Question 1

At a product's equilibrium price

Accepted Answer

A) the product's demand curve is the same as the product's supply curve. 
B) the quantity of the product demanded is greater than the quantity of the product supplied. 
C) the quantity of the product demanded is less than the quantity of the product supplied. 
D) the product's demand curve crosses the product's supply curve. 
A) the product's demand curve is the same as the product's supply curve. 
B) the quantity of the product demanded is greater than the quantity of the product supplied. 
C) the quantity of the product demanded is less than the quantity of the product supplied. 
D) the product's demand curve crosses the product's supply curve.

Question 2

Several studies have shown promising links between green tea consumption and cancer prevention.How does this affect the market for green tea?

Accepted Answer

A) The quantity of green tea demanded increases because of a change in tastes in favor of green tea. 
B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. 
C) The green tea demand curve shifts to the left because this new information will increase the price of green tea. 
D) The quantity of green tea demanded decreases because this new information will increase the price of green tea. 
A) The quantity of green tea demanded increases because of a change in tastes in favor of green tea. 
B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. 
C) The green tea demand curve shifts to the left because this new information will increase the price of green tea. 
D) The quantity of green tea demanded decreases because this new information will increase the price of green tea.

Question 3

Figure 3-1
  
-Refer to Figure 3-1.An increase in the price of the product would be represented by a movement from

Accepted Answer

A) A to B. 
B) B to A. 
C) D₁ to D₂. 
D) D₂ to D₁. 
A) A to B. 
B) B to A. 
C) D₁ to D₂. 
D) D₂ to D₁.

Question 4

Figure 3-2
  
-Refer to Figure 3-2.A technological advancement would be represented by a movement from

Accepted Answer

A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁. 
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Question 5

All else equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

Accepted Answer

A) shift the supply curve for iPhones to the right. 
B) shift the supply curve for iPhones to the left. 
C) shift the demand curve for iPhones to the right. 
D) shift the demand curve for iPhones to the left. 
A) shift the supply curve for iPhones to the right. 
B) shift the supply curve for iPhones to the left. 
C) shift the demand curve for iPhones to the right. 
D) shift the demand curve for iPhones to the left.

Question 6

Figure 3-7
  
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?

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

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal,

Accepted Answer

A) increase the demand for e-readers. 
B) decrease the demand for e-readers. 
C) increase the quantity demanded for e-readers. 
D) decrease the quantity demanded for e-readers. 
A) increase the demand for e-readers. 
B) decrease the demand for e-readers. 
C) increase the quantity demanded for e-readers. 
D) decrease the quantity demanded for e-readers.

Question 8

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

The phrase "demand has increased" means that

Accepted Answer

A) a demand curve has shifted to the left. 
B) there has been an upward movement along a demand curve. 
C) there has been a downward movement along a demand curve. 
D) a demand curve has shifted to the right. 
A) a demand curve has shifted to the left. 
B) there has been an upward movement along a demand curve. 
C) there has been a downward movement along a demand curve. 
D) a demand curve has shifted to the right.

Question 11

The income effect of a price change results in a

Accepted Answer

A) shift of the demand curve when income changes. 
B) movement along the demand curve due to a change in relative prices. 
C) shift of the demand curve due to a change in purchasing power brought about by the price change. 
D) movement along the demand curve due to a change in purchasing power brought about by the price change. 
A) shift of the demand curve when income changes. 
B) movement along the demand curve due to a change in relative prices. 
C) shift of the demand curve due to a change in purchasing power brought about by the price change. 
D) movement along the demand curve due to a change in purchasing power brought about by the price change.

Question 12

If an increase in income leads to a decrease in the demand for popcorn,then popcorn is

Accepted Answer

A) an inferior good. 
B) a neutral good. 
C) a necessity. 
D) a normal good. 
A) an inferior good. 
B) a neutral good. 
C) a necessity. 
D) a normal good.

Question 13

Figure 3-1
  
-Refer to Figure 3-1.An increase in taste or preference would be represented by a movement from

Accepted Answer

A) A to B. 
B) B to A. 
C) D₁ to D₂. 
D) D₂ to D₁. 
A) A to B. 
B) B to A. 
C) D₁ to D₂. 
D) D₂ to D₁.

Question 14

What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?

