Question :
61) Select the phrase that correctly completes the following statement. : 1245050
61) Select the phrase that correctly completes the following statement. “A positive change in technology caused an increase in the supply of flat-screen televisions. As a result
A) the price of flat-screen televisions decreased and the demand for flat-screen televisions increased.”
B) the equilibrium quantity of flat-screen televisions decreased.”
C) the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased.”
D) the price of flat-screen televisions decreased. The lower price caused the supply of flat-screen televisions to decrease.”
62) Select the phrase that correctly completes the following statement. “An increase in input prices caused a decrease in the supply of baseballs. As a result
A) the price of baseballs increased and the demand for baseballs decreased.”
B) the equilibrium quantity of baseballs increased.”
C) the price of baseballs increased and the quantity demanded of baseballs decreased.”
D) the price of baseballs increased. The higher price caused the supply of baseballs to increase.”
63) What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?
A) Demand will increase, but this will not shift the supply curve.
B) Supply will increase, but this will not shift the demand curve.
C) Demand and supply will both increase.
D) Demand will increase and supply will decrease.
64) If more insurance companies decide to cover part of the price of voluntary laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?
A) Demand will increase, but these two factors will not shift the supply curve.
B) Supply will increase, but these two factors will not shift the demand curve.
C) Demand and supply will both increase.
D) Demand will increase and supply will decrease.
65) Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players?
A) The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players.
B) The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players.
C) The new technology caused an decrease in the demand for Blu-ray players.
D) The new technology caused an increase in the quantity of Blu-ray players supplied.
66) “Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase. This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right.” Which of the following correctly comments on this statement?
A) The statement will be true if consumer tastes for apples and oranges do not change.
B) The statement is false because a change in the price of apples would not change the demand for apples.
C) The statement is false because oranges are inferior goods; apples are normal goods.
D) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers.
67) “Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease. This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right.” Which of the following correctly comments on this statement?
A) The statement will be true if consumer tastes for chips and salsa do not change.
B) The statement is false because a change in the price of chips would not change the demand for chips.
C) The statement is false because salsa is an inferior good; chips are normal goods.
D) The statement is false because one cannot assume that chips and salsa are complements for all consumers.
68) The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen. In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________.
A) increasing; increasing or decreasing
B) increasing or decreasing; decreasing
C) decreasing; increasing or decreasing
D) increasing or decreasing; increasing
69) All else equal, the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a
A) shift the supply curve for iPhones to the right.
B) shift the supply curve for iPhones to the left.
C) shift the demand curve for iPhones to the right.
D) shift the demand curve for iPhones to the left.
70) Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for electric vehicles if the government offers incentives to manufacturers to produce more electric vehicles?
A) D increases, S no change, P and Q increase
B) S increases, D no change, P decreases, Q increases
C) D and S increase, P and Q decrease
D) D no change, S increases, P decreases, Q decreases
