whole market; no single decision maker has any influence
over the market price. - Answers For a market to be competitive
Prices for electric cars will fall in the future as more companies produce these cars. - Answers As electric
cars have become more acceptable to drivers, more companies are building and selling such cars. What
would we expect to see happen to prices of electric cars in the future?
Ticket prices will be higher because each team is a monopoly in the city. - Answers There is often only
one major league baseball team in a city. What is the consequence of this in terms of ticket prices?
exists when a single company supplies the entire market for a particular good or service - Answers A
monopoly
occur when the buyer or seller has an influence on the price - Answers Imperfect markets
the quantity demanded falls when the price rises, and the quantity demanded rises when the price falls.
- Answers According to the law of demand, all other things being equal,
If I increase taxes on cigarettes, there will be a decrease in demand, which means fewer people are
smoking. - Answers As a government official, Nolan wants fewer people to smoke. He has decided to use
taxes to discourage people from smoking. How would he describe his decision to an economist?
The demand for computers decreases. - Answers When the price for computers is expected to fall in the
future, what happens?
the quantity demanded is 500. - Answers According to the figure below, at the price of $5,
12 - Answers At the price of $3 a pound of pork, Jason buys 8 pounds of pork and Noelle buys 10 pounds
of pork. When the price rises to $5 a pound, Jason buys 5 pounds of pork and Noelle buys 7 pounds of
pork. What is the market demand at $5?
increases as the consumer's income decreases. - Answers Something is an inferior good if the demand
for the good
complements - Answers Two goods that are used together are called
the demand curve for Coke shift to the right. - Answers Pepsi and Coke are considered substitute goods.
Because of this, one would predict that, holding all else constant, if the price of Pepsi increases, we
would see
changes in tastes and preferences - Answers Companies use advertising to shift consumer demand. On
which of the following demand shifters do advertisers most often rely?
shift from D1 to D2 (move to the right, up) - Answers An increase in the number of buyers would cause
the demand curve to
