Question 1

Figure 3.4.2
Use the figure below to answer the following questions.
  
-At a price of $4 a unit in Figure 3.4.2,

Accepted Answer

A) the equilibrium quantity is 400 units. 
B) there is a surplus of 200 units. 
C) the quantity supplied is 400 units. 
D) there is a shortage of 200 units. 
E) the quantity demanded is 200 units. 
A) the equilibrium quantity is 400 units. 
B) there is a surplus of 200 units. 
C) the quantity supplied is 400 units. 
D) there is a shortage of 200 units. 
E) the quantity demanded is 200 units.

Question 2

The fact that a fall in the price of a good results in a decrease in the quantity of the good supplied illustrates

Accepted Answer

A) the law of supply. 
B) the law of demand. 
C) a change in supply. 
D) the nature of an inferior good. 
E) technological improvement. 
A) the law of supply. 
B) the law of demand. 
C) a change in supply. 
D) the nature of an inferior good. 
E) technological improvement.

Question 3

The demand and supply model determines

Accepted Answer

A) relative prices. 
B) money prices. 
C) supply prices. 
D) demand prices. 
E) absolute prices. 
A) relative prices. 
B) money prices. 
C) supply prices. 
D) demand prices. 
E) absolute prices.

Question 4

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Accepted Answer

A) The equilibrium price will fall and the effect on the equilibrium quantity is uncertain. 
B) The equilibrium price will rise and the effect on the equilibrium quantity is uncertain. 
C) The equilibrium quantity will decrease and the equilibrium price will rise. 
D) The equilibrium quantity will increase and the equilibrium price will remain unchanged. 
E) The equilibrium quantity will increase and the effect on the equilibrium price is uncertain. 
A) The equilibrium price will fall and the effect on the equilibrium quantity is uncertain. 
B) The equilibrium price will rise and the effect on the equilibrium quantity is uncertain. 
C) The equilibrium quantity will decrease and the equilibrium price will rise. 
D) The equilibrium quantity will increase and the equilibrium price will remain unchanged. 
E) The equilibrium quantity will increase and the effect on the equilibrium price is uncertain.

Question 5

Figure 3.2.1
Use the figure below to answer the following questions.
  
-Given Figure 3.2.1, under what condition are consumers willing to buy more than 9,000 apples per week?

Accepted Answer

A) if the price is above $1 
B) if the price is between $1 and $0.50 
C) if the price is below $0.50 
D) if the price is between $1 and $1.50 
E) if the price is $0.75 
A) if the price is above $1 
B) if the price is between $1 and $0.50 
C) if the price is below $0.50 
D) if the price is between $1 and $1.50 
E) if the price is $0.75

Question 6

Table 3.4.1
   
Use the table below to answer the following questions.
-In Table 3.4.1, the equilibrium price is

Accepted Answer

A) $7 a unit. 
B) $5 a unit. 
C) $4 a unit. 
D) $3 a unit. 
E) $1 a unit. 
A) $7 a unit. 
B) $5 a unit. 
C) $4 a unit. 
D) $3 a unit. 
E) $1 a unit.

Question 7

Table 3.4.1
   
Use the table below to answer the following questions.
-In Table 3.4.1, the equilibrium quantity is

Accepted Answer

A) 200 units. 
B) 320 units. 
C) 420 units. 
D) 500 units. 
E) none of the above; there is no equilibrium. 
A) 200 units. 
B) 320 units. 
C) 420 units. 
D) 500 units. 
E) none of the above; there is no equilibrium.

Question 8

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium. Pepsi is a substitute for coffee; cream is a complement of coffee. Consider the market for coffee. Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1. The price of cream falls. Simultaneously, there is an increase in the wages of farm workers who harvest coffee beans. The equilibrium quantity of coffee

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) increases or decreases depending on the slope of the supply and demand curves. 
E) increases, decreases, or remains the same depending on the relative shifts of the supply and demand curves. 
A) increases. 
B) decreases. 
C) remains the same. 
D) increases or decreases depending on the slope of the supply and demand curves. 
E) increases, decreases, or remains the same depending on the relative shifts of the supply and demand curves.

Question 9

Which one of the following will definitely decrease the equilibrium quantity?

