Question : 30) If a market begins in equilibrium and then the : 1240811

30) If a market begins in equilibrium and then the demand curve shifts leftward, a

A) shortage is created, which is eliminated by a fall in price.

B) shortage is created, which is eliminated by a rise in price.

C) surplus is created, which is eliminated by a fall in price.

D) surplus is created, which is eliminated by a rise in price.

E) surplus is created, which is eliminated by the supply curve shifting leftward.

31) When the demand curve shifts rightward and the market moves to a new equilibrium, then the

A) supply increases.

B) supply decreases.

C) quantity supplied increases.

D) quantity supplied decreases.

E) price falls to restore the equilibrium.

32) Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________.

A) rightward; increase

B) rightward; decrease

C) leftward; increase

D) rightward; not change

E) leftward; not change

33) If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

A) rise; increase

B) rise; decrease

C) fall; increase

D) fall; decrease

E) not change; increase

34) Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of gasoline leads to a

A) leftward shift of the demand curve for SUVs and the supply curve of SUVs.

B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.

C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.

D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

35) If the price of tangerines increases, the price of oranges also rises because

A) consumers consider the two goods complements, and so sellers decreased the supply of oranges.

B) consumers consider the two goods substitutes, and demand for oranges increases.

C) if the supply of tangerines decreased, then the supply of oranges also must decrease.

D) buyers must have expected a higher price for oranges and thus increased their demand for oranges.

E) buyers’ incomes must have decreased, and oranges are an inferior good.

36) Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

A) Both the supply and the demand for new houses increased, and the supply increased by more than the demand.

B) The demand for new houses increased, and the supply did not change.

C) Both the supply and demand for new houses decreased.

D) The supply of new houses decreased, and the demand for new houses did not change.

E) The supply of new houses increased, and the demand for new houses did not change.

37) Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

A) The wage paid carpenters who build new houses might have risen.

B) A technological advance in framing a new house might have occurred.

C) The rent for nearby apartments might have fallen.

D) More home buyers might have moved into the area.

E) The cost of wood framing used to build houses might have fallen.

38) Suppose that over the next few years, the demand for dancing to country and western music decreases. Hence, at country and western dance clubs, the equilibrium price of admission ________, and the equilibrium quantity of dancing ________.

A) rises; increases

B) rises; decreases

C) falls; increases

D) falls; decreases

E) does not change; decreases

39) For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases.

B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases.

C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases.

D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases.

E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.