Gm 545 Quiz 1 Week 3

5/31/12

Student Gradebook Exam

Grading Summary

These are the automatically computed

results of your exam. Grades for essay Date Taken:

questions, and comments from your

Time Spent:

instructor, are in the "Details" section Points Received:

below.

Question Type:

5/19/2012

2 h , 37 min , 49 secs

94 / 100 (94%)

# Of Questions:

Short

10

# Correct:

N/A

Grade Details

1. Question :

Student Answer:

(TCO A) There is  a dec reas e in the c os t of labor for produc ing bic y c les . 

(4 pts .) What happens  to bic y c le s upply ? 

(6 pts .) What happens  to bic y c le demand?

This would be a decrease costs and increase bicycle supply. Costs fall

and the supply curve shifts to the right an increase in supply. Change

in costs is not a demand factor so there is no change in demand

Instructor Explanation: Sinc e a c hange in c os ts  to produc e the produc t is  a s upply  fac tor, a dec reas e in

c os ts  would be ex pec ted to inc reas e bic y c le s upply .  Remember that s upply  is

a s c hedule of how many  units  s uppliers  are willing to offer at different pric es . 

When c os ts  fall, the s upply  c urv e inc reas es  or s hifts  to the right.  

Sinc e c hanges  in produc er c os ts  is  not a demand fac tor, there would be no

impac t on demand.

Points Received:

10 of 10

Comments:

2. Question :

Student Answer:

(TCO A)  Bas eball glov es  and bas eballs  are c omplements  in c ons umption.

The pric e of bas eballs  ris es . 

(4 pts .) What happens  to the demand for bas eball glov es ? 

(6 pts .) What happens  to the demand for bas eballs ?

When the price of baseball gloves rise the demand for baseball gloves

will decrease. When the price of a complimentary good increases

(baseballs) the demand for the other good(baseball gloves). The would

be no change for demand of baseballs just quantity demanded.

Instructor Explanation: When the pric e of a c omplimentary  good ris es , the demand for the other good

falls .  Pric e of bas eballs  ris es...