Question 1

Exhibit 3-8  
Refer to Exhibit 3-8. A surplus exists at any price above

Accepted Answer

A) $2.00. 
B) $4.50. 
C) $4.00. 
D) $3.50. 
E) $3.00. 
A) $2.00. 
B) $4.50. 
C) $4.00. 
D) $3.50. 
E) $3.00. E

Question 2

Good X is a normal good. If the average income of those who buy good X rises, the _____________ curve for good X will shift ____________ resulting in a(n)_____________ in the equilibrium price of X and a(n)____________ in the equilibrium quantity of X.

Accepted Answer

A) supply; rightward; decrease; increase. 
B) demand; leftward; decrease; decrease 
C) demand; rightward; increase; increase 
D) supply; leftward; increase; decrease 
E) supply; leftward; increase; increase 
A) supply; rightward; decrease; increase. 
B) demand; leftward; decrease; decrease 
C) demand; rightward; increase; increase 
D) supply; leftward; increase; decrease 
E) supply; leftward; increase; increase C

Question 3

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

Accepted Answer

A) If the price of labor falls, the supply of goods rises, and the prices of those goods fall. 
B) If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall. 
C) If the price of labor falls, the demand for goods falls, and the prices of those goods fall. 
D) If the price of labor falls, the demand for goods rises, and the prices of those goods fall. 
E) If the price of labor falls, the supply of goods falls, and the prices of those goods fall. 
A) If the price of labor falls, the supply of goods rises, and the prices of those goods fall. 
B) If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall. 
C) If the price of labor falls, the demand for goods falls, and the prices of those goods fall. 
D) If the price of labor falls, the demand for goods rises, and the prices of those goods fall. 
E) If the price of labor falls, the supply of goods falls, and the prices of those goods fall. A

Question 4

Exhibit 3-1  
Refer to Exhibit 3-1. At a price of $2 there is a

Accepted Answer

A) shortage of 100 units. 
B) shortage of 200 units. 
C) shortage of 150 units. 
D) surplus of 200 units.. 
E) surplus of 150 units. 
A) shortage of 100 units. 
B) shortage of 200 units. 
C) shortage of 150 units. 
D) surplus of 200 units.. 
E) surplus of 150 units.

Question 5

Exhibit 3-14   Refer to Exhibit 3-14.  At a price of $11, there is a ____________ of  ____________ units of good X.

Accepted Answer

A) shortage; 290 
B) shortage; 215 
C) surplus; 40 
D) surplus; 290 
E) shortage; 230 
A) shortage; 290 
B) shortage; 215 
C) surplus; 40 
D) surplus; 290 
E) shortage; 230

Question 6

The law of supply states that price and quantity supplied are

Accepted Answer

A) inversely related, ceteris paribus . 
B) directly related, ceteris paribus . 
C) not related. 
D) fixed. 
A) inversely related, ceteris paribus . 
B) directly related, ceteris paribus . 
C) not related. 
D) fixed.

Question 7

A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:

Accepted Answer

A) increase both the demand and the supply. 
B) decrease both the demand and the supply. 
C) increase the demand, but decrease the supply. 
D) increase the supply, but decrease the demand. 
A) increase both the demand and the supply. 
B) decrease both the demand and the supply. 
C) increase the demand, but decrease the supply. 
D) increase the supply, but decrease the demand.

Question 8

Exhibit 3-6  
Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D1 to D2,then good X is

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complementary good. 
E) a neutral good. 
A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complementary good. 
E) a neutral good.

Question 9

One can determine the consumers' surplus if the _______________ are known.

Accepted Answer

A) tax paid 
B) maximum buying price 
C) price paid 
D) maximum buying price and price paid 
E) maximum buying price and tax paid 
A) tax paid 
B) maximum buying price 
C) price paid 
D) maximum buying price and price paid 
E) maximum buying price and tax paid

Question 10

If Max's demand for hot dogs falls as his income rises, then for Max hot dogs are

Accepted Answer

A) a bad good. 
B) an inferior good. 
C) a preferential good. 
D) a normal good. 
E) a neutral good. 
A) a bad good. 
B) an inferior good. 
C) a preferential good. 
D) a normal good. 
E) a neutral good.

Question 11

If the demand for computer software rises as incomes rise, then computer software is a (an)

Accepted Answer

A) inferior good 
B) substitute (good)for computers 
C) normal good 
D) complement (good)for computers 
A) inferior good 
B) substitute (good)for computers 
C) normal good 
D) complement (good)for computers

Question 12

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Accepted Answer

One reason that price and quantity deman

Question 13

Which of the following statements is true?

Accepted Answer

A) To an economist, demand is a synonym for  quantity demanded . 
B) A demand schedule is the numerical tabulation of the law of demand. 
C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. 
D) A demand curve is the graphical representation of the direct relationship between price and quantity supplied. 
A) To an economist, demand is a synonym for  quantity demanded . 
B) A demand schedule is the numerical tabulation of the law of demand. 
C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. 
D) A demand curve is the graphical representation of the direct relationship between price and quantity supplied.

Question 14

Exhibit 3-13 -----------------------------Quantity Demanded-------------------------------------
  Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market.
Refer to Exhibit 3-13.  Fill in blanks (C)and (D)respectively with the market quantity demanded at each given price.

Accepted Answer

A) 15.43; 10.88 
B) 74; 62 
C) 75; 64 
D) 108; 87 
A) 15.43; 10.88 
B) 74; 62 
C) 75; 64 
D) 108; 87

Question 15

Exhibit 3-2
 
                 Good X
​
​
Refer to Exhibit 3-2. Which of the following would result in a movement from point A on D1 to point B on D2?

