iVat Chapter 4

A  Prices become inverted.

B  Prices tend to fall.

C  Prices tend to stay the same.

D  Prices tend to rise.

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

B  The price to increase in the market.

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

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

A  An increase in the price in the market.

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

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

D  A decrease in supply in the market.

A  Prices tend to fall.

B  Prices tend to stay the same.

C  Prices tend to rise.

D  Prices tend to decrease.

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

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

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

D  The demand curve will shift to the left.

E  The supply curve will shift to the left.

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

B  Financial contagion.

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

D  A higher equilibrium price and a higher equilibrium quantity.

E  A lower equilibrium price and a lower equilibrium quantity.

A  the current price is below the equilibrium price.

B  the current price is above the equilibrium price.

C  producers are not resonsive to price changes

D  consumers are irrational

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

A  No shift.

B  Down

C  The left.

D  Immensely to the left.

E  The right.

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 price of milk

B  a decrease in the price of feed for cows

C  a decrease in the number of dairy farmers

D  a decrease in peoples’ income

E  an increase in the demand for milk

A  A decrease in the price of the item

B  An increase 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  Substitution and income effect

A  Inverted

B  Vertical

C  Positively-sloped

D  Horizontal

E  Negatively sloped

A  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.

B  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.

C  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.

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

A  a decrease in the supply of beef

B  a decrease in the price of pork

C  a decrease in the price of chicken

D  an increase in family incomes

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

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

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

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

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

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

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

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

A  An inverse relationship between price and demand.

B  An inverse relationship between price and the quantity demanded.

C  An indirect relationship between price and the quantity demanded.

D  A direct relationship between price and the quantity demanded.

E  An indirect effect.