Question 1

If the price of chocolate chip cookies falls, then

Accepted Answer

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

Question 2

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________.

Accepted Answer

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

Question 3

An economist says: "The demand curve has two interpretations." What does the economist mean?

Accepted Answer

The first interpretation is that the dem

Question 4

Because of increasing marginal cost, most supply curves

Accepted Answer

A)  are horizontal. 
B)  are vertical. 
C)  have a negative slope. 
D)  have a positive slope. 
A)  are horizontal. 
B)  are vertical. 
C)  have a negative slope. 
D)  have a positive slope.

Question 5

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda. 
A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda.

Question 6

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

Accepted Answer

A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements. 
A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements.

Question 7

Which of the following statements is CORRECT?

Accepted Answer

A)  A change in the quantity demanded means a shift in the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. 
A)  A change in the quantity demanded means a shift in the demand curve. 
B)  A change in demand means a movement along the demand curve. 
C)  A change in demand and change in quantity demanded means the same thing. 
D)  A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.

Question 8

Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly.

Accepted Answer

A)  demand for jelly; a decrease; a decrease 
B)  supply of jelly; a decrease; an increase 
C)  supply of jelly; an increase; a decrease 
D)  demand for jelly; an increase; an increase 
A)  demand for jelly; a decrease; a decrease 
B)  supply of jelly; a decrease; an increase 
C)  supply of jelly; an increase; a decrease 
D)  demand for jelly; an increase; an increase

Question 9

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Question 10

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

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 11

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Accepted Answer

A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise. 
A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise.

Question 12

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

Accepted Answer

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

Question 13

The price of a good will fall if

Accepted Answer

A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the quantity demanded exceeds the quantity supplied. 
D)  the price of a complement in consumption falls. 
A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the quantity demanded exceeds the quantity supplied. 
D)  the price of a complement in consumption falls.

Question 14

A movement along the demand curve shows a change in demand.

Accepted Answer

A) True 
 B)False

Question 15

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

Accepted Answer

A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure. 
A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure.

Question 16

If the price of a video rental is below its equilibrium price, there will be a ________ of video rentals and the price will ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Question 17

An increase in the number of suppliers in a market results in a

Accepted Answer

A)  movement up along the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the supply curve. 
D)  Both answers A and C are correct. 
A)  movement up along the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the supply curve. 
D)  Both answers A and C are correct.

Question 18

Which of the following shifts the demand curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year

Question 19

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

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 20

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

Accepted Answer

A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat. 
A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat.

If the price of chocolate chip cookies falls, then

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will and the equilibrium quantity will .

An economist says: "The demand curve has two interpretations." What does the economist mean?

Because of increasing marginal cost, most supply curves

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

Which of the following statements is CORRECT?

Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the increased, which led to in the price of jelly and in the quantity of jelly.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will .

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

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

The price of a good will fall if

A movement along the demand curve shows a change in demand.

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

An increase in the number of suppliers in a market results in a

Which of the following shifts the demand curve for oranges?

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

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 price of chocolate chip cookies falls, then

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________.

An economist says: "The demand curve has two interpretations." What does the economist mean?

Because of increasing marginal cost, most supply curves

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

Which of the following statements is CORRECT?

Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

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

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

The price of a good will fall if

A movement along the demand curve shows a change in demand.

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

If the price of a video rental is below its equilibrium price, there will be a ________ of video rentals and the price will ________.

An increase in the number of suppliers in a market results in a

Which of the following shifts the demand curve for oranges?

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

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 more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will and the equilibrium quantity will .

Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the increased, which led to in the price of jelly and in the quantity of jelly.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will .

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .