MACRO Midterm Part 1 Exam Questions Answered Correctly Latest Update

MACRO Midterm Part 1 Exam Questions Answered Correctly Latest Update The market for pasta is a competitive market - Answers if many people buy and many firms sell pasta, so no single buyer or seller can influence the price The graph shows the market for game consoles. Draw a point at the market equilibrium. Label it 1. Draw a demand curve that shows what happens if the price of a video game falls. Label the curve D1. Draw a supply curve that shows the effect of a technological advance that cuts the cost of producing game consoles. Label it S1. Draw a point at the new market equilibrium. Label it 2. If demand and supply change in the same direction, we _____ the direction of change of the equilibrium quantity and we _____ the direction of change of the equilibrium - Answers Picture Bottled water and health club memberships are _______. - Answers Complements French fries and baked potatoes are _______. - Answers Substitutes but not substitutes in production Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of supply. Then draw an arrow to indicate what happens to the quantity of smartphones supplied when the price of a smartphone rises. A rise in the price of a smartphone ______ the quantity supplied and ______ supply. - Answers Picture All of the following are consequences of scarcity faced by people in the United States except deciding _______. - Answers Whether or not Pluto should be classified a planet Adrienne graduates from college and her income increases by $40 comma 000 a year. Nothing else changes. Adrienne decreases the quantity of hot dogs and bread rolls that she buys and increases the quantity of tickets to orchestra concerts that she buys. For Adrienne, _______. - Answers Tickets to orchestra concerts are normal goods What are the influences on buying plans that change demand, and do these influences increase or decrease demand? Complete the following question about a change in demand. The graph shows a demand curve for coffee makers. Draw a demand curve that shows what happens in the market for coffee makers if the price of ground coffee comma a complement of a coffee maker comma falls but all other influences on buying plans remain the same. Label the curve D1. When an event occurs that changes the demand for coffee makers, _______ if demand increases and ______ if demand decreases. - Answers Picture The demand for hot dogs does not change when a change in _______ occurs. - Answers The price of a hot dog An increase in the price of a hot dog _______. - Answers decreases the quantity of hot dogs demanded and results in a movement up along the demand curve for a hot dog If the price of a movie ticket is $10, 2 million movie tickets a year are bought. Draw a point at this combination of price and quantity. If the price of a movie ticket falls to $6, 10 million movie tickets are bought. Draw a point at this combination of price and quantity. Draw a demand curve for movie tickets that is consistent with this information. Label the curve. - Answers Picture A demand curve - Answers Is a willingness-and-ability-to-pay curve Read the news clip, then illustrate the events described. In the left graph, show the effect in the market for popcorn. Draw a new curve and label it. Draw a point at the new equilibrium price and new equilibrium quantity. In the right graph, show the effect in the market for movie tickets. Draw a new curve and label it. Draw a point at the new equilibrium price and new equilibrium quantity. - Answers Picture The graph illustrates the market for tea. The market equilibrium is at point A. After one or more changes, the market equilibrium moves to point B. You predict that the market for tea was most likely influenced by _______. - Answers A rise in household income and a rise in the number of plantations Picture The graph shows the supply curve of running shoes.