Question 1

In response to news reports that taking aspirin daily can reduce an individual's risk of a heart attack, there will most likely be a(n)

Accepted Answer

A)  increase in the supply of aspirin. 
B)  decrease in the supply of aspirin. 
C)  increase in the demand for aspirin. 
D)  increase in the quantity demanded of aspirin. 
A)  increase in the supply of aspirin. 
B)  decrease in the supply of aspirin. 
C)  increase in the demand for aspirin. 
D)  increase in the quantity demanded of aspirin. C

Question 2

Economists would classify the New York Mets as a firm.

Accepted Answer

A) True 
 B)False  True

Question 3

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.
Table 3.2
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price per } \
\text { Cheeseburger }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} \
\hline \$ 5 & 1,500 & 500 \
\hline 6 & 1,200 & 700 \
\hline 7 & 900 & 900 \
\hline 8 & 600 & 1,100 \
\hline 9 & 300 & 1,300 \
\hline
\end{array}$$
-Refer to Table 3.2. If the price per cheeseburger is $5, the price will

Accepted Answer

A)  remain constant because the market is in equilibrium. 
B)  decrease because there is an excess demand in the market. 
C)  increase because there is an excess demand in the market. 
D)  decrease because there is an excess supply in the market. 
A)  remain constant because the market is in equilibrium. 
B)  decrease because there is an excess demand in the market. 
C)  increase because there is an excess demand in the market. 
D)  decrease because there is an excess supply in the market. C

Question 4

Refer to the information provided in Figure 3.8 below to answer the following question(s).   Figure 3.8
-Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the ________ for baseball caps, at a price of $10, quantity demanded would be 5.

Accepted Answer

A)  demand curve for Alex 
B)  demand curve for Ryan 
C)  market demand curve 
D)  none of the above 
A)  demand curve for Alex 
B)  demand curve for Ryan 
C)  market demand curve 
D)  none of the above

Question 5

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow.   Figure 3.5
-Refer to Figure 3.5. If consumer income increases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good. 
A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good.

Question 6

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.   Figure 3.16
-Refer to Figure 3.16. When the economy moves from Point C to Point B, there has been

Accepted Answer

A)  an increase in demand and an increase in supply. 
B)  a decrease in demand and a decrease in supply. 
C)  an increase in demand and a decrease in supply. 
D)  an increase in quantity demanded and an increase in quantity supplied. 
A)  an increase in demand and an increase in supply. 
B)  a decrease in demand and a decrease in supply. 
C)  an increase in demand and a decrease in supply. 
D)  an increase in quantity demanded and an increase in quantity supplied.

Question 7

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.   Figure 3.14
-Refer to Figure 3.14. At a price of $30, there is an excess

Accepted Answer

A)  demand of 450 sunglasses. 
B)  demand of 750 sunglasses. 
C)  demand of 300 sunglasses. 
D)  supply of 300 sunglasses. 
A)  demand of 450 sunglasses. 
B)  demand of 750 sunglasses. 
C)  demand of 300 sunglasses. 
D)  supply of 300 sunglasses.

Question 8

When quantity demanded equals quantity supplied,

Accepted Answer

A)  there must be no government intervention in the market. 
B)  the demand curve must be the same as the supply curve. 
C)  the market is in equilibrium. 
D)  all of the above 
A)  there must be no government intervention in the market. 
B)  the demand curve must be the same as the supply curve. 
C)  the market is in equilibrium. 
D)  all of the above

Question 9

Which of the following will definitely occur when there is an increase in the supply of and decrease in demand for MP3 players?

Accepted Answer

A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity 
A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity

Question 10

Economists would classify the Boston Symphony Orchestra as a firm.

Accepted Answer

A) True 
 B)False

Question 11

As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will

Accepted Answer

A)  bring her successively more satisfaction. 
B)  bring her successively less satisfaction. 
C)  increase her quantity demanded for ice cream sundaes. 
D)  increase the supply of ice cream sundaes. 
A)  bring her successively more satisfaction. 
B)  bring her successively less satisfaction. 
C)  increase her quantity demanded for ice cream sundaes. 
D)  increase the supply of ice cream sundaes.

