ECON 213 quiz 3 complete solutions correct answers key

Liberty University ECON 213 quiz 3 complete solutions correct answers key

Two different versions

Question 1 In agriculture, a “bumper crop” refers to a particularly productive harvest. If there is a bumper crop for wheat at the same time that more people become allergic to wheat and all else is held constant, what will happen to the equilibrium price and quantity for wheat?

Question 2 Something is a normal good if the demand for the good:

Question 3 During the winter months, many elderly persons leave their homes in northern New York and travel south to Florida or Arizona. What would you expect to happen to the equilibrium price and quantity of items most used by the elderly in northern New York?

Question 4 If the price of Gatorade increases, the

Question 5 The change in equilibrium shown in the accompanying figure would be explained by a(n):

Question 6 Oil is a main component in the manufacture of plastic bags. If the price of oil were to increase, the price of plastics bags would:

Question 7 Refer to the accompanying figure. What event would cause the supply curve to shift out?

Question 8 Changes in population can:

Question 9 Refer to the table below: Assume that the market for iPods has only two consumers: Chuck and Ryan. According the table above, if the price of an iPod is $85, the market will demand:

Question 10 Shoes are considered to be a normal good. What would happen to the equilibrium price and equilibrium quantity of shoes if income increases and the cost of labor to produce shoes increases?

Question 11 Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure?

Question 12 If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant, what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

Question 13 The demand curve for a good will shift to the right if, holding all else constant,

Question 14 If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _________ and the equilibrium quantity to _________, holding all else constant.

Question 15 The equilibrium price of teddy bears is $5. A study comes out that says owning a teddy bear causes you to earn a lower salary. If all other factors are held constant, which of the following scenarios could happen?

Question 16 A monopoly:

Question 17 Kim attends the farmer’s market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar?

Question 18 The law of supply states that, all other things being equal,

Question 19 When the number of firms in a market decreases,

Question 20 Firm A notices that Firm B is making a profit by producing footballs. There is nothing stopping Firm A from entering the football market, so it does. Holding all else constant, the number of firms in the market will:

Question 1 In the first few months of 2012, the price of gasoline increased by approximately 15%. Because of this increase, we would expect the _________ curve in the market for hybrid cars to _________.

Question 2 When the number of firms in a market decreases,

Question 3 A shortage occurs whenever:

Question 4 Companies use advertising to shift consumer demand. Which of the following demand shifters do you think advertisers most often rely on?

Question 5 A subsidy:

Question 6 When firms in a market expect the price of their product to rise, the supply curve of their good:

Question 7 Old Navy stocks more Bermuda shorts during the summer months than in the winter months. The resulting shift in supply explains:

Question 8 If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant, what would you expect to happen to the supply curve of tires that are sold separately from automobiles?

Question 9 The market for footballs is perfectly competitive. If all else is held constant and the price of leather decreases, we would expect that the equilibrium quantity of footballs would:

Question 10 As more people migrated West during the gold rush, what do you think happened to the demand curve in most Western markets, holding all else constant?

Question 11 As the life expectancy in the United States increases, which of the following could likely happen to the demand curve for items such as health care, cancer treatments, and nursing facilities, holding all else constant, and why?

Question 12 Something is a normal good if the demand for the good:

Question 13 Which of the following would cause the demand curve to shift to the right?

Question 14 According to the law of demand, all other things being equal,

Question 15 Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?

Question 16 The law of supply states that, all other things being equal,

Question 17 When both curves shift:

Question 18 Assume that the market for nachos has only two suppliers: Firm 1 and Firm 2. According to this table, if the price of nachos is $6, the market will supply:

Question 19 The demand curve for a good will shift to the right if, holding all else constant,

Question 20 The change in equilibrium shown in the accompanying figure would be explained by a(n):