Question : 121) If the legal beer-drinking age raised from 18 to : 1384151

121) If the legal beer-drinking age is raised from 18 to 21, the changes to the equilibrium price and quantity of beer are likely to be that

A) price rises and quantity rises.

B) price falls and quantity rises.

C) price rises and quantity falls.

D) price falls and quantity falls.

E) no change in price or quantity occurs.

122) Steel is an important input to the production of cars. Tires and cars are used together by consumers. What will occur in the market for tires when there is an increase in the price of steel?

A) price rises, quantity rises

B) price falls, quantity rises

C) price rises, quantity falls

D) price falls, quantity falls

E) no change in price or quantity occurs

123) Aeronautical engineers are a factor of production for airplanes.  What will happen in the world market for airplanes when there is a worldwide shortage of aeronautical engineers?

A) price will increase, quantity exchanged will decrease

B) price will increase, quantity exchanged will increase

C) price will decrease, quantity exchanged will decrease

D) price will decrease, quantity exchanged will increase

E) there will be no change in price or quantity exchanged

124) Assume that apples and oranges are substitute goods. Given the initial supply and demand curves for apples, a reduction in the price of oranges will tend to

A) increase the price of apples.

B) increase the demand for apples.

C) increase the demand for oranges.

D) decrease the demand for oranges.

E) decrease the price of apples

125) Suppose that supply for some good increases and that simultaneously the demand for the same good decreases. The result would be

A) a decrease in P and an indeterminate change in Q.

B) a decrease in Q and an indeterminate change in P.

C) an increase in Q and a decrease in P.

D) an increase in Q and an increase in P.

E) no change in either P or Q.

126) Given a positively sloped supply curve, when market demand increases

A) the new equilibrium will have a lower price and a greater quantity.

B) the new equilibrium will have a lower price and a smaller quantity.

C) the new equilibrium will have a higher price and a smaller quantity.

D) the new equilibrium will have a higher price and a larger quantity.

E) the new equilibrium will have the same price and larger quantity.

127) Suppose we observe that movie theatre prices are less during the daytime than in the evening. If the supply of movies does not change between daytime and evening, then the most likely explanation for this difference in price is

A) the evening demand curve is to the left of the daytime demand curve.

B) the evening demand curve is to the right of the daytime demand curve.

C) the evening supply curve is to the left of the daytime supply curve.

D) the evening supply curve is to the right of the daytime supply curve.

128) Consider the global market for some mineral, X. In January, 2011, the equilibrium price and quantity were P = $27 per unit and Q = 140 million units. In January, 2013, the equilibrium price and quantity were P = $45 per unit and Q = 175 million units. Which of the following is the best possible explanation for this change in market equilibrium?

A) There has been a decrease in supply of mineral X.

B) There has been an increase in demand for mineral X.

C) There has been an increase in supply of mineral X.

D) There has been a decrease in demand for mineral X.

E) There has been a simultaneous decrease in demand for, and increase in supply of, mineral X.

129) Consider the global market for some mineral, X.  In January, 2011, the equilibrium price and quantity were P = $27 per unit and Q = 140 million units. In January, 2013, the equilibrium price and quantity were P = $27 per unit and Q = 175 million units. Which of the following is the best possible explanation for this change in market equilibrium?

A) There has been a simultaneous increase in demand for, and increase in supply of, mineral X.

B) There has been an increase in demand for mineral X.

C) There has been an increase in quantity demanded for mineral X.

D) There has been an increase in supply of mineral X.

E) There has been an increase in quantity supplied of mineral X.

130) Consider the global market for some mineral, X.  In January, 2011, the equilibrium price and quantity were P = $27 per unit and Q = 140 million units. In January, 2013, the equilibrium price and quantity were P = $35 per unit and Q = 110 million units. Which of the following is the best possible explanation for this change in market equilibrium?

A) There has been an increase in demand for mineral X.

B) There has been a decrease in supply of mineral X.

C) There has been a decrease in global demand for mineral X.

D) There has been a simultaneous increase in demand and increase in supply for mineral X.

E) there has been a simultaneous increase in supply and decrease in demand for mineral X.