Question 1

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

Accepted Answer

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

Question 2

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

Accepted Answer

A)  its demand and supply both increase. 
B)  its demand increases and supply decreases. 
C)  its demand decreases and supply increases. 
D)  its demand and supply both decrease. 
A)  its demand and supply both increase. 
B)  its demand increases and supply decreases. 
C)  its demand decreases and supply increases. 
D)  its demand and supply both decrease.

Question 3

-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 4

A decrease in the quantity supplied is represented by a

Accepted Answer

A)  movement down the supply curve. 
B)  movement up the supply curve. 
C)  rightward shift in the supply curve. 
D)  leftward shift in the supply curve. 
A)  movement down the supply curve. 
B)  movement up the supply curve. 
C)  rightward shift in the supply curve. 
D)  leftward shift in the supply curve.

Question 5

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

Accepted Answer

A)  "law of supply" does not apply to companies in the "high-tech" sector of the economy. 
B)  "law of demand" does not apply to customers in the "high-tech" sector of the economy. 
C)  supply curve of tablets shifted rightward. 
D)  demand curve for tablets shifted leftward. 
A)  "law of supply" does not apply to companies in the "high-tech" sector of the economy. 
B)  "law of demand" does not apply to customers in the "high-tech" sector of the economy. 
C)  supply curve of tablets shifted rightward. 
D)  demand curve for tablets shifted leftward.

Question 6

Explain why a relative price is an opportunity cost.

Accepted Answer

A relative price is the ratio of the pri

Question 7

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

Accepted Answer

A)  demand curve for good B leftward. 
B)  demand curve for good B rightward. 
C)  supply curve of good B leftward. 
D)  supply curve of good B rightward. 
A)  demand curve for good B leftward. 
B)  demand curve for good B rightward. 
C)  supply curve of good B leftward. 
D)  supply curve of good B rightward.

Question 8

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

Accepted Answer

A)  a decrease in income 
B)  an increase in the relative price of a soft drink 
C)  a decrease in the relative price of a soft drink 
D)  a decrease in the price of bottled water 
A)  a decrease in income 
B)  an increase in the relative price of a soft drink 
C)  a decrease in the relative price of a soft drink 
D)  a decrease in the price of bottled water

Question 9

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 10

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

Accepted Answer

A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16. 
A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16.

Question 11

-Using the data in the above table, at the price of $80 a phone, a

Accepted Answer

A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs. 
A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs.

Question 12

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 13

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

Accepted Answer

The higher price could have been brought

Question 14

A normal good is one

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above

Question 15

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the price of

Question 16

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for 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

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 18

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Accepted Answer

A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good. 
A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good.

Question 19

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

Accepted Answer

A)  The supply of broccoli decreases. 
B)  The supply of broccoli increases. 
C)  There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli. 
D)  There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli. 
A)  The supply of broccoli decreases. 
B)  The supply of broccoli increases. 
C)  There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli. 
D)  There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli.

Question 20

Which of the following lists has variables that all shift a good's demand curve?

Accepted Answer

A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct. 
A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct.

When the demand for a good decreases, its equilibrium price and equilibrium quantity .

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

-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 decrease in the quantity supplied is represented by a

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

Explain why a relative price is an opportunity cost.

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

What is the law of demand?

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

-Using the data in the above table, at the price of $80 a phone, a

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

A normal good is one

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

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

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

Which of the following lists has variables that all shift a good's demand curve?

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

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

-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 decrease in the quantity supplied is represented by a

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

Explain why a relative price is an opportunity cost.

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

What is the law of demand?

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

-Using the data in the above table, at the price of $80 a phone, a

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

A normal good is one

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

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

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

Which of the following lists has variables that all shift a good's demand curve?

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

When the demand for a good decreases, its equilibrium price and equilibrium quantity .