Question 1

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

Accepted Answer

A)  leftward and the equilibrium price of leather shoes will fall. 
B)  rightward and the equilibrium price of leather shoes will rise. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  leftward and the equilibrium price of leather shoes will rise. 
A)  leftward and the equilibrium price of leather shoes will fall. 
B)  rightward and the equilibrium price of leather shoes will rise. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  leftward and the equilibrium price of leather shoes will rise.

Question 2

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

Accepted Answer

A)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S1 to S2. 
B)  demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline shifts from S2 to S1. 
C)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S2 to S1. 
D)  demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline does not shift. 
A)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S1 to S2. 
B)  demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline shifts from S2 to S1. 
C)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S2 to S1. 
D)  demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline does not shift.

Question 3

The ʺincome effectʺ in the market for aspirin means that

Accepted Answer

A)  an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. 
B)  a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. 
C)  an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy. 
D)  aspirin are generally taken by people with higher than average incomes. 
A)  an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. 
B)  a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. 
C)  an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy. 
D)  aspirin are generally taken by people with higher than average incomes.

Question 4

The ʺlaw of demandʺ refers to the fact that, all other things remaining the same, when the price of a good rises

Accepted Answer

A)  there is a movement down along the demand curve to a larger quantity demanded. 
B)  the demand curve shifts rightward. 
C)  there is a movement up along the demand curve to a smaller quantity demanded. 
D)  the demand curve shifts leftward. 
A)  there is a movement down along the demand curve to a larger quantity demanded. 
B)  the demand curve shifts rightward. 
C)  there is a movement up along the demand curve to a smaller quantity demanded. 
D)  the demand curve shifts leftward.

Question 5

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

Question 6

Which of the following shifts the demand curve for hot dogs leftward?

Accepted Answer

A)  an increase in the price of a hamburger 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hot dog bun 
A)  an increase in the price of a hamburger 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hot dog bun

Question 7

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 8

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

Accepted Answer

A)  quantity will decrease. 
B)  quantity will increase. 
C)  price will increase. 
D)  price will decrease. 
A)  quantity will decrease. 
B)  quantity will increase. 
C)  price will increase. 
D)  price will decrease.

Question 9

-In the above figure, if the price is $8 then there is a

Accepted Answer

A)  shortage of 200. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  surplus of 100. 
A)  shortage of 200. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  surplus of 100.

Question 10

The opportunity cost of good A in terms of good B is equal to the

Accepted Answer

A)  money price of good A minus the money price of good B. 
B)  money price of good B minus the money price of good A. 
C)  ratio of the money price of good B to the money price of good A. 
D)  ratio of the money price of good A to the money price of good B. 
A)  money price of good A minus the money price of good B. 
B)  money price of good B minus the money price of good A. 
C)  ratio of the money price of good B to the money price of good A. 
D)  ratio of the money price of good A to the money price of good B.

Question 11

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

Accepted Answer

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

Question 12

-The figure above shows the demand for fruit snacks. 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 13

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

Accepted Answer

A)  a leftward shift of the supply curve of coffee. 
B)  a decrease in the price of coffee. 
C)  an increase in the price of coffee. 
D)  a rightward shift in the demand curve for coffee. 
A)  a leftward shift of the supply curve of coffee. 
B)  a decrease in the price of coffee. 
C)  an increase in the price of coffee. 
D)  a rightward shift in the demand curve for coffee.

Question 14

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 15

When the demand for blue jeans increases, what happens next?

Accepted Answer

If the demand for blue jeans increases,

Question 16

The quantity demanded is

Accepted Answer

A)  independent of consumersʹ buying plans. 
B)  always equal to the equilibrium quantity. 
C)  independent of the price of the good. 
D)  the amount of a good that consumers plan to purchase at a particular price. 
A)  independent of consumersʹ buying plans. 
B)  always equal to the equilibrium quantity. 
C)  independent of the price of the good. 
D)  the amount of a good that consumers plan to purchase at a particular price.

Question 17

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Accepted Answer

A)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
B)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
C)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
D)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
A)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
B)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
C)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
D)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2.

Question 18

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

Accepted Answer

A)  an increase in the wage rate paid to used car salespeople 
B)  a fall in income if used cars are an inferior good 
C)  Neither of the above because the question suggests a violation of the ʺlaw of demand.ʺ 
D)  Neither of the above because the question suggests a violation of the ʺlaw of supply.ʺ 
A)  an increase in the wage rate paid to used car salespeople 
B)  a fall in income if used cars are an inferior good 
C)  Neither of the above because the question suggests a violation of the ʺlaw of demand.ʺ 
D)  Neither of the above because the question suggests a violation of the ʺlaw of supply.ʺ

Question 19

Which of the following shifts the supply curve for good X leftward?

Accepted Answer

A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a decrease in the wages of workers employed to produce X 
D)  a technological advance in the production of X 
A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a decrease in the wages of workers employed to produce X 
D)  a technological advance in the production of X

Question 20

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price__________ and the equilibrium quantity__________ .

Accepted Answer

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

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

The ʺincome effectʺ in the market for aspirin means that

The ʺlaw of demandʺ refers to the fact that, all other things remaining the same, when the price of a good rises

Which of the following statements is correct?

Which of the following shifts the demand curve for hot dogs leftward?

What is the law of demand?

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

-In the above figure, if the price is $8 then there is a

The opportunity cost of good A in terms of good B is equal to the

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

-The figure above shows the demand for fruit snacks. 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?

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

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

When the demand for blue jeans increases, what happens next?

The quantity demanded is

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

Which of the following shifts the supply curve for good X leftward?

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .

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

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

The ʺincome effectʺ in the market for aspirin means that

The ʺlaw of demandʺ refers to the fact that, all other things remaining the same, when the price of a good rises

Which of the following statements is correct?

Which of the following shifts the demand curve for hot dogs leftward?

What is the law of demand?

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

-In the above figure, if the price is $8 then there is a

The opportunity cost of good A in terms of good B is equal to the

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

-The figure above shows the demand for fruit snacks. 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?

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

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

When the demand for blue jeans increases, what happens next?

The quantity demanded is

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

Which of the following shifts the supply curve for good X leftward?

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price__________ and the equilibrium quantity__________ .

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

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .