Question 1

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

Accepted Answer

A)  the price of feather pillows decreases. 
B)  the demand curve for feather pillows shifts leftward. 
C)  the supply curve for feather pillows shifts leftward. 
D)  there is a downward movement along the demand curve for feather pillows. 
E)  the demand curve for feather pillows shifts rightward. 
A)  the price of feather pillows decreases. 
B)  the demand curve for feather pillows shifts leftward. 
C)  the supply curve for feather pillows shifts leftward. 
D)  there is a downward movement along the demand curve for feather pillows. 
E)  the demand curve for feather pillows shifts rightward.

Question 2

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C

Question 3

One reason the demand for laptop computers might increase is a

Accepted Answer

A)  fall in the price of a laptop computers. 
B)  fall in price of desktop computers. 
C)  change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D)  poor quality performance record for laptop computers. 
E)  decrease in income if laptops are a normal good. 
A)  fall in the price of a laptop computers. 
B)  fall in price of desktop computers. 
C)  change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D)  poor quality performance record for laptop computers. 
E)  decrease in income if laptops are a normal good.

Question 4

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases 
A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases

Question 5

What is the "quantity demanded"?

Accepted Answer

A)  the amount of a good people desire 
B)  the amount of a good people are able and willing to buy during a specific time period and at a given price 
C)  the amount of a good people are able and willing to buy at all possible prices 
D)  the maximum amount of a good that can be consumed during a specific time period 
E)  the minimum amount of a good that people are willing to buy during a specific time period and at a given price 
A)  the amount of a good people desire 
B)  the amount of a good people are able and willing to buy during a specific time period and at a given price 
C)  the amount of a good people are able and willing to buy at all possible prices 
D)  the maximum amount of a good that can be consumed during a specific time period 
E)  the minimum amount of a good that people are willing to buy during a specific time period and at a given price

Question 6

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service 
A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service

Question 7

Which of the following shifts the demand curve for movies leftward?

Accepted Answer

A)  a decrease in the price of NetFlix, a substitute for movies 
B)  a decrease in the price of movie tickets 
C)  an increase in the price of movie tickets 
D)  an increase in movie star salaries 
E)  an increase in incomes, assuming movies are a normal good 
A)  a decrease in the price of NetFlix, a substitute for movies 
B)  a decrease in the price of movie tickets 
C)  an increase in the price of movie tickets 
D)  an increase in movie star salaries 
E)  an increase in incomes, assuming movies are a normal good

Question 8

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases 
A)  rises; increases 
B)  rises; decreases 
C)  falls; increases 
D)  falls; decreases 
E)  does not change; decreases

Question 9

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ________,the equilibrium price will ________.

Accepted Answer

A)  rightward; decrease 
B)  leftward; decrease 
C)  rightward; increase 
D)  leftward; not change 
E)  rightward; not change 
A)  rightward; decrease 
B)  leftward; decrease 
C)  rightward; increase 
D)  leftward; not change 
E)  rightward; not change

Question 10

Consider the market for wheat.If there is an improvement in harvesting technology,

Accepted Answer

A)  the supply curve for wheat shifts rightward. 
B)  the demand curve for wheat shifts rightward. 
C)  there is a movement up along the demand curve. 
D)  the equilibrium price rises. 
E)  the demand curve for wheat shifts leftward. 
A)  the supply curve for wheat shifts rightward. 
B)  the demand curve for wheat shifts rightward. 
C)  there is a movement up along the demand curve. 
D)  the equilibrium price rises. 
E)  the demand curve for wheat shifts leftward.

Question 11

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

A)  will rise. 
B)  will fall. 
C)  will remain the same. 
D)  might rise, fall, or remain the same but more information is needed. 
E)  will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers. 
A)  will rise. 
B)  will fall. 
C)  will remain the same. 
D)  might rise, fall, or remain the same but more information is needed. 
E)  will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 12

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { cellular phone) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \
\hline 100 & 50 & 100 \
80 & 55 & 80 \
50 & 60 & 60 \
20 & 100 & 40 \
\hline
\end{array}$$
-Using the data in the table above,at the price of $80 a phone,

Accepted Answer

A)  a shortage of 25,000 cellular telephones occurs. 
B)  a surplus of 80,000 cellular telephones occurs. 
C)  a surplus of 25,000 cellular telephones occurs. 
D)  a shortage of 55,000 cellular telephones occurs. 
E)  the market is in equilibrium. 
A)  a shortage of 25,000 cellular telephones occurs. 
B)  a surplus of 80,000 cellular telephones occurs. 
C)  a surplus of 25,000 cellular telephones occurs. 
D)  a shortage of 55,000 cellular telephones occurs. 
E)  the market is in equilibrium.

