Question 1

An increase in the demand for computers and a decrease in the number of sellers of computers will
)

Accepted Answer

A)  increase the price of a computer and the number of computers bought 
B)  increase the price of a computer 
C)  not change the price of a computer but increase the number of computers bought 
D)  increase the number of computers bought 
A)  increase the price of a computer and the number of computers bought 
B)  increase the price of a computer 
C)  not change the price of a computer but increase the number of computers bought 
D)  increase the number of computers bought

Question 2

A typewriter is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Accepted Answer

A)  price of a typewriter will fall. 
B)  price of a typewriter will fall and the demand for typewriters will increase. 
C)  demand for typewriters will decrease and the price will rise. 
D)  demand for typewriters will increase as the price of a typewriter falls. 
A)  price of a typewriter will fall. 
B)  price of a typewriter will fall and the demand for typewriters will increase. 
C)  demand for typewriters will decrease and the price will rise. 
D)  demand for typewriters will increase as the price of a typewriter falls.

Question 3

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 4

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a substitute like hot dogs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 5

-In the figure above, which movement reflects a decrease in population?

Accepted Answer

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

Question 6

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

Accepted Answer

A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  next week's supply of gasoline decreases. 
D)  the price of a gallon of gasoline falls today. 
A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  next week's supply of gasoline decreases. 
D)  the price of a gallon of gasoline falls today.

Question 7

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza the price of a hamburger and the quantity of hamburgers.

Accepted Answer

A)  lowers; increases 
B)  raises; decreases 
C)  raises; increases 
D)  lowers; decreases 
A)  lowers; increases 
B)  raises; decreases 
C)  raises; increases 
D)  lowers; decreases

Question 8

What happens to the demand for DVDs if the price of a DVD player falls?

Accepted Answer

A)  The demand for DVDs decreases because the price of a complement falls. 
B)  The demand for DVDs increases because the price of a complement falls. 
C)  The demand for DVDs decreases because the price of a substitute falls. 
D)  The demand for DVDs remains unchanged. 
A)  The demand for DVDs decreases because the price of a complement falls. 
B)  The demand for DVDs increases because the price of a complement falls. 
C)  The demand for DVDs decreases because the price of a substitute falls. 
D)  The demand for DVDs remains unchanged.

Question 9

As the opportunity cost of a good falls, the substitution effect implies that people buy

Accepted Answer

A)  less of that good and less of its substitutes. 
B)  more of that good and more of its substitutes. 
C)  more of that good and less of its substitutes. 
D)  less of that good and more of its substitutes. 
A)  less of that good and less of its substitutes. 
B)  more of that good and more of its substitutes. 
C)  more of that good and less of its substitutes. 
D)  less of that good and more of its substitutes.

Question 10

Which of the following decreases the demand for an inferior good?

Accepted Answer

A)  a decrease in the price of a complement 
B)  an increase in income 
C)  an increase in the price of a substitute 
D)  a decrease in income 
A)  a decrease in the price of a complement 
B)  an increase in income 
C)  an increase in the price of a substitute 
D)  a decrease in income

Question 11

When the price of a good falls, the income effect for an inferior good implies that people will buy

Accepted Answer

A)  less of that good because they can afford to buy more of the things they previously bought. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because the relative price of the good has fallen. 
D)  more of that good because they can afford to buy more of the things they previously bought. 
A)  less of that good because they can afford to buy more of the things they previously bought. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because the relative price of the good has fallen. 
D)  more of that good because they can afford to buy more of the things they previously bought.

Question 12

A consumer might consider in- line skates and elbow- pads to be

Accepted Answer

A)  unrelated goods. 
B)  complements. 
C)  substitutes. 
D)  products with upward sloping demand curves. 
A)  unrelated goods. 
B)  complements. 
C)  substitutes. 
D)  products with upward sloping demand curves.

Question 13

Why does an increase in the supply of computers lead to a lower price for a computer?

Accepted Answer

When the supply of a good, such as compu

Question 14

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplie

Question 15

Changes in which of the following items will shift the supply curve of hamburgers?

