51) An increase in the price of jet fuel will : 1949485
51) An increase in the price of jet fuel will ________ air flights and the equilibrium quantity of air flights will ________.
A) decrease the supply of; decrease
B) increase the demand for; increase
C) decrease the supply of; increase
D) decrease the demand for; decrease
52) There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?
A) The equilibrium price will rise because the supply curve shifts rightward.
B) The equilibrium price falls because the supply curve shifts leftward.
C) The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known.
D) The demand curve shifts rightward and the supply curve does not shift.
53) If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.
A) fall; increase
B) fall; decrease
C) rise; increase
D) rise; decrease
54) What is the effect on the price and quantity of wooden desks of a rise in the price of wood?
A) The equilibrium quantity of wooden desks increases and the equilibrium price falls.
B) The equilibrium quantity of wooden desks increases and the equilibrium price rises.
C) The equilibrium quantity of wooden desks decreases and the equilibrium price falls.
D) The equilibrium quantity of wooden desks decreases and the equilibrium price rises.
55) Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?
A) an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds
B) new federal legislation that raises the legal driving age to twenty-four in all states
C) a new fee that used car dealers must pay to the government on all sales of used cars
D) All of the above because each is consistent with the "law of demand."
56) We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased. Which of the following events could be responsible for this?
A) Technological advances in digital camera production.
B) Consumers' preferences changed in favor of digital cameras.
C) The price of film cameras rose.
D) Workers who make digital cameras received a pay raise.
57) During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the
A) "law of demand" was definitely contradicted.
B) "law of supply" was definitely contradicted.
C) demand curve shifted rightward.
D) supply curve shifted rightward.
58) After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the
A) "law of supply" does not apply to companies in the "high-tech" sector of the economy.
B) "law of demand" does not apply to customers in the "high-tech" sector of the economy.
C) supply curve of tablets shifted rightward.
D) demand curve for tablets shifted leftward.
59) Suppose the equilibrium price of a gallon of gasoline drops from $4.00 to $3.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of
A) an increase in supply.
B) an increase in demand.
C) a decrease in supply.
D) a decrease in demand.
60) Many Southern farmers face a choice between planting peanuts or cotton. In 2011, farmers anticipated higher prices for cotton. In the market for peanuts in 2011, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.
A) a decrease; an increase; a decrease
B) an increase; a decrease; a decrease
C) a decrease; an increase; an increase
D) an increase; an increase; a decrease