Which event will cause an increase in the supply of yogurt?

an increase in the number of sellers in the yogurt market

Which factor would cause a decrease in the demand for coffee?

a decrease in the price of tea (a substitute for coffee)

What happens to equilibrium P & Q of new housing if mortgage interest rates and the costs of building both increase?

the equilibrium price is indeterminate, the equilibrium quantity will fall

A decrease in the price of on-demand video-streaming services such as Netflix leads to a(n)

decrease in the demand for cable TV service

Over the past 10 years, laptop computers have decreased in price while their quantity has increased. This indicates that

supply has increased more than demand

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Chapter 3 Review

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Questions 12

Answers

1
Which event will cause an increase in the supply of yogurt?
an increase in the price of milk
an increase in the costs of production of yogurt
an increase in the price of yogurt
an increase in the number of sellers in the yogurt market
2
Which factor would cause a decrease in the demand for coffee?
an increase in the price of coffee
a decrease in the price of tea (a substitute for coffee)
a decrease in the price of coffee
an increase in the price of tea (a substitute for coffee)
3
Hot dogs go on sale (BOGO baby!). What happens to the demand for hot dog buns?
Demand increases
Quantity demanded decreases
Demand decreases
Quantity demanded increases
4
Which of the following shifts demand?
taxes and subsidies
all of the above
income
number of sellers
5
When quantity demanded is less than quantity supplied, there is a
shortage
recession
surplus
equilibrium
6
When the price of watermelons goes up, what happens to the demand for watermelon?
Demand increases
Quantity demanded decreases
Quantity demanded increases
Demand decreases
7
If the supply of a good increases while the demand for that good decreases, the equilibrium quantity will
decrease
be indeterminate
remain unchanged
increase
8
The Law of Supply states: when a price rises, quantity supplied
decreases
increases
9
What happens to equilibrium P & Q of new housing if mortgage interest rates and the costs of building both increase?
the equilibrium price will rise, and the quilibrium quantity will fall
the equilibrium price will fall, the equilibrium quantity is indeterminate
the equilibrium price is indeterminate, the equilibrium quantity will fall
the equilibrium price and the equilibrium quantity will fall
10
A decrease in the price of on-demand video-streaming services such as Netflix leads to a(n)
decrease in the demand for cable TV service
decrease in the demand for on-demand video-streaming
increase in the demand for cable TV service
increase in the demand for on-demand video-streaming
11
Over the past 10 years, laptop computers have decreased in price while their quantity has increased. This indicates that
demand has increased more than supply
supply has increased more than demand
increased demand has created a market incentive to reduce the price
demand and supply have increased proportionately
12
Which of the following shifts supply
number of sellers
all of the above
cost of resources
prices of goods related in production

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