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ultramarinetoad876Lv1

3 Apr 2020

This winter France had unusually cold weather. Next year's grape crop will be substantially reduced. Select the best statement.

A. In the final equilibrium, price and quantity are higher.

B. The French wine supply increases as price rises.

C. If the demand for French wine is elastic, wine producers experience an increase in total revenue.

D. The initial change in the market creates a surplus of French wine.

E. If the demand for French wine is inelastic, wine producers experience an increase in total revenue.

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Trinidad TremblayLv2

6 Apr 2020

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Related questions

1. Which of the following would most likely cause the demand for veggie-burgers to increase?

a. A decline in the price of veggie-burgers.

b. An increase in the price of tofu-burgers perceived as a substitute for veggie-burgers.

c. An increase in the price of burger buns.

d. A technological innovation that lowers the cost of producing veggie-burgers.

2. Suppose a new chip has been invented which makes the computer (a normal good) cheaper to manufacture while, at the same time, the incomes of consumers decreased. What would be the result in the home computer industry?

a. Quantity unambiguously decreases while the price change is uncertain.

b. Quantity unambiguously increases while the price change is uncertain.

c. Price unambiguously decreases while the quantity change is uncertain.

d. Price unambiguously increases while the quantity change is uncertain.

3. "The winds of the recent hurricanes in Florida are bringing soothing financial gains to California citrus growers. Due to the extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever."

Which of the following statements best explains the economics of the quotation?

a. The supply of Florida oranges has decreased, causing their prices to increase and the demand for the substitute California oranges to also increase.

b. The supply of Florida oranges has decreased, causing the supply of California oranges to increase and their prices to rise.

c. The demand for Florida oranges has been reduced by the hurricanes, causing a greater demand for the California oranges and an increase in their price.

d. The demand for Florida oranges has been reduced causing their prices to fall and therefore increasing the demand for the substitute California oranges.

4. Which of the following best describes the economic concept of demand?

a. A relation showing the quantities of a good that consumers are willing and able to buy at various prices during a given period of time, other things constant.

b. A relation showing the quantities of a good that producers are willing and able to supply at various prices during a given period of time, other things constant.

c. A relation showing the quantity of a good that consumers would most prefer to have during a given period of time, regardless of price.

d. None of the above.

5. Increases in demand for ethanol fuel has likewise driven up the demand for corn. As a result, corn prices have risen. The production of beer uses other agricultural crops, such as barley, which can be grown in the same climate and land conditions as corn. The likely impact of this event on the beer market is

a. An increase in the demand for beer driving beer prices higher.

b. A decrease in the demand for beer driving beer prices lower.

c. An increase in the supply of beer driving beer prices lower.

d. A decrease in the supply of beer driving beer prices higher.

6. Which of the following goods is most likely to be an inferior good?

a. Rib Eye Steak

b. A Trek bicycle

c. Hot Dogs

d. French Wine

7. Which of the following is most likely to decrease the supply of pink salmon?

a. A decline in the price of salmon.

b. An increase in the price of white wine, a complement good.

c. A virus that results in decreased egg production in pink salmon.

d. A technological advance in fishing techniques.

8. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer shuttle to SummerFest from $6 to $9. After this price increase was put into effect, however, the County Executive found that revenue from the Flyer actually decreased. We can conclude that the demand for the Frequent Flyer Shuttle is:

a. elastic

b. inelastic

c. unit elastic

d. zero elastic

9. In order to balance the County's budget, the County Executive increased the price of using the Frequent Flyer Shuttle to SummerFest from $6 to $9. The percentage change in the price of the Frequent Flyer Shuttle was:

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sapphireprairie-dog487

For each case, choose the condition that characterizes demand: elastic demand, inelastic demand, or unit-elastic demand.

a. Total revenue decreases when the price increases.

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c. Total revenue falls when output increases.

d. Producers in an industry find they can increase their total revenues by coordinating a reduction in industry output.

e. As the price of margarine rises by 20%, a manufacturer of baked goods increases its quantity of butter demanded by 5%. Calculate the cross-price elasticity of demand between butter and margarine. Are butter and margarine substitutes or complements for this manufacturer?

f. After Malia's income increased from $12,000 to $18,000 a year, her purchases of album downloads increased from 10 to 40 downloads a year. Calculate Malia's income elasticity of demand for albums.

g. Expensive restaurant meals are income-elastic goods for most people, including Sanjay. Suppose his income falls by 10% this year. What can you predict about the change in Sanjay's consumption of expensive restaurant meals?

chocolatecamel690

QUESTION 1

The demand for oranges increases while the supply decreases. The equilibrium price of oranges ________, and the equilibrium quantity ________.

		falls; increases
		falls; perhaps changes but we can't say if it increases, decreases, or stays the same
		rises; decreases
		rises; perhaps changes but we can't say if it increases, decreases, or stays the same

1 points

QUESTION 2

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity is ________.

