Which of the following events in the market for cell phones illustrates the law of​ demand

Mar 22, 2020

Which of the following events in the market for cell phones illustrates the law of​ demand

Which of the following events in the market for cell phones illustrates the law of​ demand
Score for this attempt: 35 out of 35

Question 1

3.5 / 3.5 pts
Which of the following events in the market for cell phones illustrates the law of​ demand?

The price of a cell phone falls.

Producers announce that cell phone prices will fall next month.

The price of a call made from a cell phone falls.

The price of a call made from a​ land-line phone increases.

Well done! Recall that the law of demand for good X refers to how the quantity demanded of good X responds to the price of good X (not prices of other goods), when all other factors (demand shifters) are kept constant.

Question 2

3.5 / 3.5 pts
Consider the U.S. market for Caribbean cruises. Suppose crime rates increase in Caribbean ports. Explain the effect of this event on the quantity of Caribbean cruises demanded and on the demand for Caribbean cruises.

The quantity of Caribbean cruises demanded decreases.

The demand for Caribbean cruises increases.

The demand for Caribbean cruises decreases.

The quantity of Caribbean cruises demanded increases.

The quantity of Caribbean cruises demanded increases and the demand for Caribbean cruises also increases.

Well done! A change in the quantity demanded is a change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same.

A change in demand is a change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes.

Tastes or preferences, as economists call them influence demand. 

When Caribbean cruises become less popular the demand for them decreases, but NOT their quantity demanded, which is only affected when the price of Caribbean cruises changes.

Question 3

3.5 / 3.5 pts
Suppose using desktop computers becomes less popular. Using the theoretical concepts in the Supply and Demand model explain the effect of this event on the quantity of laptops demanded and on the demand for laptops.

The quantity of laptops demanded increases.

The quantity of laptops demanded decreases.

The demand for laptops decreases.

The demand for laptops increases.

The quantity of laptops demanded increases and the demand for laptops also increases.

Well done! A change in the quantity demanded is a change in the quantity of a good that people plan to buy that results from a change in the price of the good with all other influences on buying plans remaining the same.

A change in demand is a change in the quantity that people plan to buy when any influence on buying plans other than the price of the good changes.

Tastes or preferences, as economists call them, influence demand. 

When using desktop computers becomes less popular the demand for desktop computers decreases, and given that laptops are very close substitutes to desktop computers, people will demand more laptops, all else equal, which will increase the demand for laptops, but NOT the quantity demanded for laptops, which would have occurred if the price of laptops went down, information which is not provided in this question, and thus we cannot assume.

Question 4

3.5 / 3.5 pts
A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

the supply curve.

the demand curve, as consumers try to economize because of the shortage.

both the supply and demand curves.

the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.

none of the above.

Question 5

3.5 / 3.5 pts
If the price of corn in the market increases, which of the graph options below best describes what happens in the market for milk? Hint: Corn is feed for the cows, which produce milk.

A graph showing only a shift of Supply to the right.

A graph showing only a shift of Supply to the left.

A graph showing only a shift of Demand to the right.

A graph showing only a shift of Demand to the left.

Well done! As described in the model, when supply decreases, the supply curve shifts to the left. This occurs because for any arbitrary price level a shift to the left gives a smaller corresponding quantity supplied.

Which of the following events in the market for cell phones illustrates the law of​ demand? Question 6

3.5 / 3.5 pts
If both the demand for and the supply of a good or service ​increase, but we do not have information regarding which shift is greater than the other, then the equilibrium quantity​ ______ and the equilibrium price​ ______.  Hint: You are encouraged to draw one or more graphs to help you analyze all the possible scenarios, before making any conclusions.  

increases; falls

might​ increase, decrease, or not​ change; rises

increases; might​ rise, fall, or not change

decreases; might​ rise, fall, or not change

increases; rises

Question 7

3.5 / 3.5 pts
If the demand for a good or service ​increases and the supply for the same good or service decreases, and we know that the shift in demand is greater than the shift in supply, then the equilibrium quantity​ ______ and the equilibrium price​ ______.  Hint: You are encouraged to draw one graph to help you analyze this scenario before concluding.

increases; falls

might​ increase, decrease, or not​ change; rises

might​ increase, decrease, or not​ change; falls

decreases; might​ rise, fall, or not change

increases; increases

Which of the following events in the market for cell phones illustrates the law of​ demand? Question 8

3.5 / 3.5 pts
Draw a supply and demand graph which illustrates the market for tea. The initial equilibrium is at point A. After one or more​ changes, the new equilibrium moves to point B, which is located to the right of point A and has the same corresponding equilibrium price than point A. You predict that the market for tea was influenced by​ _______.

a rise in household income and an increase in the wage rate paid to tea pickers. 

a rise in household income and an increase in the number of plantations.

a fall in household income and an increase in the number of plantations.

a fall in the wage rate paid to tea pickers and a fall in household income.

Well done! You need to analyze how each of the two events described in each option affect the demand curve and supply curve respectively. Remember that an increase means a shift to the right for both the supply and demand curves. Remember that a decrease means a shift to the left for both the supply and demand curves.

Question 9

3.5 / 3.5 pts
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied.  This is known as ___________.

excess supply.

shortage (on the supply side).

surplus (on the supply side).

a price ceiling.

Which of the following events in the market for cell phones illustrates the law of​ demand  Question 10

3.5 / 3.5 pts
__________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.

Rent controls.

Price ceilings.

Price floors.

Subsidies.

Well done! A price floor is a legal minimum. A price ceiling is a legal maximum.