An increase in the wages paid to fishermen will have what effect on the fish market equilibrium?
a. Price will decrease, and quantity will decrease.
b. Price will increase, and quantity will increase.
c. Price will decrease, and quantity will increase.
d. Price will increase, and quantity will decrease.
e. Price and quantity will stay the same.
QUESTION 2An increase in consumers' incomes will have what effect on the equilibrium in the restaurant meals market?
a. Price will increase, and quantity will increase.
b. Price will decrease, and quantity will increase.
c. Price will increase, and quantity will decrease.
d. Price will decrease, and quantity will decrease.
e. Price will increase, and quantity will stay the same.
QUESTION 3If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
a. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged.
b. market price will increase, and market quantity exchanged will decrease.
c. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
d. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
e. market price will increase, decrease, or remain the same, and quantity exchanged will decrease.
QUESTION 4If market supply decreases and, simultaneously, market demand increases, the new equilibrium will show:
a. market price will decrease, and market quantity exchanged will increase.
b. market price will increase, and market quantity exchanged will decrease.
c. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
d. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
e. market price will increase, decrease, or remain the same, and quantity exchanged will decrease.
QUESTION 5Consider the market for chicken. Assuming that chicken and beef are substitutes, an increase in the price of beef will:
a. decrease the demand for chicken creating a lower price and a smaller amount of chicken purchased in the market.
b. decrease the supply of chicken creating a higher price and a smaller amount of chicken purchased in the market.
c. increase the demand for chicken creating a higher price and a greater amount of chicken purchased in the market.
d. increase the supply of chicken creating a lower price and a greater amount of chicken purchased in the market.
QUESTION 6Which of the following statements is true of a market?
a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity.
b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity.
c. A decrease in supply, with no change in demand, will decrease the equilibrium price and increase the equilibrium quantity.
d. All of these.
QUESTION 7Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
a. the demand for new homes has risen.
b. the law of demand has been violated.
c. new firms have entered the construction industry.
d. construction firms must be facing higher costs.
QUESTION 8Which of the following is the best description of the effects of an increase in the supply of bread?
a. Consumers will pay more for bread.
b. Bread prices will fall, and bread sales will rise.
c. A permanent surplus of bread will remain on the market.
d. Bakers will have higher marginal costs.
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