1.Between December 2019 and January 2020 the price of meat in the U.S fell by 2%. Suppose that this drop in price was only due to a change in diet resulting from people's New Year's resolutions. Then,...

1.Between December 2019 and January 2020 the price of meat in the U.S fell by 2%.

Suppose that this drop in price was only due to a change in diet resulting from people's New Year's resolutions. Then,

Group of answer choices

a.The U.S. meat market was affected by a leftward shift in the demand.

b．The U.S. meat market was affected by a rightward shift in the demand.

c.The U.S. meat market was affected by a leftward shift in the supply.

d.The U.S. meat market was affected by a rightward shift in the supply.

Question 2

Between December 2019 and January 2020 the price of meat in the U.S fell by 2%.

Suppose that this table shows data on equilibrium price and quantity.

Price Quantity

December XXXXXXXXXX,000

January XXXXXXXXXX

Then, the data in this table is not consistent with the law of demand.

The law of demand states that holding all else constant, the demand is a negative function of the price.

a.True

b. False

Question 3

Briefly explain your reasoning in your answer to question 2.

Question 4

Between April 2020 and May 2020 the price of meat in the U.S. increased by 40%.

Suppose that this increase in price only resulted from the closing of some meat-packing plants in response to the spread of Covid-19 among workers. Then,

Group of answer choices

a.The U.S. meat market was affected by a leftward shift in the supply.

b.The U.S. meat market was affected by a rightward shift in the supply.

c.The U.S. meat market was affected by a leftward shift in the demand.

d.The U.S. meat market was affected by a rightward shift in the demand.

Question 5

Between April 2020 and May 2020 the price of meat in the U.S. increased by 40%.

Suppose that this increase in price only resulted from the closing of some meat-packing plants in response to the spread of Covid-19 among workers.

One effect of this shock was a reduction in the number of consumers in the meat market.

Explain why by referring to the consumers' choke price.

Question 6

Between April 2020 and May 2020 the price of meat in the U.S. increased by 40%.

Suppose that this increase in price only resulted from the closing of some meat-packing plants in response to the spread of Covid-19 among workers.

One effect of this shock was an increase in production by some meat producers.

a.True

b.False

Question 7

Suppose that because of Covid-19 the drop in demand for lobsters from restaurants and the cruise industry caused the market demand for lobsters, holding the price constant, to fall by 20%.

Then, under what circumstances would the equilibrium quantity also fall by 20%? [select all possibly correct answers]

Group of answer choices

a.The supply is perfectly inelastic

b.The supply is perfectly elastic

c.The supply is an increasing function of the price

d.The demand is perfectly elastic

e.The demand is perfectly inelastic

f. The demand is a decreasing function of the price

Question 8

In early 2020 some oil producing countries significantly increased their production of crude oil.

This action was initially followed by an increase in the storage of crude oil.

The increase in storage helped prevent crude oil prices from falling excessively.

a.True

b.False

Question 9

In April 2020 some oil producing countries continued increasing their production of crude oil.

The evidence that the equilibrium price of oil fell rapidly suggests that [select all possibly correct answers]

Group of answer choices

a.The demand for oil was very inelastic

b.The demand for oil was very elastic

c.The supply of oil was very inelastic

d.The supply of oil was very elastic

e.The shift in supply was substantial

f.The shift in supply was negligible

Question 10

In early 2020 some oil producing countries significantly increased their production of oil.

Then in moving from the old equilibrium to the new equilibrium, assuming that the market demand is linear and downward sloping,

Group of answer choices

a.The oil demand became more elastic with respect to the price of oil

b.The oil demand became less elastic with respect to the price of oil

c.The price elasticity of demand for oil remained unchanged.

Question 11

If, holding all else constant, a drop in the equilibrium price of oil causes the demand for ethanol to fall, then

Group of answer choices

a.Ethanol is a substitute for oil

b.Ethanol is a complement for oil

Question 12

Suppose that ethanol uses corn as an input.

Then, a drop in the equilibrium price of ethanol lowers the equilibrium price of corn because

Group of answer choices

a.The demand for corn drops

b.The demand for corn increases

c.The supply of corn increases

d.The supply of corn drops

Question 13

Suppose that the price elasticity of supply is +.5 (or + 1/2), then a 40% drop in the price of milk will cause

Group of answer choices

a.The quantity supplied to fall by 20%

b.The quantity supplied to fall by 20 units

c.The quantity supplied to increase by 20%

d.The quantity supplied to increase by 20 units

e.The quantity supplied to fall by 80%

f.The quantity supplied to fall by 80 units

g.The quantity supplied to increase by 80%

h.The quantity supplied to increase by 80 units

Question 14

During 2020 almonds experienced a significant drop in price due to the combined effect of:

i. a leftward shift in demand of 1M pounds per month because nuts were perceived as luxury goods

ii. a rightward shift in the supply of 2M pounds per month because of a record crop in California.

Then, is it possible that these two combined shocks have no effect on the equilibrium quantity? Explain.