Question 1

Which of the following lowers the equilibrium price of a canoe?

Accepted Answer

A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct. 
A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct.

Question 2

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

Accepted Answer

A)  the price of a substitute good 
B)  income 
C)  expectations 
D)  preferences 
E)  the price of a complement good 
A)  the price of a substitute good 
B)  income 
C)  expectations 
D)  preferences 
E)  the price of a complement good

Question 3

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks are a normal good.Draw a...

Question 4

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 5

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 6

An increase in the number of fast-food restaurants

Accepted Answer

A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
E)  increases both the demand and supply of fast-food meals. 
A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
E)  increases both the demand and supply of fast-food meals.

Question 7

-In the figure above,a price of $35 per dozen roses results in

Accepted Answer

A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on the price of roses. 
E)  an eventual rightward shift of the demand curve and/or leftward shift of the supply curve. 
A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on the price of roses. 
E)  an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.

Question 8

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

Accepted Answer

A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact. 
A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 9

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Accepted Answer

A)  an increase in the number of corn growers 
B)  an increase the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the fertilizer used to grow the corn 
D)  a belief among corn farmers that the price of a bushel of corn will be higher next month 
E)  an increase in income if corn is a normal good 
A)  an increase in the number of corn growers 
B)  an increase the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the fertilizer used to grow the corn 
D)  a belief among corn farmers that the price of a bushel of corn will be higher next month 
E)  an increase in income if corn is a normal good

Question 10

Market equilibrium occurs when

Accepted Answer

A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices. 
A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices.

Question 11

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

Accepted Answer

A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold 
A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold

Question 12

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Accepted Answer

A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct. 
A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct.

Question 13

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ________,and the equilibrium quantity of cream cheese ________.

Accepted Answer

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

Question 14

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Accepted Answer

A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift, nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift, but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward. 
A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift, nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift, but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward.

Question 15

Suppose that the price of bread rises.This rise could be the result of

Accepted Answer

A)  a decrease in the supply of bread. 
B)  an increase in the supply of bread. 
C)  a decrease in the demand for bread. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  a decrease in the supply of bread. 
B)  an increase in the supply of bread. 
C)  a decrease in the demand for bread. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 16

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

Accepted Answer

A)  an increase in the price of smart phones 
B)  a decrease in the price of smart phones 
C)  an increase in the price of land-line phone service, a substitute for smart phones 
D)  a decrease in the number of smart phone buyers 
E)  an increase in the supply of smart phones. 
A)  an increase in the price of smart phones 
B)  a decrease in the price of smart phones 
C)  an increase in the price of land-line phone service, a substitute for smart phones 
D)  a decrease in the number of smart phone buyers 
E)  an increase in the supply of smart phones.

Question 17

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Accepted Answer

A)  Your demand for cars will decrease. 
B)  The market supply of cars will increase. 
C)  Your demand for cars will increase. 
D)  The market supply of cars will decrease. 
E)  The demand and the supply for cars will decrease. 
A)  Your demand for cars will decrease. 
B)  The market supply of cars will increase. 
C)  Your demand for cars will increase. 
D)  The market supply of cars will decrease. 
E)  The demand and the supply for cars will decrease.

Question 18

Market demand curves are obtained by

Accepted Answer

A)  determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B)  observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C)  summing the quantities every consumer is willing to buy at each different price. 
D)  observing the behavior of an individual consumer in a market. 
E)  averaging the quantities every consumer is willing to buy at each different price. 
A)  determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B)  observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C)  summing the quantities every consumer is willing to buy at each different price. 
D)  observing the behavior of an individual consumer in a market. 
E)  averaging the quantities every consumer is willing to buy at each different price.

Question 19

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

Accepted Answer

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

Question 20

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

Accepted Answer

A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  There is neither a surplus nor a shortage, but the market is  NOT in equilibrium. 
A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  There is neither a surplus nor a shortage, but the market is  NOT in equilibrium.

Which of the following lowers the equilibrium price of a canoe?

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

An increase in the number of fast-food restaurants

-In the figure above,a price of $35 per dozen roses results in

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Market equilibrium occurs when

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ,and the equilibrium quantity of cream cheese .

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Suppose that the price of bread rises.This rise could be the result of

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Market demand curves are obtained by

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

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

Which of the following lowers the equilibrium price of a canoe?

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

An increase in the number of fast-food restaurants

-In the figure above,a price of $35 per dozen roses results in

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Market equilibrium occurs when

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ________,and the equilibrium quantity of cream cheese ________.

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Suppose that the price of bread rises.This rise could be the result of

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Market demand curves are obtained by

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

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

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ,and the equilibrium quantity of cream cheese .