Question 1

The price of a good will fall if

Accepted Answer

A) demand for the good increases. 
B) supply of the good decreases. 
C) supply of the good increases. 
D) demand for the good remains constant. 
E) supply of the good remains constant. 
A) demand for the good increases. 
B) supply of the good decreases. 
C) supply of the good increases. 
D) demand for the good remains constant. 
E) supply of the good remains constant.

Question 2

Table 3.5.4
Quantities demanded and supplied in equilibrium
before and after a drought strikes potato farms
   
Use the table below to answer the following questions.
-In Table 3.5.4 potatoes and rice are

Accepted Answer

A) substitutes in Region 1 and complements in Region 2. 
B) substitutes in Region 2 and complements in Region 1. 
C) complements in both regions. 
D) substitutes in both regions. 
E) unrelated goods in both regions. 
A) substitutes in Region 1 and complements in Region 2. 
B) substitutes in Region 2 and complements in Region 1. 
C) complements in both regions. 
D) substitutes in both regions. 
E) unrelated goods in both regions.

Question 3

If A is an inferior good and consumer income rises, the demand for A

Accepted Answer

A) increases, and the equilibrium price and the equilibrium quantity increase. 
B) increases and the equilibrium price rises, but the equilibrium quantity decreases. 
C) decreases, and the equilibrium price and the equilibrium quantity decrease. 
D) decreases and the equilibrium price falls, but the equilibrium quantity increases. 
E) decreases, the equilibrium price rises, and the equilibrium quantity decreases. 
A) increases, and the equilibrium price and the equilibrium quantity increase. 
B) increases and the equilibrium price rises, but the equilibrium quantity decreases. 
C) decreases, and the equilibrium price and the equilibrium quantity decrease. 
D) decreases and the equilibrium price falls, but the equilibrium quantity increases. 
E) decreases, the equilibrium price rises, and the equilibrium quantity decreases.

Question 4

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. Suppose that the price of a designer sport t-shirt is $6. The market has ________ leading to ________.

Accepted Answer

A) an equilibrium; no change in the price 
B) a shortage; a fall in the price 
C) a shortage; a rise in the price 
D) a surplus; a fall in the price 
E) a surplus; a rise in the price 
A) an equilibrium; no change in the price 
B) a shortage; a fall in the price 
C) a shortage; a rise in the price 
D) a surplus; a fall in the price 
E) a surplus; a rise in the price

Question 5

Figure 3.2.1
Use the figure below to answer the following questions.
  
-Point A in Figure 3.2.1 indicates that

Accepted Answer

A) $1 is the least that consumers are willing to pay for the 4,000th apple. 
B) consumers will not be in equilibrium if the price of an apple is $1. 
C) consumers will only pay $1 for any apple. 
D) if the price is $1, consumers will plan to buy 4,000 apples. 
E) if the price is more than $1, consumers will buy 9,000 apples. 
A) $1 is the least that consumers are willing to pay for the 4,000th apple. 
B) consumers will not be in equilibrium if the price of an apple is $1. 
C) consumers will only pay $1 for any apple. 
D) if the price is $1, consumers will plan to buy 4,000 apples. 
E) if the price is more than $1, consumers will buy 9,000 apples.

Question 6

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. A new store opens up on the edge of campus, Great Wild North Sportswear, which has the capacity to do as much business as all the existing businesses. The quantity of t-shirts supplied doubles at each price. 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 7

The opportunity cost of good A in terms of good B is equal to the

Accepted Answer

A) money price of good A minus the money price of good B. 
B) money price of good B minus the money price of good A. 
C) ratio of the money price of good A to the money price of good B. 
D) ratio of the money price of good B to the money price of good A. 
E) money price of good A plus the money price of good B. 
A) money price of good A minus the money price of good B. 
B) money price of good B minus the money price of good A. 
C) ratio of the money price of good A to the money price of good B. 
D) ratio of the money price of good B to the money price of good A. 
E) money price of good A plus the money price of good B.

Question 8

The y- axis intercept of the demand curve is 60 and the slope is - 8. The equation of the demand curve is

Accepted Answer

A) P = 8 - 60QD. 
B) P = 60 - 8QD. 
C) QD = 60 - 8P. 
D) P = 60 + 8QD. 
E) QD = 60 + 8P. 
A) P = 8 - 60QD. 
B) P = 60 - 8QD. 
C) QD = 60 - 8P. 
D) P = 60 + 8QD. 
E) QD = 60 + 8P.

Question 9

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. The equilibrium price is $________ and the equilibrium quantity is ________ cups a day.

Accepted Answer

A) 1.30; 1200 
B) 0.90; 1000 
C) 1.10; 900 
D) 1.10; 800 
E) 1.00; 800 
A) 1.30; 1200 
B) 0.90; 1000 
C) 1.10; 900 
D) 1.10; 800 
E) 1.00; 800

Question 10

Some producers are chatting over a beer. Which one of the following quotations refers to a rightward shift of the supply curve?

Accepted Answer

A) "Wage increases have forced us to raise our prices." 
B) "Our new, sophisticated equipment will enable us to undercut our competitors." 
C) "Raw material prices have sky-rocketed; we will have to pass the cost on to our customers." 
D) "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output." 
E) "Competitors are leaving the industry." 
A) "Wage increases have forced us to raise our prices." 
B) "Our new, sophisticated equipment will enable us to undercut our competitors." 
C) "Raw material prices have sky-rocketed; we will have to pass the cost on to our customers." 
D) "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output." 
E) "Competitors are leaving the industry."

Question 11

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

Accepted Answer

A) the price of fish will fall. 
B) the quantity of fish sold will increase as fishermen will catch more to make up for the shortage. 
C) the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks. 
D) both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce. 
E) the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity. 
A) the price of fish will fall. 
B) the quantity of fish sold will increase as fishermen will catch more to make up for the shortage. 
C) the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks. 
D) both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce. 
E) the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity.

Question 12

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement of oatmeal. Which of the following increases the demand for oatmeal?

Accepted Answer

A) an increase in the price of raisins 
B) a decrease in income 
C) a decrease in population 
D) an increase in the price of cold cereal 
E) an increase in the supply of oatmeal 
A) an increase in the price of raisins 
B) a decrease in income 
C) a decrease in population 
D) an increase in the price of cold cereal 
E) an increase in the supply of oatmeal

Question 13

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that

Accepted Answer

A) the supply of peanut buttered decreased by more than the demand for peanut butter increased. 
B) the supply of peanut butter decreased by more than the demand for peanut butter decreased. 
C) the demand for peanut butter increased by more than the supply of peanut butter decreased. 
D) the demand for peanut butter increased by more than the supply of peanut butter increased. 
E) peanut butter producers and peanut butter consumers have incorrect expectations. 
A) the supply of peanut buttered decreased by more than the demand for peanut butter increased. 
B) the supply of peanut butter decreased by more than the demand for peanut butter decreased. 
C) the demand for peanut butter increased by more than the supply of peanut butter decreased. 
D) the demand for peanut butter increased by more than the supply of peanut butter increased. 
E) peanut butter producers and peanut butter consumers have incorrect expectations.

Question 14

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

Accepted Answer

A) demand for corn increases. 
B) supply of corn increases. 
C) demand for corn decreases. 
D) supply of corn decreases. 
E) both B and C 
A) demand for corn increases. 
B) supply of corn increases. 
C) demand for corn decreases. 
D) supply of corn decreases. 
E) both B and C

Question 15

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. The equilibrium price is $________ and the equilibrium quantity is ________ t-shirts per month.

Accepted Answer

A) 6; 200 
B) 7; 220 
C) 8; 180 
D) 8; 220 
E) 8; 200 
A) 6; 200 
B) 7; 220 
C) 8; 180 
D) 8; 220 
E) 8; 200

Question 16

The law of demand applies to food because when the price of food rises, there is

Accepted Answer

A) a substitution effect that offsets the income effect. 
B) an income effect but no substitution effect. 
C) both a substitution effect and an income effect. 
D) a substitution effect but no income effect. 
E) a substitution effect and a complement effect. 
A) a substitution effect that offsets the income effect. 
B) an income effect but no substitution effect. 
C) both a substitution effect and an income effect. 
D) a substitution effect but no income effect. 
E) a substitution effect and a complement effect.

Question 17

The price of a good will tend to fall if

Accepted Answer

A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true. 
A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true.

Question 18

Table 3.5.4
Quantities demanded and supplied in equilibrium
before and after a drought strikes potato farms
   
Use the table below to answer the following questions.
-Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

Accepted Answer

A) substitutes. 
B) complements. 
C) normal goods. 
D) unrelated goods. 
E) inferior goods. 
A) substitutes. 
B) complements. 
C) normal goods. 
D) unrelated goods. 
E) inferior goods.

Question 19

A market where no single buyer or seller can influence the price is

Accepted Answer

A) a buyer's market. 
B) a seller's market. 
C) a competitive market. 
D) an output market. 
E) an input market. 
A) a buyer's market. 
B) a seller's market. 
C) a competitive market. 
D) an output market. 
E) an input market.

Question 20

A relative price is all of the following except

Accepted Answer

A) the ratio of one price to another. 
B) an opportunity cost. 
C) a quantity of a "basket" of goods and services forgone. 
D) determined by demand and supply. 
E) the lowest possible price available. 
A) the ratio of one price to another. 
B) an opportunity cost. 
C) a quantity of a "basket" of goods and services forgone. 
D) determined by demand and supply. 
E) the lowest possible price available.

The price of a good will fall if

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -In Table 3.5.4 potatoes and rice are

If A is an inferior good and consumer income rises, the demand for A

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. Suppose that the price of a designer sport t-shirt is $6. The market has leading to .

Figure 3.2.1 Use the figure below to answer the following questions. -Point A in Figure 3.2.1 indicates that

The opportunity cost of good A in terms of good B is equal to the

The y- axis intercept of the demand curve is 60 and the slope is - 8. The equation of the demand curve is

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. The equilibrium price is $ and the equilibrium quantity is cups a day.

Some producers are chatting over a beer. Which one of the following quotations refers to a rightward shift of the supply curve?

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement of oatmeal. Which of the following increases the demand for oatmeal?

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

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. The equilibrium price is $ and the equilibrium quantity is t-shirts per month.

The law of demand applies to food because when the price of food rises, there is

The price of a good will tend to fall if

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

A market where no single buyer or seller can influence the price is

A relative price is all of the following except

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

The price of a good will fall if

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -In Table 3.5.4 potatoes and rice are

If A is an inferior good and consumer income rises, the demand for A

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. Suppose that the price of a designer sport t-shirt is $6. The market has ________ leading to ________.

Figure 3.2.1 Use the figure below to answer the following questions. -Point A in Figure 3.2.1 indicates that

The opportunity cost of good A in terms of good B is equal to the

The y- axis intercept of the demand curve is 60 and the slope is - 8. The equation of the demand curve is

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. The equilibrium price is $________ and the equilibrium quantity is ________ cups a day.

Some producers are chatting over a beer. Which one of the following quotations refers to a rightward shift of the supply curve?

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement of oatmeal. Which of the following increases the demand for oatmeal?

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

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. The equilibrium price is $________ and the equilibrium quantity is ________ t-shirts per month.

The law of demand applies to food because when the price of food rises, there is

The price of a good will tend to fall if

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

A market where no single buyer or seller can influence the price is

A relative price is all of the following except

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 3.5.3 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. Suppose that the price of a designer sport t-shirt is $6. The market has leading to .

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. The equilibrium price is $ and the equilibrium quantity is cups a day.

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. The equilibrium price is $ and the equilibrium quantity is t-shirts per month.