Econ quiz makeup

shortage; upward

At a price for which quantity demanded exceeds quantity supplied, a ___________ is experienced, which pushes the price __________ toward its equilibrium value.

shortage; above

On a supply and demand diagram, consider a price which the horizontal distance to the supply curve exceeds the horizontal distance to the demand curve. There is a _______ at that price and we are clearly _________ the equilibrium price.

The price will stay the same, but the quantity will decrease.

If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the resulting changes in price and quantity?

rises; falls

If demand falls by a lesser amount than supply falls, then equilibrium price __________ and equilibrium quantity _____________

rises; falls

If demand rises by a less amount than supply falls, then equilibrium price ___________ and equilibrium quantity _____________.

an increase in the number of buyers

Refer to Exhibit 3-2, which of the following would result in a movement from point A on D1 to point B on D2?

there was a decrease in resource prices and income stayed constant

Refer to exhibit 3-2, suppose equilibrium is at point B. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point B to C?

there was an increase in income and production technology advanced

refer to exhibit 3-2, suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C?

a fall in the price of tennis rackets

A rightward shift in the demand curve for tennis balls could be caused by

a price reduction

refer to exhibit 3-3, a movement from point Z to point W would have been the result of

a price increase

refer to exhibit 3-3, a movement from point W to point Z would have been the result of

a price increase

refer to exhibit 3-3, a movement from point V to point W could not have been the result of

the good’s own price

refer to exhibit 3-3, a shift in demand from D1 to D2 can NOT occur from a change in

quantity must decline, but equilibrium price may either rise, fall, or remain unchanged

If the supply of and demand for a product both decrease, then equilibrium

the new equilibrium price and quantity are both greater than they were originally

refer to exhibit 3-5, in the market shown, equilibrium is originally at point Z and

the granting of a subsidy to the producer

refer to exhibit 3-5, in the market shown, the rightward shift in supply from S1 to S2 may have been caused by

a decrease in buyers income (assuming the good is an inferior good)

refer to exhibit 3-5, in the market shown, the rightward shift in demand from D1 to D2 may have been cause by

greater than; greater than

refer to exhibit 3-5. In the market shown, the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

an inferior good

refer to exhibit 3-6, if an increase in income causes the demand for good X to shift from D1 to D3, good X is

substitutes

refer to exhibit 3-6, if an increase in the price of good Y causes the demand for good X to shift from D1 to D2, goods X and Y are

a movement along D1 from point A to point B

refer to exhibit 3-6, if D1 is the relevant demand curve, a decrease in the price of good X may cause

a movement along D1 from point A to point C

refer to exhibit 3-6, If D1 is the relevant demand curve, an increase in the price of good X may cause

the supply of good X to shift from S1 to S2

refer to exhibit 3-7, if S1 is the relevant supply curve, a decrease in the price of a resource that is necessary from the production of good X cause

a movement along S1 from point a to point C

refer to exhibit 3-7, if S1 is the relevant supply curve, an increase in the price of good X may cause