Which of the following will cause the demand for milk to decrease?

Decrease in income assuming that milk is a normal good

Decrease in supply of oranges raised price. Substitution effect will motivate consumers to

increase the D for other fruits & decrease QD for oranges

In 2012, fed. gov't passed 1st increase in fuel efficiency standards since 1986. By 2026= company’s cars = 49 mpg

Decrease in demand for gasoline (graph 4)

Last year 17 mil. beans were sold for $300. This year 17 mil. beans were sold for $285.Causes?

Demand Decrease, Supply Increase

If the equilibrium price is $4, what happens in response to a price of $5?

surplus leading price to return to its equilibrium

The graph shows the market demand for good X. A movement from A to B was caused by...

A decrease in production costs for good X

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Ch. 3 - Supply, Demand & Equilibrium

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Ch. 3 McConnell - Microeconomics

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Answers

1
Which of the following will cause the demand for milk to decrease?
Increase in the price of milk
Increase in the price of a substitute
Decrease in income assuming milk is an inferior good
Decrease in income assuming that milk is a normal good
2
Decrease in supply of oranges raised price. Substitution effect will motivate consumers to
increase the D for other fruits & decrease QD for oranges
Decrease QD for other fruits & increase QD for oranges
Demand that gov't set a price ceiling
decrease their demand for oranges
3
If growing corn becomes more profitable than growing wheat, which of the following will occur?
Price of wheat will decrease
Supply of corn will increase
Price of corn will increase
Demand for corn will increase
4
In 2012, fed. gov't passed 1st increase in fuel efficiency standards since 1986. By 2026= company’s cars = 49 mpg
Decrease in supply of gasoline (graph 4)
Decrease in demand for gasoline (graph 4)
Increase in supply of gasoline (graph 3)
Increase in demand for gasoline (graph 3)
5
Last year 17 mil. beans were sold for $300. This year 17 mil. beans were sold for $285.Causes?
Demand Increase, Supply Not Changed
Demand Decrease, Supply Increase
Demand Decrease, Supply Decrease
Demand Increase, Supply Increase
6
If the equilibrium price is $4, what happens in response to a price of $5?
surplus leading price to return to its equilibrium
shortage & the price will eventually increase
increase in QS
surplus, which generates a decrease in demand
7
The graph shows the market demand for good X. A movement from A to B was caused by...
A decrease in the supply of good X
A decrease in production costs for good X
An increase in the price of good Z, a substitute
an increase in consumers' income
8
This is funny!
True
False

Ch. 3 - Supply, Demand & Equilibrium Flashcards | StudBud