Question 1

The relationship between the price of a good and the quantity people are willing and able to purchase is:

Accepted Answer

A) supply. 
B) demand. 
C) equilibrium. 
D) disequilibrium. 
A) supply. 
B) demand. 
C) equilibrium. 
D) disequilibrium.

Question 2

Use the following to answer questions 
Exhibit: The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts)
If the price of chocolate-covered peanuts increases from 40 cents to 50 cents, Dan will reduce his quantity demanded from 160 bags to 140 bags due to:

Accepted Answer

A) the law of demand. 
B) the law of supply. 
C) a decline in his income. 
D) a change in his tastes and preferences. 
A) the law of demand. 
B) the law of supply. 
C) a decline in his income. 
D) a change in his tastes and preferences.

Question 3

An example of a demand shifter is:

Accepted Answer

A) factor prices. 
B) technology. 
C) consumer preferences. 
D) producer expectations. 
A) factor prices. 
B) technology. 
C) consumer preferences. 
D) producer expectations.

Question 4

The intersection of the supply and demand curves indicates:

Accepted Answer

A) the equilibrium solution in the market. 
B) a surplus that will cause the price to fall. 
C) a shortage that will cause the price to rise. 
D) the quantity demanded exceeds the quantity supplied. 
A) the equilibrium solution in the market. 
B) a surplus that will cause the price to fall. 
C) a shortage that will cause the price to rise. 
D) the quantity demanded exceeds the quantity supplied.

Question 5

Plastic and steel are substitutes in the production of automobiles.If steel prices go up, all other things unchanged:

Accepted Answer

A) the equilibrium price of plastic will fall. 
B) the demand curve for plastic will shift to the left. 
C) the demand curve for plastic will shift to the right. 
D) the equilibrium quantity of plastic demanded will increase and the equilibrium price will fall. 
A) the equilibrium price of plastic will fall. 
B) the demand curve for plastic will shift to the left. 
C) the demand curve for plastic will shift to the right. 
D) the equilibrium quantity of plastic demanded will increase and the equilibrium price will fall.

Question 6

If demand and supply both decrease:

Accepted Answer

A) both price and quantity will be less. 
B) both price and quantity will go up. 
C) price will fall but quantity will go up. 
D) quantity will go down but the effect on price is indeterminate. 
A) both price and quantity will be less. 
B) both price and quantity will go up. 
C) price will fall but quantity will go up. 
D) quantity will go down but the effect on price is indeterminate.

Question 7

A price above the equilibrium price will:

Accepted Answer

A) result in quantity supplied being less than quantity demanded. 
B) result in a shortage. 
C) create pressure for price to fall. 
D) tend to rise over time. 
A) result in quantity supplied being less than quantity demanded. 
B) result in a shortage. 
C) create pressure for price to fall. 
D) tend to rise over time.

Question 8

Which of the following is false?

Accepted Answer

A) If demand increases and supply decreases, equilibrium price will go up. 
B) If demand remains constant and supply increases, equilibrium price will go down. 
C) If demand decreases and supply increases, equilibrium price will rise. 
D) If supply is unchanged and demand decreases, equilibrium price will fall. 
A) If demand increases and supply decreases, equilibrium price will go up. 
B) If demand remains constant and supply increases, equilibrium price will go down. 
C) If demand decreases and supply increases, equilibrium price will rise. 
D) If supply is unchanged and demand decreases, equilibrium price will fall.

Question 9

Which of the following would result in a movement along the demand curve?

Accepted Answer

A) a change in preferences 
B) an increase in the number of buyers 
C) an increase in the number of suppliers 
D) a decrease in income 
A) a change in preferences 
B) an increase in the number of buyers 
C) an increase in the number of suppliers 
D) a decrease in income

Question 10

Use the following to answer questions 
Exhibit: Demand and Supply  
-(Exhibit: Demand and Supply)
What is the equilibrium quantity?

Accepted Answer

A) 3 
B) 6 
C) 9 
D) 12 
A) 3 
B) 6 
C) 9 
D) 12

Question 11

Use the following to answer questions 
Exhibit: Demand and Supply Curves  
-(Exhibit: Demand and Supply Curves)
If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

Accepted Answer

A) $25; 50 
B) $25; 250 
C) $15; 150 
D) $10; 50 
A) $25; 50 
B) $25; 250 
C) $15; 150 
D) $10; 50

Question 12

A market is a set of arrangements where:

Accepted Answer

A) buyers and sellers can get together and buy and sell. 
B) buyers compete with sellers. 
C) sellers compete with buyers. 
D) A and C are true, but B is not true. 
A) buyers and sellers can get together and buy and sell. 
B) buyers compete with sellers. 
C) sellers compete with buyers. 
D) A and C are true, but B is not true.

Question 13

Use the following to answer questions 
Exhibit: Demand and Supply-Determinants  
-(Exhibit: Demand and Supply-Determinants)
The exhibit shows how supply and demand might shift in response to specific events.Suppose scientists discover that eating pomegranates causes premature aging.Which panel best describes how this will affect the market for pomegranates?

Accepted Answer

A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d) 
A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d)

Question 14

Use the following to answer questions 
Exhibit: Demand and Supply  
-(Exhibit: Demand and Supply)
What is the equilibrium price?

