Question 1

An increase in price will result in an increase in supply.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer questions 
Exhibit: Demand and Supply Schedules for a Good
  
-(Exhibit: Supply and Demand Schedules for a Good)
If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Accepted Answer

A) $2.00; 100 
B) $3.00; 140 
C) $3.50; 175 
D) $4.00; 160 
A) $2.00; 100 
B) $3.00; 140 
C) $3.50; 175 
D) $4.00; 160

Question 3

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 for a normal good:

Accepted Answer

A) supply has increased and price has increased. 
B) demand has increased and price has increased. 
C) demand has decreased and price has fallen. 
D) demand has increased and price has fallen. 
A) supply has increased and price has increased. 
B) demand has increased and price has increased. 
C) demand has decreased and price has fallen. 
D) demand has increased and price has fallen.

Question 4

If the price of a commodity increases as the result of increased demand, you would expect the:

Accepted Answer

A) supply to increase. 
B) quantity supplied to increase. 
C) quantity supplied to decrease. 
D) supply curve to shift to the right. 
A) supply to increase. 
B) quantity supplied to increase. 
C) quantity supplied to decrease. 
D) supply curve to shift to the right.

Question 5

When economists study the behavior of buyers, they are studying:

Accepted Answer

A) supply. 
B) the role of government. 
C) demand. 
D) psychology. 
A) supply. 
B) the role of government. 
C) demand. 
D) psychology.

Question 6

Use the following to answer questions 
Exhibit: The Supply of Music Downloads  
-(Exhibit: The Supply of Music downloads)
A decrease in the number of websites supplying music downloads would result in a change illustrated by:

Accepted Answer

A) the move from n to o in Figure (a). 
B) the move from p to q in Figure (b). 
C) the move from s to t in Figure (c). 
D) the move from u to v in Figure (d). 
A) the move from n to o in Figure (a). 
B) the move from p to q in Figure (b). 
C) the move from s to t in Figure (c). 
D) the move from u to v in Figure (d).

Question 7

A shortage results from a current price being below the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 8

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

Accepted Answer

A) True 
 B)False

Question 9

A market surplus occurs if the:

Accepted Answer

A) price is below the equilibrium price. 
B) price is equal to the equilibrium price. 
C) equilibrium price is above the actual price. 
D) equilibrium price is below the actual price. 
A) price is below the equilibrium price. 
B) price is equal to the equilibrium price. 
C) equilibrium price is above the actual price. 
D) equilibrium price is below the actual price.

Question 10

A supply curve that is upward sloping means that:

Accepted Answer

A) demand is being ignored. 
B) consumers will buy less at lower prices. 
C) suppliers will want to sell more at higher prices. 
D) suppliers will want to sell less at higher prices. 
A) demand is being ignored. 
B) consumers will buy less at lower prices. 
C) suppliers will want to sell more at higher prices. 
D) suppliers will want to sell less at higher prices.

Question 11

A price below the equilibrium price will:

Accepted Answer

A) result in pressure for price to rise. 
B) result in a surplus. 
C) never be the case. 
D) result in pressure for price to fall. 
A) result in pressure for price to rise. 
B) result in a surplus. 
C) never be the case. 
D) result in pressure for price to fall.

Question 12

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 George, Barbara, and Dan are the only three buyers in the market, and the price of a bag of chocolate-covered peanuts is 50 cents, the total market demand is ________ bags per month.

Accepted Answer

A) 80 
B) 105 
C) 210 
D) 280 
A) 80 
B) 105 
C) 210 
D) 280

Question 13

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

Accepted Answer

A) market technologies. 
B) demand prices. 
C) demand shifters. 
D) supply determinants. 
A) market technologies. 
B) demand prices. 
C) demand shifters. 
D) supply determinants.

Question 14

Use the following to answer questions 
Exhibit: The Demand for Music Downloads  
-(Exhibit: The Demand for music downloads)
A decrease in the fee charged for music downloads would result in a change illustrated by:

Accepted Answer

A) the move from f to g in Figure (a). 
B) the move from h to i in Figure (b). 
C) the move from j to k in Figure (c). 
D) the move from l to m in Figure (d). 
A) the move from f to g in Figure (a). 
B) the move from h to i in Figure (b). 
C) the move from j to k in Figure (c). 
D) the move from l to m in Figure (d).

Question 15

A surplus is a result of equilibrium price being below the current price.

Accepted Answer

A) True 
 B)False

Question 16

Demand is defined as:

Accepted Answer

A) an amount that is purchased at a specific price, given supply. 
B) a schedule that establishes the price of a good. 
C) a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. 
D) the amount that will be bought at a specific price. 
A) an amount that is purchased at a specific price, given supply. 
B) a schedule that establishes the price of a good. 
C) a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. 
D) the amount that will be bought at a specific price.

Question 17

Use the following to answer questions 
Exhibit: Demand and Supply of Wheat  
-The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:

Accepted Answer

A) consumer income. 
B) the preferences of consumers. 
C) the expectations of consumers and producers. 
D) price. 
A) consumer income. 
B) the preferences of consumers. 
C) the expectations of consumers and producers. 
D) price.

Question 18

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Accepted Answer

A) income 
B) consumer preferences 
C) prices of other goods 
D) demographic characteristics 
A) income 
B) consumer preferences 
C) prices of other goods 
D) demographic characteristics

Question 19

Use the following to answer questions 
Exhibit: Demand and Supply Shifters  
-The price of apples falls.What happens in the market for apple pies?

Accepted Answer

A) The equilibrium price falls, and the equilibrium quantity rises. 
B) The equilibrium price rises, and the equilibrium quantity falls. 
C) The equilibrium price and quantity rise. 
D) The equilibrium price and quantity fall. 
A) The equilibrium price falls, and the equilibrium quantity rises. 
B) The equilibrium price rises, and the equilibrium quantity falls. 
C) The equilibrium price and quantity rise. 
D) The equilibrium price and quantity fall.

Question 20

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 consumer incomes decrease.Which panel best describes how this will affect the market for used clothing, an inferior good?

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)

An increase in price will result in an increase in supply.

Use the following to answer questions Exhibit: Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.

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 for a normal good:

If the price of a commodity increases as the result of increased demand, you would expect the:

When economists study the behavior of buyers, they are studying:

Use the following to answer questions Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

A shortage results from a current price being below the equilibrium price.

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

A market surplus occurs if the:

A supply curve that is upward sloping means that:

A price below the equilibrium price will:

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

A surplus is a result of equilibrium price being below the current price.

Demand is defined as:

Use the following to answer questions Exhibit: Demand and Supply of Wheat -The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Use the following to answer questions Exhibit: Demand and Supply Shifters -The price of apples falls.What happens in the market for apple pies?

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

An increase in price will result in an increase in supply.

Use the following to answer questions Exhibit: Demand and Supply Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

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 for a normal good:

If the price of a commodity increases as the result of increased demand, you would expect the:

When economists study the behavior of buyers, they are studying:

Use the following to answer questions Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

A shortage results from a current price being below the equilibrium price.

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

A market surplus occurs if the:

A supply curve that is upward sloping means that:

A price below the equilibrium price will:

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

A surplus is a result of equilibrium price being below the current price.

Demand is defined as:

Use the following to answer questions Exhibit: Demand and Supply of Wheat -The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Use the following to answer questions Exhibit: Demand and Supply Shifters -The price of apples falls.What happens in the market for apple pies?

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 Schedules for a Good -(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be and units, respectively.

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 for a normal good: