Econ 1B - Principles of Microeconomics » Spring 2023 » Chapter 3 Problem Set

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Question #1
A leftward shift of a supply curve is caused by:
A.   an increase in the number of sellers.
B.   a technological improvement in production.
C.   an increase in the cost of an input.
D.   an increase in the number of buyers.
Question #2
If the demand for tires goes down when the price of gas goes up, then tires and gas are:
A.   substitutes.
B.   complements.
C.   both inexpensive.
D.   both expensive.
Question #3
If the market for buffalo meat is in equilibrium, the price of buffalo meat will probably _____ in the near future.
A.   not change
B.   decrease
C.   increase
D.   increase considerably
Question #4
If goods A and B are substitutes, a decrease in the price of good B will:
A.   decrease the demand for good A.
B.   increase the demand for good B and decrease the demand for good A.
C.   increase the demand for good B.
D.   increase the demand for good A.
Question #5
A decrease in the price of a good will result in:
A.   an increase in the quantity demanded.
B.   an increase in supply.
C.   an increase in demand.
D.   more being supplied.
Question #6
If the supply and demand curves intersect at $47, then any price above that would result in:
A.   equilibrium.
B.   an increase in demand.
C.   a shortage.
D.   a surplus.
Question #7
Assuming that desktop computers are normal goods, which of the following will NOT increase demand for desktop computers?
A.   the price of notebook computers increasing
B.   cool new computer games that can only be played on desktop computers
C.   an increase in the incomes of computer users
D.   a very large computer company going out of business
Question #8
Consider two competing motorcycle manufacturers, Harley-Davidson and Honda. If Harley-Davidson raises the price of its motorcycles, we can expect:
A.   a shift to the left in the demand curve for Hondas and lower prices for Hondas.
B.   a shift to the left in the supply curve of Hondas and higher prices for Hondas.
C.   a shift to the right in the demand curve for Hondas and higher prices for Hondas.
D.   a shift to the right in the supply curve of Hondas and lower prices for Hondas.
Question #9
If the price of an input increases, you can expect the:
A.   supply curve to shift to the left.
B.   quantity supplied to increase.
C.   quantity demanded to increase.
D.   supply to increase.
Question #10
An increase in supply with no change in demand will lead to _____ in equilibrium quantity and _____ in equilibrium price.
A.   an increase; a decrease
B.   a decrease; a decrease
C.   an increase; an increase
D.   a decrease; an increase
Question #11
A decrease in demand and a decrease in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.
A.   an indeterminate change; an increase
B.   an increase; an indeterminate change
C.   a decrease; an indeterminate change
D.   an indeterminate change; a decrease

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