Question : 91) The graph illustrates the market for bottled water. When : 1238400

91) 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

92) 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

93) Which of the following is the best explanation for why the price of gasoline increases during the summer months?

A) Oil producers have higher costs of production in the summer.

B) Sellers have to earn profits during the summer to cover losses in the winter.

C) There is increased driving by families going on vacation.

D) There is less competition among oil refineries in the summer.

E) The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs.

94) The number of people looking to buy ceiling fans increases, so there is an increase in the

A) quantity of ceiling fans demanded and a surplus of ceiling fans.

B) demand for ceiling fans and a rise in the price of a ceiling fan.

C) demand for ceiling fans and a surplus of ceiling fans.

D) supply of ceiling fans and no change in the price of a ceiling fan.

E) demand for ceiling fans and in the supply of ceiling fans.

95) When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

A) falls; decreases

B) falls; increases

C) rises; decreases

D) rises; increases

E) falls; does not change

96) A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ________ and the quantity of corn ________.

A) rises; increases

B) rises; decreases

C) falls; increases

D) falls; decreases

E) falls; does not change

97) The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer ________ and the quantity ________.

A) rising; increasing

B) rising; decreasing

C) falling; increasing

D) falling; decreasing

E) falling; not changing

98) The graph illustrates the market for bottled water. If the producers of bottled water switch to using improved technology, then the

A) supply of bottled water decreases.

B) quantity demanded of bottled water increases.

C) quantity demanded of bottled water does not change.

D) price of bottled water rises.

E) supply curve shifts leftward.

99) Suppose that the price of lettuce used to produce tacos increases. This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

A) rises; increases

B) rises; decreases

C) falls; increases

D) falls; decreases

E) does not change; decreases

100) Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium quantity of beef will

A) decrease.

B) perhaps increase, decrease, or stay the same, but more information is needed to determine which it does.

C) stay the same.

D) increase.

E) definitely either stay the same or decrease.