Question 1

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri

Question 2

Why does an increase in the supply of computers lead to a lower price for a computer?

Accepted Answer

When the supply of a good, such as compu

Question 3

The existence of a shortage

Accepted Answer

A)  means resources are being allocated efficiently. 
B)  is impossible in a market economy. 
C)  pushes the price up. 
D)  pushes the price down. 
A)  means resources are being allocated efficiently. 
B)  is impossible in a market economy. 
C)  pushes the price up. 
D)  pushes the price down.

Question 4

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

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 5

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

Accepted Answer

The factors that change supply are techn

Question 6

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would 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 number of soft drink suppliers. 
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 number of soft drink suppliers.

Question 7

The quantity demanded of a good or service is the amount that

Accepted Answer

A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  consumers plan to buy during a given time period at a given price. 
D)  firms are willing to sell during a given time period at a given price. 
A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  consumers plan to buy during a given time period at a given price. 
D)  firms are willing to sell during a given time period at a given price.

Question 8

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a CORRECT statement?

Accepted Answer

A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket. 
A)  The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. 
B)  The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. 
C)  The relative price of an opera ticket is $800. 
D)  the money price of a Knicks ticket is 2 opera tickets per Knicks ticket.

Question 9

-In the figure above, an increase in the supply of oil would result in a movement from

Accepted Answer

A)  point a to point e. 
B)  point a to point b. 
C)  point a to point c. 
D)  point a to point d. 
A)  point a to point e. 
B)  point a to point b. 
C)  point a to point c. 
D)  point a to point d.

Question 10

Which of the following influences people's buying plans and does NOT shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences 
A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences

Question 11

Which of the following statements is TRUE?

Accepted Answer

A)  An increase in the price of gasoline will decrease the demand for gasoline. 
B)  An increase in the price of gasoline will increase the quantity demanded of gasoline. 
C)  An increase in the price of gasoline will increase the supply of gasoline. 
D)  An increase in the price of gasoline will increase the quantity supplied of gasoline. 
A)  An increase in the price of gasoline will decrease the demand for gasoline. 
B)  An increase in the price of gasoline will increase the quantity demanded of gasoline. 
C)  An increase in the price of gasoline will increase the supply of gasoline. 
D)  An increase in the price of gasoline will increase the quantity supplied of gasoline.

Question 12

If income increases or the price of a complement falls, the

Accepted Answer

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

Question 13

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

Accepted Answer

A)  the supply of saccharin decreased. 
B)  the demand for saccharin decreased. 
C)  the government ordered the price reduction. 
D)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them. 
A)  the supply of saccharin decreased. 
B)  the demand for saccharin decreased. 
C)  the government ordered the price reduction. 
D)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them.

Question 14

When there is a surplus in the market, the quantity sold is

Accepted Answer

A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought. 
A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought.

Question 15

When the price of a good falls, the income effect for a normal good implies that people buy

Accepted Answer

A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought. 
A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought.

Question 16

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed.

Question 17

What leads to a decrease in the quantity demanded of a good or service?

Accepted Answer

The quantity demande

Question 18

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Accepted Answer

A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price. 
A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price.

Question 19

A shortage causes the

Accepted Answer

A)  demand curve to shift leftward. 
B)  supply curve to shift rightward. 
C)  price to fall. 
D)  price to rise. 
A)  demand curve to shift leftward. 
B)  supply curve to shift rightward. 
C)  price to fall. 
D)  price to rise.

Question 20

When the demand for blue jeans increases, what happens next?

Accepted Answer

If the demand for blue jeans increases,

When does a shortage occur?

Why does an increase in the supply of computers lead to a lower price for a computer?

The existence of a shortage

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

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

The quantity demanded of a good or service is the amount that

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a CORRECT statement?

-In the figure above, an increase in the supply of oil would result in a movement from

Which of the following influences people's buying plans and does NOT shift the demand curve?

Which of the following statements is TRUE?

If income increases or the price of a complement falls, the

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

When there is a surplus in the market, the quantity sold is

When the price of a good falls, the income effect for a normal good implies that people buy

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

What leads to a decrease in the quantity demanded of a good or service?

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

A shortage causes the

When the demand for blue jeans increases, what happens next?

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 does a shortage occur?

Why does an increase in the supply of computers lead to a lower price for a computer?

The existence of a shortage

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

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

The quantity demanded of a good or service is the amount that

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a CORRECT statement?

-In the figure above, an increase in the supply of oil would result in a movement from

Which of the following influences people's buying plans and does NOT shift the demand curve?

Which of the following statements is TRUE?

If income increases or the price of a complement falls, the

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

When there is a surplus in the market, the quantity sold is

When the price of a good falls, the income effect for a normal good implies that people buy

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

What leads to a decrease in the quantity demanded of a good or service?

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

A shortage causes the

When the demand for blue jeans increases, what happens next?

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