Question : 81) Which of the following would cause both the equilibrium : 1245052

 

 

81) Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?

A) an increase in consumer income

B) a drought that sharply reduces barley output

C) a decrease in consumer income

D) unusually good weather that results in a bumper crop of barley

 

82) Which of the following would cause both the equilibrium price and equilibrium quantity of oysters (assume that oysters are a normal good) to decrease?

A) an increase in consumer income

B) an oil spill that sharply reduces oyster output

C) a decrease in consumer income

D) a technological advancement in the production of oysters

 

83) Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?

A) a decrease in the price of tomatoes

B) an increase in the price of tomatoes

C) an increase in the price of mustard, a substitute for ketchup

D) an increase in the price of french fries, a complement for ketchup

 

84) Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?

A) a decrease in the price of apples

B) an increase in the price of apples

C) an increase in the price of orange juice, a substitute for apple juice

D) a decrease in the price of granola bars, a complement for apple juice

 

85) Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that

A) the law of demand has been violated.

B) the number of personal trainers has increased.

C) the demand for personal trainers has increased.

D) personal trainers are deliberately charging high prices because they provide services for wealthy clients.

 

86) Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that

A) the law of supply has been violated.

B) the number of lawn care service companies has increased.

C) the demand for lawn care service has decreased.

D) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns.

 

87) Prices of commercial airline tickets (assume that this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling prices of airline tickets?

A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the left.

B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left.

C) The demand curve and the supply curve for airline tickets have both shifted to the right.

D) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left.

 

88) Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the following best explains the falling prices of smartphones?

A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.

B) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.

C) The demand curve and the supply curve for smartphones have both shifted to the left.

D) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.

 

89) In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer. Which of the following best explains the effect of these events in the wine market?

A) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.

B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

C) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.

D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

 

90) Assume that in recent years the cost of producing microbrew beer in the U.S. has decreased largely due to technological improvements. At the same time, more and more Americans prefer microbrew beer over wine. Which of the following best explains the effect of these events in the microbrew beer market?

A) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price.

B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.

C) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.

D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

 

 

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