Question 1

If the population increases and input prices increase,the equilibrium price of a product will definitely increase.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the correct and incorrect economic analysis in the following statements.
"If a disease kills a large number of turkeys,the supply of turkeys will decrease.This will result in a price increase,which will then cause the supply of turkeys to increase."

Accepted Answer

The supply of turkeys will dec

Question 3

Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?

Accepted Answer

No,a change in the price of in-line skat

Question 4

An increase in the demand for peanuts due to changes in consumer tastes,accompanied by an increase in the supply of peanuts as a result of favorable growing conditions,will result in

Accepted Answer

A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price. 
B) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. 
C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. 
D) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease. 
A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price. 
B) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. 
C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. 
D) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease.

Question 5

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

Accepted Answer

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

Question 6

In April,market analysts predict that the price of titanium will fall in May.What happens in the titanium market in April,holding everything else constant?

Accepted Answer

A) The supply curve shifts to the right. 
B) The supply curve shifts to the left. 
C) The quantity demanded and the quantity supplied of titanium increase. 
D) The demand curve shifts to the right. 
A) The supply curve shifts to the right. 
B) The supply curve shifts to the left. 
C) The quantity demanded and the quantity supplied of titanium increase. 
D) The demand curve shifts to the right.

Question 7

Suppose that when the price of pickles decreases,Teddy increases his purchase of ketchup.To Teddy

Accepted Answer

A) pickles and ketchup are complements. 
B) pickles and ketchup and substitutes. 
C) pickles and ketchup are normal goods. 
D) pickles are a normal good and ketchup is an inferior good. 
A) pickles and ketchup are complements. 
B) pickles and ketchup and substitutes. 
C) pickles and ketchup are normal goods. 
D) pickles are a normal good and ketchup is an inferior good.

Question 8

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

Accepted Answer

A) the quantity demanded exceeds the quantity supplied.The market will then be in equilibrium. 
B) quantity demanded equals quantity supplied.The equilibrium price will then be lower than the market price. 
C) all consumers will be able to afford the product. 
D) quantity demanded equals quantity supplied.The market price will then equal the equilibrium price. 
A) the quantity demanded exceeds the quantity supplied.The market will then be in equilibrium. 
B) quantity demanded equals quantity supplied.The equilibrium price will then be lower than the market price. 
C) all consumers will be able to afford the product. 
D) quantity demanded equals quantity supplied.The market price will then equal the equilibrium price.

Question 9

A positive technological change will cause the quantity supplied of a good to increase.

Accepted Answer

A) True 
 B)False

Question 10

Figure 3-6
  
-Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the market price is $21.Which of the following statement is true?

Accepted Answer

A) There is a shortage that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25. 
B) There is a shortage that will cause the price to increase; quantity supplied will then decrease and quantity demanded will increase until the price equals $25. 
C) There will be a shortage that will cause the price to increase; demand will then decrease and supply will increase until the price equals $25. 
D) There is a shortage that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25. 
A) There is a shortage that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25. 
B) There is a shortage that will cause the price to increase; quantity supplied will then decrease and quantity demanded will increase until the price equals $25. 
C) There will be a shortage that will cause the price to increase; demand will then decrease and supply will increase until the price equals $25. 
D) There is a shortage that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25.

Question 11

How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores?

Accepted Answer

A) the demand curve for clothing at retail department stores shifts to the right. 
B) the demand curve for clothing at retail department stores shifts to the left. 
C) the supply curve for clothing at retail department stores shifts to the right. 
D) the supply curve for clothing at retail department stores shifts to the left. 
A) the demand curve for clothing at retail department stores shifts to the right. 
B) the demand curve for clothing at retail department stores shifts to the left. 
C) the supply curve for clothing at retail department stores shifts to the right. 
D) the supply curve for clothing at retail department stores shifts to the left.

Question 12

If the price of prime rib falls,the income effect due to the price change will cause

Accepted Answer

A) an increase in the demand for prime rib. 
B) an increase in the demand for flank steak, a substitute for prime rib. 
C) an increase in the quantity demanded of prime rib. 
D) an increase in the quantity supplied of prime rib. 
A) an increase in the demand for prime rib. 
B) an increase in the demand for flank steak, a substitute for prime rib. 
C) an increase in the quantity demanded of prime rib. 
D) an increase in the quantity supplied of prime rib.

