Microeconomics Module 2 Quiz

A movement up along the demand curve for computers.

Other things being equal, the effects of an increase in the price of computers would best be represented by which of the following?

the quantity supplied exceeds the quantity demand

If the current market price is above the equilibrium price, then:

always

According to the law of supply, when will lower corn prices decrease the quantity supplied of corn?

Lowers the equilibrium price, and increases the quantity bought and sold.

Ceteris paribus, an increase in the supply of a good causes which of the following?

An increase in demand for that good.

Which of the following would not cause a shift in the supply curve for a good

increase now

If people expect the price of packaged coffee to rise next week, coffee demand will:

An increase in the quantity demanded for orange juice.

Other things being equal, the effects of a decrease in the price of orange juice, is represented by which of the following?

higher fuel costs

Which of the following would decrease the supply of airline travel?

the price of the pickles

According to the law of supply, there is a direct relationship between quantity of pickles supplied and:

there is an excess supply of the good.

The price of a good will fall if:

decrease in demand for the good

If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(n):

a market-clearing price (equilibrium price).

When quantity supplied equals quantity demanded, there is:

maket demand curve would shift to the right.

If consumer tastes are changing more in favor of the consumption of a particular good the:

inferior good

If the demand for a good decreases because consumer income increases, the good is a(n):