Question 1

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

Accepted Answer

A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2. 
A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2.

Question 2

-The figure illustrates the market for pens. The equilibrium quantity is

Accepted Answer

A)  between 400 and 600 pens, but it is impossible to be precise. 
B)  5 pens a month. 
C)  2 pens a month. 
D)  500 pens a month. 
A)  between 400 and 600 pens, but it is impossible to be precise. 
B)  5 pens a month. 
C)  2 pens a month. 
D)  500 pens a month.

Question 3

Which of the following does NOT shift the demand curve for broccoli?

Accepted Answer

A)  an increase in the cost of fertilizer used to grow broccoli 
B)  a warning by the U.S. Surgeon General that broccoli causes schizophrenia 
C)  an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop 
D)  a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year 
A)  an increase in the cost of fertilizer used to grow broccoli 
B)  a warning by the U.S. Surgeon General that broccoli causes schizophrenia 
C)  an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop 
D)  a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year

Question 4

-At a price of $10 in the above figure, there is

Accepted Answer

A)  a surplus of 200 units. 
B)  a shortage of 200 units. 
C)  a surplus of 400 units. 
D)  a shortage of 400 units. 
A)  a surplus of 200 units. 
B)  a shortage of 200 units. 
C)  a surplus of 400 units. 
D)  a shortage of 400 units.

Question 5

The quantity of CDs that firms plan to sell this month depends on all of the following except the

Accepted Answer

A)  number of producers of CDs. 
B)  quantity of CDs that people plan to buy. 
C)  wage rate of workers who produce CDs. 
D)  price of a CD. 
A)  number of producers of CDs. 
B)  quantity of CDs that people plan to buy. 
C)  wage rate of workers who produce CDs. 
D)  price of a CD.

Question 6

Which of the following shifts the supply curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers

Question 7

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 8

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

Accepted Answer

A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease 
A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease

Question 9

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

Accepted Answer

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

Question 10

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 11

The opportunity cost of a good is the same as its

Accepted Answer

A)  money price. 
B)  relative price. 
C)  price index. 
D)  none of the above. 
A)  money price. 
B)  relative price. 
C)  price index. 
D)  none of the above.

Question 12

People buy more of good 1 when the price of good 2 rises. These goods are

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods. 
A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods.

Question 13

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

Accepted Answer

A)  money price of corn. 
B)  relative price of corn. 
C)  income effect. 
D)  substitution effect. 
A)  money price of corn. 
B)  relative price of corn. 
C)  income effect. 
D)  substitution effect.

Question 14

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 15

If the price of chicken falls, then in the market for beef

Accepted Answer

A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef. 
A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef.

Question 16

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

Accepted Answer

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

Question 17

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Accepted Answer

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

Question 18

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a substitute for fruit snacks?

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 19

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

Accepted Answer

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

Question 20

A decrease in quantity demanded because of an increase in price is represented by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  movement down and to the right along the demand curve. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  movement down and to the right along the demand curve.

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

-The figure illustrates the market for pens. The equilibrium quantity is

Which of the following does NOT shift the demand curve for broccoli?

-At a price of $10 in the above figure, there is

The quantity of CDs that firms plan to sell this month depends on all of the following except the

Which of the following shifts the supply curve for oranges?

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

An inferior good is a good for which demand

The opportunity cost of a good is the same as its

People buy more of good 1 when the price of good 2 rises. These goods are

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

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 chicken falls, then in the market for beef

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a substitute for fruit snacks?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

A decrease in quantity demanded because of an increase in price is represented by a

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 3: Demand and Supply

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

-The figure illustrates the market for pens. The equilibrium quantity is

Which of the following does NOT shift the demand curve for broccoli?

-At a price of $10 in the above figure, there is

The quantity of CDs that firms plan to sell this month depends on all of the following except the

Which of the following shifts the supply curve for oranges?

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

An inferior good is a good for which demand

The opportunity cost of a good is the same as its

People buy more of good 1 when the price of good 2 rises. These goods are

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

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 chicken falls, then in the market for beef

-The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a substitute for fruit snacks?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

A decrease in quantity demanded because of an increase in price is represented by a

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .