Economics CC 2 Sec ON 1 Week 5 Assignment 5

Economics CC 2 Sec ON 1 Week 5 Assignment 5 | chatbot las positas  community college

Question 1

An advance in technology in the production of good X causes  

·         a rightward shift in the supply curve for good X.  

·         a leftward shift in the supply curve for good X.  

·         the supply curve for good X to change from upward sloping to vertical.  

·         the supply curve for good X to change from vertical to upward sloping.

Question 2

On a supply-and-demand diagram, quantity demanded equals quantity supplied  

·         only at the single equilibrium price.  

·         at every price at or above the equilibrium price.

·         at every price at or below the equilibrium price.  

·         at every price.

Question 3

Oil producers expect that oil prices next year will be higher than oil prices this year. As a result, oil producers are most likely to  

·         place more oil on the market this year, thus shifting the present supply curve of oil rightward.  

·         hold some oil off the market this year, thus shifting the present supply curve of oil leftward.  

·         place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices.  

·         hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.

Question 4

If computers and software are complements, then

·         Other things being equal, a fall in the price of computers will increase the demand for software, and the price of software will rise.  

·         Other things being equal, a rise in the price of computers will decrease the demand for software, and the price of software will rise.  

·         Other things being equal, a fall in the price of computers will decrease the demand for software, and the price of software will fall.  

·         Other things being equal, a rise in the price of software will increase the demand for computers, and the price of computers will rise.  

·         Other things being equal, a fall in the price of software will decrease the demand for computers, and the price of computers will rise.

Question 5

At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's demand for books has decreased. Is Luz correct?  

·         Yes, Luz is correct.  

·         No, Luz is incorrect. Marta's demand has increased.  

·         No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same.  

·         No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the same.  

·         No, Luz is incorrect. Marta's quantity demanded has decreased and her demand has increased.