Question 1

Which of the following decreases the supply of restaurant meals?

Accepted Answer

A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls. 
A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls.

Question 2

Demands differ from wants because

Accepted Answer

A)  demands are unlimited, whereas wants are limited by income. 
B)  wants require a plan to acquire a good but demands require no such plan. 
C)  wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good. 
D)  demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good. 
A)  demands are unlimited, whereas wants are limited by income. 
B)  wants require a plan to acquire a good but demands require no such plan. 
C)  wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good. 
D)  demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.

Question 3

If both demand and supply increase, what will be the effect on the equilibrium price and quantity?

Accepted Answer

A)  Both the price and the quantity will increase. 
B)  The quantity will increase but the price could either rise, fall, or remain the same. 
C)  The price will fall but the quantity will increase. 
D)  The price will rise but the quantity could either increase, decrease, or remain the same. 
A)  Both the price and the quantity will increase. 
B)  The quantity will increase but the price could either rise, fall, or remain the same. 
C)  The price will fall but the quantity will increase. 
D)  The price will rise but the quantity could either increase, decrease, or remain the same.

Question 4

Which of the following shifts the demand curve for hot dogs leftward?

Accepted Answer

A)  an increase in the price of a hot dog bun 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hamburger 
A)  an increase in the price of a hot dog bun 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hamburger

Question 5

-In the above figure, if D2 is the demand curve, then a price of P3 would result in

Accepted Answer

A)  a shortage of Q3 - Q1. 
B)  a shortage of Q4 - Q3. 
C)  a surplus of Q3 - Q1. 
D)  a surplus of Q4 - Q0. 
A)  a shortage of Q3 - Q1. 
B)  a shortage of Q4 - Q3. 
C)  a surplus of Q3 - Q1. 
D)  a surplus of Q4 - Q0.

Question 6

The relative price of a good is

Accepted Answer

A)  an opportunity cost. 
B)  equal to the money price of a good. 
C)  equal to the price of that good divided by the quantity demanded of the good. 
D)  what you get paid for babysitting your cousin. 
A)  an opportunity cost. 
B)  equal to the money price of a good. 
C)  equal to the price of that good divided by the quantity demanded of the good. 
D)  what you get paid for babysitting your cousin.

Question 7

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  might rise, fall, or stay the same; decreases 
B)  might rise, fall, or stay the same; increases 
C)  falls; increases 
D)  rises; might increase, decrease, or stay the same 
A)  might rise, fall, or stay the same; decreases 
B)  might rise, fall, or stay the same; increases 
C)  falls; increases 
D)  rises; might increase, decrease, or stay the same

Question 8

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

Accepted Answer

A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease. 
A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.

Question 9

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

Accepted Answer

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

Question 10

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Accepted Answer

A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco. 
A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco.

Question 11

Explain why a relative price is an opportunity cost.

Accepted Answer

A relative price is the ratio of the pri

Question 12

If a market is NOT in equilibrium, then which of the following is likely to occur?

Accepted Answer

A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct. 
A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct.

Question 13

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

Accepted Answer

At a price of $8 there is a surplus beca

Question 14

-A market research team has come up with the demand and supply schedules for pizza in Cheeseboro. These schedules are given in the table above. Use these data to analyze the situation in the market for pizza.
a) Draw a figure showing the demand curve for pizza and the supply curve of pizza. What are the equilibrium price and quantity?
b) Suppose the price is $10. Describe the situation in the market and explain how the price of pizza adjusts. Now suppose the price is $6. Describe the situation in the market and explain how the price of pizza adjusts.
c) The market research report also includes a prediction about the effect on the market for pizza in Cheeseboro of a recent news published in Cheeseboro Herald. The Herald reported that pizza has been discovered to help prevent heart diseases. Unfortunately, your dog chewed up the report and all you can read about the prediction is "quantity... by 150 at each price." What does the prediction say? Use your graph to show the predicted effects on the market for pizza. What are the predicted equilibrium price and quantity? How will the market adjust?

Accepted Answer

@#IMG-DLM& a) See the figure above. The equilibriu

Question 15

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

Accepted Answer

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

Question 16

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of

Accepted Answer

A)  an increase in technology. 
B)  a decrease in the relative price of a soft drink. 
C)  an increase in the relative price of a soft drink. 
D)  an increase in the number of soft drink suppliers. 
A)  an increase in technology. 
B)  a decrease in the relative price of a soft drink. 
C)  an increase in the relative price of a soft drink. 
D)  an increase in the number of soft drink suppliers.

Question 17

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

Accepted Answer

A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward. 
A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward.

Question 18

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Accepted Answer

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

Question 19

Which of the following shifts the demand curve for movie downloads rightward?

Accepted Answer

A)  a decrease in the price of downloading a movie 
B)  a 10 percent increase in people's income if movie downloads are a normal good 
C)  a decrease in the price of cable television service 
D)  an increase in the quantity and quality of programming included in the basic cable television service package 
A)  a decrease in the price of downloading a movie 
B)  a 10 percent increase in people's income if movie downloads are a normal good 
C)  a decrease in the price of cable television service 
D)  an increase in the quantity and quality of programming included in the basic cable television service package

Question 20

When demand increases, the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

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

Which of the following decreases the supply of restaurant meals?

Demands differ from wants because

If both demand and supply increase, what will be the effect on the equilibrium price and quantity?

Which of the following shifts the demand curve for hot dogs leftward?

-In the above figure, if D₂ is the demand curve, then a price of P₃ would result in

The relative price of a good is

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

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

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Explain why a relative price is an opportunity cost.

If a market is NOT in equilibrium, then which of the following is likely to occur?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Which of the following shifts the demand curve for movie downloads rightward?

When demand increases, the equilibrium price and the equilibrium quantity .

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

Which of the following decreases the supply of restaurant meals?

Demands differ from wants because

If both demand and supply increase, what will be the effect on the equilibrium price and quantity?

Which of the following shifts the demand curve for hot dogs leftward?

-In the above figure, if D2 is the demand curve, then a price of P3 would result in

The relative price of a good is

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

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

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Explain why a relative price is an opportunity cost.

If a market is NOT in equilibrium, then which of the following is likely to occur?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Which of the following shifts the demand curve for movie downloads rightward?

When demand increases, the equilibrium price ________ and the equilibrium quantity ________.

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 D₂ is the demand curve, then a price of P₃ would result in

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .

When demand increases, the equilibrium price and the equilibrium quantity .