Question 1

If goods X and Y are substitutes in production, then a rise in the price of good X

Accepted Answer

A) increases the demand for good Y. 
B) decreases the demand for good Y. 
C) increases the supply of good Y. 
D) decreases the supply of good Y. 
E) might change the supply of Y; it depends on whether X and Y are also substitutes. 
A) increases the demand for good Y. 
B) decreases the demand for good Y. 
C) increases the supply of good Y. 
D) decreases the supply of good Y. 
E) might change the supply of Y; it depends on whether X and Y are also substitutes.

Question 2

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 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 or decreases 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 or decreases depending on the relative shifts of the supply and demand curves.

Question 3

Table 3.5.1
The Market for Car-Seat Heaters
   
Use the table below to answer the following questions.
-Refer to Table 3.5.1. Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 300 
A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 300

Question 4

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 beans. If the price of peas, a substitute for beans rises, what is the new beans 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 5

-Complete the following sentence. A surplus

Accepted Answer

A) exists if the price is above the equilibrium price. 
B) is the amount by which the quantity demanded exceeds the quantity supplied. 
C) is the amount by which the quantity demanded exceeds the equilibrium quantity. 
D) is the amount by which the quantity supplied exceeds the equilibrium quantity. 
E) will lead to rising prices. 
A) exists if the price is above the equilibrium price. 
B) is the amount by which the quantity demanded exceeds the quantity supplied. 
C) is the amount by which the quantity demanded exceeds the equilibrium quantity. 
D) is the amount by which the quantity supplied exceeds the equilibrium quantity. 
E) will lead to rising prices.

Question 6

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of

Accepted Answer

A) B falls, but the price of A rises. 
B) B rises, but the price of A falls. 
C) A falls, and the price of B will stay unchanged. 
D) A and B fall. 
E) A and B rise. 
A) B falls, but the price of A rises. 
B) B rises, but the price of A falls. 
C) A falls, and the price of B will stay unchanged. 
D) A and B fall. 
E) A and B rise.

Question 7

Figure 3.4.2
Use the figure below to answer the following questions.
  
-Refer to Figure 3.4.2. When the price is $10 a unit,

Accepted Answer

A) consumers will buy only 100 units of output. 
B) consumers will buy 500 units of output. 
C) consumers will buy nothing. 
D) a shortage occurs. 
E) the surplus is zero. 
A) consumers will buy only 100 units of output. 
B) consumers will buy 500 units of output. 
C) consumers will buy nothing. 
D) a shortage occurs. 
E) the surplus is zero.

Question 8

Table 3.5.1
The Market for Car-Seat Heaters
   
Use the table below to answer the following questions.
-Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.

Accepted Answer

A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400 
A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400

Question 9

If A and B are substitutes in production and the price of A falls, the supply of B

Accepted Answer

A) increases, and the price of B rises. 
B) increases, and the price of B falls. 
C) decreases, and the price of B falls. 
D) decreases, and the price of B rises. 
E) does not change. 
A) increases, and the price of B rises. 
B) increases, and the price of B falls. 
C) decreases, and the price of B falls. 
D) decreases, and the price of B rises. 
E) does not change.

Question 10

The new method of tapping maple trees ________ the supply of maple syrup and ________ the quantity supplied of maple syrup.

Accepted Answer

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

Question 11

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. A new study comes out, revealing that drinking Pepsi increases your ability to study. 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 or decreases 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 or decreases depending on the relative shifts of the supply and demand curves.

Question 12

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

Accepted Answer

A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS 
A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS

Question 13

When the price of good A rises, the supply curve of good B shifts rightward. Which of the following statements are true?

Accepted Answer

A) A and B are substitutes. 
B) A and B are complements. 
C) A and B are substitutes in production. 
D) A and B are complements in production. 
E) A is a factor used in the production of B. 
A) A and B are substitutes. 
B) A and B are complements. 
C) A and B are substitutes in production. 
D) A and B are complements in production. 
E) A is a factor used in the production of B.

Question 14

Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU
   
Use the figure below to answer the following questions.
-Refer to Table 3.5.2. If the price is set at $0.80 per cup, there is ________ leading to a price ________.

Accepted Answer

A) a shortage; rise 
B) a shortage; fall 
C) a surplus; rise 
D) a surplus; fall 
E) an equilibrium; rise 
A) a shortage; rise 
B) a shortage; fall 
C) a surplus; rise 
D) a surplus; fall 
E) an equilibrium; rise

Question 15

Table 3.1.1
  
-Refer to Table 3.1.1. In 2014, the relative price of cola in terms of tea is

Accepted Answer

A) 1.00. 
B) 1.20. 
C) 0.83. 
D) 1.25. 
E) unknown without more information. 
A) 1.00. 
B) 1.20. 
C) 0.83. 
D) 1.25. 
E) unknown without more information.

Question 16

Table 3.5.1
The Market for Car-Seat Heaters
   
Use the table below to answer the following questions.
-Refer to Table 3.5.1. Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400 
A) 70; 450 
B) 70; 350 
C) 50; 450 
D) 50; 350 
E) 60; 400

Question 17

Table 3.1.1
  
-Refer to Table 3.1.1. Between 2012 and 2013, the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________.

