9.

Supply curves are generally _______ sloping because _______________ downward; more consumers will buy the good if the price falls. YES upward; of the principle of increasing opportunity costs downward; it is less expensive to mass produce goods NO upward; of inflation downward; prices fall when firms specialize Feedback For more information, see p. 64 of your textbook. 8. Jessica's marginal cost for producing a pitcher of lemonade is $0.25. Therefore, $0.25 can also be called her marginal revenue equilibrium price YES reservation price producers surplus NO total cost of lemonade production Feedback For more information, see p. 65 of your textbook 4. Assume that column A and column B are the initial demand and supply curves. At a price of $50, the market would experience an equilibrium. excess demand of 5 units NO excess supply of 70 units. excess demand of 65 units. YES excess supply of 5 units. Feedback For more information, see p. 67 of your textbook. 1. Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers were selling tickets in the same seating area as yours for $25. What is probably true? NO There is excess demand for this concert at the Ticketmaster price. the ticket you bought was under-priced for the market. YES There is an excess supply of tickets for this concert at the Ticketmaster price. The Ticketmaster price is an equilibrium price. The concert completely sold out at the Ticketmaster price. Feedback For more information, see p. 68 of your textbook. 3. The buyer's reservation minimum amount one same as the market YES maximum amount one NO price at which one price one must pay Feedback price of a particular good or service is the would be willing to pay for it. price. would be willing to pay for it. develops reservations about its quality. to ensure one gets it.

For more information, see p. 64 of your textbook. 6. Almost every holiday season at least one gift idea achieves fad status. When

that happens, prices tend to increase dramatically. Why? Irrationality in markets during the holidays Sellers want to take advantage of people who received a year-end bonus. YES Quantity demanded exceeds quantity supplied. Too much government regulation in the market NO The demand curve for fad items is upward-sloping. Feedback For more information, see p. 68 of your textbook. 7. "Holding all other relevant factors constant, consumers will purchase more of a good as its price falls." This statement reflects the behavior underlying YES the demand curve. an increase in demand. the supply curve. a decrease in the demand curve. NO the production possibilities curve. Feedback For more information, see p. 63 of your textbook. 8. The shape, slope, and position of a demand curve is determined by competition in the marketplace. consumers' preferences. consumers' wealth. NO by (a), (b), and (c). YES by (b) and (c). Feedback For more information, see p. 63 of your textbook.