Question 1

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

Accepted Answer

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

Question 2

The demand curve for a normal good shifts leftward if income__________ or the expected future price________ .

Accepted Answer

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

Question 3

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

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 4

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

Accepted Answer

A)  relative price of a fast food meal is 5 candy bars per fast food meal. 
B)  money price of a fast food meal is 1/5 of a candy bar per fast food meal. 
C)  money price of a candy bar is 1/5 of a fast food meal per candy bar. 
D)  relative price of a candy bar is 5 fast food meals per candy bar. 
A)  relative price of a fast food meal is 5 candy bars per fast food meal. 
B)  money price of a fast food meal is 1/5 of a candy bar per fast food meal. 
C)  money price of a candy bar is 1/5 of a fast food meal per candy bar. 
D)  relative price of a candy bar is 5 fast food meals per candy bar.

Question 5

Which of the following shifts the demand curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this yearʹs orange crop 
B)  great weather that produces a bumper orange crop this year 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
A)  disastrous weather that destroys about half of this yearʹs orange crop 
B)  great weather that produces a bumper orange crop this year 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges

Question 6

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

Accepted Answer

The quantity demande

Question 7

The Market for Wapanzo Beans

Quantity Demanded $\quad$$\quad$$\quad$$\quad$$\quad$Price $\quad$$\quad$$\quad$Quantity Supplied
(millions of pounds $\quad$$\quad$$\quad$$\quad$$\quad$(dollars per $\quad$(millions of pounds 
peryear) $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ pound)$\quad$$\quad$$\quad$ peryear)
$\begin{array}{|l|l|l|l|l|l|l|l}
\hline \text { Case 1} & \text { Case 2} & \text { Case 3} & & \text { Case A } & \text {Case B} & \text { Case C } \\hline 15 & 10 & 15 & \$ 1 & 1 & 2 & 3 \
\hline 12 & 8 & 4 & \$ 2 & 2 & 4 & 6 \\hline 9 & 6 & 3 & \$ 3 & 3 & 6 & 9 \
\hline 6 & 3 & 2 & \$ 4 & 4 & 8 & 12 \
\hline 3 & 2 & 1 & \$ 5 & 5 & 10 & 15 \
\hline
\end{array}$
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If it is discovered that wapanzo beans help prevent cancer, then supply will and demand will .

Accepted Answer

A)  become case C; become case 1 
B)  become case A; become case 1 
C)  stay at case B; become case 1 
D)  become case C; stay at case 2 
A)  become case C; become case 1 
B)  become case A; become case 1 
C)  stay at case B; become case 1 
D)  become case C; stay at case 2

Question 8

Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be

Accepted Answer

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

Question 9

If the price of a CD is equal to the equilibrium price, there will be___________ of CDs and the price will__________ .

Accepted Answer

A)  surplus; fall 
B)  surplus; rise 
C)  shortage; fall 
D)  neither a shortage nor surplus; not change 
A)  surplus; fall 
B)  surplus; rise 
C)  shortage; fall 
D)  neither a shortage nor surplus; not change

Question 10

-The above figures show the market for oranges. Which figures) shows the effect of an increase in the price of bananas, a substitute for oranges?

Accepted Answer

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

Question 11

The existence of a shortage

Accepted Answer

A)  is impossible in a market economy 
B)  means resources are being allocated efficiently 
C)  pushes the price up 
D)  pushes the price down 
A)  is impossible in a market economy 
B)  means resources are being allocated efficiently 
C)  pushes the price up 
D)  pushes the price down

Question 12

The equilibrium price is the price at which the quantity

Accepted Answer

A)  supplied equals the quantity bought. 
B)  demanded equals the quantity supplied. 
C)  demanded equals the quantity sold. 
D)  sold equals the quantity bought. 
A)  supplied equals the quantity bought. 
B)  demanded equals the quantity supplied. 
C)  demanded equals the quantity sold. 
D)  sold equals the quantity bought.

Question 13

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 14

If the money price of wheat increases and no other prices change, the

Accepted Answer

A)  relative price of wheat falls. 
B)  relative price of wheat is unaffected. 
C)  demand for wheat increases. 
D)  opportunity cost of wheat rises. 
A)  relative price of wheat falls. 
B)  relative price of wheat is unaffected. 
C)  demand for wheat increases. 
D)  opportunity cost of wheat rises.

Question 15

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Accepted Answer

A)  we cannot predict what will happen to equilibrium quantity. 
B)  the equilibrium price will decrease below $25 per dozen roses. 
C)  both the equilibrium price and quantity will increase. 
D)  the equilibrium quantity will decrease below 10 dozen roses. 
A)  we cannot predict what will happen to equilibrium quantity. 
B)  the equilibrium price will decrease below $25 per dozen roses. 
C)  both the equilibrium price and quantity will increase. 
D)  the equilibrium quantity will decrease below 10 dozen roses.

Question 16

-The above figures show the market for oranges. Which figures) shows the effect of new successful advertising campaigns to eat more oranges?

Accepted Answer

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

Question 17

Which of the following is true?

Accepted Answer

A)  An increase in population shifts the demand curve for most goods leftward. 
B)  For an inferior good, when income increases, the demand curve shifts leftward. 
C)  The demand curve for a good shifts leftward when the price of a substitute rises. 
D)  If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. 
A)  An increase in population shifts the demand curve for most goods leftward. 
B)  For an inferior good, when income increases, the demand curve shifts leftward. 
C)  The demand curve for a good shifts leftward when the price of a substitute rises. 
D)  If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.

Question 18

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Question 19

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 20

An increase in the number of fast-food restaurants

Accepted Answer

A)  increases the demand for fast-food meals. 
B)  increases the supply of fast-food meals. 
C)  raises the price of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
A)  increases the demand for fast-food meals. 
B)  increases the supply of fast-food meals. 
C)  raises the price of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals.

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

The demand curve for a normal good shifts leftward if income__ or the expected future price .

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

Which of the following shifts the demand curve for oranges?

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

Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be

If the price of a CD is equal to the equilibrium price, there will be_ of CDs and the price will .

-The above figures show the market for oranges. Which figures) shows the effect of an increase in the price of bananas, a substitute for oranges?

The existence of a shortage

The equilibrium price is the price at which the quantity

If the money price of wheat increases and no other prices change, the

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

-The above figures show the market for oranges. Which figures) shows the effect of new successful advertising campaigns to eat more oranges?

Which of the following is true?

What is the difference between quantity supplied and supply?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

An increase in the number of fast-food restaurants

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 demanded exceeds the quantity supplied, then there is

The demand curve for a normal good shifts leftward if income__________ or the expected future price________ .

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

Which of the following shifts the demand curve for oranges?

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

Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be

If the price of a CD is equal to the equilibrium price, there will be___________ of CDs and the price will__________ .

-The above figures show the market for oranges. Which figures) shows the effect of an increase in the price of bananas, a substitute for oranges?

The existence of a shortage

The equilibrium price is the price at which the quantity

If the money price of wheat increases and no other prices change, the

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

-The above figures show the market for oranges. Which figures) shows the effect of new successful advertising campaigns to eat more oranges?

Which of the following is true?

What is the difference between quantity supplied and supply?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

An increase in the number of fast-food restaurants

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 demand curve for a normal good shifts leftward if income__ or the expected future price .

If the price of a CD is equal to the equilibrium price, there will be_ of CDs and the price will .