Supply and Demand

Which of the following must be true if demand for boazi decreases when there is an increase in consumer income?

• Baozi and Jaozi are compliments

• Baozi have few close substitues

• Baozi have an upward-sloping demand curve

• Baozi are an inferior good

A leftward shift in the supply curve for pianos could caused by....

• a decrease in the price of pianos

• improvements in the productivity of piano makers

• an increase in the wages of workers that make pianos

• a decrease in the price of organs, a close substitue of pianos

• an increase in the price of pianos

Bikes and Scooterss are substitutes. Which of the following is true when price of chopsticks decreases?

• The supply of scooters will decrease

• The demand for bikes will increase

• the equilibrium price and quantity of scooters will decrease

• the equilibrium price and quantity of scooters will increase

• the equilibrium price and quantity of scooters will stay the same

Assuming that ranch sald dressing and pizz are compliments. If the supply of pizza decreases, which of the following will most likey happen in the market for ranch salad dressing?

• the demand stays the same

• the demand will increase

• The demand will decrease

• The supply will decrease

• The supply will increase

If the demand for virtual reality games increases at the same time that technological improvements lowers production price costs, what will most likely happen to the equilibrium price and quantity?

• both price and quantity will increase

• both price and quantity will decrease

• Price will increase and quantity decrease

• price will increase and quantity will be indeterminate

• price will be indeterminate and quality will increase

Which of the following is necessarily true for the market above?

• all consumers are willing to pay $50 for this product

• at a price of $30 there would be a shortage

• a price floor at $30 would decrease the quantity produced

• a decrease in demand would caise the supply to decrease

• at $70 the quantity demanded is greater than the quantity supplied

Assuming the wquilibrium price in a competitive market is $20 and equilibrium quantity is 100 units. Which of the following is true if the government establishes a price floor at $10?

• the quantity will be 100 units

• the quantity will be less than 100 units

• there will be a shortage since the quantity demanded will be greater than the quantity supplied

• there will be a surpluse since the quantity demanded will be lessr than the quantity supplied

• the quantity will be greater than 100 units

Which of the following will most likely occur if the government imposes a binding price ceiling on a good?

• Quantity sold will increase

• there will be a surplus since quantity is greater than quantity demanded

• quantity demanded will increase

• the demand for the good will increase

• the supply of the good will shift to the right

Which will NOT change the demand for watermelons?

• An increase in price of a close substitute

• Consumers prefer less watermelon

• A change in the incomes of consumers

• An increase in the price of watermelons

• Research showing health benefits of eating watermelons