iVAT Chapter 4

A  Prices become inverted.

B  Prices tend to rise.

C  Prices tend to fall.

D  Prices tend to stay the same.

A  The price to increase in the market.

B  To be an excess supply of glass in the glass market immediately after the supply curve shifts to the right.

C  To be excess supply in the market immediately after the supply curve shifts to the left.

D  To be excess demand in the market immediately after the supply curve shifts to the right.

A  Excess demand in the market immediately after the decrease in demand.

B  A decrease in supply in the market.

C  An increase in the price in the market.

D  Excess supply in the market immediately after the decrease in demand.

A  Prices tend to rise.

B  Prices tend to fall.

C  Prices tend to stay the same.

D  Prices tend to decrease.

A  The supply curve will shift to the left.

B  Prices will rise because suppliers will be able to sell their goods at higher prices.

C  The demand curve will shift to the left.

D  Prices will rise because firms will exploit consumers by decreasing supply.

E  The supply curve will shift to the right to restore equilibrium.

A  A lower equilibrium price and a lower equilibrium quantity.

B  A decrease in supply and a higher equilibrium price and a lower equilibrium quantity.

C  Financial contagion.

D  An increase in supply and a lower equilibrium price and a higher equilibrium quantity.

E  A higher equilibrium price and a higher equilibrium quantity.

A  consumers of this particular item do not buy less of it when its price increases.

B  consumers are irrational

C  the current price is below the equilibrium price.

D  the current price is above the equilibrium price.

E  producers are not resonsive to price changes

A  The right.

B  Immensely to the left.

C  Down

D  No shift.

E  The left.

A  The supply curve will stay in place.

B  The supply curve will become steeper.

C  The supply curve will shift to the right.

D  The supply curve will shift to the left.

A  an increase in the demand for milk

B  an increase in the price of milk

C  a decrease in the price of feed for cows

D  a decrease in the number of dairy farmers

E  a decrease in peoples’ income

A  Substitution and income effect

B  A decrease in the price of the item

C  Decreases in the prices of inputs used to produce the item

D  An increase in the number of firms producing the item

E  An increase in the price of the item

A  Positively-sloped

B  Vertical

C  Horizontal

D  Negatively sloped

E  Inverted

A  The demand curve in the strawberry will not be affected by the change in the blueberry market.

B  The demand curve in the strawberry market will shift to the left.  This means that at any given price, the quantity demanded in the strawberry is now less than it was prior to the change in the blueberry market.

C  The demand curve in the strawberry will shift to the right.  This means that at any given price, the quantity demanded in the strawberry is now greater than it was prior to the change in the blueberry market.

D  The demand curve in the blueberry market will shift to the left.  This means that at any given price, the quantity demanded in the strawberry is now less than it was prior to the change in the blueberry market.

A  a decrease in the price of pork

B  a decrease in the price of chicken

C  an increase in family incomes

D  a decrease in the supply of beef

A  Consumers demand less of the good/service in the market.

B  At any given price in a market, the quantity demanded in the market, will be greater than prior to the income increase.

C  At any given quantity in a market, the quantity demanded in the market, will be greater than prior to the income increase.

D  At any given income in a market, the quantity demanded in the market, will be less than prior to the income increase.

A  To isolate how a change in price impacts the change in quantity demanded.

B  To isolate how a change in income impacts the change in quantity demanded.

C  To isolate how a change in taxes impacts the change in quantity demanded.

D  To isolate how a change in price impacts a change in quantity supplied.

A  A direct relationship between price and the quantity demanded.

B  An inverse relationship between price and demand.

C  An indirect relationship between price and the quantity demanded.

D  An inverse relationship between price and the quantity demanded.

E  An indirect effect.