Question : 21) In October 2005, the U.S. Fish and Wildlife Service : 1245025

21) In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the U.S.?

A) The supply curve shifted to the left.

B) The supply curve shifted to the right.

C) The demand curve shifted to the right.

D) The demand curve shifted to the left.

22) Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals. How is the market for pool maintenance services affected by this?

A) There is an increase in the supply of pool maintenance services.

B) There is a decrease in the demand for pool maintenance services.

C) There is a decrease in the quantity of pool maintenance services supplied.

D) There is a decrease in the supply of pool maintenance services.

23) Harvey Rabbitt pays for monthly cable TV service. Last week the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area. How is the market for cable TV services affected by this?

A) There is an increase in the supply of cable TV service.

B) There is a decrease in the demand for cable TV service.

C) There is a decrease in the quantity of cable TV service supplied.

D) There is a decrease in the supply of cable TV service.

24) The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services. How does this affect the digital photo printing market?

A) The demand curve for digital photo printing services shifts to the right.

B) The demand curve for digital photo printing services shifts to the left.

C) The supply curve for digital photo printing services shifts to the right.

D) The supply curve for digital photo printing services shifts to the left.

25) Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?

A) an increase in the price of sheep

B) a decrease in the price of cattle

C) an increase in the demand for cattle

D) an increase in the price of sheep feed

26) Vineyards can grow either red wine grapes or white wine grapes on their land. Which of the following would cause the supply of red wine grapes to decrease?

A) an increase in the price of white wine grapes

B) a decrease in the price of white wine grapes

C) an increase in the demand for red wine grapes

D) an increase in the price of red wine

27) Which of the following would shift the supply curve for MP3 players to the right?

A) an increase in the price of a substitute in production

B) an increase in consumer income (assuming that all MP3 players are normal goods)

C) a decrease in the number of firms that produce MP3 players

D) a decrease in the price of an input used to produce MP3 players

28) Which of the following would shift the supply curve for MP3 players to the left?

A) an increase in the price of an input used to produce MP3 players

B) a decrease in consumer tastes for MP3 players

C) an increase in the number of firms that produce MP3 players

D) an increase in the productivity of the workers who produce MP3 players

29) If a firm has an incentive to increase supply now and decrease supply in the future, the firm expects that the

A) price of its product will be lower in the future than it is today.

B) price of its product will be higher in the future than it is today.

C) price of inputs will be lower in the future than they are today.

D) demand for the product will be lower in the future than it is today.

30) If a firm expects that the price of its product will be higher in the future than it is today

A) the firm will go out of business.

B) the firm has an incentive to increase supply now and decrease supply in the future.

C) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future.

D) the firm has an incentive to decrease supply now and increase supply in the future.