Econ- Standard 2 multiple choice

Which of the following is a viable explanation for this graph?

(Think shift factors)

• There was an amazing new technology developed, which makes it cheaper to produce.

• There was an increase in the cost of inputs which makes it more expensive to supply.

• Consumer preferences were changed due to advertising, and more people are buying at any price.

• There was a surplus and now there is not.

Which of the following is viable explanation for this graph?

(Think shift factors)

• Consumers are demanding more calculators because their phones, a complement, perform that function, resulting in a lower price.

• The technology for making calculators has improved dramatically resulting in cheaper production costs and suppliers are making more of them at any given price.

• Market demand is the sum of the curves D1 and D2 for calculators.

• Calculators are portrayed in the media as contributing to the deficiency of students in STEM subjects, so consumer preference by parents who purchase them have gone down for them.

In the previous question, what best explains what happens to the equilibrium price?

• It rises due to increased costs.

• It falls due to the less being demanded at any given price.

• It rises due to a shock in the inputs market.

• It falls due to lower costs of inputs.

In a market economy because it is made up of _____, _____ ultimately have the power to determine what is produced.

• voluntary exchange, consumers

• suppliers, big businesses

• central planning, managers

• stores, ordering clerks

When we experience a natural disaster we will most likely see which combination of effects in the market?

• shift left of demand, shift right of supply

• only a shift right of supply

• shift left of supply, shift right of demand

• shift right of demand and supply

If you were a supplier, which information is useful to you in the pricing of your product? Select all that apply:

• the exact location of the equilibrium price because that is always knowable at pinpoint

• the elasticity of demand at certain price levels for your good

• the information from retailers about possible shortages or surpluses on the shelves

• how much more you will have to pay to bid the resources away from other uses in order to make more

Which explanation most thoroughly explains this graph?

• supply changes

• a crisis must have occurred for which the market has no solutions. So only government intervention can solve the problem

• there is a likelihood that prices will fall

• if the price is fixed at P1, then suppliers will not increase their quantity supplied and consumers will not get as many as they wish to have

Examine the relationship between price and quantity demanded and complete this sentence. This might depict a product like...

• gold, since it is always valuable across cultures and time periods

• crystal chandeliers, because the demand goes down when the price is high

• an inferior good because you are making more money and stop wanting that good at all

• rice and beans in South America

Research and Development are costs for producers trying to influence which factor of demand?

• preferences

• rise in income

• price of substitutes

• price of components

If the price of an interrelated product goes up, which of the following is true?

• if it is complementary, it will shift the demand curve of your product left

• if it is complementary, if will shift the supply curve of your product left

• if it is a complementary product, it will shift the demand curve of your product right

• if it is a substitute, it will shift the demand curve of your product left

• if it is a substitute, it will shift the supply curve of your product to the right