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Selected Answer: a. consumers’ surplus; \$3 Answers: a. consumers’ surplus; \$3 b. consumers’ surplus; \$40 c. producers’ surplus; \$3 d. consumers’ surplus; \$103 e. producers’ surplus; \$103 Question 21 1 out of 1 points Exhibit 3-6
Refer to Exhibit 3-6. If D 1 is the relevant demand curve, a decrease in the price of good X may cause Selected Answer: a. a movement along D 1 from point A to point B. Answers: a. a movement along D 1 from point A to point B. b. demand to shift from D 1 to D 3 . c. demand to shift from D 1 to D 2 . d. a movement along D 1 from point A to point C. Question 22 1 out of 1 points
Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y. Selected Answer: d. supply; leftward; increase; decrease Answers: a. supply; rightward; decrease; increase. b. demand; leftward; decrease; decrease c. supply; leftward; increase; increase d. supply; leftward; increase; decrease e. demand; rightward; increase; increase Question 23 1 out of 1 points Exhibit 3-6
Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D 1 to D 3 , then good X is Selected Answer: c. an inferior good. Answers: a. a normal good. b. a complementary good. c. an inferior good. d. a substitute good. e. a neutral good.
Question 24 1 out of 1 points An increase in the expected price of corn would likely do the following to the current supply and demand for corn: Selected Answer: d. increase the demand, but decrease the supply. Answers: a. increase the supply, but decrease the demand. b. increase both the demand and the supply. c. decrease both the demand and the supply. d. increase the demand, but decrease the supply. Question 25 1 out of 1 points Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work? Selected Answer: a. If the price of labor falls, the supply of goods rises, and the prices of those goods fall. Answers: a.
If the price of labor falls, the supply of goods rises, and the prices of those goods fall. b. If the price of labor falls, the demand for goods rises, and the prices of those goods fall. c. If the price of labor falls, the demand for goods falls, and the prices of those goods fall. d. If the price of labor falls, the supply of goods falls, and the prices of those goods fall. e. If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall.