week5 quiz(2) - Textbook Reading Comprehension Questions Unit II(sections 5-9 1 If travelers consider rail travel and air travel to be substitutes then

week5 quiz(2) - Textbook Reading Comprehension Questions...

This preview shows page 1 - 3 out of 10 pages.

1 Textbook Reading Comprehension Questions: Unit II (sections 5-9) 1.If travelers consider rail travel and air travel to be substitutes, then a reduction in the price ofrail travel will likely result in:1.A shift to the left of the air travel demand curve.2.A shift to the right of the air travel demand curve.3.A shift to the left of the air travel supply curve.4.A shift to the right of the air travel supply curve.5.A movement to a higher point on the air travel demand curve and to a lower point onthe air travel supply curve.2.If the quantity demanded of a product exceeds the quantity supplied: 1.We know that consumer and producer expectations of costs and benefits are not equal.2.We know that there will be an excess supply (surplus) of the product.3.We know that there will be an excess demand (shortage) of the product.4.We know that we will be in market equilibrium.5.We know that firms will respond by lowering price. 3.According to the demand and supply model, which of the following would we predict would bethe result of the following market shocks? 4.If consumers and producers are responsive to price changes, then what can we expect tohappen to the market equilibrium price and quantity bought and sold if a market is hit by asimultaneous increase in both demand and supply? 5.If consumer income rises, we can expect a change in _________. If market price rises, we canexpect a change in ________.
Image of page 1
2
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 10 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture