An increase in the price of a good would
a. decrease the demand for the good.
b. decrease the quantity demanded for the good.
c. increase the demand for the good.
d. decrease the quantity supplied of the good.
B
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If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then
A) the walkie-talkie supply curve will shift to the right. B) the supply of walkie-talkies is elastic. C) the supply of walkie-talkies is inelastic. D) the walkie-talkie supply curve will shift to the left.
Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality), how many plums (high quality) will be supplied by sellers?
A. 8 B. 12 C. 16 D. 22
If the reserve ratio is 20 percent and reserves in the commercial banking system increase by $20,000, the maximum possible expansion of demand deposits is
A. $500,000. B. $40,000. C. $4,000. D. $100,000.
The order of the letters along the rows of computer keyboards could be changed to allow users to type faster, but this would inconvenience the vast majority of people who learned to type with the current keyboard layout. The costs of switching to a new
layout make this change unlikely. This is an example of A) path dependency. B) how social influences overwhelm the substitution effect of a price change. C) how the elasticity of demand for typewriters has been affected by externalities. D) how consumers sometimes do not behave rationally.