Question 1

-In the above figure, if the demand curve is D2, then

Accepted Answer

A)  the equilibrium price will be P1 and the equilibrium quantity will be Q2. 
B)  the equilibrium price will be P1 and the equilibrium quantity will be Q1. 
C)  there will be a shortage equal to Q2 - Q1. 
D)  an increase in price will shift the demand curve to D3. 
A)  the equilibrium price will be P1 and the equilibrium quantity will be Q2. 
B)  the equilibrium price will be P1 and the equilibrium quantity will be Q1. 
C)  there will be a shortage equal to Q2 - Q1. 
D)  an increase in price will shift the demand curve to D3.

Question 2

The equilibrium quantity will decrease and the price might rise, fall, or stay the same when the

Accepted Answer

A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease. 
A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease.

Question 3

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation-wide consumer boycott of eating oranges?

Accepted Answer

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

Question 4

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good. 
A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good.

Question 5

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

Accepted Answer

A)  an increase in the equilibrium quantity of beef. 
B)  an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve. 
C)  an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve. 
D)  no change in the equilibrium quantity of beef. 
A)  an increase in the equilibrium quantity of beef. 
B)  an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve. 
C)  an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve. 
D)  no change in the equilibrium quantity of beef.

Question 6

When there is a surplus in the market, the quantity sold is

Accepted Answer

A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought. 
A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought.

Question 7

A change in which of the following would NOT shift the supply curve for sneakers?

Accepted Answer

A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve 
A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve

Question 8

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

Question 9

A normal good is one

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above

Question 10

If the market for Twinkies is in equilibrium, then

Accepted Answer

A)  Twinkies must be a normal good. 
B)  producers would like to sell more at the current price. 
C)  consumers would like to buy more at the current price. 
D)  the quantity supplied equals the quantity demanded. 
A)  Twinkies must be a normal good. 
B)  producers would like to sell more at the current price. 
C)  consumers would like to buy more at the current price. 
D)  the quantity supplied equals the quantity demanded.

Question 11

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 12

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

Accepted Answer

The relative price of a car is

Question 13

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is a

Accepted Answer

A)  shortage of 2 pounds of chocolate chip cookies. 
B)  shortage of 3 pounds of chocolate chip cookies. 
C)  shortage of 5 pounds of chocolate chip cookies. 
D)  surplus of 3 pounds of chocolate chip cookies. 
A)  shortage of 2 pounds of chocolate chip cookies. 
B)  shortage of 3 pounds of chocolate chip cookies. 
C)  shortage of 5 pounds of chocolate chip cookies. 
D)  surplus of 3 pounds of chocolate chip cookies.

Question 14

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a Blu-ray player increases the quantity of disks demanded at each price by 20 million. What are the new equilibrium price and equilibrium quantity of Blu-rays?

Accepted Answer

The initial equilibrium price is $11.50

Question 15

If the price of lumber rises, then, in the market for sawdust

Accepted Answer

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

Question 16

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

Accepted Answer

A)  the supply of soybeans decreases and the soybean supply curve shifts leftward. 
B)  the supply of soybeans increases. 
C)  the supply of corn increases and the corn supply curve shifts rightward. 
D)  the supply of corn increases. 
A)  the supply of soybeans decreases and the soybean supply curve shifts leftward. 
B)  the supply of soybeans increases. 
C)  the supply of corn increases and the corn supply curve shifts rightward. 
D)  the supply of corn increases.

Question 17

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.

Accepted Answer

A)  rightward; complement 
B)  leftward; substitute 
C)  leftward; complement 
D)  rightward; substitute 
A)  rightward; complement 
B)  leftward; substitute 
C)  leftward; complement 
D)  rightward; substitute

Question 18

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

Accepted Answer

A)  granola bars will increase, that is, the demand curve will shift rightward. 
B)  cupcakes will increase, that is, the demand curve will shift rightward. 
C)  granola bars will decrease, that is, the demand curve will shift leftward. 
D)  cupcakes will decrease, that is, the demand curve will shift leftward. 
A)  granola bars will increase, that is, the demand curve will shift rightward. 
B)  cupcakes will increase, that is, the demand curve will shift rightward. 
C)  granola bars will decrease, that is, the demand curve will shift leftward. 
D)  cupcakes will decrease, that is, the demand curve will shift leftward.

Question 19

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

Accepted Answer

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

Question 20

Each point on the demand curve reflects

Accepted Answer

A)  all the wants of a given household. 
B)  the highest price consumers are willing and able to pay for that particular unit of a good. 
C)  the highest price sellers will accept for all units they are producing. 
D)  the lowest-cost technology available to produce a good. 
A)  all the wants of a given household. 
B)  the highest price consumers are willing and able to pay for that particular unit of a good. 
C)  the highest price sellers will accept for all units they are producing. 
D)  the lowest-cost technology available to produce a good.

-In the above figure, if the demand curve is D₂, then

The equilibrium quantity will decrease and the price might rise, fall, or stay the same when the

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation-wide consumer boycott of eating oranges?

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

When there is a surplus in the market, the quantity sold is

A change in which of the following would NOT shift the supply curve for sneakers?

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

A normal good is one

If the market for Twinkies is in equilibrium, then

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

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is a

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a Blu-ray player increases the quantity of disks demanded at each price by 20 million. What are the new equilibrium price and equilibrium quantity of Blu-rays?

If the price of lumber rises, then, in the market for sawdust

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

Each point on the demand curve reflects

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, if the demand curve is D2, then

The equilibrium quantity will decrease and the price might rise, fall, or stay the same when the

-The above figures show the market for oranges. Which figure(s) shows the effect of a nation-wide consumer boycott of eating oranges?

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

When there is a surplus in the market, the quantity sold is

A change in which of the following would NOT shift the supply curve for sneakers?

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

A normal good is one

If the market for Twinkies is in equilibrium, then

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

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is a

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a Blu-ray player increases the quantity of disks demanded at each price by 20 million. What are the new equilibrium price and equilibrium quantity of Blu-rays?

If the price of lumber rises, then, in the market for sawdust

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

Each point on the demand curve reflects

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

-In the above figure, if the demand curve is D₂, then

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.