When government imposes a price floor below the market price, the result will be that

no effect on the market equilibrium

If automobile manufacturers are producing cars faster than people want to buy them,

then an excess supply and price can be expected to decrease

Which of the following would lead to an INCREASE in the demand for golf balls?

increase average household when golf balls are a normal good

The law of supply says that

the higher the price, the more producers will supply

An excise tax placed on the producer of an item will

shift the supply curve to the left

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Demand, Supply, and Market Equilibrium by Mikayla Goins

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Questions 15

Answers

1
If input prices increase, all else equal,
supply will decrease
demand will decrease
quantity supplied will decrease
supply will increase
2
When government imposes a price floor below the market price, the result will be that
shortages become a problem
surpluses occur
supply and demand will shift up to the new equilibrium
no effect on the market equilibrium
3
If automobile manufacturers are producing cars faster than people want to buy them,
then an excess supply and price can be expected to increase
then an excess supply and price can be expected to decrease
then an excess demand and price can be expected to increase
then an excess demand and price can be expected to decrease
4
Goods whose demand increases as consumer income increases:
inferior goods
ceteris paribus
complements
normal goods
5
Which of the following would lead to an INCREASE in the demand for golf balls?
An increase in the price of golf clubs
An decrease in the price of golf balls
increase average household when golf balls are a normal good
A decrease in the cost of producing golf balls
6
If an increase in the price of hot tea decreases the demand for honey, this indicates that
the two goods are complements
honey is an inferior good
hot tea is an inferior good
the two goods are substitutes
7
A simultaneous decrease in demand and supply will unambiguously
lower the equilibrium price
raise the equilibrium quantity
lower the equilibrium quantity
raise the equilibrium price
8
If the price of a complement increases, all else equal,
demand will decrease
demand will increase
quantity supplied will increase
supply will decrease
9
All other things held constant:
inferior goods
substitutes
ceteris paribus
complements
10
Goods whose demands falls as consumers income increases
complements
ceteris paribus
normal good
inferior goods
11
An increase in demand for a good may be caused by a(n):
increase in the price of the good
increase in the price of a substitute good
shift in supply of the good
decrease in the price of the good
12
If the price for beef rose and the demand for chicken increased, then beef and chicken are
complementary goods
consumer goods
substitute goods
inferior goods
13
The law of supply says that
the higher the price, the more producers will supply
the higher the price, the more consumers will buy
the lower the price, the more producers will supply
the lower the price, the more consumers will buy
14
An excise tax placed on the producer of an item will
make the supply curve flatter by rotating clockwise
make the supply curve steeper by rotating counterclockwise
shift the supply curve to the right
shift the supply curve to the left
15
If the price of hamburgers buns increases, the demand for ground beef is predicted to:
shift to the right
increase
decrease
remain constant

Demand, Supply, and Market Equilibrium by Mikayla Goins Flashcards | StudBud