1. Which of the following is true of any market? a. The interaction of demand and supply determines the price and quantity in that market. b. There must be a supply of the item but not necessarily a demand for the item. c. Demand and supply are always equal for an item. d. There must be a demand for the item but not necessarily a supply of the item. e. The market will always be in equilibrium 2. During the fall of 2015, many vacationers on cruise liners became ill while on board their ships. Consequently, there was a a. Decrease in the quantity demanded of cruise vacations but no change in the demand for cruise vacations. b. Decrease in the demand for cruise vacations. c. Increase in the quantity supplied of cruise vacations but no change in the supply of cruise vacations. d. Increase in the supply of cruise vacations. 3. Which of the following statements is false? a. As more buyers enter the market, the market demand curve shifts to the right. b. As income falls, the demand for an inferior good increases. c. One explanation for a movement up along a given supply curve is that more producers enter the market as price increases. d. A higher price of gasoline may reduce the demand for automobiles. 4. Which of the following would not cause a decrease in the demand for bananas? a. Reports surface that bananas are infected with a deadly virus. b. Consumers’ incomes drop. c. The price of bananas rises. d. A deadly virus kills monkeys in zoos across the United States. e. Consumers expect the price of bananas to decrease in the future.
1. Which of the following is true of any market?
a. The interaction of
b. There must be a supply of the item but not necessarily a demand for the item.
c. Demand and supply are always equal for an item.
d. There must be a demand for the item but not necessarily a supply of the item.
e. The market will always be in equilibrium
2. During the fall of 2015, many vacationers on cruise liners became ill while on board their ships. Consequently, there was a
a. Decrease in the quantity demanded of cruise vacations but no change in the demand for cruise vacations.
b. Decrease in the demand for cruise vacations.
c. Increase in the quantity supplied of cruise vacations but no change in the supply of cruise vacations.
d. Increase in the supply of cruise vacations.
3. Which of the following statements is false?
a. As more buyers enter the market, the market demand curve shifts to the right.
b. As income falls, the demand for an inferior good increases.
c. One explanation for a movement up along a given supply curve is that more producers enter the market as price increases.
d. A higher price of gasoline may reduce the demand for automobiles.
4. Which of the following would not cause a decrease in the demand for bananas?
a. Reports surface that bananas are infected with a deadly virus.
b. Consumers’ incomes drop.
c. The price of bananas rises.
d. A deadly virus kills monkeys in zoos across the United States.
e. Consumers expect the price of bananas to decrease in the future.
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