chapter 3 - Name: _ Date: _ 1. Suppose that more police and...

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Name: __________________________ Date: _____________ 1. Suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests. At the same time, the price of ceramics used to produce the vests falls. Then, the equilibrium relative price of bulletproof vests ________ and the equilibrium quantity produced ________. A) increases; increases B) decreases; decreases C) probably changes, but in an ambiguous direction; probably changes, but in an ambiguous direction D) probably changes, but in an ambiguous direction; increases 2. It is certain that the equilibrium quantity will fall when: A) the supply curve and the demand curve both shift to the right. B) the supply curve shifts to the right and the demand curve shifts to the left. C) supply and demand both increase. D) supply decreases and demand stays the same. Use the following to answer question 3: Figure: Demand and Supply of Gasoline Page 1
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3. (Figure: Demand and Supply of Gasoline) What might cause the supply curve to shift from S 2 back to the initial supply curve S 1 ? A) The Organization of Petroleum Exporting Countries (OPEC) restricts the production of crude oil. B) The Organization of Petroleum Exporting Countries (OPEC) increases the production of crude oil. C) Americans want to buy more gas. D) Technology in the refinement of gasoline greatly improves. Page 2
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Figure: Demand for Coconuts 4. (Figure: Demand for Coconuts) If there is an overall increase in taste and preference for coconuts, then the movement that would take place in the model could be: A) A to C. B) B to A. C) C to A. D) B to E. 5. A market is composed of three individuals, Nicholas, Benjamin, and Alexander. Their individual demand schedules are given below and are as follows: Based on this information, which of the following market demand schedules accurately portrays this market? A)
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This note was uploaded on 02/18/2012 for the course ECON 102 taught by Professor Kim during the Fall '08 term at University of Illinois, Urbana Champaign.

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chapter 3 - Name: _ Date: _ 1. Suppose that more police and...

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