Question 1

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

Accepted Answer

A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases.

Question 2

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 3

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

Accepted Answer

A)  demand curve for an iPod will shift rightward. 
B)  demand curve for an iPod will shift leftward. 
C)  supply curve for an iPod will shift leftward. 
D)  supply curve for an iPod will shift rightward. 
A)  demand curve for an iPod will shift rightward. 
B)  demand curve for an iPod will shift leftward. 
C)  supply curve for an iPod will shift leftward. 
D)  supply curve for an iPod will shift rightward.

Question 4

Scarcity guarantees that

Accepted Answer

A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied. 
A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied.

Question 5

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

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 6

If the market for Twinkies is in equilibrium, then

Accepted Answer

A)  Twinkies must be a normal good. 
B)  producers would like to sell more at the current price. 
C)  consumers would like to buy more at the current price. 
D)  the quantity supplied equals the quantity demanded. 
A)  Twinkies must be a normal good. 
B)  producers would like to sell more at the current price. 
C)  consumers would like to buy more at the current price. 
D)  the quantity supplied equals the quantity demanded.

Question 7

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

Accepted Answer

A)  is less than 300 units. 
B)  is 300 units. 
C)  is more than 300 units. 
D)  could be less than, equal to, or more than 300 units. 
A)  is less than 300 units. 
B)  is 300 units. 
C)  is more than 300 units. 
D)  could be less than, equal to, or more than 300 units.

Question 8

-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 9

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

A)  increases; falls 
B)  decreases; might rise, fall, or not change 
C)  decreases; rises 
D)  increases; might rise, fall, or not change 
A)  increases; falls 
B)  decreases; might rise, fall, or not change 
C)  decreases; rises 
D)  increases; might rise, fall, or not change

Question 10

The supply curve slopes upward when graphed against ________, because of ________.

Accepted Answer

A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost 
A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost

Question 11

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

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 12

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 13

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

Accepted Answer

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

Question 14

Gruel is an inferior good. Hence, a decrease in people's incomes

Accepted Answer

A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward. 
A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward.

Question 15

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. 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 16

-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 17

-In the above figure, if D2 is the original demand curve and the population falls, 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 18

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the income in

Question 19

By definition, an inferior good is a

Accepted Answer

A)  want that is not expressed by demand. 
B)  normal substitute good. 
C)  good for which demand decreases when its price rises. 
D)  good for which demand decreases when income increases. 
A)  want that is not expressed by demand. 
B)  normal substitute good. 
C)  good for which demand decreases when its price rises. 
D)  good for which demand decreases when income increases.

Question 20

The "law of demand" is illustrated by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct.

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

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

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

Scarcity guarantees that

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

If the market for Twinkies is in equilibrium, then

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

-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

If both the demand and supply increase, the equilibrium quantity and the equilibrium price .

The supply curve slopes upward when graphed against , because of .

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

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

If good A is a normal good and income increases, the equilibrium price of A and the equilibrium quantity of A .

Gruel is an inferior good. Hence, a decrease in people's incomes

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. This change is shown in the figure as a shift from

-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?

-In the above figure, if D₂ is the original demand curve and the population falls, which price and quantity might result?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

By definition, an inferior good is a

The "law of demand" is illustrated 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

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

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

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

Scarcity guarantees that

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

If the market for Twinkies is in equilibrium, then

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

-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

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

The supply curve slopes upward when graphed against ________, because of ________.

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

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

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

Gruel is an inferior good. Hence, a decrease in people's incomes

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. This change is shown in the figure as a shift from

-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?

-In the above figure, if D2 is the original demand curve and the population falls, which price and quantity might result?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

By definition, an inferior good is a

The "law of demand" is illustrated 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

If both the demand and supply increase, the equilibrium quantity and the equilibrium price .

The supply curve slopes upward when graphed against , because of .

If good A is a normal good and income increases, the equilibrium price of A and the equilibrium quantity of A .

-In the above figure, if D₂ is the original demand curve and the population falls, which price and quantity might result?