Question 1

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

Accepted Answer

A)  price of bikes definitely increases. 
B)  price of bikes definitely decreases. 
C)  quantity of bikes definitely increases. 
D)  quantity of bikes definitely decreases. 
A)  price of bikes definitely increases. 
B)  price of bikes definitely decreases. 
C)  quantity of bikes definitely increases. 
D)  quantity of bikes definitely decreases.

Question 2

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1,600. Which of the following is a CORRECT statement?

Accepted Answer

A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket. 
A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket.

Question 3

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

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 4

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza ________ the price of a hamburger and ________ the quantity of hamburgers.

Accepted Answer

A)  raises; increases 
B)  raises; decreases 
C)  lowers; increases 
D)  lowers; decreases 
A)  raises; increases 
B)  raises; decreases 
C)  lowers; increases 
D)  lowers; decreases

Question 5

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Accepted Answer

A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease 
A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease

Question 6

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

Accepted Answer

A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases. 
A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases.

Question 7

The equilibrium price is the price at which the quantity

Accepted Answer

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

Question 8

Which of the following explains why supply curves slope upward?

Accepted Answer

A)  prices and income 
B)  increasing marginal cost 
C)  resources and technology 
D)  substitutes in production and complements in production 
A)  prices and income 
B)  increasing marginal cost 
C)  resources and technology 
D)  substitutes in production and complements in production

Question 9

If a decrease in the price of gasoline increases the demand for large cars, then

Accepted Answer

A)  gasoline and large cars are substitutes in consumption. 
B)  gasoline and large cars are complements in consumption. 
C)  gasoline is an inferior good. 
D)  large cars are an inferior good. 
A)  gasoline and large cars are substitutes in consumption. 
B)  gasoline and large cars are complements in consumption. 
C)  gasoline is an inferior good. 
D)  large cars are an inferior good.

Question 10

-In the above figure, if D2 is the original demand curve and the price of a substitute in consumption rises, 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 11

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

Accepted Answer

A)  decreases the supply of good B. 
B)  increases the supply of good B. 
C)  decreases the demand for good B. 
D)  increases the demand for good B. 
A)  decreases the supply of good B. 
B)  increases the supply of good B. 
C)  decreases the demand for good B. 
D)  increases the demand for good B.

Question 12

A normal good is a good for which demand

Accepted Answer

A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases. 
A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases.

Question 13

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

Accepted Answer

A)  an increase in the price of raisins 
B)  a decrease in income 
C)  a decrease in population 
D)  an increase in the price of cold cereal 
A)  an increase in the price of raisins 
B)  a decrease in income 
C)  a decrease in population 
D)  an increase in the price of cold cereal

Question 14

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

Accepted Answer

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

Question 15

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Accepted Answer

A)  76,500. 
B)  70,000. 
C)  6,500. 
D)  126,500. 
A)  76,500. 
B)  70,000. 
C)  6,500. 
D)  126,500.

Question 16

If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?

Accepted Answer

A)  The equilibrium price rises and the equilibrium quantity increases. 
B)  The equilibrium price falls and the equilibrium quantity decreases. 
C)  The equilibrium price rises and the equilibrium quantity decreases. 
D)  The equilibrium price falls and the equilibrium quantity increases. 
A)  The equilibrium price rises and the equilibrium quantity increases. 
B)  The equilibrium price falls and the equilibrium quantity decreases. 
C)  The equilibrium price rises and the equilibrium quantity decreases. 
D)  The equilibrium price falls and the equilibrium quantity increases.

Question 17

As the price of a pound of peanuts falls, the

Accepted Answer

A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases. 
A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases.

Question 18

An increase in the number of fast-food restaurants

Accepted Answer

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

Question 19

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Accepted Answer

A)  fall; increase 
B)  fall; decrease 
C)  rise; increase 
D)  rise; decrease 
A)  fall; increase 
B)  fall; decrease 
C)  rise; increase 
D)  rise; decrease

Question 20

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

Accepted Answer

A)  the equilibrium price of B will fall and the equilibrium price of A will rise. 
B)  the equilibrium price of B will rise and the equilibrium price of A will fall. 
C)  the equilibrium prices of both A and B will rise. 
D)  the equilibrium prices of both A and B will fall. 
A)  the equilibrium price of B will fall and the equilibrium price of A will rise. 
B)  the equilibrium price of B will rise and the equilibrium price of A will fall. 
C)  the equilibrium prices of both A and B will rise. 
D)  the equilibrium prices of both A and B will fall.

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1,600. Which of the following is a CORRECT statement?

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza the price of a hamburger and the quantity of hamburgers.

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

The equilibrium price is the price at which the quantity

Which of the following explains why supply curves slope upward?

If a decrease in the price of gasoline increases the demand for large cars, then

-In the above figure, if D₂ is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

A normal good is a good for which demand

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

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

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?

As the price of a pound of peanuts falls, the

An increase in the number of fast-food restaurants

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will and the equilibrium quantity will .

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

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

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1,600. Which of the following is a CORRECT statement?

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza ________ the price of a hamburger and ________ the quantity of hamburgers.

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

The equilibrium price is the price at which the quantity

Which of the following explains why supply curves slope upward?

If a decrease in the price of gasoline increases the demand for large cars, then

-In the above figure, if D2 is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A

A normal good is a good for which demand

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

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

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?

As the price of a pound of peanuts falls, the

An increase in the number of fast-food restaurants

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result

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

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza the price of a hamburger and the quantity of hamburgers.

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

-In the above figure, if D₂ is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will and the equilibrium quantity will .