Average Household Income, Supply and Demand Model, Principles of Macroeconomics Final
The key terms in this Principles of Macroeconomics course include Supply and Demand Model, Average Household Income, Equilibrium Price, Supply Curve, Market Supply, Demand, Principles of Macroeconomics Final Exam
According to a supply and demand model for apples, if the average household income decreases at the same time 10 apple orchards go out of business, one would expect the equilibrium
quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.
quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase.
price of apples to increase and the equilibrium quantity of apples in the market to decrease.
quantity of apples in the market to decrease and the equilibrium price of apples to stay the same.
price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase.
If the cost of flour increases from $3 to $5 a bag, we could predict the supply curve for bagels to
increase.
become steeper.
shift to the right.
shift to the left.
become flatter.
Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?
| Price | QuantityDemanded |
| $8.00 | 200 |
| $10.00 | 175 |
| $12.00 | 150 |
| $14.00 | 100 |
| $16.00 | 50 |
Two goods that are used together are called
Giffin.
complements.
inferior.
substitutes.
normal.
If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to __________ and the equilibrium quantity to _________, holding all else constant.
decrease; increase
increase; decrease
decrease; decrease
increase; increase
remain the same; remain the same
What is market supply?
the division of the total sales by an individual seller with the price paid for the product
the addition of the individual quantities supplied by each seller in a market at each price
the subtraction of the individual quantities supplied by each seller in a market at each price
the multiplication of the price of each product by the individual quantities supplied by each supplier in a market
the addition of the individual prices of the product at each level of quantity
According to a supply and demand model for apples, if the average household income decreases at the same time 10 apple orchards go out of business, one would expect the equilibrium
quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.
quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase.
price of apples to increase and the equilibrium quantity of apples in the market to decrease.
quantity of apples in the market to decrease and the equilibrium price of apples to stay the same.
price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase.
If the cost of flour increases from $3 to $5 a bag, we could predict the supply curve for bagels to
increase.
become steeper.
shift to the right.
shift to the left.
become flatter.
Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?
| Price | QuantityDemanded |
| $8.00 | 200 |
| $10.00 | 175 |
| $12.00 | 150 |
| $14.00 | 100 |
| $16.00 | 50 |
| | |
Two goods that are used together are called
Giffin.
complements.
inferior.
substitutes.
normal.
If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to __________ and the equilibrium quantity to _________, holding all else constant.
decrease; increase
increase; decrease
decrease; decrease
increase; increase
remain the same; remain the same
What is market supply?
the division of the total sales by an individual seller with the price paid for the product
the addition of the individual quantities supplied by each seller in a market at each price
the subtraction of the individual quantities supplied by each seller in a market at each price
the multiplication of the price of each product by the individual quantities supplied by each supplier in a market
the addition of the individual prices of the product at each level of quantity