Question 1

The quantity supplied of a good or service is the

Accepted Answer

A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price. 
A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price.

Question 2

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Accepted Answer

A)  there is a surplus and the price of t-shirts will rise. 
B)  there is a shortage and the price of t-shirts will rise. 
C)  there is a shortage and the price of t-shirts will fall. 
D)  there is a surplus and the price of t-shirts will fall. 
E)  the market is in equilibrium. 
A)  there is a surplus and the price of t-shirts will rise. 
B)  there is a shortage and the price of t-shirts will rise. 
C)  there is a shortage and the price of t-shirts will fall. 
D)  there is a surplus and the price of t-shirts will fall. 
E)  the market is in equilibrium.

Question 3

Which of the following increases the demand for a good?

Accepted Answer

A)  a rise in the price of a complement 
B)  the expectation that future income will be higher 
C)  an increase in income, assuming the good is an inferior good 
D)  a decrease in the number of buyers 
E)  a fall in the price of a substitute 
A)  a rise in the price of a complement 
B)  the expectation that future income will be higher 
C)  an increase in income, assuming the good is an inferior good 
D)  a decrease in the number of buyers 
E)  a fall in the price of a substitute

Question 4

The law of demand refers to how

Accepted Answer

A)  demand changes when people's incomes change. 
B)  demand changes when the prices of substitutes and complements change. 
C)  the quantity demanded changes when the price of the good changes. 
D)  the price of the good changes when people's demand for the good changes. 
E)  the quantity demanded changes when the demand for the good changes. 
A)  demand changes when people's incomes change. 
B)  demand changes when the prices of substitutes and complements change. 
C)  the quantity demanded changes when the price of the good changes. 
D)  the price of the good changes when people's demand for the good changes. 
E)  the quantity demanded changes when the demand for the good changes.

Question 5

-In the above figure,________ will shift in the demand curve from D to D₁.

Accepted Answer

A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza 
A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza

Question 6

If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.

Accepted Answer

A)  less than; rise 
B)  less than; fall 
C)  greater than; rise 
D)  greater than; fall 
E)  equal to; fall 
A)  less than; rise 
B)  less than; fall 
C)  greater than; rise 
D)  greater than; fall 
E)  equal to; fall

Question 7

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A only 
B)  Figure B only 
C)  Figure C only 
D)  Figure D only 
E)  Both Figure A and Figure D 
A)  Figure A only 
B)  Figure B only 
C)  Figure C only 
D)  Figure D only 
E)  Both Figure A and Figure D

Question 8

When demand increases,

Accepted Answer

A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward. 
A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward.

Question 9

The supply schedule

Accepted Answer

A)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B)  is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C)  shows one quantity at one price. 
D)  is the schedule that suppliers have to keep or else they will be late. 
E)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change. 
A)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B)  is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C)  shows one quantity at one price. 
D)  is the schedule that suppliers have to keep or else they will be late. 
E)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change.

Question 10

EBay

Accepted Answer

A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time. 
A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time.

Question 11

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters 
A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters

Question 12

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 13

$$\begin{array} { c c c c } 
\text { Price } & & \underline{\text { Quantity supplied }} \
 \text { (dollars per half gallon) } & \text { Ben \& Jerry's } & \text { Haagen Dazs } & \text { Edy's } \
\hline 6 & 18 & 30 & 10 \
5 & 14 & 25 & 8 \
4 & 10 & 20 & 6 \
\hline
\end{array}$$
-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Accepted Answer

Yes,the information in the tab

Question 14

An increase in the number of pineapple growers results in

Accepted Answer

A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct. 
A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct.

Question 15

Advances in productivity increase supply because they might

Accepted Answer

A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good. 
A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good.

Question 16

The law of supply states that,other things remaining the same,

Accepted Answer

A)  demand increases when supply increases. 
B)  if the price of a good increases, firms buy less of it. 
C)  if the price of a good increases, the quantity supplied increases. 
D)  as people's income increase, the supply of goods increases. 
E)  if the price of a good increases, the supply increases. 
A)  demand increases when supply increases. 
B)  if the price of a good increases, firms buy less of it. 
C)  if the price of a good increases, the quantity supplied increases. 
D)  as people's income increase, the supply of goods increases. 
E)  if the price of a good increases, the supply increases.

Question 17

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars } \
\text { per stapler) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} \
\hline 8 & 10 & 90 \
7 & 40 & 80 \
6 & 70 & 70 \
5 & 100 & 60 \
\hline
\end{array}$$
-Using the data in the table above,if the price of a stapler is $5,then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals 
A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals

Question 18

Which of the following indicates that the law of supply applies to makers of soda?

Accepted Answer

A)  An increase in the price of a soda leads to an increase in the demand for soda. 
B)  An increase in the price of a soda leads to an increase in the supply of soda. 
C)  An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D)  A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E)  A decrease in the price of a soda leads to an increase in the supply of soda. 
A)  An increase in the price of a soda leads to an increase in the demand for soda. 
B)  An increase in the price of a soda leads to an increase in the supply of soda. 
C)  An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D)  A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E)  A decrease in the price of a soda leads to an increase in the supply of soda.

Question 19

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

Accepted Answer

A)  Both equilibrium price and quantity increase. 
B)  Equilibrium price increases. 
C)  Equilibrium price decreases. 
D)  Equilibrium quantity increases. 
E)  Equilibrium quantity decreases. 
A)  Both equilibrium price and quantity increase. 
B)  Equilibrium price increases. 
C)  Equilibrium price decreases. 
D)  Equilibrium quantity increases. 
E)  Equilibrium quantity decreases.

Question 20

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

The quantity supplied of a good or service is the

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Which of the following increases the demand for a good?

The law of demand refers to how

-In the above figure,________ will shift in the demand curve from D to D₁.

If there is a surplus of a good,the quantity demanded is the quantity supplied,and the price will .

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

When demand increases,

The supply schedule

EBay

Which of the following results in a movement upward along the supply curve for movies in theaters?

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

An increase in the number of pineapple growers results in

Advances in productivity increase supply because they might

The law of supply states that,other things remaining the same,

Which of the following indicates that the law of supply applies to makers of soda?

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

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 quantity supplied of a good or service is the

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Which of the following increases the demand for a good?

The law of demand refers to how

-In the above figure,________ will shift in the demand curve from D to D₁.

If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

When demand increases,

The supply schedule

EBay

Which of the following results in a movement upward along the supply curve for movies in theaters?

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

An increase in the number of pineapple growers results in

Advances in productivity increase supply because they might

The law of supply states that,other things remaining the same,

Which of the following indicates that the law of supply applies to makers of soda?

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

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

If there is a surplus of a good,the quantity demanded is the quantity supplied,and the price will .