Question 1

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 2

If the price of product X falls and this change increases the demand for product Y, then

Accepted Answer

A)  Y is an inferior good. 
B)  X is an inferior good. 
C)  X and Y are substitutes. 
D)  X and Y are complements. 
A)  Y is an inferior good. 
B)  X is an inferior good. 
C)  X and Y are substitutes. 
D)  X and Y are complements.

Question 3

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2008. This means that the

Accepted Answer

A)  quantity demanded of Packer season tickets is 72,922. 
B)  quantity demanded of Packer season tickets is about 80,000. 
C)  demand for Packer season tickets is 72,922. 
D)  quantity demanded of Packer season tickets is about 153,000. 
A)  quantity demanded of Packer season tickets is 72,922. 
B)  quantity demanded of Packer season tickets is about 80,000. 
C)  demand for Packer season tickets is 72,922. 
D)  quantity demanded of Packer season tickets is about 153,000.

Question 4

-Suppose the market for CD- Rs has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market?
Suppose the current price is $2.00. What is the quantity of CD- Rs sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

Accepted Answer

The equilibrium price is $1.50. The equi

Question 5

An increase in the cost of producing video tape shifts the supply curve of video tape and
Shifts the demand curve for video tape .

Accepted Answer

A)  leftward; leftward 
B)  rightward; leftward 
C)  not at all; leftward 
D)  leftward; not at all 
A)  leftward; leftward 
B)  rightward; leftward 
C)  not at all; leftward 
D)  leftward; not at all

Question 6

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

Accepted Answer

A)  a decrease in current supply of wheat. 
B)  an increase in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat. 
A)  a decrease in current supply of wheat. 
B)  an increase in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat.

Question 7

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 8

If the demand curve shifts rightward and the supply curve shifts leftward the

Accepted Answer

A)  quantity decreases and the price might rise, fall, or not change. 
B)  price falls and the quantity might increase, decrease, or not change. 
C)  price rises and the quantity might increase, decrease, or not change. 
D)  quantity increases and the price might rise, fall, or not change. 
A)  quantity decreases and the price might rise, fall, or not change. 
B)  price falls and the quantity might increase, decrease, or not change. 
C)  price rises and the quantity might increase, decrease, or not change. 
D)  quantity increases and the price might rise, fall, or not change.

Question 9

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will _ .

Accepted Answer

A)  remain the same; either rise or fall 
B)  remain the same; rise 
C)  decrease; not change 
D)  decrease; fall 
A)  remain the same; either rise or fall 
B)  remain the same; rise 
C)  decrease; not change 
D)  decrease; fall

Question 10

Ham and eggs are complements. If the price of ham rises, the demand for eggs will

Accepted Answer

A)  increase or decrease but the demand curve for ham will not change. 
B)  decrease and the demand curve for ham will shift rightward. 
C)  decrease and the demand curve for eggs will shift leftward. 
D)  not change but there will be a movement along the demand curve for eggs. 
A)  increase or decrease but the demand curve for ham will not change. 
B)  decrease and the demand curve for ham will shift rightward. 
C)  decrease and the demand curve for eggs will shift leftward. 
D)  not change but there will be a movement along the demand curve for eggs.

Question 11

The relative price of a good is

Accepted Answer

A)  equal to the money price of a good. 
B)  what you get paid for babysitting your cousin. 
C)  equal to the price of that good divided by the quantity demanded of the good. 
D)  an opportunity cost. 
A)  equal to the money price of a good. 
B)  what you get paid for babysitting your cousin. 
C)  equal to the price of that good divided by the quantity demanded of the good. 
D)  an opportunity cost.

Question 12

You notice that the price and quantity of wheat both decrease. This observation can be the result of the

Accepted Answer

A)  supply curve of wheat shifting rightward. 
B)  supply curve of wheat shifting leftward. 
C)  demand curve for wheat shifting leftward. 
D)  demand curve for wheat shifting rightward. 
A)  supply curve of wheat shifting rightward. 
B)  supply curve of wheat shifting leftward. 
C)  demand curve for wheat shifting leftward. 
D)  demand curve for wheat shifting rightward.

Question 13

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

Accepted Answer

A)  falls; decreases 
B)  rises; increases 
C)  falls; increases 
D)  rises; decreases 
A)  falls; decreases 
B)  rises; increases 
C)  falls; increases 
D)  rises; decreases

Question 14

Which of the following does NOT shift the supply curve?

