Question : 93) Which of the following the best explanation for why : 1240817

 

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.

 

101) Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount. As a result, the price of candy ________ and the quantity of candy ________.

A) rises; does not change

B) falls; increases

C) does not change; increases

D) does not change; does not change

E) rises; increases

102) The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

A) will rise.

B) will fall

C) will remain the same.

D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers.

E) None of the above answers is correct.

 

103) The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

A) equilibrium quantity of computers will increase.

B) equilibrium quantity of computers will decrease.

C) equilibrium price of a computer will rise.

D) equilibrium price of a computer will fall.

E) equilibrium quantity of computers might increase, decrease, or not change.

 

104) Which of the following definitely results in a product’s equilibrium price rising?

A) an increase in both demand and supply

B) a decrease in both demand and supply

C) an increase in demand combined with a decrease in supply

D) a decrease in demand combined with an increase in supply

E) an increase in the supply combined with no change in the demand

105) During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased. If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

A) increased; increased

B) increased; decreased

C) increased; did not change

D) decreased; did not change

E) did not change; increased

 

106) The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

A) will rise.

B) will fall

C) will remain the same.

D) might rise, fall, or remain the same but more information is needed.

E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.