Accepted Answer

A) Demand will increase, but this will not shift the supply curve. 
B) Supply will increase, but this will not shift the demand curve. 
C) Demand and supply will both increase. 
D) Demand will increase and supply will decrease. 
A) Demand will increase, but this will not shift the supply curve. 
B) Supply will increase, but this will not shift the demand curve. 
C) Demand and supply will both increase. 
D) Demand will increase and supply will decrease.

Question 15

If consumers believe the price of tablet computers will increase in the future,this will cause the demand for tablet computers to decrease now.

Accepted Answer

A) True 
 B)False

Question 16

A decrease in the price of GPS systems will result in

Accepted Answer

A) a smaller quantity of GPS systems supplied. 
B) a larger quantity of GPS systems supplied. 
C) a decrease in the demand for GPS systems. 
D) an increase in the supply of GPS systems. 
A) a smaller quantity of GPS systems supplied. 
B) a larger quantity of GPS systems supplied. 
C) a decrease in the demand for GPS systems. 
D) an increase in the supply of GPS systems.

Question 17

Figure 3-2
  
-Refer to Figure 3-2.An increase in the expected future price of the product would be represented by a movement from

Accepted Answer

A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁. 
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Question 18

Figure 3-4
  
-Refer to Figure 3-4.At a price of $15,how many units will be sold?

Accepted Answer

A) 300 
B) 400 
C) 600 
D) 700 
A) 300 
B) 400 
C) 600 
D) 700

Question 19

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

Accepted Answer

A) a decrease in demand and an increase in supply 
B) an increase in supply 
C) an increase in supply and an increase in demand greater than the increase in supply 
D) a decrease in demand and a decrease in supply 
A) a decrease in demand and an increase in supply 
B) an increase in supply 
C) an increase in supply and an increase in demand greater than the increase in supply 
D) a decrease in demand and a decrease in supply

Question 20

How does the decreasing use of DVD players affect the market for prerecorded DVDs?

Accepted Answer

A) The demand curve for prerecorded DVDs shifts to the right. 
B) The quantity of prerecorded DVDs demanded decreases. 
C) The quantity of prerecorded DVDs demanded increases. 
D) The demand curve for prerecorded DVDs shifts to the left. 
A) The demand curve for prerecorded DVDs shifts to the right. 
B) The quantity of prerecorded DVDs demanded decreases. 
C) The quantity of prerecorded DVDs demanded increases. 
D) The demand curve for prerecorded DVDs shifts to the left.

At a product's equilibrium price

Several studies have shown promising links between green tea consumption and cancer prevention.How does this affect the market for green tea?

Figure 3-1 -Refer to Figure 3-1.An increase in the price of the product would be represented by a movement from

Figure 3-2 -Refer to Figure 3-2.A technological advancement would be represented by a movement from

All else equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal,

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

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

The phrase "demand has increased" means that

The income effect of a price change results in a

If an increase in income leads to a decrease in the demand for popcorn,then popcorn is

Figure 3-1 -Refer to Figure 3-1.An increase in taste or preference would be represented by a movement from

What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?

If consumers believe the price of tablet computers will increase in the future,this will cause the demand for tablet computers to decrease now.

A decrease in the price of GPS systems will result in

Figure 3-2 -Refer to Figure 3-2.An increase in the expected future price of the product would be represented by a movement from

Figure 3-4 -Refer to Figure 3-4.At a price of $15,how many units will be sold?

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

How does the decreasing use of DVD players affect the market for prerecorded DVDs?

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

At a product's equilibrium price

Several studies have shown promising links between green tea consumption and cancer prevention.How does this affect the market for green tea?

Figure 3-1 -Refer to Figure 3-1.An increase in the price of the product would be represented by a movement from

Figure 3-2 -Refer to Figure 3-2.A technological advancement would be represented by a movement from

All else equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal,

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

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

The phrase "demand has increased" means that

The income effect of a price change results in a

If an increase in income leads to a decrease in the demand for popcorn,then popcorn is

Figure 3-1 -Refer to Figure 3-1.An increase in taste or preference would be represented by a movement from

What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?

If consumers believe the price of tablet computers will increase in the future,this will cause the demand for tablet computers to decrease now.

A decrease in the price of GPS systems will result in

Figure 3-2 -Refer to Figure 3-2.An increase in the expected future price of the product would be represented by a movement from

Figure 3-4 -Refer to Figure 3-4.At a price of $15,how many units will be sold?

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

How does the decreasing use of DVD players affect the market for prerecorded DVDs?

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