Question 1

-Using the data in the above table, at the price of $80 a phone, a

Accepted Answer

A)  shortage of 25,000 cellular telephones occurs. 
B)  shortage of 55,000 cellular telephones occurs. 
C)  surplus of 25,000 cellular telephones occurs. 
D)  surplus of 80,000 cellular telephones occurs. 
A)  shortage of 25,000 cellular telephones occurs. 
B)  shortage of 55,000 cellular telephones occurs. 
C)  surplus of 25,000 cellular telephones occurs. 
D)  surplus of 80,000 cellular telephones occurs.

Question 2

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

Accepted Answer

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

Question 3

When the demand for a good decreases, its equilibrium price _______ and equilibrium quantity _______.

Accepted Answer

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

Question 4

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

Accepted Answer

A)  "law of supply" was definitely contradicted. 
B)  demand curve shifted rightward. 
C)  supply curve shifted rightward. 
D)  "law of demand" was definitely contradicted. 
A)  "law of supply" was definitely contradicted. 
B)  demand curve shifted rightward. 
C)  supply curve shifted rightward. 
D)  "law of demand" was definitely contradicted.

Question 5

Students can rent a Blu- ray movie at Campus Video for $4. As the price of Blu- ray players falls, the

Accepted Answer

A)  quantity demanded of Blu- ray movies will increase. 
B)  quantity supplied of Blu- ray movies will decrease. 
C)  demand for Blu- ray movies will increase. 
D)  supply of Blu- ray movies will decrease. 
A)  quantity demanded of Blu- ray movies will increase. 
B)  quantity supplied of Blu- ray movies will decrease. 
C)  demand for Blu- ray movies will increase. 
D)  supply of Blu- ray movies will decrease.

Question 6

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

Accepted Answer

A)  Point a, with price P2 and quantity Q2. 
B)  Point b, with price P1 and quantity Q1. 
C)  Point c, with price P3 and quantity Q3. 
D)  Point d, with price P1 and quantity Q3. 
A)  Point a, with price P2 and quantity Q2. 
B)  Point b, with price P1 and quantity Q1. 
C)  Point c, with price P3 and quantity Q3. 
D)  Point d, with price P1 and quantity Q3.

Question 7

A complement is a good

Accepted Answer

A)  of lower quality than another good. 
B)  of higher quality than another good. 
C)  used in conjunction with another good. 
D)  used instead of another good. 
A)  of lower quality than another good. 
B)  of higher quality than another good. 
C)  used in conjunction with another good. 
D)  used instead of another good.

Question 8

A market where no single buyer or seller can influence the price is

Accepted Answer

A)  an output market. 
B)  a buyer's market. 
C)  a competitive market. 
D)  a seller's market. 
A)  an output market. 
B)  a buyer's market. 
C)  a competitive market. 
D)  a seller's market.

Question 9

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

Accepted Answer

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

Question 10

The opportunity cost of a good is the same as its

Accepted Answer

A)  price index. 
B)  money price. 
C)  relative price. 
D)  None of the above. 
A)  price index. 
B)  money price. 
C)  relative price. 
D)  None of the above.

Question 11

An increase in the number of fast- food restaurants

Accepted Answer

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

Question 12

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

Question 13

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

Accepted Answer

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

Question 14

A bakery can produce either cakes or cookies. If the price of cookies rises, then

Accepted Answer

A)  the supply curve of cake shifts rightward. 
B)  there is a movement downward along the supply curve of cakes. 
C)  the supply curve of cake shifts leftward. 
D)  there is a movement upward along the supply curve of cakes. 
A)  the supply curve of cake shifts rightward. 
B)  there is a movement downward along the supply curve of cakes. 
C)  the supply curve of cake shifts leftward. 
D)  there is a movement upward along the supply curve of cakes.

Question 15

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a _______ in the market and the price will _______ .

Accepted Answer

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

Question 16

How many sides does a market have?

