Question 1

If the quantity supplied exceeds the quantity demanded, then there is

Accepted Answer

A)  a surplus and the price is above the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a shortage and the price is below the equilibrium price. 
D)  a surplus and the price is below the equilibrium price. 
A)  a surplus and the price is above the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a shortage and the price is below the equilibrium price. 
D)  a surplus and the price is below the equilibrium price.

Question 2

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin__________ and the demand for aspirin__________ so that the equilibrium price of aspirin__________ .

Accepted Answer

A)  increases; increases; rises 
B)  increases; decreases; might rise, fall, or stay the same 
C)  decreases; increases; might rise, fall, or stay the same 
D)  decreases; increases; rises 
A)  increases; increases; rises 
B)  increases; decreases; might rise, fall, or stay the same 
C)  decreases; increases; might rise, fall, or stay the same 
D)  decreases; increases; rises

Question 3

Which of the following statements is correct?

Accepted Answer

A)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in the quantity demanded means a shift in the demand curve. 
A)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in the quantity demanded means a shift in the demand curve.

Question 4

Which of the following influences does NOT shift the supply curve?

Accepted Answer

A)  People deciding that they want to buy more of the product. 
B)  A decrease in the number of suppliers. 
C)  The development of new technology. 
D)  A rise in the wages paid workers who produce the good. 
A)  People deciding that they want to buy more of the product. 
B)  A decrease in the number of suppliers. 
C)  The development of new technology. 
D)  A rise in the wages paid workers who produce the good.

Question 5

If the demand for hamburgers decreases, the equilibrium price

Accepted Answer

A)  rises and the equilibrium quantity increases. 
B)  rises and the equilibrium quantity decreases. 
C)  falls and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity increases. 
A)  rises and the equilibrium quantity increases. 
B)  rises and the equilibrium quantity decreases. 
C)  falls and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity increases.

Question 6

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

Accepted Answer

A)  shortage; fall 
B)  surplus; fall 
C)  surplus; rise 
D)  shortage; rise 
A)  shortage; fall 
B)  surplus; fall 
C)  surplus; rise 
D)  shortage; rise

Question 7

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

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 8

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 9

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the price of

Question 10

When supply decreases and demand does not change, the equilibrium quantity __________and the equilibrium price__________ .

Accepted Answer

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

Question 11

When the price of a pizza decreases from $14 to $12,

Accepted Answer

A)  the income effect points out that the total purchasing power of people who buy pizza increases. 
B)  the income effect means that the demand for pizza will not change. 
C)  the income effect means people buy less pizza. 
D)  None of the above answers is correct. 
A)  the income effect points out that the total purchasing power of people who buy pizza increases. 
B)  the income effect means that the demand for pizza will not change. 
C)  the income effect means people buy less pizza. 
D)  None of the above answers is correct.

Question 12

Which of the following pairs of goods are most likely substitutes?

Accepted Answer

A)  cola and lemon lime soda 
B)  lettuce and salad dressing 
C)  peanut butter and gasoline 
D)  DVDs and DVD players 
A)  cola and lemon lime soda 
B)  lettuce and salad dressing 
C)  peanut butter and gasoline 
D)  DVDs and DVD players

Question 13

A movement along the demand curve shows a change in demand.)

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.

Accepted Answer

If the price is too high, the quantity s

Question 16

An increase in the number of producers of gruel the supply of gruel ___________and shifts the supply curve of gruel __________.

Accepted Answer

A)  decreases; rightward 
B)  decreases; leftward 
C)  increases; leftward 
D)  increases; rightward 
A)  decreases; rightward 
B)  decreases; leftward 
C)  increases; leftward 
D)  increases; rightward

Question 17

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

Accepted Answer

A)  Consumers expect lower prices next month for computers. 
B)  The price of hair stylings falls. 
C)  Skiing becomes a fashionable winter sports activity. 
D)  A college expects enrollment to increase, despite no change in the tuition. 
A)  Consumers expect lower prices next month for computers. 
B)  The price of hair stylings falls. 
C)  Skiing becomes a fashionable winter sports activity. 
D)  A college expects enrollment to increase, despite no change in the tuition.

Question 18

Normal goods are those for which demand decreases as

Accepted Answer

A)  income decreases. 
B)  the price of a substitute falls. 
C)  the goodʹs own price rises. 
D)  the price of a complement falls. 
A)  income decreases. 
B)  the price of a substitute falls. 
C)  the goodʹs own price rises. 
D)  the price of a complement falls.

Question 19

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

Accepted Answer

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

Question 20

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

Accepted Answer

A)  an increase in the price of X 
B)  a fall in the price of a factor production used to produce X 
C)  an increase in the price of good Y, a complement in the production of X 
D)  an advance in the technology for producing X 
A)  an increase in the price of X 
B)  a fall in the price of a factor production used to produce X 
C)  an increase in the price of good Y, a complement in the production of X 
D)  an advance in the technology for producing X

If the quantity supplied exceeds the quantity demanded, then there is

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin and the demand for aspirin so that the equilibrium price of aspirin__ .

Which of the following statements is correct?

Which of the following influences does NOT shift the supply curve?

If the demand for hamburgers decreases, the equilibrium price

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

When supply decreases and demand does not change, the equilibrium quantity and the equilibrium price .

When the price of a pizza decreases from $14 to $12,

Which of the following pairs of goods are most likely substitutes?

A movement along the demand curve shows a change in demand.)

-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?

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.

An increase in the number of producers of gruel the supply of gruel _and shifts the supply curve of gruel .

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

Normal goods are those for which demand decreases as

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 3: Demand and Supply

If the quantity supplied exceeds the quantity demanded, then there is

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin__________ and the demand for aspirin__________ so that the equilibrium price of aspirin__________ .

Which of the following statements is correct?

Which of the following influences does NOT shift the supply curve?

If the demand for hamburgers decreases, the equilibrium price

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

When supply decreases and demand does not change, the equilibrium quantity __________and the equilibrium price__________ .

When the price of a pizza decreases from $14 to $12,

Which of the following pairs of goods are most likely substitutes?

A movement along the demand curve shows a change in demand.)

-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?

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.

An increase in the number of producers of gruel the supply of gruel ___________and shifts the supply curve of gruel __________.

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

Normal goods are those for which demand decreases as

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin and the demand for aspirin so that the equilibrium price of aspirin__ .

When supply decreases and demand does not change, the equilibrium quantity and the equilibrium price .

An increase in the number of producers of gruel the supply of gruel _and shifts the supply curve of gruel .