Use this list of Determinants of Demand & Supply to fill in the fifth blank of…

Use this list of Determinants of Demand & Supply to fill in the fifth blank of each of the supply and demand question on the quiz. Enter the number rather than writing out the determinant.
1) Change in consumer tastes and preferences
2) Change in consumers’ incomes
3) Change in Number of Consumers
4) Change in the Price of a Related Goods
5) A change in the price of a product that the consumer considers to be a complement
6) The
Consumers
Expect the Price of the Product to Change in the Near Future
Determinants of Supply
7) Technological change
8) Change in Cost of Production
9) business taxes
10) Change in Number of Producers
11) A change in the price of a product that firms consider to be a substitute
12) A change in the price of a jointly produced good (see lecture note on this subject in Module II).
13) The
Firms
expect the Price of the Product is Expected to Change in the Near Future
There are ten of these problems, each with five answers. Each answer is worth 1 point, so please think each supply and demand problem out thoroughly.
Only one curve shifts per problem.
If, say, demand is + or -, supply will be 0. Or, if supply is + or -, demand will be 0. In reality, of course, both are constantly changing, but in our model, only one curve shifts at a time. All other questions are worth 3 points each.
QUESTION 1
Which of the following statements is true?
A.) An increase in the supply of an item will cause the price of that item to go up.
B.) An increase in the demand for an item will cause the price of that item to go up.
C.) When the price of an item goes up, the supply of that item will go down.
D.) When the price of an item goes up, the demand for that item will go down.
QUESTION 2
Which of the following statements is
false
?
A.) When the price of an item goes down, the quantity supplied will go down, but the supply will not change.
B.) There is a direct (positive) relationship between price and supply.
C.) There is a direct (positive) relationship between price and quantity supplied.
D.) A change in the supply of an item will cause a change in its price, but a change in the price of an item will not cause a change in its supply.
QUESTION 3
Which of the following statements is
true
?
A.) A price floor set above the equilibrium price, in a particular market, will have no effect on that market.
B.) A price ceiling set above the equilibrium price, in a particular market, will cause a surplus.
C.) A price ceiling set below the equilibrium price in a particular market will cause a shortage.
D.) A price floor set below the equilibrium price in a particular market will cause a shortage.
QUESTION 4
Which of the following is
true
?
A.) A price ceiling on gasoline, set below its current equilibrium price, would assure that everyone would be able to buy gasoline at an affordable price.
B.) Rent control is an example of a price floor.
C.) A price ceiling on some item, set below its equilibrium price, creates rationing problems.
D.) A price floor for a resource, such as the minimum wage, set above its equilibrium price, would increase the demand for that resource.
QUESTION 5
In the factor market, as shown in the circular flow diagram on page 38 in the textbook, the household does the supplying and the firm does the demanding.
A.) True
B.) False
QUESTION 6
A decrease in the price of an item, say a widget, will cause:
A.) The demand for an item to rise.
B.) The quantity demanded to rise.
C.) The supply of an item to rise.
D.) The demand for an item to fall.
QUESTION 7
Which of the following is
not
a determinant of demand?
A.) Household’s income and wealth.
B.) Consumers’ expectations about their income, wealth and/or the price of the item
C.) Changes in the price of a related good
D.) The price of the item
QUESTION 8
Which of the following would cause the supply curve for widgets to shift to the left?
A.) An increase in the price of zercs, a jointly produced good.
B.) A decrease in the price of widgets
C.) An increase in the price of widgets
D.) An increase in the cost of producing widgets
QUESTION 9
Which of the following is
not
correct? A price ceiling set below the equilibrium price of an item, say a zerc, could result:
A.) A shortage of zercs
B.) A surplus of zercs
C.) A black market where zercs are sold for a price higher than the price ceiling
D.) Queuing for favoritism to replace the price mechanism as a rationing device
QUESTION 10
An argument that some economists make against the minimum wage is that:
A.) If it is too high, it will cause fewer workers to be demanded.
B.) It will decrease production costs and ultimately make the price of the product they produce too low.
C.) It will cause too many workers to be demanded.
D.) All of the above are valid arguments against the minimum wage.
QUESTION 11
A good example of a price floor is
rent control
.
A.) True
B.) False
QUESTION 12
Suppose you were shopping and saw a widget you’d like to buy – but there was no price tag. After some consideration, you determined that you’d spend as much as $25 to buy the widget. When you inquired about