Consider the following supply schedule for a coffee shop

Consider the following supply schedule for a coffee shop.

Price of coffee per cup	Number of cups supplied
$7.00	100
$6.00	80
$5.00	60
$4.00	40
$3.00	20
$2.00	0

If the price of a cup of coffee increases from $3.00 to $5.00, how many additional cups will the coffee shop supply?

Answr

40 cups

Which of the following could be expected to cause a shift in the demand curve for men’s jeans, assuming jeans are a normal good?

Correct Answer(s)

An increase in the number of jeans buyers

An increase in the price of khakis

Celebrities in ads for men’s jeans

Rising incomes

Incorrect Answer(s)

A decrease in the price of jeans

“Shortage” and “scarcity” mean the same thing.

Answer

False

According to Adam Smith, resources are allocated through a market economy to their highest-valued use as if guided by an invisible hand. Put the market for gold in order as prescribed by this concept.

1)      Gold mine

2)      Refinery

3)      Jewelry manufacturer

4)      Department store

5)      Jewelry consumer

If the holiday season is coming up in a couple of weeks, an electronics manufacturer is likely to hire more workers to help increase the supply today.

Answer

True

Sellers set the demand for a product, while the buyers set the supply.

Answer

False