1) Suppose a wet and sunny year increases the nation\'s corncrop by 20%. How wil

Question

1) Suppose a wet and sunny year increases the nation's corncrop by 20%. How will this affect the market for corn? a) increase in demand b) decrease in supply c) increase in supply d) decrease in demand 2) Suppose a spring forest destroys one-third of the nation'sartichoke crop. How will this affect the market for mayonnaise,which is a complement to artichokes? a) increase in demand b) decrease in supply c) increase in supply d)decrease in demand 3) Suppose a wet and sunny year increases the nation's sweetcorn crop by 20%. How will this affect the market for frozen peas,a substitute for sweet corn? a) increase in demand b) decrease in supply c) increase in supply d) decrease in demand (4-7) 4) Given the demand curve, what is the price some buyers arewilling and able to pay for 3 units? a) $2 b) $4 c) $6 d) $8 5) What is the equilibrium price? a) $2 b) $4 c) $6 d) $8 6)What is the equilibrium quantity? a) 3 b) 6 c) 9 d)12 7) If the equilibrium price fell to $2 because of a shift tothe left of the demand curve, the quantity supplied would be: a) 3 b) 4 c) 5 d) 6 a) $2.00 and 450 gallons b) $1.50 and 400 gallons c) $2.50 and 200 gallons d) $2.50 and 300 gallons 9) A factor that may have changed supply from s1 to s2is a) better technology in the production of gasoline b) increased demand c) lower labor productivitiy d) increased prices of substitutes for gasoline 10) Given the equilibrium after a change in supply from s1 tos2: a) at the old price of $2.50, there will be pressure for theprice to fall b) the new price will be $2.00 c) the new quantity will be 600 d) all of the above 11) Given the initial equilibrium of s1 and d, and price lowerthan_____ will create pressure for the price to_____ a) $2.50; fall b) $2.50; rise c) $3.00; rise d) none of the above are true 12) What might cause the supply curve to shift from s2 back tothe initial supply curve s1? a) The organization of Petroleum Exporting Countries (OPEC)restricts the production of crude oil b) The organization of Petroleum Exporting Countries (OPEC)increases the production of crude oil c) Americans want to buy more gas d) Technology in the refinement of gasoline greatlyimproves 1) Suppose a wet and sunny year increases the nation's corncrop by 20%. How will this affect the market for corn? a) increase in demand b) decrease in supply c) increase in supply d) decrease in demand 2) Suppose a spring forest destroys one-third of the nation'sartichoke crop. How will this affect the market for mayonnaise,which is a complement to artichokes? a) increase in demand b) decrease in supply c) increase in supply d)decrease in demand 3) Suppose a wet and sunny year increases the nation's sweetcorn crop by 20%. How will this affect the market for frozen peas,a substitute for sweet corn? a) increase in demand b) decrease in supply c) increase in supply d) decrease in demand (4-7) 4) Given the demand curve, what is the price some buyers arewilling and able to pay for 3 units? a) $2 b) $4 c) $6 d) $8 5) What is the equilibrium price? a) $2 b) $4 c) $6 d) $8 6)What is the equilibrium quantity? a) 3 b) 6 c) 9 d)12 7) If the equilibrium price fell to $2 because of a shift tothe left of the demand curve, the quantity supplied would be: a) 3 b) 4 c) 5 d) 6 (8-12) 8) The initial price and quantity (at intersection of s1 and D) inequilibrium are: a) $2.00 and 450 gallons b) $1.50 and 400 gallons c) $2.50 and 200 gallons d) $2.50 and 300 gallons 9) A factor that may have changed supply from s1 to s2is a) better technology in the production of gasoline b) increased demand c) lower labor productivitiy d) increased prices of substitutes for gasoline 10) Given the equilibrium after a change in supply from s1 tos2: a) at the old price of $2.50, there will be pressure for theprice to fall b) the new price will be $2.00 c) the new quantity will be 600 d) all of the above 11) Given the initial equilibrium of s1 and d, and price lowerthan_____ will create pressure for the price to_____ a) $2.50; fall b) $2.50; rise c) $3.00; rise d) none of the above are true 12) What might cause the supply curve to shift from s2 back tothe initial supply curve s1? a) The organization of Petroleum Exporting Countries (OPEC)restricts the production of crude oil b) The organization of Petroleum Exporting Countries (OPEC)increases the production of crude oil c) Americans want to buy more gas d) Technology in the refinement of gasoline greatlyimproves

Explanation / Answer

1. c 2. b 3. d (increase in supply for sweet corns, decrease in price,consumer tends to buy sweet corns. so demand for frozen peas willdecrease) 4. d 5. b 6. b 7. a 8. d 9. a(supply increase, maybe due on increase of production) 10. a 11. b 12. a

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