Micro Unit 2.2 CW 1: Qs/Qd and Changes to Supply & Demand (MC)

6 pies

$5

8 pies per month

2 pies at $5 each

$5 per pie

consumers are willing to buy more at any price.

consumers buy more of the good only if its price falls.

the price is lower at any level of quantity demanded.

consumers buy more of the good only if its price rises.

the demand curve shifts leftward.

a change in the number of buyers.

increased preferences for fresh fruit consumption for health reasons.

a change in the price of an apple.

a change in the price of a banana.

a change in income.

It decreases the demand for taco chips.

It increases the demand for taco chips.

It has no effect on the demand for taco chips.

It will decrease the demand for taco chips only if taco chips are a normal good.

It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

inferior.

substitute.

complementary.

normal.

The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.

The term "inferior good" means the good is substandard.

The quantity demanded of an inferior good increases as its price increases.

Inferior goods are complements to higher priced goods.

As buyers' incomes decrease, the demand for inferior goods increases.

Inferior goods are defined to be substitutes for higher priced goods.

a rise in the price of a complement

the expectation that future income will be higher

an increase in income, assuming the good is an inferior good

a decrease in the number of buyers

a fall in the price of a substitute

Larger outputs result in lower costs of production.

Larger outputs result in higher costs of production.

The costs of production remain constant throughout all levels of output.

Sellers realize that if the price increases, they make larger profits and do not need to change their production.

The law of demand.

an advance in the technology used to produce personal computers

an increase in the number of firms producing personal computer

a fall in the cost of the components used to assemble personal computers

a rise the price of a personal computer

a change in the expected future price of a personal computer

The supply increases.

The supply decreases.

The quantity supply increases.

The quantity supply decreases.

Both the supply and quantity supply decrease.