Question 1

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

Accepted Answer

A)  a requirement that all students at universities have an iPod 
B)  a decrease in the price of iPods 
C)  a decrease in the price of Zunes, a substitute for iPods 
D)  an increase in the price of iPods 
E)  an increase in people's incomes 
A)  a requirement that all students at universities have an iPod 
B)  a decrease in the price of iPods 
C)  a decrease in the price of Zunes, a substitute for iPods 
D)  an increase in the price of iPods 
E)  an increase in people's incomes

Question 2

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

Accepted Answer

A)  an increase in the cost of hard drives 
B)  a decrease in the price of laptops 
C)  an increase in the number of laptop manufactures and sellers 
D)  an increase in the price of laptops 
E)  an increase in the productivity of the workers manufacturing laptops 
A)  an increase in the cost of hard drives 
B)  a decrease in the price of laptops 
C)  an increase in the number of laptop manufactures and sellers 
D)  an increase in the price of laptops 
E)  an increase in the productivity of the workers manufacturing laptops

Question 3

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

Accepted Answer

A)  Demand and supply increased by an equal amount. 
B)  Demand and supply decreased by an equal amount. 
C)  Demand increased and supply decreased by an equal amount. 
D)  Demand decreased and supply increased by an equal amount. 
E)  Demand increased by a larger magnitude than supply decreased. 
A)  Demand and supply increased by an equal amount. 
B)  Demand and supply decreased by an equal amount. 
C)  Demand increased and supply decreased by an equal amount. 
D)  Demand decreased and supply increased by an equal amount. 
E)  Demand increased by a larger magnitude than supply decreased.

Question 4

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Accepted Answer

A)  the equilibrium quantity definitely increases. 
B)  the equilibrium quantity definitely decreases. 
C)  the equilibrium quantity definitely remains the same. 
D)  More information is needed to determine the effect on the equilibrium quantity. 
E)  the equilibrium price definitely falls. 
A)  the equilibrium quantity definitely increases. 
B)  the equilibrium quantity definitely decreases. 
C)  the equilibrium quantity definitely remains the same. 
D)  More information is needed to determine the effect on the equilibrium quantity. 
E)  the equilibrium price definitely falls.

Question 5

The market demand curve for mousetraps is

Accepted Answer

A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 6

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

Accepted Answer

At a price of $8 there is a su

Question 7

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Accepted Answer

A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward 
E)  does not change; rightward 
A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward 
E)  does not change; rightward

Question 8

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 9

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 10

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change.

Question 11

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

Accepted Answer

A)  leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B)  leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C)  leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D)  leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E)  rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
A)  leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B)  leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C)  leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D)  leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E)  rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

Question 12

Which of the following is correct?
i.A surplus puts downward pressure on the price of a good.
ii.A shortage puts upward pressure on the price of a good.
iii.There is no surplus or shortage at equilibrium.

Accepted Answer

A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  i, ii, and iii 
E)  only iii 
A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  i, ii, and iii 
E)  only iii

Question 13

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand 
A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand

Question 14

-In the above figure,the shift in the supply curve from S to S₁ reflects

Accepted Answer

A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  None of the above answers is correct. 
A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  None of the above answers is correct.

Question 15

$\begin{array}{c}
\begin{array}{c}
\
\text { Price}\
\text { (dollars per manicure)}\
\hline10 \
15 \
20 \
25
\end{array}
\begin{array}{c}
\quad\quad\quad\quad\text {Quantity supplied}\
\quad\quad\quad\quad\text {(manicures per day)}\
\text {Nancy's Nails} & \text {Fancy Nails} \
\hline 5 & 10 \
10 & 16 \
14 & 20 \
16 & 23 
\end{array}
\end{array}$

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

Accepted Answer

None

Question 16

When demand increases and supply decreases by the same amount,the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

A)  decreases; rises 
B)  decreases; falls 
C)  decreases; does not change 
D)  decreases; might rise, fall, or not change 
E)  does not change; might rise, fall, or not change 
A)  decreases; rises 
B)  decreases; falls 
C)  decreases; does not change 
D)  decreases; might rise, fall, or not change 
E)  does not change; might rise, fall, or not change

Question 17

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Accepted Answer

A)  an increase in the cost of hard drives 
B)  an increase in the productivity of the workers manufacturing laptops 
C)  a decrease in the price of laptops 
D)  an increase in the price of laptops 
E)  a decrease in the number of laptop manufactures and sellers 
A)  an increase in the cost of hard drives 
B)  an increase in the productivity of the workers manufacturing laptops 
C)  a decrease in the price of laptops 
D)  an increase in the price of laptops 
E)  a decrease in the number of laptop manufactures and sellers

Question 18

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Accepted Answer

A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied. 
A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied.

Question 19

Which of the following will increase the supply of a product?

Accepted Answer

A)  an increase in the price of the product 
B)  an increase in the demand for the product 
C)  an increase in the number of sellers 
D)  a decrease in the demand for the product 
E)  an increase in the price of inputs 
A)  an increase in the price of the product 
B)  an increase in the demand for the product 
C)  an increase in the number of sellers 
D)  a decrease in the demand for the product 
E)  an increase in the price of inputs

Question 20

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

Accepted Answer

A)  a decrease in demand. 
B)  an increase in supply. 
C)  a decrease in supply. 
D)  an increase in demand. 
E)  None of the above is correct. 
A)  a decrease in demand. 
B)  an increase in supply. 
C)  a decrease in supply. 
D)  an increase in demand. 
E)  None of the above is correct.

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

The market demand curve for mousetraps is

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

Which of the following is correct? i.A surplus puts downward pressure on the price of a good. ii.A shortage puts upward pressure on the price of a good. iii.There is no surplus or shortage at equilibrium.

Which of the following definitely results in a product's equilibrium price rising?

-In the above figure,the shift in the supply curve from S to S₁ reflects

Price (dollars per manicure) 10 15 20 25 Quantity supplied (manicures per day) Nancy's Nails Fancy Nails 5 10 10 16 14 20 16 23 -The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

When demand increases and supply decreases by the same amount,the equilibrium quantity and the equilibrium price .

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Which of the following will increase the supply of a product?

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

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

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

The market demand curve for mousetraps is

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

Which of the following is correct? i.A surplus puts downward pressure on the price of a good. ii.A shortage puts upward pressure on the price of a good. iii.There is no surplus or shortage at equilibrium.

Which of the following definitely results in a product's equilibrium price rising?

-In the above figure,the shift in the supply curve from S to S₁ reflects

Price (dollars per manicure) 10 15 20 25 Quantity supplied (manicures per day) Nancy's Nails Fancy Nails 5 10 10 16 14 20 16 23 -The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

When demand increases and supply decreases by the same amount,the equilibrium quantity ________ and the equilibrium price ________.

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Which of the following will increase the supply of a product?

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

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

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

When demand increases and supply decreases by the same amount,the equilibrium quantity and the equilibrium price .