Accepted Answer

A) $2 
B) $4 
C) $6 
D) $8 
A) $2 
B) $4 
C) $6 
D) $8

Question 15

Which statement best illustrates complementary goods?

Accepted Answer

A) The price of tennis rackets declines so your economics instructor decides to take tennis lessons and purchases several cans of new tennis balls. 
B) The price of Apple Macintosh computers declines so your economics instructor sells his or her IBM personal computer and buys a Macintosh. 
C) After receiving a promotion and a hefty year-end bonus from the college, your economics instructor decides to stop buying denim jeans and switches to clothing befitting his or her loftier position on the faculty. 
D) Fearing that the price of pipe tobacco will rise next year, your economics professor goes to his local tobacconist and purchases an ample supply to last for several years. 
A) The price of tennis rackets declines so your economics instructor decides to take tennis lessons and purchases several cans of new tennis balls. 
B) The price of Apple Macintosh computers declines so your economics instructor sells his or her IBM personal computer and buys a Macintosh. 
C) After receiving a promotion and a hefty year-end bonus from the college, your economics instructor decides to stop buying denim jeans and switches to clothing befitting his or her loftier position on the faculty. 
D) Fearing that the price of pipe tobacco will rise next year, your economics professor goes to his local tobacconist and purchases an ample supply to last for several years.

Question 16

Which of the following is true?

Accepted Answer

A) If demand decreases, equilibrium price increases. 
B) If demand increases, equilibrium price decreases. 
C) If demand decreases, the demand curve shifts to the left. 
D) If demand decreases, the demand curve shifts to the right. 
A) If demand decreases, equilibrium price increases. 
B) If demand increases, equilibrium price decreases. 
C) If demand decreases, the demand curve shifts to the left. 
D) If demand decreases, the demand curve shifts to the right.

Question 17

Use the following to answer questions 
Exhibit: Demand and Supply Curves  
-(Exhibit: Demand and Supply Curves)
A surplus of 200 units will occur at a price of ________ and a shortage of 200 units will occur at a price of ________.

Accepted Answer

A) $15; $10 
B) $15; $15 
C) $15; $25 
D) $25; $10 
A) $15; $10 
B) $15; $15 
C) $15; $25 
D) $25; $10

Question 18

Use the following to answer questions 
Exhibit: Demand and Supply of Wheat  
-There is equilibrium in the market when:

Accepted Answer

A) there is no shortage. 
B) there is no surplus. 
C) price is established where the supply curve and the demand curve intersect. 
D) all of the above are true. 
A) there is no shortage. 
B) there is no surplus. 
C) price is established where the supply curve and the demand curve intersect. 
D) all of the above are true.

Question 19

Use the following to answer questions 
Exhibit: Simultaneous Shifts in Demand and Supply  
-(Exhibit: Simultaneous Shifts in Demand and Supply)
D1 and S1 are original supply and demand curves, and S2 and D2 are new curves.In this market, the original equilibrium changed from point ________ to point ________ .

Accepted Answer

A) J; L 
B) L; J 
C) J; M 
D) J; K 
A) J; L 
B) L; J 
C) J; M 
D) J; K

Question 20

Use the following to answer questions 
Exhibit: The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts)
If the price of chocolate-covered peanuts is 80 cents, there is:

Accepted Answer

A) a surplus of 140 bags per month. 
B) a shortage of 140 bags per month. 
C) a surplus of 70 bags per month. 
D) a shortage of 70 bags per month. 
A) a surplus of 140 bags per month. 
B) a shortage of 140 bags per month. 
C) a surplus of 70 bags per month. 
D) a shortage of 70 bags per month.

The relationship between the price of a good and the quantity people are willing and able to purchase is:

An example of a demand shifter is:

The intersection of the supply and demand curves indicates:

Plastic and steel are substitutes in the production of automobiles.If steel prices go up, all other things unchanged:

If demand and supply both decrease:

A price above the equilibrium price will:

Which of the following is false?

Which of the following would result in a movement along the demand curve?

Use the following to answer questions Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium quantity?

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.

A market is a set of arrangements where:

Use the following to answer questions Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Which statement best illustrates complementary goods?

Which of the following is true?

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of and a shortage of 200 units will occur at a price of .

Use the following to answer questions Exhibit: Demand and Supply of Wheat -There is equilibrium in the market when:

Use the following to answer questions Exhibit: Simultaneous Shifts in Demand and Supply -(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market, the original equilibrium changed from point to point .

Use the following to answer questions Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 3: Demand and Supply

The relationship between the price of a good and the quantity people are willing and able to purchase is:

An example of a demand shifter is:

The intersection of the supply and demand curves indicates:

Plastic and steel are substitutes in the production of automobiles.If steel prices go up, all other things unchanged:

If demand and supply both decrease:

A price above the equilibrium price will:

Which of the following is false?

Which of the following would result in a movement along the demand curve?

Use the following to answer questions Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium quantity?

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

A market is a set of arrangements where:

Use the following to answer questions Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Which statement best illustrates complementary goods?

Which of the following is true?

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of ________ and a shortage of 200 units will occur at a price of ________.

Use the following to answer questions Exhibit: Demand and Supply of Wheat -There is equilibrium in the market when:

Use the following to answer questions Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.

Use the following to answer questions Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A surplus of 200 units will occur at a price of and a shortage of 200 units will occur at a price of .