Question : 31) Which of the following will definitely occur when there : 1381053

31) Which of the following will definitely occur when there is an increase in the supply of and decrease in demand for MP3 players?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

32) Which of the following will definitely occur when there is an increase in demand for and a decrease in supply of milk?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

33) An insect that is resistant to currently used pesticides has infested the cotton crop, and this year’s crop is only half of what was produced last year. You accurately predict that this

A) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.

B) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.

C) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.

D) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.

34) Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,

A) the price of both papayas and grapefruit will increase.

B) the price of both papayas and grapefruit will fall.

C) the price of grapefruit will increase, and the price of papayas will fall.

D) the price of grapefruit will fall, and the price of papayas will increase.

Refer to the information provided in Figure 3.19 below to answer the questions that follow.

Figure 3.19

35) Refer to Figure 3.19. When the economy moves from Point A to Point B, there has been

A) an increase in demand and an increase in supply.

B) an increase in demand and an increase in quantity supplied.

C) an increase in quantity demanded and an increase in quantity supplied.

D) an increase in quantity demanded and an increase in supply.

36) Refer to Figure 3.19. When the economy moves from Point A to Point C, there has been

A) a decrease in supply and a decrease in quantity demanded.

B) a decrease in quantity supplied and a decrease in demand.

C) a decrease in supply and an increase in quantity demanded.

D) an increase in supply and a decrease in quantity demanded.

37) Refer to Figure 3.19. When the economy moves from Point A to Point E, there has been

A) an increase in demand and an increase in supply.

B) a decrease in demand and a decrease in supply.

C) an increase in demand and a decrease in supply.

D) an increase in quantity demanded and an increase in quantity supplied.

38) Refer to Figure 3.19. When the economy moves from Point E to Point B, there has been

A) an increase in supply and an increase in quantity demanded.

B) an increase in both supply and demand.

C) a decrease in supply and an increase in demand.

D) a decrease in supply and an increase in quantity demanded.

Refer to Scenario 3.2 below to answer the questions that follow.

SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.

39) Refer to Scenario 3.2. As a result of the flooding during the winter, you would expect that

A) the price of lettuce would increase, the supply of lettuce would increase, and the quantity demanded of lettuce would decrease.

B) the supply of lettuce would decrease, the price of lettuce would increase, and the quantity demanded of lettuce would decrease.

C) the price of lettuce would increase and both the quantity of lettuce supplied and the quantity of lettuce demanded would increase.

D) the supply of lettuce would decrease, the price of lettuce would increase, and the demand for lettuce would decrease.

40) Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused the equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.

A) decrease; decrease

B) decrease; increase

C) increase; increase

D) increase; decrease