Accepted Answer

A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell 
E) fell; stayed constant 
A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell 
E) fell; stayed constant

Question 18

Table 3.1.1
  
-Refer to Table 3.1.1. Between 2013 and 2014, the price of coffee relative to the price of tea ________, while the price of coffee relative to the price of cola ________.

Accepted Answer

A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell 
E) fell; stayed constant 
A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell 
E) fell; stayed constant

Question 19

Table 3.5.1
The Market for Car-Seat Heaters
   
Use the table below to answer the following questions.
-Refer to Table 3.5.1. The equilibrium price is $________ and the equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 80; 500 
B) 80; 300 
C) 50; 450 
D) 50; 350 
E) 60; 400 
A) 80; 500 
B) 80; 300 
C) 50; 450 
D) 50; 350 
E) 60; 400

Question 20

An increase in the price of ground beef

Accepted Answer

A) increases the demand for chicken, a substitute for ground beef. 
B) increases the demand for hamburger buns, a complement of ground beef. 
C) increases the quantity demanded of ground beef. 
D) decreases the quantity demanded of ground beef. 
E) both A and D 
A) increases the demand for chicken, a substitute for ground beef. 
B) increases the demand for hamburger buns, a complement of ground beef. 
C) increases the quantity demanded of ground beef. 
D) decreases the quantity demanded of ground beef. 
E) both A and D

If goods X and Y are substitutes in production, then a rise in the price of good X

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 beans. If the price of peas, a substitute for beans rises, what is the new beans equilibrium, ceteris paribus?

-Complete the following sentence. A surplus

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of

Figure 3.4.2 Use the figure below to answer the following questions. -Refer to Figure 3.4.2. When the price is $10 a unit,

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $ and equilibrium quantity is units.

If A and B are substitutes in production and the price of A falls, the supply of B

The new method of tapping maple trees the supply of maple syrup and the quantity supplied of maple syrup.

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

When the price of good A rises, the supply curve of good B shifts rightward. Which of the following statements are true?

Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU Use the figure below to answer the following questions. -Refer to Table 3.5.2. If the price is set at $0.80 per cup, there is leading to a price .

Table 3.1.1 -Refer to Table 3.1.1. In 2014, the relative price of cola in terms of tea is

Table 3.1.1 -Refer to Table 3.1.1. Between 2012 and 2013, the price of coffee relative to the price of tea while the price of coffee relative to the price of cola .

Table 3.1.1 -Refer to Table 3.1.1. Between 2013 and 2014, the price of coffee relative to the price of tea , while the price of coffee relative to the price of cola .

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. The equilibrium price is $ and the equilibrium quantity is heaters per month.

An increase in the price of ground beef

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

If goods X and Y are substitutes in production, then a rise in the price of good X

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 beans. If the price of peas, a substitute for beans rises, what is the new beans equilibrium, ceteris paribus?

-Complete the following sentence. A surplus

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of

Figure 3.4.2 Use the figure below to answer the following questions. -Refer to Figure 3.4.2. When the price is $10 a unit,

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.

If A and B are substitutes in production and the price of A falls, the supply of B

The new method of tapping maple trees ________ the supply of maple syrup and ________ the quantity supplied of maple syrup.

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

When the price of good A rises, the supply curve of good B shifts rightward. Which of the following statements are true?

Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU Use the figure below to answer the following questions. -Refer to Table 3.5.2. If the price is set at $0.80 per cup, there is ________ leading to a price ________.

Table 3.1.1 -Refer to Table 3.1.1. In 2014, the relative price of cola in terms of tea is

Table 3.1.1 -Refer to Table 3.1.1. Between 2012 and 2013, the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________.

Table 3.1.1 -Refer to Table 3.1.1. Between 2013 and 2014, the price of coffee relative to the price of tea ________, while the price of coffee relative to the price of cola ________.

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. The equilibrium price is $________ and the equilibrium quantity is ________ heaters per month.

An increase in the price of ground beef

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

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. Suppose the cost of production rises, causing supply to decrease by 100 units at each price. The new equilibrium price is $ and equilibrium quantity is units.

The new method of tapping maple trees the supply of maple syrup and the quantity supplied of maple syrup.

Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU Use the figure below to answer the following questions. -Refer to Table 3.5.2. If the price is set at $0.80 per cup, there is leading to a price .

Table 3.1.1 -Refer to Table 3.1.1. Between 2012 and 2013, the price of coffee relative to the price of tea while the price of coffee relative to the price of cola .

Table 3.1.1 -Refer to Table 3.1.1. Between 2013 and 2014, the price of coffee relative to the price of tea , while the price of coffee relative to the price of cola .

Table 3.5.1 The Market for Car-Seat Heaters Use the table below to answer the following questions. -Refer to Table 3.5.1. The equilibrium price is $ and the equilibrium quantity is heaters per month.