Accepted Answer

A)  an economy- wide decrease in income because of a long recession 
B)  a rise in the price of soda, a complement for hamburgers 
C)  an increase in the price of meat used to produce hamburgers 
D)  new research that establishes a link between hamburgers and heart problems 
A)  an economy- wide decrease in income because of a long recession 
B)  a rise in the price of soda, a complement for hamburgers 
C)  an increase in the price of meat used to produce hamburgers 
D)  new research that establishes a link between hamburgers and heart problems

Question 16

Because of increasing marginal cost, most supply curves

Accepted Answer

A)  are horizontal. 
B)  are vertical. 
C)  have a positive slope. 
D)  have a negative slope. 
A)  are horizontal. 
B)  are vertical. 
C)  have a positive slope. 
D)  have a negative slope.

Question 17

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

Accepted Answer

A)  the price of a soft drink has increased. 
B)  the opportunity cost of another soft drink increases. 
C)  the marginal benefit of each additional soft drink falls. 
D)  people's incomes have decreased. 
A)  the price of a soft drink has increased. 
B)  the opportunity cost of another soft drink increases. 
C)  the marginal benefit of each additional soft drink falls. 
D)  people's incomes have decreased.

Question 18

For a "change in demand" to occur, there must be a

Accepted Answer

A)  rightward shift of the supply curve. 
B)  leftward shift of the demand curve. 
C)  rightward shift of the demand curve. 
D)  Both answers B and C are correct. 
A)  rightward shift of the supply curve. 
B)  leftward shift of the demand curve. 
C)  rightward shift of the demand curve. 
D)  Both answers B and C are correct.

Question 19

Which of the following statements is correct?

Accepted Answer

A)  When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same. 
B)  When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same. 
C)  When both demand and supply increase, the price rises and the quantity might increase, decrease, or remain the same. 
D)  When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same. 
A)  When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same. 
B)  When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same. 
C)  When both demand and supply increase, the price rises and the quantity might increase, decrease, or remain the same. 
D)  When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same.

Question 20

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

Accepted Answer

A)  price is the lowest possible. 
B)  quantity supplied equals the quantity demanded. 
C)  supply and demand curves can never shift again. 
D)  price is usually affordable to most people. 
A)  price is the lowest possible. 
B)  quantity supplied equals the quantity demanded. 
C)  supply and demand curves can never shift again. 
D)  price is usually affordable to most people.

An increase in the demand for computers and a decrease in the number of sellers of computers will )

A typewriter is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a substitute like hot dogs?

-In the figure above, which movement reflects a decrease in population?

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza the price of a hamburger and the quantity of hamburgers.

What happens to the demand for DVDs if the price of a DVD player falls?

As the opportunity cost of a good falls, the substitution effect implies that people buy

Which of the following decreases the demand for an inferior good?

When the price of a good falls, the income effect for an inferior good implies that people will buy

A consumer might consider in- line skates and elbow- pads to be

Why does an increase in the supply of computers lead to a lower price for a computer?

What leads to a decrease in the quantity supplied of a good or service?

Changes in which of the following items will shift the supply curve of hamburgers?

Because of increasing marginal cost, most supply curves

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

For a "change in demand" to occur, there must be a

Which of the following statements is correct?

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

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

An increase in the demand for computers and a decrease in the number of sellers of computers will )

A typewriter is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a substitute like hot dogs?

-In the figure above, which movement reflects a decrease in population?

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza the price of a hamburger and the quantity of hamburgers.

What happens to the demand for DVDs if the price of a DVD player falls?

As the opportunity cost of a good falls, the substitution effect implies that people buy

Which of the following decreases the demand for an inferior good?

When the price of a good falls, the income effect for an inferior good implies that people will buy

A consumer might consider in- line skates and elbow- pads to be

Why does an increase in the supply of computers lead to a lower price for a computer?

What leads to a decrease in the quantity supplied of a good or service?

Changes in which of the following items will shift the supply curve of hamburgers?

Because of increasing marginal cost, most supply curves

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

For a "change in demand" to occur, there must be a

Which of the following statements is correct?

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

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