the price of ground beef decreases, which of the following will occur? The demand curve for ground beef will shift to the left. The substitution effect will cause some consumers to switch to other types of meat. Consumers will experience a decrease in their purchasing power. There will be a movement

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QUESTION 16

If the price of ground beef decreases, which of the following will occur?

The demand curve for ground beef will shift to the left.

The substitution effect will cause some consumers to switch to other types of meat.

Consumers will experience a decrease in their purchasing power.

There will be a movement down the demand curve for ground beef.

QUESTION 17

Price discrimination is defined as:

selling a product at the same price to each and every consumer

selling a product at more than one price

selling a product at its marginal cost plus a markup

selling more than one version of a product

producing goods and services for sale within the firm

QUESTION 18

The demand function for Super Big Bright LED light bulbs is Qd = (45 million) - (3.5 million × P). If the company charged a price of $8 per bulb, how many will be demanded?

41.5 million

37 million

17 million

10 million

QUESTION 19

If Goods X and Y are substitutes, if the price of Good X increases, this will cause a movement ________ the demand curve for Good X and a ________ shift in the demand for Good Y.

down, leftward

down, rightward

up, leftward

up, rightward

QUESTION 20

TRUE/FALSE. EXPLAIN. The Law of Demand states that as consumers' incomes increase, the demand for normal goods increase

True

False


QUESTION 21

TRUE/FALSE. EXPLAIN.

A news report discussing a medical study that found conclusive evidence of the positive health benefits of farm-raised eggs is likely to cause a rightward shift of the demand curve for farm-raised eggs

True

False

QUESTION 22

If the price of avocados increases, which of the following will occur?

The supply curve for avocados will shift to the left.

The supply curve for avocados will shift to the right.

There will be a movement down the supply curve for avocados.

There will be a movement up the supply curve for avocados

QUESTION 23

The supply function for a half gallon of Happy Cow Milk is QS = (0) + (2 million × P). If the price of a Happy Cow Milk decreases by $1, how will this change the quantity supplied?

decrease by 2 million

increase by 2 million

increase by 1 million

decrease by 1 million

QUESTION 24

At any price higher than the equilibrium price, a ________ in quantity will be created and at any price lower than the equilibrium price, a ________ in quantity will be created.

surplus; shortage

shortage; surplus

surplus; surplus

shortage; shortage

QUESTION 25

If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $5.25, market forces will cause all of the following to occur except which one?

the quantity supplied to decrease

the quantity demanded to increase

the price to fall to the equilibrium price

the quantity supplied to increase

QUESTION 26

If the Qd = (40 million) - (8 million × P) and QS = (10 million) + (2 million × P), the equilibrium price for the product is ________.

$2

$3

$8

$12.

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