When people have more money, they tend to purchase...

more normal goods and fewer inferior goods

The price of coffee beans used in the production of coffee has fallen. This will lead to

An increase in the supply of coffee.

A change in the quantity demanded is different than a change in demand because

A change in the qty demanded means there is just a movement along the curve

The main difference between the short run and the long run in economics is that the long run means...

enough time has gone by for people to adjust to all changes

The law of supply states that

as price increase, producers will supply more of a product.

Suppose the minimum wage is a price floor, when it is set above the equilibrium point

There will be an excess supply of labor, resulting in a surplus.

When the government imposes a quota in a market, it means that...

only those with a license are allowed to supply the good or service

All of the following are reasons why economists think price controls are inefficient except...

they have environmental benefits

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Exploring the Price System

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Questions 12

Answers

1
The following will not cause a shift in the demand curve for new bikes...
consumers expect the economy to shrink in the near future.
A change in consumer's income
A change in the price of bikes
An extensive marketing campaign conducted by leading bike manufacturers.
2
When people have more money, they tend to purchase...
more normal goods and more inferior goods
fewer normal goods and more inferior goods
more normal goods and fewer inferior goods
fewer normal goods and fewer inferior goods
3
The price ceiling usually creates a ______ while price floors usually creates a _____.
Surplus; shortage
Quota, surplus
Shortage; surplus
Shortage, quota
4
All of the following goods are likely considered substitute goods for orange juice except
pineapple juice
apple juice
sports drinks
coffee
5
The price of coffee beans used in the production of coffee has fallen. This will lead to
A decrease in the quantity supplied of coffee.
An increase in the supply of coffee.
A decrease in the supply of coffee.
An increase in the quantity supplied of coffee.
6
When supply is limited and demand is high, the price tends to increase.
True
False
7
A change in the quantity demanded is different than a change in demand because
A change in the quantity demanded means the entire demand curve has moved
Only the equilibrium qty changes when there's a change in the qty demanded
A change in the qty demanded means there is just a movement along the curve
A change in the qty supplied means there is just a movement along the curve
8
The main difference between the short run and the long run in economics is that the long run means...
that 3 months have passed
enough time has gone by for people to adjust to all changes
that 1 month has passed
people have not adjusted to all changes
9
The law of supply states that
as price increase, producers will supply more of a product.
price has no effect on the amount producers supply.
As price decreases, producers will supply more of a particular product.
price increased only affect the quantity supplied if the item is inelastic.
10
Suppose the minimum wage is a price floor, when it is set above the equilibrium point
There will be an excess supply of labor, resulting in a surplus.
Employers will increase the amount of people they hire.
None of these
The unemployment rate will drop dramatically.
11
When the government imposes a quota in a market, it means that...
consumers will have to pay a quota rent to use the good or services.
only those with a license are allowed to supply the good or service
a seller must charge a price below the price ceiling
sellers will charge a lower price
12
All of the following are reasons why economists think price controls are inefficient except...
resources are wasted
resources are not allocated efficiently
they promise illegal activity
they have environmental benefits

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