Accepted Answer

A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in price 
A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in price

Question 10

Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
   
Use the table below to answer the following questions.
-Refer to Table 3.5.3. In a television interview, Joe Cool shows off his designer sport t-shirt, setting off a new craze that doubles business at the sportswear establishments. This would be represented as a

Accepted Answer

A) movement up along the demand curve. 
B) rightward shift of the demand curve. 
C) leftward shift of the demand curve. 
D) rightward shift of the supply curve. 
E) leftward shift of the supply curve. 
A) movement up along the demand curve. 
B) rightward shift of the demand curve. 
C) leftward shift of the demand curve. 
D) rightward shift of the supply curve. 
E) leftward shift of the supply curve.

Question 11

The Government of Canada promises to produce more defence goods without any decrease in the production of other goods. This promise is valid

Accepted Answer

A) if Canada is producing at a point outside its PPF. 
B) if Canada is producing at a point on its PPF. 
C) if Canada is producing at a point inside its PPF. 
D) only if the PPF shifts rightward. 
E) only if technology advances or capital increases. 
A) if Canada is producing at a point outside its PPF. 
B) if Canada is producing at a point on its PPF. 
C) if Canada is producing at a point inside its PPF. 
D) only if the PPF shifts rightward. 
E) only if technology advances or capital increases.

Question 12

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

Accepted Answer

A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products." 
A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products."

Question 13

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium. Pepsi is a substitute for coffee; cream is a complement of coffee. Consider the market for coffee. Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1. If coffee is a normal good, then a decrease in income will

Accepted Answer

A) increase the price and the quantity demanded of coffee. 
B) increase the price and the quantity supplied of coffee. 
C) decrease the price and the quantity demanded of coffee. 
D) decrease the price and the quantity supplied of coffee. 
E) have no effect on the market for coffee. 
A) increase the price and the quantity demanded of coffee. 
B) increase the price and the quantity supplied of coffee. 
C) decrease the price and the quantity demanded of coffee. 
D) decrease the price and the quantity supplied of coffee. 
E) have no effect on the market for coffee.

Question 14

Figure 3.5.2
Original equilibrium at 1.
Use the figure below to answer the following questions.
  
-Refer to Figure 3.5.2, which represents the market for cow manure. If the price of milk, a complement in production of manure, rises, what is the new manure equilibrium, ceteris paribus?

Accepted Answer

A) 8 
B) 3 
C) 9 
D) 5 
E) 6 
A) 8 
B) 3 
C) 9 
D) 5 
E) 6

Question 15

Figure 3.2.1
Use the figure below to answer the following questions.
  
-Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Accepted Answer

A) a fall in the price of apples 
B) a rise in the price of oranges 
C) an increase in population size 
D) public concern about chemicals sprayed on apples 
E) a rise in the price of bananas 
A) a fall in the price of apples 
B) a rise in the price of oranges 
C) an increase in population size 
D) public concern about chemicals sprayed on apples 
E) a rise in the price of bananas

Question 16

Which market is an example of a market for goods?

Accepted Answer

A) labour market 
B) haircut market 
C) manufactured input market 
D) apple market 
E) energy market 
A) labour market 
B) haircut market 
C) manufactured input market 
D) apple market 
E) energy market

Question 17

Figure 3.4.1
Use the figure below to answer the following questions.
  
-At price P3 in Figure 3.4.1,

Accepted Answer

A) this market is in equilibrium. 
B) there is a shortage in the amount of Q₅ - Q₁. 
C) there is a tendency for the price to rise. 
D) equilibrium quantity is Q₅. 
E) there is a surplus in the amount of Q₅ - Q₁. 
A) this market is in equilibrium. 
B) there is a shortage in the amount of Q₅ - Q₁. 
C) there is a tendency for the price to rise. 
D) equilibrium quantity is Q₅. 
E) there is a surplus in the amount of Q₅ - Q₁.

Question 18

Suppose we observe a rise in the price of good A and a decrease in the quantity of good A bought and sold. Which one of the following is a likely explanation?

Accepted Answer

A) The law of supply is violated. 
B) The demand for A decreased. 
C) The demand for A increased. 
D) The supply of A increased. 
E) The supply of A decreased. 
A) The law of supply is violated. 
B) The demand for A decreased. 
C) The demand for A increased. 
D) The supply of A increased. 
E) The supply of A decreased.

