15. Which factor would cause a LEFTWARD shift in the supply curve for a good?:
A) an increase in the number of buyers
B) an increase in the cost of an input
C) an increase in the number of sellers
D) a technological improvement in production
16. The soft drink market is in equilibrium. An increase in the price of sugar (an ingredient for soft drinks)
and an increased concern about tooth decay caused by the consumption of soft drinks will have which
result in the soft drink market?
A) Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same.
B) Equilibrium quantity will increase, but equilibrium price may decrease, increase, or stay the same.
C) There will be an increase in both the equilibrium price and quantity.
D) There will be a decrease in both equilibrium price and quantity.
17. An important determinant of the price elasticity of demand is:
A) the level of technology.
B) the price of related goods.
C) time available to adjust to price changes.
D) the quantity of the good supplied.
Use the following to answer question 18:
Price
(per bushel)
$10
S
X
0
2
4
6
8
10
12
Quantity of wheat
(thousands of bushels per period)
18. Use Figure: The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a
of
bushels per period will result.
A) shortage; 10,000 B) surplus; 8,000 C) shortage; 8,000 D) surplus; 4,000
19. A technological advance in the production of automobiles will
the
automobiles.
A) decrease; supply of
C) increase; supply of
B) decrease; demand for
D) decrease; demand
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