Question 13

How does the increasing use of digital cameras affect the market for traditional camera film?

Accepted Answer

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

Question 14

Figure 3-8
  
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) Which of the following changes would cause the equilibrium to change to point B?

Accepted Answer

A) A positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance, a complement to motorcycles. 
B) An increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance, a complement to motorcycles. 
C) An increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles. 
D) An increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance, a complement to motorcycles. 
A) A positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance, a complement to motorcycles. 
B) An increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance, a complement to motorcycles. 
C) An increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles. 
D) An increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance, a complement to motorcycles.

Question 15

Which of the following will not shift the demand curve for a good?

Accepted Answer

A) an increase in population 
B) an increase in the price of the good 
C) a decrease in the price of a substitute good 
D) an increase in consumer incomes 
A) an increase in population 
B) an increase in the price of the good 
C) a decrease in the price of a substitute good 
D) an increase in consumer incomes

Question 16

If the demand for a product decreases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

Accepted Answer

A) True 
 B)False

Question 17

Figure 3-4
  
-Refer to Figure 3-4.At a price of $25,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

A supply curve

Accepted Answer

A) is a table that shows the relationship between the price of a product and the quantity of the product supplied. 
B) is a curve that shows the relationship between the price of a product and the quantity of the product supplied. 
C) is the relationship between the supply of a good and the cost of producing the good. 
D) is a curve that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange. 
A) is a table that shows the relationship between the price of a product and the quantity of the product supplied. 
B) is a curve that shows the relationship between the price of a product and the quantity of the product supplied. 
C) is the relationship between the supply of a good and the cost of producing the good. 
D) is a curve that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

Question 19

If a demand curve shifts to the left,then

Accepted Answer

A) demand has increased. 
B) quantity demanded has increased. 
C) demand has decreased. 
D) quantity demanded has decreased. 
A) demand has increased. 
B) quantity demanded has increased. 
C) demand has decreased. 
D) quantity demanded has decreased.

Question 20

Figure 3-1
  
-Refer to Figure 3-1.An increase in population 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.

If the population increases and input prices increase,the equilibrium price of a product will definitely increase.

Discuss the correct and incorrect economic analysis in the following statements. "If a disease kills a large number of turkeys,the supply of turkeys will decrease.This will result in a price increase,which will then cause the supply of turkeys to increase."

Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?

An increase in the demand for peanuts due to changes in consumer tastes,accompanied by an increase in the supply of peanuts as a result of favorable growing conditions,will result in

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

In April,market analysts predict that the price of titanium will fall in May.What happens in the titanium market in April,holding everything else constant?

Suppose that when the price of pickles decreases,Teddy increases his purchase of ketchup.To Teddy

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

A positive technological change will cause the quantity supplied of a good to increase.

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the market price is $21.Which of the following statement is true?

How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores?

If the price of prime rib falls,the income effect due to the price change will cause

How does the increasing use of digital cameras affect the market for traditional camera film?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) Which of the following changes would cause the equilibrium to change to point B?

Which of the following will not shift the demand curve for a good?

If the demand for a product decreases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

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

A supply curve

If a demand curve shifts to the left,then

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

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

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

If the population increases and input prices increase,the equilibrium price of a product will definitely increase.

Discuss the correct and incorrect economic analysis in the following statements. "If a disease kills a large number of turkeys,the supply of turkeys will decrease.This will result in a price increase,which will then cause the supply of turkeys to increase."

Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?

An increase in the demand for peanuts due to changes in consumer tastes,accompanied by an increase in the supply of peanuts as a result of favorable growing conditions,will result in

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

In April,market analysts predict that the price of titanium will fall in May.What happens in the titanium market in April,holding everything else constant?

Suppose that when the price of pickles decreases,Teddy increases his purchase of ketchup.To Teddy

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

A positive technological change will cause the quantity supplied of a good to increase.

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the market price is $21.Which of the following statement is true?

How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores?

If the price of prime rib falls,the income effect due to the price change will cause

How does the increasing use of digital cameras affect the market for traditional camera film?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) Which of the following changes would cause the equilibrium to change to point B?

Which of the following will not shift the demand curve for a good?

If the demand for a product decreases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

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

A supply curve

If a demand curve shifts to the left,then

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

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