Question 1

Figure 3-4
  
-Refer to Figure 3-4.At a price of $25,how many units will be supplied?

Accepted Answer

A) 400 
B) 500 
C) 600 
D) 800 
A) 400 
B) 500 
C) 600 
D) 800

Question 2

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall.Holding everything else constant,how would this affect the market for pork (a substitute for chicken)?

Accepted Answer

A) The supply of pork would increase and the equilibrium price of pork would decrease. 
B) The demand for pork would decrease and the equilibrium price of pork would decrease. 
C) The demand for pork would increase because consumers could afford to buy more chicken and pork. 
D) The demand for pork would decrease and the equilibrium price of pork would increase. 
A) The supply of pork would increase and the equilibrium price of pork would decrease. 
B) The demand for pork would decrease and the equilibrium price of pork would decrease. 
C) The demand for pork would increase because consumers could afford to buy more chicken and pork. 
D) The demand for pork would decrease and the equilibrium price of pork would increase.

Question 3

What are the five variables that will shift the demand curve?

Accepted Answer

1.Income
2.Price of

Question 4

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

Accepted Answer

A) the cost of producing the good changes. 
B) supplier expectations about future prices change. 
C) the price of the good changes 
D) prices of substitutes in production change. 
A) the cost of producing the good changes. 
B) supplier expectations about future prices change. 
C) the price of the good changes 
D) prices of substitutes in production change.

Question 5

What is the difference between a market equilibrium and a competitive market equilibrium?

Accepted Answer

A market equilibrium is a situ

Question 6

Figure 3-7
  
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for Blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of Blu-ray players?

Accepted Answer

A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d) 
A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d)

Question 7

An increase in the equilibrium price for a product will result

Accepted Answer

A) when the quantity demanded for the product exceeds the quantity supplied. 
B) when there is a decrease in supply and an increase in demand for the product. 
C) when there is a decrease in supply and a decrease in demand for the product. 
D) when there is an increase in demand and an increase in the number of firms producing the product. 
A) when the quantity demanded for the product exceeds the quantity supplied. 
B) when there is a decrease in supply and an increase in demand for the product. 
C) when there is a decrease in supply and a decrease in demand for the product. 
D) when there is an increase in demand and an increase in the number of firms producing the product.

Question 8

In most countries in South America,the legal driving age is 18.If the legal driving age in the United States was raised from 16 to 18,how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?

Accepted Answer

The demand for new and used au

Question 9

Holding everything else constant,an increase in the price of MP3 players will result in

Accepted Answer

A) a decrease in the quantity of MP3 players supplied. 
B) a decrease in the demand for MP3 players. 
C) an increase in the supply of MP3 players. 
D) a decrease in the quantity of MP3 players demanded. 
A) a decrease in the quantity of MP3 players supplied. 
B) a decrease in the demand for MP3 players. 
C) an increase in the supply of MP3 players. 
D) a decrease in the quantity of MP3 players demanded.

Question 10

Table 3-3
 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Kona Coffee } \
\text { Priceper lb. } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Luke's } \
\text { Quantity } \
\text { Demanded } \
\text { (lb.) }
\end{array} & \begin{array} { c } 
\text { Ravi's } \
\text { Quantity } \
\text { Demanded } \
\text { (lb.) }
\end{array} & \begin{array} { c } 
\text { Rest of } \
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (lb.) }
\end{array} & \begin{array} { c } 
\text { Market } \
\text { Quantity } \
\text { Demanded } \
\text { (lb.) }
\end{array} \
\hline \$ 10 & 3 & 0 & 23 & \
\hline 8 & 9 & 3 & 32 & \
\hline 6 & 14 & 7 & 68 & \
\hline 5 & 18 & 12 & 85 & \
\hline 4 & 22 & 18 & 110 & \
\hline
\end{array}$$
-Refer to Table 3-3.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.At a price of $6,the quantity demanded in the market would be

Accepted Answer

A) 36 lb. 
B) 68 lb. 
C) 89 lb. 
D) 123 lb. 
A) 36 lb. 
B) 68 lb. 
C) 89 lb. 
D) 123 lb.

Question 11

Figure 3-5
  
-Refer to Figure 3-5.At a price of $5,the quantity sold

Accepted Answer

A) is 2 units. 
B) is 4 units. 
C) is 6 units. 
D) cannot be determined. 
A) is 2 units. 
B) is 4 units. 
C) is 6 units. 
D) cannot be determined.

Question 12

Explain the difference between substitutes and complements.

Accepted Answer

Substitutes are goods and serv

Question 13

Which of the following is evidence of a shortage of walnuts?

Accepted Answer

A) Firms lower the price of walnuts. 
B) The price of cashews is lowered in order to make up for the walnut shortage. 
C) The equilibrium price of walnuts falls due to a decrease in demand. 
D) The quantity demanded of walnuts is greater than the quantity supplied. 
A) Firms lower the price of walnuts. 
B) The price of cashews is lowered in order to make up for the walnut shortage. 
C) The equilibrium price of walnuts falls due to a decrease in demand. 
D) The quantity demanded of walnuts is greater than the quantity supplied.

