Question 1

An increase in the price of pineapples will result in

Accepted Answer

A) a smaller quantity of pineapples supplied. 
B) a larger quantity of pineapples supplied. 
C) a decrease in the demand for pineapples. 
D) an increase in the supply of pineapples. 
A) a smaller quantity of pineapples supplied. 
B) a larger quantity of pineapples supplied. 
C) a decrease in the demand for pineapples. 
D) an increase in the supply of pineapples.

Question 2

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?

Accepted Answer

A) The calcium supply curve shifts to the right because of a change in tastes in favor of calcium. 
B) The calcium demand curve shifts to the right because of a change in tastes in favor of calcium. 
C) The calcium demand curve shifts to the left because this new information will increase the price of calcium. 
D) The calcium supply curve shifts to the left because this new information will increase the price of calcium. 
A) The calcium supply curve shifts to the right because of a change in tastes in favor of calcium. 
B) The calcium demand curve shifts to the right because of a change in tastes in favor of calcium. 
C) The calcium demand curve shifts to the left because this new information will increase the price of calcium. 
D) The calcium supply curve shifts to the left because this new information will increase the price of calcium.

Question 3

Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup.To the Ruiz family,

Accepted Answer

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

Question 4

"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease.This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement?

Accepted Answer

A) The statement will be true if consumer tastes for chips and salsa do not change. 
B) The statement is false because a change in the price of chips would not change the demand for chips. 
C) The statement is false because salsa is an inferior good; chips are normal goods. 
D) The statement is false because one cannot assume that chips and salsa are complements for all consumers. 
A) The statement will be true if consumer tastes for chips and salsa do not change. 
B) The statement is false because a change in the price of chips would not change the demand for chips. 
C) The statement is false because salsa is an inferior good; chips are normal goods. 
D) The statement is false because one cannot assume that chips and salsa are complements for all consumers.

Question 5

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

Accepted Answer

The answer of Use the following supply schedule for cherries...

Question 6

Elvira decreased her consumption of bananas when the price of peanut butter increased.For Elvira, peanut butter and bananas are

Accepted Answer

A) substitutes in consumption. 
B) both inferior goods. 
C) complements in consumption. 
D) both luxury goods. 
A) substitutes in consumption. 
B) both inferior goods. 
C) complements in consumption. 
D) both luxury goods.

Question 7

Which of the following would cause an increase in the supply of peanut butter?

Accepted Answer

A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements) 
B) an increase in the price of peanut butter 
C) an increase the price of a product that producers sell instead of peanut butter 
D) an increase in the number of firms that produce peanut butter 
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements) 
B) an increase in the price of peanut butter 
C) an increase the price of a product that producers sell instead of peanut butter 
D) an increase in the number of firms that produce peanut butter

Question 8

Market equilibrium occurs where supply equals demand.

Accepted Answer

A) True 
 B)False

Question 9

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Accepted Answer

A) There is no difference between the two terms; they both refer to a shift of the supply curve. 
B) There is no difference between the two terms; they both refer to a movement along a given supply curve. 
C) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. 
D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price. 
A) There is no difference between the two terms; they both refer to a shift of the supply curve. 
B) There is no difference between the two terms; they both refer to a movement along a given supply curve. 
C) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. 
D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

Question 10

Chips and salsa are complements.If the price of salsa decreases, the demand for chips will increase.

Accepted Answer

A) True 
 B)False

Question 11

If the price of orchids falls, the substitution effect due to the price change will cause

Accepted Answer

A) an increase in the demand for orchids. 
B) an increase in the demand for roses, a substitute for orchids. 
C) an increase in the quantity of orchids demanded. 
D) an increase in the quantity of orchids supplied. 
A) an increase in the demand for orchids. 
B) an increase in the demand for roses, a substitute for orchids. 
C) an increase in the quantity of orchids demanded. 
D) an increase in the quantity of orchids supplied.