Question 12

Refer to the information provided in Figure 3.6 below to answer the question(s) that follow.   Figure 3.6
-Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

Accepted Answer

A)  an increase in income if DVDs are a normal good. 
B)  a decrease in the price of popcorn, which is a complement to DVDs. 
C)  a decrease in the rental price of DVDs. 
D)  either A or B 
A)  an increase in income if DVDs are a normal good. 
B)  a decrease in the price of popcorn, which is a complement to DVDs. 
C)  a decrease in the rental price of DVDs. 
D)  either A or B

Question 13

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow.   Figure 3.5
-Refer to Figure 3.5. If consumer income decreases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good. 
A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good.

Question 14

If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 15

A shift of the supply curve is caused by a change in a good's own price.

Accepted Answer

A) True 
 B)False

Question 16

In factor, or input, markets

Accepted Answer

A)  consumers purchase products. 
B)  firms supply goods. 
C)  firms demand resources. 
D)  households demand goods. 
A)  consumers purchase products. 
B)  firms supply goods. 
C)  firms demand resources. 
D)  households demand goods.

Question 17

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.   Figure 3.18
-Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be

Accepted Answer

A)  an excess supply of 150 million pounds of burritos. 
B)  an excess demand of 150 million pounds of burritos. 
C)  an excess supply of 50 million pounds of burritos. 
D)  an excess demand of 100 million pounds of burritos. 
A)  an excess supply of 150 million pounds of burritos. 
B)  an excess demand of 150 million pounds of burritos. 
C)  an excess supply of 50 million pounds of burritos. 
D)  an excess demand of 100 million pounds of burritos.

Question 18

When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the equilibrium ________ of Swiss cheese will definitely ________, ceteris paribus.

Accepted Answer

A)  price; increase 
B)  price; decrease 
C)  quantity; increase 
D)  quantity; decrease 
A)  price; increase 
B)  price; decrease 
C)  quantity; increase 
D)  quantity; decrease

Question 19

Which of the following will definitely occur when there is a decrease in the supply of and an increase in demand for wireless speakers?

Accepted Answer

A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity 
A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity

Question 20

Supply is determined by how much suppliers are willing and able to produce.

Accepted Answer

A) True 
 B)False

Exam 3: Demand, Supply, and Market Equilibrium

In response to news reports that taking aspirin daily can reduce an individual's risk of a heart attack, there will most likely be a(n)

Economists would classify the New York Mets as a firm.

Refer to the information provided in Figure 3.8 below to answer the following question(s). Figure 3.8 -Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the ________ for baseball caps, at a price of $10, quantity demanded would be 5.

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow. Figure 3.5 -Refer to Figure 3.5. If consumer income increases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point C to Point B, there has been

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow. Figure 3.14 -Refer to Figure 3.14. At a price of $30, there is an excess

When quantity demanded equals quantity supplied,

Which of the following will definitely occur when there is an increase in the supply of and decrease in demand for MP3 players?

Economists would classify the Boston Symphony Orchestra as a firm.

As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will

Refer to the information provided in Figure 3.6 below to answer the question(s) that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow. Figure 3.5 -Refer to Figure 3.5. If consumer income decreases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)

If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

A shift of the supply curve is caused by a change in a good's own price.

In factor, or input, markets

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18 -Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00, there will be

When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the equilibrium ________ of Swiss cheese will definitely ________, ceteris paribus.

Which of the following will definitely occur when there is a decrease in the supply of and an increase in demand for wireless speakers?

Supply is determined by how much suppliers are willing and able to produce.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow. Figure 3.5 -Refer to Figure 3.5. If consumer income increases, the demand for chili peppers shifts from D₀ to D₁. This implies that chili peppers are a(n)

Refer to the information provided in Figure 3.5 below to answer the question(s) that follow. Figure 3.5 -Refer to Figure 3.5. If consumer income decreases, the demand for chili peppers shifts from D₀ to D₁. This implies that chili peppers are a(n)

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18 -Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D₁ to D₂ and the price of burritos remains constant at $3.00, there will be

When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the equilibrium of Swiss cheese will definitely , ceteris paribus.