MICRO ECON TEST 1 - GEORGIA SOUTHERN QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
The price and the quantity of a good and the quantity of the good demanded are ___ related, so when
the price rises, ___ - (ANSWER)negatively; the quantity demanded decreases
Which of the following statements is true?
A - the demand for a good will decrease if its price rises
B - a rise in the price of a substitute will shift the demand curve for the good leftward
C - A decrease in consumer income causes a leftward movement along the demand curve for a normal
good
D - A fall in the price of a complement will shift the demand curve for the good rightward - (ANSWER)D -
A fall in the price of a complement will shift the demand curve for the good rightward
When the price of Apple Iphones rises, the ___ Samsung Galaxy phones ____ - (ANSWER)demand for;
increases
Which of the following will increase the supply of cellphones?
A - The price of cellphones rises because the demand for them increases
B - Cellphone connection providers lower their monthly rates
C - Average household income in the U.S. increases
D - U.S. producers move cellphone assembly to China where the wages are lower - (ANSWER)D - U.S.
producers move cellphone assembly to China where the wages are lower
Which of the following will decrease the demand for gas in the current week?
A - The current price of gas rises as a hurricane destroys refineries on the Gulf Coast
B - Buyers expect the price of gas to fall next week
C - Price of cars fall
D - Price of crude oil rises - (ANSWER)B - Buyers expect the price of gas to fall next week
Suppose the demand for beer increases. As a result, the equilibrium price of beer will ____ and the
equilibrium quantity of beer _____ - (ANSWER)rise; increase
, MICRO ECON TEST 1 - GEORGIA SOUTHERN QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
Suppose the price of wheat in Canada falls. As a result, the equilibrium price of wheat in the U.S. will
____ and the equilibrium quantity will ____ - (ANSWER)fall; increase
Suppose the price of organically grown lettuce rises in the short run (i.e. when farmers don't have
enough time to reallocate their resources). As a result, the equilibrium price of conventionally produced
lettuce will _____ and the equilibrium quantity of conventional lettuce will _____. - (ANSWER)rise;
increase
Suppose both buyers and sellers of Facebook stock hear a credible forecast that its price will fall
tomorrow. What will happen to the price of Facebook stock today in response to this news? -
(ANSWER)It will fall
Consider the effects of the following two events on the market for cotton: (1) unfavorable whether
makes cotton farming less productive; (2) consumer preferences shift from synthetic fabrics to cotton
fabrics. What will happen to the equilibrium price of cotton as a result of these events? - (ANSWER)It
will rise
Consider the effects of the following two events on the market for cotton: (1) unfavorable whether
makes cotton farming less productive; (2) consumer preferences shift from synthetic fabrics to cotton
fabrics. What will happen to the equilibrium quantity of cotton as a result of these events? - (ANSWER)It
may rise, fall, or remain unchanged
Suppose that the price of semiconductor chips used to make laptop computers falls. On the other hand,
the number of people using laptops to work remotely decreases. You predict that the prices of laptops
will (rise/fall) ___ because the supply of laptops (increases/decreases) ____
and the demand for laptops (increases/decreases)
____ - (ANSWER)fall;increases;decreases
Suppose the equilibrium price of paper towels rose and the equilibrium quantity of paper towels
decreased. This could happen because: - (ANSWER)The supply of paper towels decreased
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
The price and the quantity of a good and the quantity of the good demanded are ___ related, so when
the price rises, ___ - (ANSWER)negatively; the quantity demanded decreases
Which of the following statements is true?
A - the demand for a good will decrease if its price rises
B - a rise in the price of a substitute will shift the demand curve for the good leftward
C - A decrease in consumer income causes a leftward movement along the demand curve for a normal
good
D - A fall in the price of a complement will shift the demand curve for the good rightward - (ANSWER)D -
A fall in the price of a complement will shift the demand curve for the good rightward
When the price of Apple Iphones rises, the ___ Samsung Galaxy phones ____ - (ANSWER)demand for;
increases
Which of the following will increase the supply of cellphones?
A - The price of cellphones rises because the demand for them increases
B - Cellphone connection providers lower their monthly rates
C - Average household income in the U.S. increases
D - U.S. producers move cellphone assembly to China where the wages are lower - (ANSWER)D - U.S.
producers move cellphone assembly to China where the wages are lower
Which of the following will decrease the demand for gas in the current week?
A - The current price of gas rises as a hurricane destroys refineries on the Gulf Coast
B - Buyers expect the price of gas to fall next week
C - Price of cars fall
D - Price of crude oil rises - (ANSWER)B - Buyers expect the price of gas to fall next week
Suppose the demand for beer increases. As a result, the equilibrium price of beer will ____ and the
equilibrium quantity of beer _____ - (ANSWER)rise; increase
, MICRO ECON TEST 1 - GEORGIA SOUTHERN QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW
Suppose the price of wheat in Canada falls. As a result, the equilibrium price of wheat in the U.S. will
____ and the equilibrium quantity will ____ - (ANSWER)fall; increase
Suppose the price of organically grown lettuce rises in the short run (i.e. when farmers don't have
enough time to reallocate their resources). As a result, the equilibrium price of conventionally produced
lettuce will _____ and the equilibrium quantity of conventional lettuce will _____. - (ANSWER)rise;
increase
Suppose both buyers and sellers of Facebook stock hear a credible forecast that its price will fall
tomorrow. What will happen to the price of Facebook stock today in response to this news? -
(ANSWER)It will fall
Consider the effects of the following two events on the market for cotton: (1) unfavorable whether
makes cotton farming less productive; (2) consumer preferences shift from synthetic fabrics to cotton
fabrics. What will happen to the equilibrium price of cotton as a result of these events? - (ANSWER)It
will rise
Consider the effects of the following two events on the market for cotton: (1) unfavorable whether
makes cotton farming less productive; (2) consumer preferences shift from synthetic fabrics to cotton
fabrics. What will happen to the equilibrium quantity of cotton as a result of these events? - (ANSWER)It
may rise, fall, or remain unchanged
Suppose that the price of semiconductor chips used to make laptop computers falls. On the other hand,
the number of people using laptops to work remotely decreases. You predict that the prices of laptops
will (rise/fall) ___ because the supply of laptops (increases/decreases) ____
and the demand for laptops (increases/decreases)
____ - (ANSWER)fall;increases;decreases
Suppose the equilibrium price of paper towels rose and the equilibrium quantity of paper towels
decreased. This could happen because: - (ANSWER)The supply of paper towels decreased