Accepted Answer

A)  Two sides-domestic and foreign 
B)  Many sides; it depends on the type of product 
C)  Three sides-buyers, sellers and the government 
D)  Two sides-buyers and sellers 
A)  Two sides-domestic and foreign 
B)  Many sides; it depends on the type of product 
C)  Three sides-buyers, sellers and the government 
D)  Two sides-buyers and sellers

Question 17

When the price of a good is

Accepted Answer

A)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
D)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls. 
A)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
D)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls.

Question 18

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris _______ and the equilibrium quantity of flights to Paris _______.

Accepted Answer

A)  might rise, fall or not change; increases 
B)  rises; increases 
C)  falls; decreases 
D)  rises; might increase, decrease or not change 
A)  might rise, fall or not change; increases 
B)  rises; increases 
C)  falls; decreases 
D)  rises; might increase, decrease or not change

Question 19

-The above table shows the demand schedule and supply schedule for almond oil. What is the equilibrium quantity and equilibrium price for almond oil?

Accepted Answer

A)  2 litres, $6.00 per litre 
B)  2 litres, $3.00 per litre 
C)  4 litres, $5.00 per litre 
D)  4 litres, $4.00 per litre 
A)  2 litres, $6.00 per litre 
B)  2 litres, $3.00 per litre 
C)  4 litres, $5.00 per litre 
D)  4 litres, $4.00 per litre

Question 20

A change in which of the following shifts the demand curve?

Accepted Answer

A)  The technology with which the product is produced 
B)  The number of sellers in the market 
C)  The price of the resources used to produce the product 
D)  The tastes and preferences of consumers 
A)  The technology with which the product is produced 
B)  The number of sellers in the market 
C)  The price of the resources used to produce the product 
D)  The tastes and preferences of consumers

-Using the data in the above table, at the price of $80 a phone, a

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

When the demand for a good decreases, its equilibrium price _ and equilibrium quantity _.

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

Students can rent a Blu- ray movie at Campus Video for $4. As the price of Blu- ray players falls, the

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

A complement is a good

A market where no single buyer or seller can influence the price is

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

The opportunity cost of a good is the same as its

An increase in the number of fast- food restaurants

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

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

A bakery can produce either cakes or cookies. If the price of cookies rises, then

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a _ in the market and the price will _ .

How many sides does a market have?

When the price of a good is

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris _ and the equilibrium quantity of flights to Paris _.

-The above table shows the demand schedule and supply schedule for almond oil. What is the equilibrium quantity and equilibrium price for almond oil?

A change in which of the following shifts the demand curve?

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Consumer Choices and Constraints

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

Exam 3: Demand and Supply

-Using the data in the above table, at the price of $80 a phone, a

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

When the demand for a good decreases, its equilibrium price _______ and equilibrium quantity _______.

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

Students can rent a Blu- ray movie at Campus Video for $4. As the price of Blu- ray players falls, the

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

A complement is a good

A market where no single buyer or seller can influence the price is

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

The opportunity cost of a good is the same as its

An increase in the number of fast- food restaurants

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

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

A bakery can produce either cakes or cookies. If the price of cookies rises, then

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a _______ in the market and the price will _______ .

How many sides does a market have?

When the price of a good is

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris _______ and the equilibrium quantity of flights to Paris _______.

-The above table shows the demand schedule and supply schedule for almond oil. What is the equilibrium quantity and equilibrium price for almond oil?

A change in which of the following shifts the demand curve?

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Public Choices and Public Goods

Economics of the Environment

Monopoly and Its Regulation

Economic Inequality

Consumer Choices and Constraints

Producer Choices and Constraints

Perfect Competition

Monopolistic Competition

Oligopoly Games and Strategy

Decisions in Factor Markets

Filters

When the demand for a good decreases, its equilibrium price _ and equilibrium quantity _.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a _ in the market and the price will _ .

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris _ and the equilibrium quantity of flights to Paris _.