Question 1

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and .

Accepted Answer

A)  increases the demand for bananas 
B)  increases the quantity of bananas demanded 
C)  the quantity supplied increases because the price falls 
D)  creates a shortage of bananas 
A)  increases the demand for bananas 
B)  increases the quantity of bananas demanded 
C)  the quantity supplied increases because the price falls 
D)  creates a shortage of bananas

Question 2

If a producer can use resources to produce either good A or good B, then A and B are

Accepted Answer

A)  substitutes in consumption. 
B)  complements in production. 
C)  substitutes in production. 
D)  complements in consumption. 
A)  substitutes in consumption. 
B)  complements in production. 
C)  substitutes in production. 
D)  complements in consumption.

Question 3

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 4

A decrease in the price of a game of bowling shifts the

Accepted Answer

A)  demand curve for bowling balls rightward. 
B)  supply curve of bowling balls rightward. 
C)  demand curve for bowling balls leftward. 
D)  supply curve of bowling balls leftward. 
A)  demand curve for bowling balls rightward. 
B)  supply curve of bowling balls rightward. 
C)  demand curve for bowling balls leftward. 
D)  supply curve of bowling balls leftward.

Question 5

The quantity supplied of a good is

Accepted Answer

A)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  the amount the firm would sell if it faced no resource constraints. 
D)  the same thing as the quantity demanded at each price. 
A)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  the amount the firm would sell if it faced no resource constraints. 
D)  the same thing as the quantity demanded at each price.

Question 6

The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good

Accepted Answer

A)  is $6. 
B)  is more than $6. 
C)  is less than $6. 
D)  could be less than, equal to, or more than $6. 
A)  is $6. 
B)  is more than $6. 
C)  is less than $6. 
D)  could be less than, equal to, or more than $6.

Question 7

During an unusually hot summer, the demand for soft drinks increases while the supply of soft drinks remains the same. The price of a soft drink

Accepted Answer

A)  rises and the supply of soft drinks increases. 
B)  rises and the quantity supplied increases. 
C)  rises and the quantity supplied decreases. 
D)  falls and the supply of soft drinks decreases. 
A)  rises and the supply of soft drinks increases. 
B)  rises and the quantity supplied increases. 
C)  rises and the quantity supplied decreases. 
D)  falls and the supply of soft drinks decreases.

Question 8

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figures B and C 
A)  Figure A 
B)  Figure B 
C)  Figure D 
D)  Figures B and C

Question 9

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

Accepted Answer

A)  quantity of bikes definitely increases. 
B)  quantity of bikes definitely decreases. 
C)  price of bikes definitely decreases. 
D)  price of bikes definitely increases. 
A)  quantity of bikes definitely increases. 
B)  quantity of bikes definitely decreases. 
C)  price of bikes definitely decreases. 
D)  price of bikes definitely increases.

Question 10

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

Accepted Answer

A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in quantity demanded. 
A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in quantity demanded.

Question 11

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation- wide consumer boycott of eating oranges?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figures B and C 
D)  Figures A and D 
A)  Figure B 
B)  Figure C 
C)  Figures B and C 
D)  Figures A and D

Question 12

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point
A. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Accepted Answer

A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d. 
A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d.

Question 13

Which of the following would result in a movement along, but no shift in, the supply curve of grapefruit juice?

Accepted Answer

A)  a decrease in the price of grapefruits due to a bumper crop harvest 
B)  a report by the U.S. Surgeon General that increased citrus consumption increases the likelihood of lower cholesterol levels, which decreases the risk of heart attacks 
C)  an increase in wages for workers in all citrus orchards 
D)  All of the above cause movements along but no shift in the supply curve of grapefruit juice. 
A)  a decrease in the price of grapefruits due to a bumper crop harvest 
B)  a report by the U.S. Surgeon General that increased citrus consumption increases the likelihood of lower cholesterol levels, which decreases the risk of heart attacks 
C)  an increase in wages for workers in all citrus orchards 
D)  All of the above cause movements along but no shift in the supply curve of grapefruit juice.

Question 14

-In the figure above, which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Accepted Answer

A)  from point a to point e 
B)  from point a to point c 
C)  from point a to point b 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point c 
C)  from point a to point b 
D)  from point a to point d

Question 15

Which of the following best reflects an increase in quantity supplied rather than an increase in supply?

