Question 1

-In the above figure, a price of $35 per dozen would result in

Accepted Answer

A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices. 
A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices.

Question 2

The quantity supplied of a good is

Accepted Answer

A)  the same thing as the quantity demanded at each price. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm would sell if it faced no resource constraints. 
A)  the same thing as the quantity demanded at each price. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm would sell if it faced no resource constraints.

Question 3

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

Accepted Answer

A)  a decrease in the quantity demanded of cereal because of the substitution effect. 
B)  an increase in the quantity demanded of eggs because of the income effect. 
C)  a decrease in the quantity supplied of cereal because of the substitution effect. 
D)  an increase in the quantity supplied of eggs because of the income effect. 
A)  a decrease in the quantity demanded of cereal because of the substitution effect. 
B)  an increase in the quantity demanded of eggs because of the income effect. 
C)  a decrease in the quantity supplied of cereal because of the substitution effect. 
D)  an increase in the quantity supplied of eggs because of the income effect.

Question 4

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed.

Question 5

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

Accepted Answer

A)  point b only. 
B)  point c only. 
C)  point a. 
D)  both points b and c. 
A)  point b only. 
B)  point c only. 
C)  point a. 
D)  both points b and c.

Question 6

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 7

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

Accepted Answer

A)  point a to point e 
B)  point a to point b 
C)  point a to point c 
D)  point a to point d 
A)  point a to point e 
B)  point a to point b 
C)  point a to point c 
D)  point a to point d

Question 8

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

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

Question 9

The statement that "demand increases" means that there is a

Accepted Answer

A)  movement to the right along a demand curve. 
B)  movement to the left along a demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
A)  movement to the right along a demand curve. 
B)  movement to the left along a demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve.

Question 10

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

Accepted Answer

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

Question 11

Normal goods are those for which demand decreases as

Accepted Answer

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

Question 12

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

Accepted Answer

A)  rightward, and the price is constant. 
B)  leftward, and the price is constant. 
C)  rightward, and the price falls. 
D)  leftward, and the price rises. 
A)  rightward, and the price is constant. 
B)  leftward, and the price is constant. 
C)  rightward, and the price falls. 
D)  leftward, and the price rises.

Question 13

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

Accepted Answer

A) True 
 B)False

Question 14

-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 15

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

Accepted Answer

A)  It raises both the price and the quantity. 
B)  It raises the price and decreases the quantity. 
C)  It lowers the price and increases the quantity. 
D)  It lowers both the price and the quantity. 
A)  It raises both the price and the quantity. 
B)  It raises the price and decreases the quantity. 
C)  It lowers the price and increases the quantity. 
D)  It lowers both the price and the quantity.

Question 16

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded.

Question 17

-Suppose the market for Blu-rays 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 $12.00. What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

Accepted Answer

The equilibrium price is $11.50. The equ

Question 18

-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 19

The law of demand implies that demand curves

Accepted Answer

A)  slope down. 
B)  slope up. 
C)  shift rightward whenever the price rises. 
D)  shift leftward whenever the price rises. 
A)  slope down. 
B)  slope up. 
C)  shift rightward whenever the price rises. 
D)  shift leftward whenever the price rises.

Question 20

The Market for Wapanzo Beans
 
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the price of wapanzo beans will be

Accepted Answer

A)  $1 per pound. 
B)  $2 per pound. 
C)  $3 per pound. 
D)  $4 per pound. 
A)  $1 per pound. 
B)  $2 per pound. 
C)  $3 per pound. 
D)  $4 per pound.

-In the above figure, a price of $35 per dozen would result in

The quantity supplied of a good is

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

The statement that "demand increases" means that there is a

If good A is a normal good and income increases, the equilibrium price of A and the equilibrium quantity of A .

Normal goods are those for which demand decreases as

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

-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?

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

Which of the following is consistent with the law of demand?

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

The law of demand implies that demand curves

The Market for Wapanzo Beans -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the price of wapanzo beans will be

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

-In the above figure, a price of $35 per dozen would result in

The quantity supplied of a good is

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a complement for fruit snacks?

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

The statement that "demand increases" means that there is a

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

Normal goods are those for which demand decreases as

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

-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?

How does an unusually warm winter affect the equilibrium price and quantity of gloves?

Which of the following is consistent with the law of demand?

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

The law of demand implies that demand curves

The Market for Wapanzo Beans -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the price of wapanzo beans will be

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

If good A is a normal good and income increases, the equilibrium price of A and the equilibrium quantity of A .

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