Can04L2
1
The price of a tomato increases and people buy fewer onions. You infer that onions and tomatoes are ________.
normal goods
substitutes
inferior goods
complements
2
The quantity of cars that people plan to buy this month depends on all of the following except the ___________.
population
quantity of cars that dealers have for sale
price of a van
expected future price of a car
3
Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she decreases the quantity of donuts she buys. For Kelly, donuts ______________.
are a normal good
and toast have become substitutes
and coffee has become complements
are an inferior good
4
Students can rent a video at Campus Video for $4. As the price of a VCR decreases, the ____________.
quantity supplied of videos will decrease
demand for videos will increase
supply of videos will decrease
quantity demanded of videos will increase
5
In the book market, the supply of books will decrease if any of the following occur except ___________.
an increase in the price of paper
an increase in the future expected price of a book
a decrease in the price of a book
a decrease in the number of book publishers
6
If the price of a video rental is below the equilibrium price, the quantity supplied is _______ than the quantity demanded. If the price of a video rental is above the equilibrium price, the quantity supplied is _______ than the quantity demanded.
less; greater
less; less
greater; less
greater; greater
7
A typewriter is an inferior good. As people's incomes increase and other things remain the same, you predict that the _______________.
demand for typewriters will decrease and the price of a typewriter will fall
price of a typewriter will fall and the demand for typewriters will increase
demand for typewriters will decrease and the price will rise
demand for typewriters will increase as the price of a typewriter falls
8
The figure illustrates the market for pens. The equilibrium quantity is ____.
400 pens a month
2 pens a month
500 pens a month
5 pens a month
9
If the demand for bottled water increases, the equilibrium price _________ and the equilibrium quantity __________.
decreases; increases
increases; increases
decreases; decreases
increases; decreases
10
The figure illustrates the market for chairs. If the price of a chair is $40, there is a ____ of chairs and the price will _________.
shortage; rise
surplus; fall
shortage; fall
surplus; rise
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