Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
- 3rd side (hint)
The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises, |
there is a movement up along the demand curve to a smaller quantity demanded. |
|
|
Gasoline prices increase by 50 percent and other things remain the same. As a result, there is |
a decrease in the quantity of gasoline demanded. |
|
|
An increase in the quantity demanded is shown as |
a movement along the demand curve. |
|
|
The price of cotton clothing falls. As a result, |
the quantity demanded of cotton clothing increases. |
|
|
The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result, |
the demand for milk increases |
|
|
The market demand curve |
is the horizontal sum of individual demand curves. |
|
|
Consider the market for burritos. The law of demand can be illustrated by |
a movement along the demand curve for burritos due to a change in the price of a burrito. |
|
|
When demand increases, |
consumers are willing to buy more at any price. |
|
|
Changes in which of the following factors do NOT shift the demand curve? |
the price of the good |
|
|
Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the |
demand for Apple computers decreases. |
|
|
Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the |
demand for Apple computers decreases. |
|
|
Which of the following increases the demand for a good or service? |
a rise in the price of a substitute good or service |
|
|
Consider the market for smart phones. Which of the following shifts the demand curve rightward? |
an increase in the price of land-line phone service, a substitute for smart phones |
|
|
Which of the following shifts the demand curve for movies leftward? |
a decrease in the price of NetFlix, a substitute for movies |
|
|
Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price of Mountain Water decreases, the fall in price |
shifts the demand curve for Natural Water leftward. |
|
|
Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then |
the demand for hot dog buns will increase. |
|
|
Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately? |
The demand for bottled water increases. |
|
|
A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs? |
The demand for golf clubs decreases. |
|
|
Which of the following increases the demand for a good? |
the expectation that future income will be higher |
|
|
The graph illustrates the demand curve for soda. After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded |
decreases from 2 cans to 0 cans a day. |
|
|
The law of supply states that, other things remaining the same, |
if the price of a good increases, the quantity supplied increases |
|
|
The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to |
a decrease in the quantity of kayaks supplied. |
|
|
A supply curve |
an increase in the price of movie tickets |
|
|
Which of the following increases the quantity supplied of yoga pants but does NOT increase the supply of yoga pants? |
an increase in the price of the resources used to produce yoga pants |
|
|
When the price of oranges increases, |
the quantity of oranges supplied increases |
|
|
A decrease in the price of a complement in production leads to |
a decrease in the supply of the good in question. |
|
|
Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese? |
The supply of cheese decreases. |
|
|
Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel. If the price of diesel fuel falls, there is |
an increase in the supply of home heating oil. |
|
|
The United Auto Workers bargained for higher wages and more benefits for autoworkers. As a result of the higher wages and increased benefits, |
only ii |
|
|
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses? |
The supply decreases so that the supply curve shifts leftward. |
|
|
Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to |
C) an increase in the supply electric cars so that the supply curve shifts rightward. |
|
|
Which of the following increases the supply of a good? |
Productivity improves. |
|
|
Which of the following shifts the supply curve for oranges? |
disastrous weather that destroys about half of this year's orange crop |
|
|
In the above figure, the movement from point a to point b reflects |
an increase in the price of pizza. |
|
|
In the above figure, the shift in the supply curve from S to S1 reflects |
a decrease in the supply of pizza. |
|
|
A rise in the price of a substitute in production for a good leads to |
a decrease in the supply of that good. |
|
|
Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes and the supply curve of shoes ________. |
decreases; shifts leftward |
|