Accepted Answer

A)  an increase in the price of the good 
B)  a decrease in the wages of labor used in production of the good 
C)  a technological advance 
D)  a fall in the price of a substitute in production 
A)  an increase in the price of the good 
B)  a decrease in the wages of labor used in production of the good 
C)  a technological advance 
D)  a fall in the price of a substitute in production

Question 15

People buy more of good 1 when the price of good 2 rises. These goods are

Accepted Answer

A)  substitutes. 
B)  inferior goods. 
C)  complements. 
D)  normal goods. 
A)  substitutes. 
B)  inferior goods. 
C)  complements. 
D)  normal goods.

Question 16

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 17

-In mid- 2008 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

Accepted Answer

A)  leftward; complement 
B)  rightward; substitute 
C)  rightward; complement 
D)  leftward; substitute 
A)  leftward; complement 
B)  rightward; substitute 
C)  rightward; complement 
D)  leftward; substitute

Question 18

C  
-The table gives the demand and supply schedules for boat rides. If the supply of boat rides increases by 20 rides a day, the price will _.

Accepted Answer

A)  fall to $6 a ride 
B)  remain unchanged 
C)  rise to $6 a ride 
D)  rise to $10 a ride 
A)  fall to $6 a ride 
B)  remain unchanged 
C)  rise to $6 a ride 
D)  rise to $10 a ride

Question 19

A fall in the price of wheat fertilizer

Accepted Answer

A)  increases the equilibrium price of wheat and decreases the equilibrium quantity of wheat. 
B)  decreases the equilibrium price of wheat and increases the equilibrium quantity of wheat. 
C)  decreases the equilibrium price and equilibrium quantity of wheat. 
D)  increases the equilibrium price and equilibrium quantity of wheat. 
A)  increases the equilibrium price of wheat and decreases the equilibrium quantity of wheat. 
B)  decreases the equilibrium price of wheat and increases the equilibrium quantity of wheat. 
C)  decreases the equilibrium price and equilibrium quantity of wheat. 
D)  increases the equilibrium price and equilibrium quantity of wheat.

Question 20

Producers of Walkmans will be able to lower the wage rate that they pay to their workers. Walkman Watch asks you to predict the effects on the supply of Walkmans, and the price of a Walkman. You predict that the supply curve shifts

Accepted Answer

A)  leftward, and the price rises. 
B)  leftward, and the price is constant. 
C)  rightward, and the price is constant. 
D)  rightward, and the price falls. 
A)  leftward, and the price rises. 
B)  leftward, and the price is constant. 
C)  rightward, and the price is constant. 
D)  rightward, and the price falls.

When does a surplus occur?

If the price of product X falls and this change increases the demand for product Y, then

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2008. This means that the

An increase in the cost of producing video tape shifts the supply curve of video tape and Shifts the demand curve for video tape .

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

At prices above the equilibrium price, what occurs?

If the demand curve shifts rightward and the supply curve shifts leftward the

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will _ .

Ham and eggs are complements. If the price of ham rises, the demand for eggs will

The relative price of a good is

You notice that the price and quantity of wheat both decrease. This observation can be the result of the

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

Which of the following does NOT shift the supply curve?

People buy more of good 1 when the price of good 2 rises. These goods are

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

-In mid- 2008 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

C -The table gives the demand and supply schedules for boat rides. If the supply of boat rides increases by 20 rides a day, the price will _.

A fall in the price of wheat fertilizer

Producers of Walkmans will be able to lower the wage rate that they pay to their workers. Walkman Watch asks you to predict the effects on the supply of Walkmans, and the price of a Walkman. You predict that the supply curve shifts

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

When does a surplus occur?

If the price of product X falls and this change increases the demand for product Y, then

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2008. This means that the

An increase in the cost of producing video tape shifts the supply curve of video tape and Shifts the demand curve for video tape .

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

At prices above the equilibrium price, what occurs?

If the demand curve shifts rightward and the supply curve shifts leftward the

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will _ .

Ham and eggs are complements. If the price of ham rises, the demand for eggs will

The relative price of a good is

You notice that the price and quantity of wheat both decrease. This observation can be the result of the

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

Which of the following does NOT shift the supply curve?

People buy more of good 1 when the price of good 2 rises. These goods are

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

-In mid- 2008 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

C -The table gives the demand and supply schedules for boat rides. If the supply of boat rides increases by 20 rides a day, the price will _.

A fall in the price of wheat fertilizer

Producers of Walkmans will be able to lower the wage rate that they pay to their workers. Walkman Watch asks you to predict the effects on the supply of Walkmans, and the price of a Walkman. You predict that the supply curve shifts

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