1) Suppose that the price of beef rises significantly What happens in the market for fast-food hamburgers?
a) Supply increases, pushing prices higher b) Supply increases, pushing prices lower c) Supply decreases, pushing prices higher d) Supply decreases, pushing prices lower
2) Many Super Bowl football tickets are resold online for several times their face value As the game day approaches, unsold tickets will likely:
a) rise in price to make up for unsold tickets b) rise in price to target desperate last minute buyers c) fall in price to avoid letting the ticket go unsold
d) fall in price because demand falls as game day nears
3) Suppose that the price of foam blanks used in surfboard production falls What will happen in the market for surfboards?
a) The supply of surfboards would fall, putting upward pressure on prices b) The supply of surfboards would rise, putting downward pressure on prices c) There would be no change in the market for surfboards d) Demand for surfboards would rise, putting upward pressure on prices
4) Because nearly all smartphones have built-in cameras, what happens to the market for traditional cameras?
a) Demand for cameras falls, pushing prices higher b) Demand for cameras falls, pushing prices lower c) Demand for cameras rises, pushing prices higher d) Demand for cameras rises, pushing prices lower
5) Say the following two events occur at the same time: The Chicago Cubs win the MLB Championship, The team management increases the salaries of all the Chicago Cubs players Holding everything else constant, we would expect the price of next season Cubsâ€™ tickets to _____ and the quantity of tickets to _______
a) increase; decrease b) decrease; decrease c) increase; increase or decrease d) increase or decrease; increase