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Liberty University  Quiz 3

1.      Which of the following is the most likely effect of higher chicken prices on the price and quantity purchased of beef, a substitute product?

2.      In Figure 3-3, If the initial demand for margarine were D1, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as

3.      Which of the following events would decrease producer surplus?       

4.      Andrew decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700. How much did Andrew pay for his computer?

5.      How would a decrease in consumer income affect the market for new furniture?

6.      Ceteris paribus, an increase in the price of a good will cause the

7.      If price falls, what happens to the quantity demanded for a product?

8.      Other things constant, an increase in consumer income will

9.      How will an increase in lumber prices influence the home construction market?

10.  If the quantity of a good supplied is not very sensitive to the price of the good, this is illustrated by a

11.  If Susan receives $3,000 of value from a computer that she was able to purchase from Joe’s Computer Shop for $1,800, this indicates that

a.        

12.  In Figure 3-6, suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?

a.        

13.  Which of the following would most likely cause the demand for inkjet printers to decrease?

14.   

a.       Supply curve for peaches to shift to the left and the price of peaches to rise

15.  If the quantity of a good supplied is highly sensitive to the price  of the good, this is illustrated by a

16.   In which statement(s) are “demand” and “quantity demanded” used correctly? (I) “An increase in the price of coffee will reduce the quantity demanded of coffee.” (II) “ An increase in the price of coffee will reduce the demand for cream used in coffee.”

17.  An increase in the price of plastic raises the cost of manufacturing VCRs. As a

a.       .

18.   Which of the following is least likely to increase the demand for new tires?

a.        

19.  Suppose a major civil war broke out in an important oil-producing nation. What impact would this have on the market for oil?

20.  In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

a.