Question :
71) The above figure shows the market for pizza. The : 1238398
71) The above figure shows the market for pizza. The market is in equilibrium. Pizza and tacos are substitutes for consumers. The price of tacos falls. What point represents the most likely new price and quantity?
A) A
B) B
C) C
D) D
E) E
72) If both the supply and demand curves shift simultaneously, we can always predict what will happen to
A) both the price and the quantity.
B) either the price or the quantity, but not both.
C) only the price.
D) only the quantity.
E) neither the price nor the quantity.
73) A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price ________, and the equilibrium quantity ________.
A) rises; increases
B) perhaps changes but we can’t say if it rises, falls, or stays the same; does not change
C) falls; increases
D) perhaps changes but we can’t say if it rises, falls, or stays the same; increases
E) falls; perhaps changes but we can’t say if it increases, decreases, or stays the same
74) If the demand and supply both increase equally, then the equilibrium price ________, and the equilibrium quantity ________.
A) increases; increases
B) increases; does not change
C) does not change; increases
D) increases; decreases
E) decreases; does not change
75) Kiwis and strawberries are substitutes for consumers. An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.
A) raises; increases
B) probably changes, but more information is needed to determine if it rises or falls; increases
C) raises; probably changes, but more information is needed to determine if it increases or decreases
D) lowers; probably changes, but more information is needed to determine if it increases or decreases
E) lowers; increases
76) A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in supply. The equilibrium price ________, and the equilibrium quantity ________.
A) rises; decreases
B) perhaps changes but we can’t say if it rises, falls, or stays the same; decreases
C) falls; increases
D) perhaps changes but we can’t say if it rises, falls, or stays the same; increases
E) rises; increases
77) If both supply and demand decrease by the same amount, the equilibrium price
A) does not change.
B) rises.
C) falls.
D) cannot be predicted.
E) None of the answers is correct because the price depends on what happens to the equilibrium quantity.
78) Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?
A) Demand and supply increased by an equal amount.
B) Demand and supply decreased by an equal amount.
C) Demand increased and supply decreased by an equal amount.
D) Demand decreased and supply increased by an equal amount.
E) Demand increased by a larger magnitude than supply decreased.
79) Suppose chickens and beef cattle are produced by different companies on different sites. If bad weather causes an increase in the price of hay, a food eaten by beef cattle but not by chickens, the equilibrium price of beef will ________, and the equilibrium price of chicken will ________.
A) decrease; decrease
B) decrease; increase
C) stay the same; increase
D) increase; increase
E) increase; decrease
80) What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and the price of automobiles falls?
A) The equilibrium price and quantity decrease.
B) The equilibrium price falls, but the change in equilibrium quantity is unknown.
C) The equilibrium price and quantity increase.
D) The equilibrium quantity decreases, but the change in equilibrium price is unknown.
E) The equilibrium price rises, but the change in equilibrium quantity is unknown.
