14. Three of the four events described below might reasonably be expected to shift the demand curve for Tacos?

Tacos to a new position. One would not shift the demand curve. The single exception is:

A) a change in people’s tastes with respect to Tacos.
B) an increase in the money income of beef consumers.
C) a widespread advertising campaign undertaken by the producers of a product competitive with Tacos.
D) a fall in the price of Tacos.

15. If there is an increase in income, which of the following is true?
A) The demand for complementary goods decreases.
B) The demand for substitute goods decreases.
C) The demand for normal goods decreases.
D) The demand for normal goods increases.
E) The supply for all goods decreases.

16. Two goods that are substitutes are:
A) bacon and eggs.
B) camera and film.
C) tennis racket and tennis balls.
D) movie theater tickets and video rentals.
E) coffee and cream.

17. Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:
A) demand for peanut butter to increase.
B) supply of peanut butter to increase.
C) demand for jelly to increase.
D) demand for jelly to decrease.
E) supply of jelly to decrease.

18. According to the law of supply:
A) more of a good is desired by consumers as the price falls.
B) less of a good is desired by consumers as the price rises.
C) more of a good will be offered by suppliers as the price rises.
D) less of a good will be offered by suppliers as the price rises.

19. A decrease in supply means that:
A) demand will increase by the same amount.
B) the quantity demanded will increase.
C) there is a movement down and to the left along the supply curve.
D) the quantity supplied at every price will decrease.
E) the supply curve will shift out and to the right.

20. If more people enter medical school, we can expect:
A) the demand for doctors to increase.
B) the supply of doctors to increase.
C) the demand for doctors to decrease.
D) the supply of doctors to decrease.
E) no effect on the supply or demand of doctorsÂľjust a movement along the curves.

21. Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):
A) upward movement along the supply curve for oranges.
B) downward movement along the supply curve for oranges.
C) rightward shift of the supply curve for oranges.
D) leftward shift of the supply curve for oranges.

22. Consider the market for grapes. An increase in the wage paid to grape pickers will cause the:
A) demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.
B) demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.
C) supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.
D) supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.

23. Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
A) the demand for new homes has risen.
B) the law of demand has been violated.
C) new firms have entered the construction industry.
D) construction firms must be facing higher costs.

24. Exhibit 4-7 Demand and supply schedules for movie tickets
Price Quantity
Demanded Quantity
Supplied
200 500
8 240 470
6 370 420
4 390 390
2 410 310

In Exhibit 4-7, the equilibrium price of a movie ticket is:
A) .
B) .
C) .
D) .
E) .

25. If the equilibrium price of natural gas is per thousand cubic feet and a price ceiling is imposed at per thousand cubic feet, the result will be:
A) a surplus of natural gas.
B) a shortage of natural gas.
C) an accumulation of inventories of unsold gas.
D) None of these.

26. Exhibit 4-9 Data on supply and demand
Price Quantity
Demanded Quantity
Supplied
.00 100 300
1.50 150 250
1.00 200 200
0.50 250 150

In Exhibit 4-9 the equilibrium price and quantity in the market are:
A) .50, 200.
B) .50, 300.
C) .00, 100.
D) .00, 200.

27. An externality is:
A) always a benefit to the recipient.
B) always a detriment to the recipient.
C) an activity that occurs in a business which is unknown to management.
D) unintended benefits or costs imposed on third parties as a result of economic activity.
E) an act, caused by a firm located in this country, which has an effect on a person in a foreign country.

One Response to “14. Three of the four events described below might reasonably be expected to shift the demand curve for Tacos?”

  1. Maite Says:

    14.d
    15.d
    16.d
    17.d
    18.d
    25.b
    27.d
    and didnt do the rest haha