		rises; increases
		falls; decreases
		falls; does not change
		rises; does not change

1 points

QUESTION 3

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________ and the equilibrium quantity of cream cheese ________.

		does not change; does not change
		rises; increases
		falls; decreases
		rises; decreases

1 points

QUESTION 4

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

		rise; increase
		rise; decrease
		fall; increase
		fall; decrease

1 points

QUESTION 5

Which of the following shifts the supply curve for oranges?

		an increase in income for all orange consumers if oranges are a normal good
		disastrous weather that destroys about half of this year's orange crop
		an increase in the price of bananas, a substitute in consumption for oranges
		a newly discovered increase in the nutritional value of oranges

1 points

QUESTION 6

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

		normal goods in production.
		an exceptionally cold summer that killed much of the rutabaga crop.
		a fall in the price of fertilizer used to grow rutabagas.
		an increase in the price of a rutabaga

1 points

QUESTION 7

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

		an increase in the supply electric cars so that the supply curve shifts rightward.
		an increase in the supply of electric cars so that the supply curve shifts leftward.
		a decrease in the supply of electric cars so that the supply curve shifts rightward.
		a decrease in the supply of electric cars so that the supply curve shifts leftward.

1 points

QUESTION 8

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

		the demand for hot dogs will increase.
		the demand for hot dog buns will decrease.
		the quantity demanded of hotdogs will decrease.
		the demand for hot dog buns will increase.

1 points

QUESTION 9

Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________.

		upward; increases
		downward; decreases
		upward; decreases
		downward; increases

1 points

QUESTION 10

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

		The quantity of bottled water demanded increases.
		The demand for bottled water increases.
		The quantity of bottled water demanded decreases.
		The demand for bottled water decreases.

1 points

QUESTION 11

If the price of carrots is below the equilibrium price, the

		quantity supplied of carrots exceeds the quantity demanded and a shortage exists.
		quantity demanded of carrots exceeds the quantity supplied and a shortage exists.
		quantity supplied of carrots exceeds the quantity demanded and a surplus exists.
		quantity demanded of carrots exceeds the quantity supplied and a surplus exists.

1 points

QUESTION 12

Which of the following is true regarding demand?
i. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii. Demand refers to one quantity at one time.
iii. "Demand" and " quantity demanded" are the same thing.

		both i and ii
		i only.
		ii only.
		iii only.

1 points

QUESTION 13

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

		There is a shortage, so the price rises and quantity demanded decreases.
		There is a shortage, so the price rises and quantity demanded increases.
		There is a shortage, so the price falls and quantity demanded increases.
		There is a surplus, so the price falls and quantity demanded increases.

1 points

QUESTION 14

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

		decreases; shifts leftward
		decrease; shifts rightward
		increases; shifts rightward
		increases; shifts leftward

1 points

QUESTION 15

Market equilibrium

i. can never occur because there are always people who want a good but cannot afford it.

ii. occurs at the intersection of the supply and demand curves.

iii. is the point where the price equals the quantity.

		iii only
		ii and iii
		ii only
		i only

1 points

QUESTION 16

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 stays the same and there is a decrease in the quantity supplied of cheese.
		The supply of cheese decreases.
		The supply of cheese stays the same and there is no change in the quantity supplied of cheese.
		The supply of cheese increases.

1 points

QUESTION 17

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

		demand for Dell computers decreases.
		demand for Apple computers increases.
		demand for Apple computers decreases.
		demand for Dell computers increases.

1 points

QUESTION 18

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

		surplus, so the price rises and quantity demanded increases.
		shortage, so the price rises and quantity demanded decreases.
		surplus, so the price falls and quantity demanded increases.
		shortage, so the price falls and quantity demanded increases.

1 points

QUESTION 19

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

		The supply increases so that the supply curve shifts rightward.
		The quantity supplied increases but there is no shift in the supply curve.
		The supply decreases so that the supply curve shifts leftward.
		The quantity supplied decreases but there is no shift in the supply curve.

1 points

QUESTION 20

In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?

		The store is trying to increase its customers' demand for the product.
		The law of demand is being used to increase the quantity demanded.
		The store manager must be trying to drive away customers by selling low quality products.
		The store is trying to increase its consumer's incomes by increasing their purchasing power.

1 points

QUESTION 21

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________.

		rises; increases
		rises; decreases
		falls; increases
		falls; decreases

1 points

QUESTION 22

If both the supply and demand curves shift simultaneously, we can always predict what will happen to

		either the price or the quantity, but not both.
		only the quantity.
		only the price.
		both the price and the quantity.

1 points

QUESTION 23

If income increases and the demand for bus rides decreases,

		bus rides are a substitute good.
		consumers are behaving irrationally.
		bus rides are an inferior good.
		bus rides are a normal good.

1 points

QUESTION 24

A surplus of cardboard boxes means that

		at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium..
		the current price of a cardboard box is less than the equilibrium price.
		at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.
		at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.