Question 13

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Accepted Answer

A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease. 
A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease.

Question 14

Which of the following helps explain why the law of supply exists?

Accepted Answer

A)  Larger outputs result in lower costs of production. 
B)  The law of increasing opportunity cost 
C)  The costs of production remain constant throughout all levels of output. 
D)  Sellers realize that if the price increases, they make larger profits and do not need to change their production. 
E)  The law of demand 
A)  Larger outputs result in lower costs of production. 
B)  The law of increasing opportunity cost 
C)  The costs of production remain constant throughout all levels of output. 
D)  Sellers realize that if the price increases, they make larger profits and do not need to change their production. 
E)  The law of demand

Question 15

Ramen noodles are a staple food item for many college students.Ramen noodles are very inexpensive,easy to prepare,and can be combined easily with other foods.After students graduate,find employment,and earn a higher income,they decrease their Ramen noodle purchases significantly.In this case,Ramen noodles are

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a complement for higher income people. 
D)  a substitute good. 
E)  None of the above answers is correct. 
A)  a normal good. 
B)  an inferior good. 
C)  a complement for higher income people. 
D)  a substitute good. 
E)  None of the above answers is correct.

Question 16

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Accepted Answer

A)  demand for Dell computers increases. 
B)  demand for Apple computers increases. 
C)  demand for Apple computers decreases. 
D)  supply of Dell computers increases. 
E)  demand for Dell computers decreases. 
A)  demand for Dell computers increases. 
B)  demand for Apple computers increases. 
C)  demand for Apple computers decreases. 
D)  supply of Dell computers increases. 
E)  demand for Dell computers decreases.

Question 17

If the supply of solar panels increases,

Accepted Answer

A)  the price and quantity of solar panels increases. 
B)  the demand for solar panels increases. 
C)  the quantity demanded of solar panels decreases. 
D)  the price of solar panels decreases and the quantity increases. 
E)  None of the above. 
A)  the price and quantity of solar panels increases. 
B)  the demand for solar panels increases. 
C)  the quantity demanded of solar panels decreases. 
D)  the price of solar panels decreases and the quantity increases. 
E)  None of the above.

Question 18

If the price of tangerines increases,the price of oranges also rises because

Accepted Answer

A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good. 
A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good.

Question 19

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

Accepted Answer

A)  there is a movement along the supply curve of peanut butter. 
B)  the price of peanut butter rises. 
C)  the quantity of peanut butter increases. 
D)  there is a shift in the supply curve for jelly. 
E)  the demand curve for peanut butter does not shift; instead there is a movement along it. 
A)  there is a movement along the supply curve of peanut butter. 
B)  the price of peanut butter rises. 
C)  the quantity of peanut butter increases. 
D)  there is a shift in the supply curve for jelly. 
E)  the demand curve for peanut butter does not shift; instead there is a movement along it.

Question 20

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price,a

Accepted Answer

A)  shortage exists and the price falls to restore equilibrium. 
B)  shortage exists and the price rises to restore equilibrium. 
C)  surplus exists and the price falls to restore equilibrium. 
D)  surplus exists and the price rises to restore equilibrium. 
E)  surplus exists but nothing happens until either the demand or the supply changes. 
A)  shortage exists and the price falls to restore equilibrium. 
B)  shortage exists and the price rises to restore equilibrium. 
C)  surplus exists and the price falls to restore equilibrium. 
D)  surplus exists and the price rises to restore equilibrium. 
E)  surplus exists but nothing happens until either the demand or the supply changes.

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

One reason the demand for laptop computers might increase is a

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

What is the "quantity demanded"?

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Which of the following shifts the demand curve for movies leftward?

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ,the equilibrium price will .

Consider the market for wheat.If there is an improvement in harvesting technology,

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the table above,at the price of $80 a phone,

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Which of the following helps explain why the law of supply exists?

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

If the supply of solar panels increases,

If the price of tangerines increases,the price of oranges also rises because

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price,a

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

One reason the demand for laptop computers might increase is a

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

What is the "quantity demanded"?

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Which of the following shifts the demand curve for movies leftward?

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,and the equilibrium quantity ________.

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ________,the equilibrium price will ________.

Consider the market for wheat.If there is an improvement in harvesting technology,

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the table above,at the price of $80 a phone,

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Which of the following helps explain why the law of supply exists?

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

If the supply of solar panels increases,

If the price of tangerines increases,the price of oranges also rises because

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price,a

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ,the equilibrium price will .