Macro 1.6-Supply&Demand Model-Skills Check
star
star
star
star
star
Last updated 6 months ago
13 questions
2
Cereal producers increase the price of cereal.
Cereal producers increase the price of cereal.
2
The workers who produce cereal go on strike.
The workers who produce cereal go on strike.
2
The economy goes into a recession causing incomes to decrease (Assume cereal is a normal good).
The economy goes into a recession causing incomes to decrease (Assume cereal is a normal good).
2
The price of milk, a complement to cereal, decreases (In the cereal market.)
The price of milk, a complement to cereal, decreases (In the cereal market.)
2
The price of wheat and corn, key resources in the production of cereal, decreases.
The price of wheat and corn, key resources in the production of cereal, decreases.
2
A reputable private research institute announces that children who eat cereal improve their grades in school.
A reputable private research institute announces that children who eat cereal improve their grades in school.
2
The government places a per-unit tax on cereal manufacturers.
The government places a per-unit tax on cereal manufacturers.
2
The price of turkey bacon, a substitute-in-production, has fallen.
The price of turkey bacon, a substitute-in-production, has fallen.
2
The price of eggs, a close substitute of cereal, increases.
The price of eggs, a close substitute of cereal, increases.
2
An increase in population leading to an increase in cereal customers.
An increase in population leading to an increase in cereal customers.
2
In order to promote American production, the government subsidizes cereal producers.
In order to promote American production, the government subsidizes cereal producers.
2
New firms begin to start making cereal.
New firms begin to start making cereal.
6
Match the scenario to the correct graph.
Match the scenario to the correct graph.
- Increase in automobile worker wages on the market for automobiles
- Governmental subsidy on the market for AIDS research
- Decline in the price of irrigation equipment upon the market for corn
- Decline in the price of personal computers upon the market for software
- Increase in the price of Coke upon the market for Pepsi
- Decrease in income upon the market for secondhand clothing
- Graph A
- Graph B
- Graph C
- Graph D