An increase in income will ?

A. Lead to a movement along the demand curve
B. Shift the supply curve
C. Shift the demand curve
D. Lead to an extension of demand

A shift in supply will have a bigger effect on price than output if demand is ?

A. Income elastic
B. Income inelastic
C. Price elastic
D. Price inelastic

A monopolistic market has ?

A. Many buyers and sellers
B. None of these answers
C. Firms that are price takers
D. Only one seller

All of the following shift the supply of watches to the right except ?

A. An advance in the technology used to manufacture watches
B. An increase in the price of watches
C. All of these answers cause an increase in the supply of watches
D. A decrease in the wage of workers employed to manufacture watches

If the price of good is below the equilibrium price ?

A. There is a shortage and the price will rise
B. The quantity demanded is equal to the quantity supplied and the price remains unchanged
C. There is a shortage and the price will fall
D. There is a surplus and the price will rise

An increase (rightward shift) in the demand for a good will tend to cause ?

A. an increase in the equilibrium price and quantity
B. none of these answers
C. an increase in the equilibrium price and a decrease in the equilibrium quantity
D. a decrease in the equilibrium quantity.

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?

A. the equilibrium quantity to rise and the equilibrium price to rise
B. the equilibrium quantity to rise and the equilibrium price to fall
C. the equilibrium quantity to rise and the equilibrium price to remain constant
D. the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise

Which of the following statements is true about the impact of an increase in the price of lettuce ?

A. Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall
B. The supply of lettuce will decrease
C. The demand for lettuce will decrease
D. The equilibrium price and quantity of salad dressing will fall

The social costs of monopoly power arises because ?

A. Marginal cost is set equal to marginal revenue
B. Price is less than marginal cost
C. Marginal consumer benefit is less than marginal revenue
D. There is too little output at too high a cost

If two firms doing the same thing in the same industry join together, this is known as a ?

A. Vertical merger
B. Horizontal merger
C. Conglomerate merger
D. Hostile takeover