Question 19

Which of the following events leads to a rise in the price of oranges?

Accepted Answer

A) a rise in the price of apples if apples and oranges are substitutes 
B) a scientific discovery that oranges cause hair loss 
C) a decrease in income if oranges are a normal good 
D) good growing weather in Florida 
E) a technological improvement in the production of oranges 
A) a rise in the price of apples if apples and oranges are substitutes 
B) a scientific discovery that oranges cause hair loss 
C) a decrease in income if oranges are a normal good 
D) good growing weather in Florida 
E) a technological improvement in the production of oranges

Question 20

The opportunity cost of a hot dog in terms of hamburgers is

Accepted Answer

A) the ratio of the slope of the supply curve of hot dogs to the slope of the supply curve of hamburgers. 
B) the ratio of the money price of a hot dog to the money price of a hamburger. 
C) the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
D) the money price of a hot dog minus the money price of a hamburger. 
E) smaller in the winter than in the summer. 
A) the ratio of the slope of the supply curve of hot dogs to the slope of the supply curve of hamburgers. 
B) the ratio of the money price of a hot dog to the money price of a hamburger. 
C) the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
D) the money price of a hot dog minus the money price of a hamburger. 
E) smaller in the winter than in the summer.

Figure 3.4.2 Use the figure below to answer the following questions. -At a price of $4 a unit in Figure 3.4.2,

The fact that a fall in the price of a good results in a decrease in the quantity of the good supplied illustrates

The demand and supply model determines

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Figure 3.2.1 Use the figure below to answer the following questions. -Given Figure 3.2.1, under what condition are consumers willing to buy more than 9,000 apples per week?

Table 3.4.1 Use the table below to answer the following questions. -In Table 3.4.1, the equilibrium price is

Table 3.4.1 Use the table below to answer the following questions. -In Table 3.4.1, the equilibrium quantity is

Which one of the following will definitely decrease the equilibrium quantity?

The Government of Canada promises to produce more defence goods without any decrease in the production of other goods. This promise is valid

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

Figure 3.5.2 Original equilibrium at 1. Use the figure below to answer the following questions. -Refer to Figure 3.5.2, which represents the market for cow manure. If the price of milk, a complement in production of manure, rises, what is the new manure equilibrium, ceteris paribus?

Figure 3.2.1 Use the figure below to answer the following questions. -Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Which market is an example of a market for goods?

Figure 3.4.1 Use the figure below to answer the following questions. -At price P₃ in Figure 3.4.1,

Suppose we observe a rise in the price of good A and a decrease in the quantity of good A bought and sold. Which one of the following is a likely explanation?

Which of the following events leads to a rise in the price of oranges?

The opportunity cost of a hot dog in terms of hamburgers is

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

Figure 3.4.2 Use the figure below to answer the following questions. -At a price of $4 a unit in Figure 3.4.2,

The fact that a fall in the price of a good results in a decrease in the quantity of the good supplied illustrates

The demand and supply model determines

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Figure 3.2.1 Use the figure below to answer the following questions. -Given Figure 3.2.1, under what condition are consumers willing to buy more than 9,000 apples per week?

Table 3.4.1 Use the table below to answer the following questions. -In Table 3.4.1, the equilibrium price is

Table 3.4.1 Use the table below to answer the following questions. -In Table 3.4.1, the equilibrium quantity is

Which one of the following will definitely decrease the equilibrium quantity?

The Government of Canada promises to produce more defence goods without any decrease in the production of other goods. This promise is valid

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

Figure 3.5.2 Original equilibrium at 1. Use the figure below to answer the following questions. -Refer to Figure 3.5.2, which represents the market for cow manure. If the price of milk, a complement in production of manure, rises, what is the new manure equilibrium, ceteris paribus?

Figure 3.2.1 Use the figure below to answer the following questions. -Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Which market is an example of a market for goods?

Figure 3.4.1 Use the figure below to answer the following questions. -At price P3 in Figure 3.4.1,

Suppose we observe a rise in the price of good A and a decrease in the quantity of good A bought and sold. Which one of the following is a likely explanation?

Which of the following events leads to a rise in the price of oranges?

The opportunity cost of a hot dog in terms of hamburgers is

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Figure 3.4.1 Use the figure below to answer the following questions. -At price P₃ in Figure 3.4.1,