In the labor market, if the government imposes a minimum wage that is below the equilibrium wage, then A) workers who wish to work at the minimum wage will have a difficult time finding jobs. B) firms will hire fewer workers than without the minimum wage law. C) some workers may lose their jobs as […]
Date: September 9th, 2020
A rightward shift of the demand curve will lead to an A) increase in equilibrium price. B) excess demand at the old equilibrium price. C) increase in quantity supplied. D) All of the above. ANSWER D
Date: September 9th, 2020
If government regulations increase the cost of producing gasoline while at the same time government regulations reduce the cost of driving a relatively inefficient sport utility vehicle (SUV), A) the supply of gasoline is expected to increase. B) the demand for gasoline is expected to decrease. C) the price of gasoline is expected to increase, […]
Date: September 9th, 2020
Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. Assuming that lionfish is an inferior good, what will likely happen to fishing efforts if income increases? A) Fishing efforts will increase. B) Fishing efforts will decrease, especially when supply is […]
Date: September 9th, 2020
Tastes are starting to change for hybrid vehicles such that consumers are purchasing more hybrid vehicles and suppliers are choosing to produce more hybrid vehicles than they were five years ago. Due to the change in tastes, equilibrium price has fallen and equilibrium quantity has increased relative to the hybrid market from five years ago. […]
Date: September 9th, 2020
From the 1970s through the 1990s, the relative price of a college education has increased greatly. During the same time period, college enrollment has also increased. This evidence suggests that during this time period A) the demand curve for a college education has shifted leftward. B) the demand curve for a college education has shifted […]
Date: September 9th, 2020
If the demand for high definition televisions increases and the supply of high definition televisions increases, then A) it is clear that prices will increase; the change in the quantity of televisions sold is ambiguous. B) it is clear that prices will decrease; the change in the quantity of televisions sold is ambiguous. C) it […]
Date: September 9th, 2020
If oranges were found to cure cancer, A) the equilibrium price of apples would likely fall. B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above. ANSWER D
Date: September 9th, 2020
What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold? A) The demand for DVDs was declining. B) The supply of DVD players was decreasing. C) The supply of DVD players was increasing more than the demand for DVD players. D) The demand […]
Date: September 9th, 2020
The supply and demand model assumes A) no buyer or seller can unilaterally influence the price of the product. B) each unit sold is sold at the same price. C) suppliers and demanders know the price of the product. D) All of the above. ANSWER D
Date: September 9th, 2020
