Question : 21) When there a shortage of a product in an : 1381052

21) When there is a shortage of a product in an unregulated market, there is a tendency for

A) price to rise.

B) price to fall.

C) quantity demanded to increase.

D) quantity supplied to decrease.

22) If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will

A) increase, the quantity demanded will fall, and the quantity supplied will rise.

B) increase, the quantity demanded will rise, and the quantity supplied will fall.

C) decrease, the quantity demanded will rise, and the quantity supplied will fall.

D) decrease, the quantity demanded will fall, and the quantity supplied will rise.

23) DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?

A) The equilibrium price and quantity of DVDs would increase.

B) The equilibrium price and quantity of DVDs would decrease.

C) The equilibrium price of DVDs would increase, and the equilibrium quantity would decrease.

D) The equilibrium price of DVDs would decrease, and the equilibrium quantity would increase.

24) Suppose that video game discs are a normal good. If the income of video game players increases, you predict that in the market for video games,

A) both equilibrium price and quantity will fall.

B) both equilibrium price and quantity will increase.

C) equilibrium price will increase, and quantity will decrease.

D) equilibrium price will fall, but quantity will increase.

Refer to the information provided in Figure 3.18 below to answer the questions that follow.

Figure 3.18

25) Refer to Figure 3.18. The current price of a bag of pretzels is $1.10. You accurately predict that in this market,

A) price tends to remain constant, and quantity supplied increases.

B) price, quantity demanded, and quantity supplied decrease.

C) price and quantity demanded increase, and quantity supplied decreases.

D) price and quantity supplied decrease, and quantity demanded increases.

26) When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,

A) the supply of sugar decreased, and the price of sugar increased.

B) the supply of sugar decreased, and the price of sugar decreased.

C) the demand for sugar increased, and the price of sugar increased.

D) the demand for sugar decreased, and the price of sugar decreased.

27) The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

A) the demand for pizza would increase and the price of pizza would increase.

B) the demand for pizza would decrease and the price of pizza would fall.

C) the supply of pizza would decrease and the price of pizza would increase.

D) the supply of pizza would increase and the price of pizza would decrease.

28) If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)

A) increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded.

B) increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded.

C) increase in the supply of personal computers, a reduction in the price, and an increase in the demand.

D) decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.

29) Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

30) A movement along the demand curve to the left may be caused by a

A) rise in income.

B) decrease in supply.

C) fall in the number of substitute goods.

D) fall in the price of inputs.