Question 14

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

Accepted Answer

A) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
B) the supply curve shifted to the left resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the right resulting in an increase in the equilibrium price. 
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
A) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
B) the supply curve shifted to the left resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the right resulting in an increase in the equilibrium price. 
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.

Question 15

If the price of smartphones was to increase,then

Accepted Answer

A) the demand for smartphone apps would decrease. 
B) the demand for smartphone apps would increase. 
C) the quantity of smartphone apps demanded would increase. 
D) the quantity of smartphone apps demanded would decrease. 
A) the demand for smartphone apps would decrease. 
B) the demand for smartphone apps would increase. 
C) the quantity of smartphone apps demanded would increase. 
D) the quantity of smartphone apps demanded would decrease.

Question 16

Farmers can raise either goats or ostriches on their land.Which of the following would cause the supply of goats to decrease?

Accepted Answer

A) an increase in the price of ostriches 
B) a decrease in the price of goats 
C) an increase in the demand for goats 
D) an increase in the price of ostrich feed 
A) an increase in the price of ostriches 
B) a decrease in the price of goats 
C) an increase in the demand for goats 
D) an increase in the price of ostrich feed

Question 17

Figure 3-4
  
-Refer to Figure 3-4.At a price of $20,how many units will be sold?

Accepted Answer

A) 400 
B) 500 
C) 600 
D) 800 
A) 400 
B) 500 
C) 600 
D) 800

Question 18

Figure 3-3
  
-Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

Accepted Answer

A) Graph B represents the market for original Michelangelo sculptures and Graph A represents the market for Ray Ban sunglasses. 
B) Graph A represents the market for original Michelangelo sculptures and Graph B represents the market for Ray Ban sunglasses. 
C) Graph A represents both the market for original Michelangelo sculptures and Ray Ban sunglasses. 
D) Graph B represents both the market for original Michelangelo sculptures and Ray Ban sunglasses. 
A) Graph B represents the market for original Michelangelo sculptures and Graph A represents the market for Ray Ban sunglasses. 
B) Graph A represents the market for original Michelangelo sculptures and Graph B represents the market for Ray Ban sunglasses. 
C) Graph A represents both the market for original Michelangelo sculptures and Ray Ban sunglasses. 
D) Graph B represents both the market for original Michelangelo sculptures and Ray Ban sunglasses.

Question 19

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Accepted Answer

A) True 
 B)False

Question 20

Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A) increasing; increasing or decreasing 
B) decreasing; increasing or decreasing 
C) increasing or decreasing; increasing 
D) increasing or decreasing; decreasing 
A) increasing; increasing or decreasing 
B) decreasing; increasing or decreasing 
C) increasing or decreasing; increasing 
D) increasing or decreasing; decreasing

Figure 3-4 -Refer to Figure 3-4.At a price of $25,how many units will be supplied?

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall.Holding everything else constant,how would this affect the market for pork (a substitute for chicken)?

What are the five variables that will shift the demand curve?

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

What is the difference between a market equilibrium and a competitive market equilibrium?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for Blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of Blu-ray players?

An increase in the equilibrium price for a product will result

In most countries in South America,the legal driving age is 18.If the legal driving age in the United States was raised from 16 to 18,how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?

Holding everything else constant,an increase in the price of MP3 players will result in

Figure 3-5 -Refer to Figure 3-5.At a price of $5,the quantity sold

Explain the difference between substitutes and complements.

Which of the following is evidence of a shortage of walnuts?

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

If the price of smartphones was to increase,then

Farmers can raise either goats or ostriches on their land.Which of the following would cause the supply of goats to decrease?

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be sold?

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise.In the market for beef,this would be represented by the equilibrium price and the equilibrium quantity .

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 3: Where Prices Come From: the Interaction of Demand and Supply

Figure 3-4 -Refer to Figure 3-4.At a price of $25,how many units will be supplied?

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall.Holding everything else constant,how would this affect the market for pork (a substitute for chicken)?

What are the five variables that will shift the demand curve?

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

What is the difference between a market equilibrium and a competitive market equilibrium?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for Blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of Blu-ray players?

An increase in the equilibrium price for a product will result

In most countries in South America,the legal driving age is 18.If the legal driving age in the United States was raised from 16 to 18,how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?

Holding everything else constant,an increase in the price of MP3 players will result in

Figure 3-5 -Refer to Figure 3-5.At a price of $5,the quantity sold

Explain the difference between substitutes and complements.

Which of the following is evidence of a shortage of walnuts?

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

If the price of smartphones was to increase,then

Farmers can raise either goats or ostriches on their land.Which of the following would cause the supply of goats to decrease?

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be sold?

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise.In the market for beef,this would be represented by the equilibrium price and the equilibrium quantity .