Question

3. Which of the following would decrease the quantity supplied of smartphones, ceteris paribus?

An increase in the price of HDTVs, assuming that smartphones and HDTVs are substitutes in production.

A decrease in the number of smartphone producers.

A decrease in consumer income, assuming that smartphones are normal goods.

An increase in the wages of smartphone production workers.

All of the changes listed for this question will decrease the quantity supplied of smartphones.

4. According to the law of supply, a(n) _____ in price of good X will _____ of good X, ceteris paribus.

decrease, increase the quantity demanded.

decrease, increase the supply.

increase, increase the quantity supplied.

increase, decrease the quantity supplied.

increase, increase the supply.

increase, decrease the demand.

5. If the government imposes an excise tax of $2 per pizza on the consumption of pizza, then from the perspective of pizza producers, the “effective” or after-tax demand curve for pizza will shift

up vertically by less than $2.

up vertically by more than $2.

left horizontally by less than $2.

right horizontally by less than $2.

up vertically by exactly $2.

down vertically by exactly $2.

Answer 1

3. A decrease in consumer income, assuming that smartphones are normal goods.

4. increase, increase the quantity supplied

5. down vertically by exactly $2.