Question 1

A decrease in the demand for beef because of concerns over cholesterol results in

Accepted Answer

A)  lower beef prices. 
B)  higher beef prices. 
C)  an increase in the supply of beef. 
D)  an offsetting increase in the demand for beef if the price of beef falls. 
A)  lower beef prices. 
B)  higher beef prices. 
C)  an increase in the supply of beef. 
D)  an offsetting increase in the demand for beef if the price of beef falls.

Question 2

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20. 
A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20.

Question 3

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Accepted Answer

A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price. 
A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price.

Question 4

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. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

Accepted Answer

A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1 
A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1

Question 5

Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in technology incre

Question 6

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 7

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Accepted Answer

A)  the equilibrium price will decrease below $25 per dozen roses. 
B)  we cannot predict what will happen to equilibrium quantity. 
C)  the equilibrium quantity will decrease below 10 dozen roses. 
D)  both the equilibrium price and quantity will increase. 
A)  the equilibrium price will decrease below $25 per dozen roses. 
B)  we cannot predict what will happen to equilibrium quantity. 
C)  the equilibrium quantity will decrease below 10 dozen roses. 
D)  both the equilibrium price and quantity will increase.

Question 8

If the quantity supplied exceeds the quantity demanded, then there is

Accepted Answer

A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price. 
A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price.

Question 9

At a price of $4 in the above figure

Accepted Answer

A)  the equilibrium quantity is 400 units. 
B)  there is a surplus of 200 units. 
C)  the quantity supplied is 400 units. 
D)  there is a shortage of 200 units. 
A)  the equilibrium quantity is 400 units. 
B)  there is a surplus of 200 units. 
C)  the quantity supplied is 400 units. 
D)  there is a shortage of 200 units.

Question 10

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

Accepted Answer

A)  a 5 percent increase in people's income 
B)  a 10 percent decrease in the price of car insurance 
C)  a 20 percent increase in the price of a car 
D)  an increased preference for walking rather than driving 
A)  a 5 percent increase in people's income 
B)  a 10 percent decrease in the price of car insurance 
C)  a 20 percent increase in the price of a car 
D)  an increased preference for walking rather than driving

Question 11

-The above table gives the demand and supply schedules for cat food. If the price is $1.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

Accepted Answer

At a price of $1.00 per pound

Question 12

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

Accepted Answer

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

Question 13

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

Accepted Answer

A)  increases and the price might rise, fall or not change. 
B)  increases and the price rises. 
C)  doesn't change and the price falls. 
D)  doesn't change and the price rises. 
A)  increases and the price might rise, fall or not change. 
B)  increases and the price rises. 
C)  doesn't change and the price falls. 
D)  doesn't change and the price rises.

Question 14

Which of the following shifts the supply curve of broccoli?

Accepted Answer

A)  an increase in income 
B)  a newly discovered increase in the nutritional value of broccoli 
C)  a newly discovered link between broccoli consumption and tooth decay 
D)  the destruction of much of this year's broccoli crop by hurricanes 
A)  an increase in income 
B)  a newly discovered increase in the nutritional value of broccoli 
C)  a newly discovered link between broccoli consumption and tooth decay 
D)  the destruction of much of this year's broccoli crop by hurricanes

Question 15

The "income effect" in the market for aspirin means that

Accepted Answer

A)  aspirin are generally taken by people with higher than average incomes. 
B)  a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. 
C)  an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. 
D)  an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy. 
A)  aspirin are generally taken by people with higher than average incomes. 
B)  a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. 
C)  an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. 
D)  an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.

Question 16

-The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

Accepted Answer

A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0. 
A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0.

Question 17

A price below the equilibrium price results in

Accepted Answer

A)  a surplus. 
B)  a shortage. 
C)  excess supply. 
D)  a further price fall. 
A)  a surplus. 
B)  a shortage. 
C)  excess supply. 
D)  a further price fall.

Question 18

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

Accepted Answer

A)  leftward; both the equilibrium price and equilibrium quantity fall 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; the equilibrium price falls while the equilibrium quantity increases 
D)  rightward; both the equilibrium price and equilibrium quantity rise 
A)  leftward; both the equilibrium price and equilibrium quantity fall 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; the equilibrium price falls while the equilibrium quantity increases 
D)  rightward; both the equilibrium price and equilibrium quantity rise

Question 19

An inferior 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 20

Suppose the equilibrium price of a gallon of gasoline drops from $3.00 to $2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

Accepted Answer

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

A decrease in the demand for beef because of concerns over cholesterol results in

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

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. If there is a drought in the wapanzo bean growing region then supply will and demand will .

Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

If the quantity supplied exceeds the quantity demanded, then there is

At a price of $4 in the above figure

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

Which of the following shifts the supply curve of broccoli?

The "income effect" in the market for aspirin means that

-The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

A price below the equilibrium price results in

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

An inferior good is a good for which demand

Suppose the equilibrium price of a gallon of gasoline drops from $3.00 to $2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

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

A decrease in the demand for beef because of concerns over cholesterol results in

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

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. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

If the quantity supplied exceeds the quantity demanded, then there is

At a price of $4 in the above figure

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

Which of the following shifts the supply curve of broccoli?

The "income effect" in the market for aspirin means that

-The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

A price below the equilibrium price results in

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

An inferior good is a good for which demand

Suppose the equilibrium price of a gallon of gasoline drops from $3.00 to $2.85 and the equilibrium quantity increases from 365 millions of gallons per week to 372 millions of gallons per week. These changes can be the result of

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

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. If there is a drought in the wapanzo bean growing region then supply will and demand will .

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .