Question : 81) If the demand curve for desktop computers shifts rightward : 1226420

81) If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

A) the equilibrium quantity definitely increases.

B) the equilibrium quantity definitely decreases.

C) the equilibrium quantity definitely remains the same.

D) More information is needed to determine the effect on the equilibrium quantity.

E) the equilibrium price definitely falls.

82) The demand for oranges increases while the supply decreases. The equilibrium price of oranges ________, and the equilibrium quantity ________.

A) rises; decreases

B) falls; perhaps changes but we can’t say if it increases, decreases, or stays the same

C) falls; increases

D) does not change; perhaps changes but we can’t say if it increases, decreases, or stays the same

E) rises; perhaps changes but we can’t say if it increases, decreases, or stays the same

83) The demand for cat food decreases while the supply increases. The equilibrium price of cat food ________, and the equilibrium quantity ________.

A) does not change; increases

B) rises; decreases

C) falls; perhaps changes but we can’t say if it increases, decreases, or stays the same

D) rises; perhaps changes but we can’t say if it increases, decreases, or stays the same

E) falls; increases

84) Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production. In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply. The result is that the price of autos will ________ and the number of autos sold will ________.

A) rise; perhaps change but we can’t say if it increases, decreases, or stays the same

B) rise; increase

C) rise; decrease

D) fall; perhaps change but we can’t say if it increases, decreases, or stays the same

E) fall; decrease

85) If both producers and consumers believe that a product’s price will rise in the future, then at the present, demand ________ and supply ________.

A) increases; increases

B) decreases; decreases

C) increases; decreases

D) decreases; increases

E) does not change; does not change

86) If both producers and consumers believe that a product’s price will rise in the future, then at the present, the equilibrium price

A) does not change.

B) rises.

C) falls.

D) might rise, fall, or not change, but the change can never be predicted.

E) might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

87) The equilibrium price of a good occurs if the

A) quantity of the good demanded equals the quantity of the good supplied.

B) quantity of the good demanded is greater than the quantity of the good supplied.

C) quantity of the good demanded is less than the quantity of the good supplied.

D) demand for the good is equal to the supply of the good.

E) price of the good seems reasonable to most buyers.

88) If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________.

A) less than; rise

B) less than; fall

C) greater than; rise

D) greater than; fall

E) equal to; fall

89) The graph illustrates the market for bottled water. When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.

A) less then; fall

B) greater than; rise

C) greater than; fall

D) less than; rise

E) equal to; fall

90) Which of the following is correct?

i.A surplus puts downward pressure on the price of a good.

ii.A shortage puts upward pressure on the price of a good.

iii.There is no surplus or shortage at equilibrium.

A) i and ii

B) i and iii

C) ii and iii

D) i, ii, and iii

E) only iii