1、Name: Class: Date: Chapter4-TheMarketForcesofSupplyandDemand1. Whenevaluatingdifferencesorsimilaritiesbetweenanincreaseinsupplyandanincreaseinquantitysupplied,whatdoweknow? a. Theformerisashiftofthecurveandthelatterisamovementalongthecurve. b. Theformerisamovementalongthecurvean
2、dthelatterisashiftofthecurve. c. Bothareshiftsofthesupplycurve. d. Botharemovementsalongthecurve.ANSWER: a2. Workersatabicycleassemblyplantcurrentlymakeminimumwage.Iftheprovincialgovernmentincreasestheminimumwageby$1.00anhour,whatwilllikelyhappen? a. Demandforbicycleassemblyworke
3、rswillincrease. b. Supplyofbicycleswillshifttotheright. c. Supplyofbicycleswillshifttotheleft. d. Thefirmmustincreaseoutputtomaintainprofitlevels.ANSWER: c3. Ifacarmanufacturerpurchasesnewlabour-savingtechnologyforitsassemblyline,whatwouldweNOTexpect? a. lesslabourtobeused b. the
4、supplyofcarsproducedtoincrease c. coststothefirmtofall d. thepriceofcarstobeincreasedbythefirmANSWER: d4. Recentpinebeetleinfestationsthataredestroyingtreesinthewesternprovincesareexpectedtocausethepriceoflumbertoriseinthenextsixmonths.Asaresult,whatcanweexpecttohappentothesupply
5、oflumber? a. Itwillfallinsixmonths,butnotnow. b. Itwillincreaseinsixmonthswhenthepricegoesup. c. Itwillfallnow. d. Itwillincreasenowtomeetasmuchdemandaspossible.ANSWER: c5. Ifsuppliersexpectthepriceoftheirproducttofallinthefuture,whatwilltheydo? a. decreasesupplynow b. increasesu
6、pplynow c. increasesupplyinthefuture,butnotnow d. increasesupplynowanddecreaseitinthefutureANSWER: b6. FunstersInc.sellsitsmostpopulardollfor$35.Ithasjustlearnedthatitsleadingcompetitorismassproducinganexcellentcopyandplanstofloodthemarketwiththeir$10dollinsixweeks.WhatshouldFuns
7、tersdo? a. increasethesupplyoftheirdollnowbeforetheotherdollhitsthemarket b. fightfirewithfireanddecreasesupplyforsixweeks,thenincreasethesupplyofitsdolltoo c. continuebusinessasusual,sinceconsumerswillnotbuythecheaperimitation d. discontinuetheirdollCopyrightCengageLearning.Power
