Quiz 3: Supply, demand and market
1.Suppose there is an increase in the price of steel. We would expect the supply curve for steel
beams to
a)remain unchanged.
b)become flatter.
c)shift rightward.
d) shift leftward
2.What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise
and lattés are a normal good?
a)The equilibrium price would increase, and the equilibrium quantity would decrease.
b)The equilibrium price would decrease, and the equilibrium quantity would increase.
c)Both the equilibrium price and quantity would decrease.
d)Both the equilibrium price and quantity would increase.
3.What would happen to the equilibrium price and quantity of lattés if coffee shops began using a
machine that reduced the amount of labor necessary to produce steamed milk, which is used to
make lattés, and scientists discovered that coffee prevents heart attacks?
a)Both the equilibrium price and quantity would decrease.
b)Both the equilibrium price and quantity would increase.
c)The equilibrium quantity would increase, and the effect on equilibrium price would be
ambiguous.
d)The equilibrium price would increase, and the effect on equilibrium quantity would be
ambiguous.
4.A likely example of complementary goods for most people would be
a. snow mobiles and sofas.
b. canoes and paddles.
c. tennis balls and basketballs.
d. coffee and tea.
5.If, at the current price, there is a shortage of a good, then
a)the price is below the equilibrium price.
b)quantity demanded equals quantity supplied.
c) sellers are producing more than buyers wish to buy.
d)the market must be in equilibrium
Consider the market for lattes.
If scientists discover that steamed milk, which is used to make lattes, prevents heart attacks, what would happen to the equilibrium price and quantity of lattes?
Group of answer choices
Both the equilibrium price and quantity would increase.
Both the equilibrium price and quantity would decrease.
The equilibrium price would increase, and the equilibrium quantity would decrease.
The equilibrium price would decrease, and the equilibrium quantity would increase.
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