Question 12

If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal,

Accepted Answer

A) increase the demand for smartphones. 
B) decrease the demand for smartphones. 
C) increase the quantity of smartphones demanded. 
D) decrease the quantity of smartphones demanded. 
A) increase the demand for smartphones. 
B) decrease the demand for smartphones. 
C) increase the quantity of smartphones demanded. 
D) decrease the quantity of smartphones demanded.

Question 13

Which of the following would cause a decrease in the supply of milk?

Accepted Answer

A) an increase in the price of cookies (assuming that milk and cookies are complements) 
B) a decrease in the price of milk 
C) an increase the price of a product that producers sell instead of milk 
D) an increase in the number of firms that produce milk 
A) an increase in the price of cookies (assuming that milk and cookies are complements) 
B) a decrease in the price of milk 
C) an increase the price of a product that producers sell instead of milk 
D) an increase in the number of firms that produce milk

Question 14

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

Accepted Answer

A) True 
 B)False

Question 15

A decrease in the price of GPS systems will result in

Accepted Answer

A) a smaller quantity of GPS systems supplied. 
B) a larger quantity of GPS systems supplied. 
C) a decrease in the demand for GPS systems. 
D) an increase in the supply of GPS systems. 
A) a smaller quantity of GPS systems supplied. 
B) a larger quantity of GPS systems supplied. 
C) a decrease in the demand for GPS systems. 
D) an increase in the supply of GPS systems.

Question 16

Table 3-1
  
-Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

Accepted Answer

A) decrease by 32 lbs. 
B) increase by 64 lbs. 
C) increase by 32 lbs. 
D) decrease by 64 lbs. 
A) decrease by 32 lbs. 
B) increase by 64 lbs. 
C) increase by 32 lbs. 
D) decrease by 64 lbs.

Question 17

An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in

Accepted Answer

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

Question 18

A(n)________ is represented by a leftward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

Accepted Answer

A) decrease in demand; increase in demand 
B) decrease in demand; increase in quantity demanded 
C) increase in demand; decrease in quantity demanded 
D) decrease in quantity demanded; decrease in demand 
A) decrease in demand; increase in demand 
B) decrease in demand; increase in quantity demanded 
C) increase in demand; decrease in quantity demanded 
D) decrease in quantity demanded; decrease in demand

Question 19

Figure 3-2
  
-Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from

Accepted Answer

A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁. 
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Question 20

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

Accepted Answer

A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. 
B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. 
C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease. 
D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease. 
A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. 
B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. 
C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease. 
D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.

An increase in the price of pineapples will result in

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?

Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup.To the Ruiz family,

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

Elvira decreased her consumption of bananas when the price of peanut butter increased.For Elvira, peanut butter and bananas are

Which of the following would cause an increase in the supply of peanut butter?

Market equilibrium occurs where supply equals demand.

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Chips and salsa are complements.If the price of salsa decreases, the demand for chips will increase.

If the price of orchids falls, the substitution effect due to the price change will cause

If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal,

Which of the following would cause a decrease in the supply of milk?

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

A decrease in the price of GPS systems will result in

Table 3-1 -Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in

A(n) is represented by a leftward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

Figure 3-2 -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

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

An increase in the price of pineapples will result in

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?

Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup.To the Ruiz family,

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

Elvira decreased her consumption of bananas when the price of peanut butter increased.For Elvira, peanut butter and bananas are

Which of the following would cause an increase in the supply of peanut butter?

Market equilibrium occurs where supply equals demand.

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Chips and salsa are complements.If the price of salsa decreases, the demand for chips will increase.

If the price of orchids falls, the substitution effect due to the price change will cause

If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal,

Which of the following would cause a decrease in the supply of milk?

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

A decrease in the price of GPS systems will result in

Table 3-1 -Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in

A(n)________ is represented by a leftward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

Figure 3-2 -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in

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

A(n) is represented by a leftward shift of the demand curve while a(n) is represented by a movement along a given demand curve.