Accepted Answer

A) an increase in a per-unit tax on good X 
B) an increase in income of the buyers of good X, assuming good X is an inferior good 
C) a decline in technology in the production of good X 
D) an increase in income of the buyers of good X, assuming good X is a normal good 
A) an increase in a per-unit tax on good X 
B) an increase in income of the buyers of good X, assuming good X is an inferior good 
C) a decline in technology in the production of good X 
D) an increase in income of the buyers of good X, assuming good X is a normal good

Question 16

One point on a market supply curve represents $4 and 100 units quantity supplied. If there are three suppliers, and at a price of $4 one of the suppliers supplies 23 units, then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

Accepted Answer

A) At $4, quantity supplied could be 40 units for one supplier and 27 for the other. 
B) At $4, quantity supplied could be 33 units for one supplier and 27 for the other. 
C) At $4, quantity supplied could be 40 units for one supplier and 37 for the other. 
D) At $4, quantity supplied could be 77 units for one supplier and 10 for the other. 
E) There is not enough information to answer this question. 
A) At $4, quantity supplied could be 40 units for one supplier and 27 for the other. 
B) At $4, quantity supplied could be 33 units for one supplier and 27 for the other. 
C) At $4, quantity supplied could be 40 units for one supplier and 37 for the other. 
D) At $4, quantity supplied could be 77 units for one supplier and 10 for the other. 
E) There is not enough information to answer this question.

Question 17

Demand refers to

Accepted Answer

A) how much of a good people are willing and able to buy at a particular price. 
B) the different quantities of a good people are willing and able to buy at different prices. 
C) the different quantities of a good people are willing and able to buy at a particular price. 
D) how much of a good people are willing to buy at different prices. 
A) how much of a good people are willing and able to buy at a particular price. 
B) the different quantities of a good people are willing and able to buy at different prices. 
C) the different quantities of a good people are willing and able to buy at a particular price. 
D) how much of a good people are willing to buy at different prices.

Question 18

If the maximum price a person is willing and able to pay for a good is $50, and consumers' surplus is $20, then it follows that the price the buyer paid for the good is

Accepted Answer

A) $20 
B) $70 
C) $50 
D) $30 
A) $20 
B) $70 
C) $50 
D) $30

Question 19

An "increase in demand" means that

Accepted Answer

A) the demand curve has shifted to the left. 
B) price has declined and consumers want to purchase more of the good. 
C) the demand curve has shifted to the right. 
D) the price of the good can be expected to decline, assuming supply stays constant. 
A) the demand curve has shifted to the left. 
B) price has declined and consumers want to purchase more of the good. 
C) the demand curve has shifted to the right. 
D) the price of the good can be expected to decline, assuming supply stays constant.

Question 20

If the U.S. government imposes a more restrictive import quota on Japanese video gaming systems, the ____________ curve for Japanese video gaming systems in the U.S. will shift ___________.

Accepted Answer

A) supply; leftward 
B) supply; rightward 
C) demand; leftward 
D) demand; rightward 
A) supply; leftward 
B) supply; rightward 
C) demand; leftward 
D) demand; rightward

Exam 3: Supply and Demand: Theory

Exhibit 3-8 Refer to Exhibit 3-8. A surplus exists at any price above

Good X is a normal good. If the average income of those who buy good X rises, the _____________ curve for good X will shift ____________ resulting in a(n)_____________ in the equilibrium price of X and a(n)____________ in the equilibrium quantity of X.

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

Exhibit 3-1 Refer to Exhibit 3-1. At a price of $2 there is a

Exhibit 3-14 Refer to Exhibit 3-14. At a price of $11, there is a ____________ of ____________ units of good X.

The law of supply states that price and quantity supplied are

A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:

Exhibit 3-6 Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D1 to D2,then good X is

One can determine the consumers' surplus if the _______________ are known.

If Max's demand for hot dogs falls as his income rises, then for Max hot dogs are

If the demand for computer software rises as incomes rise, then computer software is a (an)

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Which of the following statements is true?

Exhibit 3-13 -----------------------------Quantity Demanded------------------------------------- Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market. Refer to Exhibit 3-13. Fill in blanks (C)and (D)respectively with the market quantity demanded at each given price.

Exhibit 3-2 Good X ​ ​ Refer to Exhibit 3-2. Which of the following would result in a movement from point A on D1 to point B on D2?

One point on a market supply curve represents $4 and 100 units quantity supplied. If there are three suppliers, and at a price of $4 one of the suppliers supplies 23 units, then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

Demand refers to

If the maximum price a person is willing and able to pay for a good is $50, and consumers' surplus is $20, then it follows that the price the buyer paid for the good is

An "increase in demand" means that

If the U.S. government imposes a more restrictive import quota on Japanese video gaming systems, the ____________ curve for Japanese video gaming systems in the U.S. will shift ___________.

What Economics Is About

Production Possibilities Frontier Framework

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters

Good X is a normal good. If the average income of those who buy good X rises, the _______ curve for good X will shift resulting in a(n)_ in the equilibrium price of X and a(n)______ in the equilibrium quantity of X.

Exhibit 3-14 Refer to Exhibit 3-14. At a price of $11, there is a of units of good X.

Exhibit 3-6 Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D₁ to D₂,then good X is

Exhibit 3-2 Good X Refer to Exhibit 3-2. Which of the following would result in a movement from point A on D₁ to point B on D₂?

If the U.S. government imposes a more restrictive import quota on Japanese video gaming systems, the __ curve for Japanese video gaming systems in the U.S. will shift _.