Question : 31) Which of the following will definitely occur when there : 1381344

31) Which of the following will definitely occur when there is a decrease in the supply of and an increase in demand for wireless speakers?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

32) Which of the following will definitely occur when there is a decrease in demand for and an increase in supply of potato chips?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

33) A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

A) will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall.

B) will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase.

C) will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease.

D) will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall.

34) Pineapples and kumquats are substitute goods. A hurricane in Guatemala destroyed a good portion of the pineapple crop. Ceteris paribus

A) the price of both pineapples and kumquats will increase.

B) the price of both pineapples and kumquats will fall.

C) the price of kumquats will increase, and the price of pineapples will fall.

D) the price of kumquats will fall, and the price of pineapples will increase.

Refer to the information provided in Figure 3.19 below to answer the questions that follow.

Figure 3.19

35) Refer to Figure 3.19. When the economy moves from Point C to Point A, there has been

A) an increase in demand and an increase in supply.

B) an increase in demand and an increase in quantity supplied.

C) an increase in quantity demanded and a decrease in supply.

D) an increase in quantity demanded and an increase in supply.

36) Refer to Figure 3.19. When the economy moves from Point C to Point E, there has been

A) a decrease in supply and a decrease in quantity demanded.

B) a decrease in quantity supplied and a decrease in demand.

C) an increase in supply and an increase in quantity demanded.

D) an increase in demand and an increase in quantity supplied.

37) Refer to Figure 3.19. When the economy moves from Point C to Point B, there has been

A) an increase in demand and an increase in supply.

B) a decrease in demand and a decrease in supply.

C) an increase in demand and a decrease in supply.

D) an increase in quantity demanded and an increase in quantity supplied.

38) Refer to Figure 3.19. When the economy moves from Point B to Point A, there has been

A) an increase in supply and a decrease in quantity demanded.

B) a decrease in both supply and demand.

C) a decrease in demand and a decrease in quantity supplied.

D) a decrease in supply and an decrease in quantity demanded.

Refer to Scenario 3.2 below to answer the questions that follow.

SCENARIO 3.2: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.

39) Refer to Scenario 3.2. As a result of the recall, you would expect that

A) the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease.

B) the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease.

C) the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease.

D) the price of mustard would increase, and both the quantity of mustard supplied and the quantity of mustard demanded would increase.

40) Refer to Scenario 3.2. The mustard recall would have caused the equilibrium price of mayonnaise to ________ and the equilibrium quantity of mayonnaise to ________.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease