If the price of a product increases, what will normally happen to the quantity demanded, assuming other factors remain constant?, it increases, it decreases, it stays exactly the same, demand disappears, According to the law of demand, consumers generally purchase less of a good when its price rises, holding other factors constant., true, false, A popular new video game is released, causing many more people to want the game. What happens to the game’s demand?, demand decreases, demand increases, supply automatically decreases, The equilibrium price must fall, Suppose a severe drought destroys a large portion of the nation’s orange crop. What is the most likely effect on the supply of oranges?, supply increases, supply decreases, demand increases, demand becomes perfectly elastic, A shortage occurs when the quantity demanded is greater than the quantity supplied at a given price., true, false, A market is in equilibrium when:, the government sets the price, Quantity demanded equals quantity supplied, demand is greater than supply, supply is greater than demand, If the cost of producing a product falls, producers may be willing and able to supply more of that product at each price., true, false, Imagine that a major storm damages several oil refineries. What would most likely happen to the supply of gasoline in the short run?, gasoline supply decreases, gasoline supply increases, gasoline becomes a free good, Gasoline demand automatically becomes zero, If consumers suddenly become less interested in buying a particular product, what will most likely happen to its equilibrium price, assuming supply does not change?, the equilibrium price will increase, the product will automatically become a shortage, The equilibrium price must remain unchanged, the equilibrium price will decrease, A surplus occurs when producers supply more of a good than consumers are willing to buy at a particular price., true, false

chapter 3 quiz

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