Accepted Answer

A)  The price of a product soars because of vastly increased consumer demand. 
B)  More sellers enter the computer market. 
C)  The effect in the machine tool industry after the industrial unions negotiate higher wages. 
D)  The producer of cellular phones experiences lowers costs of production. 
A)  The price of a product soars because of vastly increased consumer demand. 
B)  More sellers enter the computer market. 
C)  The effect in the machine tool industry after the industrial unions negotiate higher wages. 
D)  The producer of cellular phones experiences lowers costs of production.

Question 16

The interaction of supply and demand explains

Accepted Answer

A)  neither the prices nor the quantities of goods and services. 
B)  both the prices and the quantities of goods and services. 
C)  the prices of goods and services but not their quantities. 
D)  the quantities of goods and services but not their prices. 
A)  neither the prices nor the quantities of goods and services. 
B)  both the prices and the quantities of goods and services. 
C)  the prices of goods and services but not their quantities. 
D)  the quantities of goods and services but not their prices.

Question 17

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is
$1)25 each,

Accepted Answer

A)  the demand curve for soft drinks will shift leftward. 
B)  there will be a shortage of soft drinks. 
C)  there will be a surplus of soft drinks. 
D)  the supply curve of soft drinks will shift leftward. 
A)  the demand curve for soft drinks will shift leftward. 
B)  there will be a shortage of soft drinks. 
C)  there will be a surplus of soft drinks. 
D)  the supply curve of soft drinks will shift leftward.

Question 18

When demand increases and supply decreases, the

Accepted Answer

A)  equilibrium quantity decreases, and the equilibrium price might rise, fall, or remain constant. 
B)  equilibrium price falls, and the equilibrium quantity might increase, decrease, or remain constant. 
C)  equilibrium quantity increases, and the equilibrium price might rise, fall, or remain constant. 
D)  equilibrium price rises, and the equilibrium quantity might increase, decrease, or remain constant. 
A)  equilibrium quantity decreases, and the equilibrium price might rise, fall, or remain constant. 
B)  equilibrium price falls, and the equilibrium quantity might increase, decrease, or remain constant. 
C)  equilibrium quantity increases, and the equilibrium price might rise, fall, or remain constant. 
D)  equilibrium price rises, and the equilibrium quantity might increase, decrease, or remain constant.

Question 19

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

Accepted Answer

A)  positively related to its price. 
B)  directly related to its price. 
C)  directly related to the supply of the good. 
D)  inversely related to its price. 
A)  positively related to its price. 
B)  directly related to its price. 
C)  directly related to the supply of the good. 
D)  inversely related to its price.

Question 20

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

Accepted Answer

A)  It raises the price and decreases the quantity. 
B)  It lowers the price and increases the quantity. 
C)  It raises both the price and the quantity. 
D)  It lowers both the price and the quantity. 
A)  It raises the price and decreases the quantity. 
B)  It lowers the price and increases the quantity. 
C)  It raises both the price and the quantity. 
D)  It lowers both the price and the quantity.

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and .

If a producer can use resources to produce either good A or good B, then A and B are

What is the law of demand?

A decrease in the price of a game of bowling shifts the

The quantity supplied of a good is

The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good

During an unusually hot summer, the demand for soft drinks increases while the supply of soft drinks remains the same. The price of a soft drink

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation- wide consumer boycott of eating oranges?

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point A. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Which of the following would result in a movement along, but no shift in, the supply curve of grapefruit juice?

-In the figure above, which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Which of the following best reflects an increase in quantity supplied rather than an increase in supply?

The interaction of supply and demand explains

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1)25 each,

When demand increases and supply decreases, the

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and .

If a producer can use resources to produce either good A or good B, then A and B are

What is the law of demand?

A decrease in the price of a game of bowling shifts the

The quantity supplied of a good is

The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good

During an unusually hot summer, the demand for soft drinks increases while the supply of soft drinks remains the same. The price of a soft drink

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation- wide consumer boycott of eating oranges?

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point A. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Which of the following would result in a movement along, but no shift in, the supply curve of grapefruit juice?

-In the figure above, which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?

Which of the following best reflects an increase in quantity supplied rather than an increase in supply?

The interaction of supply and demand explains

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1)25 each,

When demand increases and supply decreases, the

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters