Resource X is necessary to the production of good Y. If the price of resource X
falls, the equilibrium price of Y will ______________ and the equilibrium
quantity of Y will ________________.
Correct!
fall; rise
fall; fall
rise; rise
rise; fall
Question 2
An "increase in demand" means that Answered
price has declined and consumers want to purchase more of the good.
the demand curve has shifted to the left.
the price of the good can be expected to decline, assuming supply stays
constant.
Correct Answer
the demand curve has shifted to the right.
Question 3
A rightward shift in the demand curve for tennis balls would most likely be
caused by
Correct!
a fall in the price of tennis rackets.
a fall in income, assuming tennis balls are a normal good.
a rise in the price of tennis lessons.
a fall in the price of tennis balls.
Question 4
,Refer to Exhibit 3-8. Equilibrium price and quantity are ____________________,
respectively.
$5 and 15 units
$5 and 25 units
$3 and 15 units
$1 and 25 units
$3 and 25 units
Question 5
If the demand for a good rises by more than the supply of the good falls,
then the good’s equilibrium price will __________ and its equilibrium quantity
will __________.
fall; fall
rise; fallorrect
rise; rise
fall; rise
Question 6
A vertical supply curve represents:
Correct!
an independent relationship between price and quantity supplied.
a direct relationship between price and supply.
an inverse relationship between price and quantity supplied.
a direct relationship between price and quantity supplied.
an independent relationship between price and supply.
, Question 7
An increase in the number of sellers of a good will __________________ for that
good, ceteris paribus.
increase equilibrium price and quantity
increase demandct!
decrease equilibrium price and increase equilibrium quantity
decrease equilibrium price and quantity
increase equilibrium price and decrease equilibrium quantity
Question 8
Demand refers to
how much of a good people are willing and able to buy at a particular price?
the different quantities of a good people are willing and able to buy at a
particular price.
Correct Answer
the different quantities of a good people are willing and able to buy at
different prices.
how much of a good people are willing to buy at different prices?
Question 9
A rightward shift in the demand curve for tennis balls would most likely be
caused by
a rise in the price of tennis lessons.
a fall in the price of tennis balls.orrect!
a fall in the price of tennis rackets.
a rise in the price of tennis lessons.
Question 10
One major reason for the law of demand is that
people are willing to produce more units at a higher price.
Correct Answer
people substitute relatively lower-priced goods for relatively higher-priced
goods.
a higher price never reduces quantity demanded by enough to lower total
revenue.ou Answered
one price changing requires at least one other price to change in the
opposite direction.
Question 1
pts
An "increase in the quantity demanded" means that