Question 1

-The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then

Accepted Answer

A)  the market is in equilibrium. 
B)  there is a surplus and the price of t-shirts will rise. 
C)  the quantity demanded is greater than quantity supplied. 
D)  there is a shortage and the price of t-shirts will fall. 
E)  there is a surplus and the price of t-shirts will fall. 
A)  the market is in equilibrium. 
B)  there is a surplus and the price of t-shirts will rise. 
C)  the quantity demanded is greater than quantity supplied. 
D)  there is a shortage and the price of t-shirts will fall. 
E)  there is a surplus and the price of t-shirts will fall. C

Question 2

-In the above figure, an increase in productivity

Accepted Answer

A)  shifts the supply curve from S to S₁. 
B)  shifts the supply curve from S to S₂. 
C)  results in a movement from point a to point b. 
D)  results in a movement from point b to point a. 
E)  has no effect. 
A)  shifts the supply curve from S to S₁. 
B)  shifts the supply curve from S to S₂. 
C)  results in a movement from point a to point b. 
D)  results in a movement from point b to point a. 
E)  has no effect. B

Question 3

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

Accepted Answer

A)  the equilibrium price definitely rises. 
B)  the equilibrium price definitely falls. 
C)  the equilibrium price definitely remains the same. 
D)  More information is needed to determine the effect on the equilibrium price. 
E)  the equilibrium quantity definitely increases. 
A)  the equilibrium price definitely rises. 
B)  the equilibrium price definitely falls. 
C)  the equilibrium price definitely remains the same. 
D)  More information is needed to determine the effect on the equilibrium price. 
E)  the equilibrium quantity definitely increases. A

Question 4

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Accepted Answer

A)  There is a shortage, so the price falls and quantity demanded increases. 
B)  There is a surplus, so the price falls and quantity demanded increases. 
C)  There is a shortage, so the price rises and quantity demanded decreases. 
D)  There is a shortage, so the price rises and quantity demanded increases. 
E)  There is a shortage, so the price falls and quantity demanded decreases. 
A)  There is a shortage, so the price falls and quantity demanded increases. 
B)  There is a surplus, so the price falls and quantity demanded increases. 
C)  There is a shortage, so the price rises and quantity demanded decreases. 
D)  There is a shortage, so the price rises and quantity demanded increases. 
E)  There is a shortage, so the price falls and quantity demanded decreases.

Question 5

Which of the following is true regarding demand?
I.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
Ii. Demand refers to one quantity at one time.
Iii. "Demand" and " quantity demanded" are the same thing.

Accepted Answer

A)  i only. 
B)  ii only. 
C)  both i and ii 
D)  iii only. 
E)  both ii and iii. 
A)  i only. 
B)  ii only. 
C)  both i and ii 
D)  iii only. 
E)  both ii and iii.

Question 6

As a falling price eliminates a surplus in the jersey market,

Accepted Answer

A)  the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward. 
B)  consumers increase the quantity of jerseys they demand. 
C)  producers increase the quantity of jerseys they supply. 
D)  producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand. 
E)  the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward. 
A)  the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward. 
B)  consumers increase the quantity of jerseys they demand. 
C)  producers increase the quantity of jerseys they supply. 
D)  producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand. 
E)  the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward.

Question 7

If the number of sellers decreases, then the supply curve ________ and the supply ________.

Accepted Answer

A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change but there is a decrease in the quantity supplied 
A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change but there is a decrease in the quantity supplied

Question 8

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 9

-In the above figure, the movement from point a to point b reflects

Accepted Answer

A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza. 
A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza.

Question 10

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

Accepted Answer

None

Question 11

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

Accepted Answer

A)  The quantity of bottled water demanded increases. 
B)  The quantity of bottled water demanded decreases. 
C)  The demand for bottled water decreases. 
D)  The demand for bottled water increases. 
E)  None of the above answers is correct because it is the supply that immediately changes, not the demand. 
A)  The quantity of bottled water demanded increases. 
B)  The quantity of bottled water demanded decreases. 
C)  The demand for bottled water decreases. 
D)  The demand for bottled water increases. 
E)  None of the above answers is correct because it is the supply that immediately changes, not the demand.

Question 12

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 13

-Which of the following events will increase the quantity demanded of bottled water?

Accepted Answer

A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water 
A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water

Question 14

Suppose that the price of bread rises.This rise could be the result of

Accepted Answer

A)  a decrease in the supply of bread. 
B)  an increase in the supply of bread. 
C)  a decrease in the demand for bread. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  a decrease in the supply of bread. 
B)  an increase in the supply of bread. 
C)  a decrease in the demand for bread. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct.

Question 15

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 16

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States. Assume that the demand for labor in Mexico and the United States is unchanged. Then wages in the United States ________ and wages in Mexico ________.

Accepted Answer

A)  fall; rise 
B)  rise; rise 
C)  rise; do not change 
D)  fall; fall 
E)  do not change; fall 
A)  fall; rise 
B)  rise; rise 
C)  rise; do not change 
D)  fall; fall 
E)  do not change; fall

Question 17

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve.

Question 18

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

Accepted Answer

At a price of $8 there is a su

Question 19

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing 
A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing

Question 20

A demand schedule

Accepted Answer

A)  shows the quantity demanded at one price. 
B)  is a graph showing a relationship between the quantity demanded and the price of a good. 
C)  is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D)  shows that demand is on schedule. 
E)  shows how the demand changes when the supply changes. 
A)  shows the quantity demanded at one price. 
B)  is a graph showing a relationship between the quantity demanded and the price of a good. 
C)  is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D)  shows that demand is on schedule. 
E)  shows how the demand changes when the supply changes.

-The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then

-In the above figure, an increase in productivity

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Which of the following is true regarding demand? I.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii. Demand refers to one quantity at one time. Iii. "Demand" and " quantity demanded" are the same thing.

As a falling price eliminates a surplus in the jersey market,

If the number of sellers decreases, then the supply curve and the supply .

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-In the above figure, the movement from point a to point b reflects

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

-Which of the following events will increase the quantity demanded of bottled water?

Suppose that the price of bread rises.This rise could be the result of

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

A demand schedule

Getting Started

The Usand Global Economies

The Economic Problem

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 4: Demand and Supply

-The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then

-In the above figure, an increase in productivity

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Which of the following is true regarding demand? I.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii. Demand refers to one quantity at one time. Iii. "Demand" and " quantity demanded" are the same thing.

As a falling price eliminates a surplus in the jersey market,

If the number of sellers decreases, then the supply curve ________ and the supply ________.

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-In the above figure, the movement from point a to point b reflects

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

-Which of the following events will increase the quantity demanded of bottled water?

Suppose that the price of bread rises.This rise could be the result of

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

A demand schedule

Getting Started

The Usand Global Economies

The Economic Problem

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

If the number of sellers decreases, then the supply curve and the supply .

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .