Question : 31) If more insurance companies decide to cover part of : 1267045

31) If more insurance companies decide to cover part of the price of voluntary laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?

A) Demand will increase, but these two factors will not shift the supply curve.

B) Supply will increase, but these two factors will not shift the demand curve.

C) Demand and supply will both increase.

D) Demand will increase and supply will decrease.

32) Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players? 

A) The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players.

B) The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players.

C) The new technology caused an decrease in the demand for Blu-ray players. 

D) The new technology caused an increase in the quantity of Blu-ray players supplied.

33) “Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase.  This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right.”  Which of the following correctly comments on this statement?

A) The statement will be true if consumer tastes for apples and oranges do not change.

B) The statement is false because a change in the price of apples would not change the demand for apples.

C) The statement is false because oranges are inferior goods; apples are normal goods.

D) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers.  

34) The demand for lobster is higher in the summer than in the spring.  If the price of lobster is lower in summer than in spring then

A) the supply of lobster is lower in spring than in summer.

B) consumers’ tastes for lobster are greater in spring than in summer.

C) there is a surplus of lobster in summer and a shortage of lobster in spring.

D) there are more substitutes for lobster in summer than there are in spring.

35) All else equal, a shortage of display screens used in the manufacture of tablet computers would

A) shift the supply curve for tablet computers to the right.

B) shift the supply curve for tablet computers to the left.

C) shift the demand curve for tablet computers to the right.

D) shift the demand curve for tablet computers to the left.

36) All else equal, a shortage of display screens used in the manufacture of tablet computers would cause the equilibrium price of the tablet computers to ________ and the equilibrium quantity of the tablet computers to ________.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

37) If the demand for a product increases and the supply of the same product increases, the equilibrium price will increase.

38) As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will rise.

39) If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase.

40) If the demand curve for a product shifts to the left and the supply curve for the product shifts to the left, the equilibrium quantity will decrease.