Question 1

A complement is a good

Accepted Answer

A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good. 
A)  of lower quality than another good. 
B)  used in conjunction with another good. 
C)  used instead of another good. 
D)  of higher quality than another good.

Question 2

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

Accepted Answer

A)  surplus; rise 
B)  surplus; fall 
C)  shortage; fall 
D)  neither a shortage nor surplus; not change 
A)  surplus; rise 
B)  surplus; fall 
C)  shortage; fall 
D)  neither a shortage nor surplus; not change

Question 3

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Accepted Answer

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

Question 4

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

Accepted Answer

A)  rise. 
B)  not change. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market. 
A)  rise. 
B)  not change. 
C)  fall. 
D)  Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.

Question 5

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of

Accepted Answer

A)  an increase in technology. 
B)  a decrease in the relative price of a soft drink. 
C)  an increase in the relative price of a soft drink. 
D)  an increase in the money price of a soft drink. 
A)  an increase in technology. 
B)  a decrease in the relative price of a soft drink. 
C)  an increase in the relative price of a soft drink. 
D)  an increase in the money price of a soft drink.

Question 6

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 7

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

Accepted Answer

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

Question 8

The quantity supplied of a good is

Accepted Answer

A)  the same thing as the quantity demanded at each price. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm would sell if it faced no resource constraints. 
A)  the same thing as the quantity demanded at each price. 
B)  the amount that the producers are planning to sell at a particular price during a given time period. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm would sell if it faced no resource constraints.

Question 9

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

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 10

If the demand for hamburgers decreases, the equilibrium price

Accepted Answer

A)  rises and the equilibrium quantity increases. 
B)  falls and the equilibrium quantity increases. 
C)  rises and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity decreases. 
A)  rises and the equilibrium quantity increases. 
B)  falls and the equilibrium quantity increases. 
C)  rises and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity decreases.

Question 11

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 12

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

Accepted Answer

A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease. 
A)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
B)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
C)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
D)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.

Question 13

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded.

Question 14

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Accepted Answer

A)  price of a rival's tablet. 
B)  price of an iPad. 
C)  the technology used to produce an iPad. 
D)  price of apps. 
A)  price of a rival's tablet. 
B)  price of an iPad. 
C)  the technology used to produce an iPad. 
D)  price of apps.

Question 15

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

Accepted Answer

A)  relative price; 2 basketballs per football 
B)  relative price; 1/2 basketball per football 
C)  opportunity cost; $20.00 
D)  opportunity cost; $10.00 
A)  relative price; 2 basketballs per football 
B)  relative price; 1/2 basketball per football 
C)  opportunity cost; $20.00 
D)  opportunity cost; $10.00

A complement is a good

If the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of

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

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will and the equilibrium quantity will .

The quantity supplied of a good is

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

If the demand for hamburgers decreases, the equilibrium price

Because of increasing marginal cost, most supply curves

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

Which of the following is consistent with the law of demand?

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .

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

A complement is a good

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of

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

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

The quantity supplied of a good is

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

If the demand for hamburgers decreases, the equilibrium price

Because of increasing marginal cost, most supply curves

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

Which of the following is consistent with the law of demand?

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

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 the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will and the equilibrium quantity will .

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .