Question 1

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

Accepted Answer

A) the supply curve shifted to the right resulting in a decrease in the equilibrium price. 
B) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
D) the demand curve shifted to the right resulting in an increase in the equilibrium price. 
A) the supply curve shifted to the right resulting in a decrease in the equilibrium price. 
B) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
D) the demand curve shifted to the right resulting in an increase in the equilibrium price.

Question 2

If a demand curve shifts to the right, 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 3

If the price of a product is above equilibrium, what forces it down?

Accepted Answer

When the price is above equilibrium, a s

Question 4

In response to a surplus the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

Accepted Answer

A) True 
 B)False

Question 5

If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will

Accepted Answer

A) decrease the demand for the Apple Watch. 
B) increase the demand for the Gear S2. 
C) increase the quantity demanded for the Gear S2. 
D) increase the quantity demanded for the Apple Watch. 
A) decrease the demand for the Apple Watch. 
B) increase the demand for the Gear S2. 
C) increase the quantity demanded for the Gear S2. 
D) increase the quantity demanded for the Apple Watch.

Question 6

If the United States placed an embargo on Swedish products, what would happen in the U.S.market for Swedish furniture?

Accepted Answer

A) The supply curve would shift to the left. 
B) The supply curve would shift to the right. 
C) The demand curve would shift to the right. 
D) The demand curve would shift to the left. 
A) The supply curve would shift to the left. 
B) The supply curve would shift to the right. 
C) The demand curve would shift to the right. 
D) The demand curve would shift to the left.

Question 7

If the price of gasoline decreases, what will be the impact in the market for public transportation?

Accepted Answer

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

Question 8

In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit in 2004

Accepted Answer

A) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
B) the supply curve shifted to the left resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the right resulting in an increase in the equilibrium price. 
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
A) the supply curve shifted to the right resulting in an increase in the equilibrium price. 
B) the supply curve shifted to the left resulting in an increase in the equilibrium price. 
C) the demand curve shifted to the right resulting in an increase in the equilibrium price. 
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.

Question 9

A firm must devote people, time, and money to designing a new product.Because any firm has only limited resources, it

Accepted Answer

A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development. 
B) is not able to develop more than one new product at a time. 
C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business. 
D) faces a trade-off, because resources used to develop one product will not be available to develop another product. 
A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development. 
B) is not able to develop more than one new product at a time. 
C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business. 
D) faces a trade-off, because resources used to develop one product will not be available to develop another product.

Question 10

Table 3-2
  
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.If the price of caviar falls from $45 to $35, the market quantity demanded would

Accepted Answer

A) decrease by 50 oz. 
B) increase by 70 oz. 
C) increase by 50 oz. 
D) decrease by 70 oz. 
A) decrease by 50 oz. 
B) increase by 70 oz. 
C) increase by 50 oz. 
D) decrease by 70 oz.

Question 11

Figure 3-8
  
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₂ (point B). If there is an decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

Accepted Answer

A) The equilibrium point will move from B to A. 
B) The equilibrium point will move from B to C. 
C) There will be no change in the equilibrium point. 
D) The equilibrium point will move from B to E. 
A) The equilibrium point will move from B to A. 
B) The equilibrium point will move from B to C. 
C) There will be no change in the equilibrium point. 
D) The equilibrium point will move from B to E.

Question 12

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

Accepted Answer

A) True 
 B)False

Question 13

A movement along the demand curve for toothpaste would be caused by

Accepted Answer

A) a change in the price of toothbrushes. 
B) a change in consumer income. 
C) a change in the price of toothpaste. 
D) a change in population. 
A) a change in the price of toothbrushes. 
B) a change in consumer income. 
C) a change in the price of toothpaste. 
D) a change in population.

Question 14

Use the following demand schedule for apples to draw a graph of the demand curve.Be sure to label the demand curve and each axis, and show each point on the demand curve.

Accepted Answer

The answer of Use the following demand schedule for apples...

Question 15

A shortage occurs when the market price is lower than the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following has occurred as the millennial generation has come of age?

Accepted Answer

A) The demand for "fast casual" food has decreased in the U.S. market. 
B) The demand for golf equipment has decreased in the U.S. market. 
C) The demand for traditional fast food has increased in the U.S. market. 
D) all of the above 
A) The demand for "fast casual" food has decreased in the U.S. market. 
B) The demand for golf equipment has decreased in the U.S. market. 
C) The demand for traditional fast food has increased in the U.S. market. 
D) all of the above

Question 17

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve.As a result

Accepted Answer

A) both the equilibrium price and quantity of MP3 players will decrease. 
B) both the equilibrium price and quantity of MP3 players will increase. 
C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. 
D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease. 
A) both the equilibrium price and quantity of MP3 players will decrease. 
B) both the equilibrium price and quantity of MP3 players will increase. 
C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. 
D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

Question 18

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A) increasing; increasing or decreasing 
B) increasing or decreasing; decreasing 
C) decreasing; increasing or decreasing 
D) increasing or decreasing; increasing 
A) increasing; increasing or decreasing 
B) increasing or decreasing; decreasing 
C) decreasing; increasing or decreasing 
D) increasing or decreasing; increasing

Question 19

Prices of California Merlot wine (assume that this is a normal good)have risen steadily in recent years.Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen.Which of the following best explains the rising prices of California Merlots?

Accepted Answer

A) The supply curve for Merlot has shifted to the right while the demand curve for Merlot has shifted to the left. 
B) The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right. 
C) The demand curve and the supply curve for Merlot have both shifted to the left. 
D) The supply curve for Merlot has shifted to the right more than the demand curve has shifted to the right. 
A) The supply curve for Merlot has shifted to the right while the demand curve for Merlot has shifted to the left. 
B) The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right. 
C) The demand curve and the supply curve for Merlot have both shifted to the left. 
D) The supply curve for Merlot has shifted to the right more than the demand curve has shifted to the right.

Question 20

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

Accepted Answer

A) The demand for digital music players is greater than the supply of digital music players. 
B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. 
C) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease. 
D) The shortage will cause a decrease in the equilibrium price of digital music players. 
A) The demand for digital music players is greater than the supply of digital music players. 
B) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offer to buy the product at a higher price. 
C) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded will increase and the quantity supplied will decrease. 
D) The shortage will cause a decrease in the equilibrium price of digital music players.

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

If a demand curve shifts to the right, then

If the price of a product is above equilibrium, what forces it down?

In response to a surplus the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will

If the United States placed an embargo on Swedish products, what would happen in the U.S.market for Swedish furniture?

If the price of gasoline decreases, what will be the impact in the market for public transportation?

In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit in 2004

A firm must devote people, time, and money to designing a new product.Because any firm has only limited resources, it

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.If the price of caviar falls from $45 to $35, the market quantity demanded would

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

A movement along the demand curve for toothpaste would be caused by

Use the following demand schedule for apples to draw a graph of the demand curve.Be sure to label the demand curve and each axis, and show each point on the demand curve.

A shortage occurs when the market price is lower than the equilibrium price.

Which of the following has occurred as the millennial generation has come of age?

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve.As a result

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef, this would be represented by the equilibrium price and the equilibrium quantity .

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

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

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

If a demand curve shifts to the right, then

If the price of a product is above equilibrium, what forces it down?

In response to a surplus the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

If the Apple Watch and the Samsung Gear S2 are considered substitutes, then, other things equal, an increase in the price of the Apple Watch will

If the United States placed an embargo on Swedish products, what would happen in the U.S.market for Swedish furniture?

If the price of gasoline decreases, what will be the impact in the market for public transportation?

In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit in 2004

A firm must devote people, time, and money to designing a new product.Because any firm has only limited resources, it

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.If the price of caviar falls from $45 to $35, the market quantity demanded would

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

A movement along the demand curve for toothpaste would be caused by

Use the following demand schedule for apples to draw a graph of the demand curve.Be sure to label the demand curve and each axis, and show each point on the demand curve.

A shortage occurs when the market price is lower than the equilibrium price.

Which of the following has occurred as the millennial generation has come of age?

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve.As a result

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef, this would be represented by the equilibrium price and the equilibrium quantity .