CIRCLE THE CORRECT ANSWER 1. The Supply Curve is upward-sloping because: a) As the price increases, so do costs b) As the price increases, consumers demand less. c) As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more. d) None of the above. 2. When college students leave town for the summer, the demand for meals at the local restaurants declines. This results in a) a decrease in equilibrium price and an increase in quantity. b) an increase in equilibrium price and quantity. c) a decrease in equilibrium price and quantity. d) an increase in equilibrium price, and a decrease in quantity. 3. If the cost of computer components falls, then a) the demand curve for computers shifts to the right. b) the demand curve for computers shifts to the left. c) the supply curve for computers shifts to the right d) the supply curve for computers shifts to the left 4. If the demand curve shifts to the right, then we move up and to the right along our supply curve a) True b) False 5. If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right. a) True b) False
CIRCLE THE CORRECT ANSWER 1. The Supply Curve is upward-sloping because: a) As the price increases, so do costs b) As the price increases, consumers demand less. c) As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more. d) None of the above. 2. When college students leave town for the summer, the demand for meals at the local restaurants declines. This results in a) a decrease in equilibrium price and an increase in quantity. b) an increase in equilibrium price and quantity. c) a decrease in equilibrium price and quantity. d) an increase in equilibrium price, and a decrease in quantity. 3. If the cost of computer components falls, then a) the demand curve for computers shifts to the right. b) the demand curve for computers shifts to the left. c) the supply curve for computers shifts to the right d) the supply curve for computers shifts to the left 4. If the demand curve shifts to the right, then we move up and to the right along our supply curve a) True b) False 5. If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right. a) True b) False
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 10P
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CIRCLE THE CORRECT ANSWER
1. The Supply Curve is upward-sloping because:
a) As the price increases, so do costs
b) As the price increases, consumers demand less.
c) As the price increases, suppliers can earn higher levels of profit or justify higher
marginal costs to produce more.
d) None of the above.
2. When college students leave town for the summer, the demand for meals at the local restaurants declines. This results in
a) a decrease in equilibrium price and an increase in quantity.
b) an increase in equilibrium price and quantity.
c) a decrease in equilibrium price and quantity.
d) an increase in equilibrium price, and a decrease in quantity.
3. If the cost of computer components falls, then
a) the demand curve for computers shifts to the right.
b) the demand curve for computers shifts to the left.
c) the supply curve for computers shifts to the right
d) the supply curve for computers shifts to the left
4. If the demand curve shifts to the right, then we move up and to the right along our supply curve
a) True
b) False
5. If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right.
a) True
b) False
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