Question 1

When the demand for blue jeans increases, what happens next?

Accepted Answer

If the demand for blue jeans increases,

Question 2

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Accepted Answer

A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied. 
A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied.

Question 3

Consider the market for bread.If the price of wheat rises, then the

Accepted Answer

A)  demand curve for bread shifts leftward. 
B)  supply curve of bread shifts leftward. 
C)  price of bread falls. 
D)  equilibrium quantity of bread increases. 
E)  demand curve for bread shifts rightward. 
A)  demand curve for bread shifts leftward. 
B)  supply curve of bread shifts leftward. 
C)  price of bread falls. 
D)  equilibrium quantity of bread increases. 
E)  demand curve for bread shifts rightward.

Question 4

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________, and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same 
A)  rises; increases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same

Question 5

Which of the following increases the supply of a product?

Accepted Answer

A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity. 
A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity.

Question 6

Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

Accepted Answer

A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves. 
A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

Question 7

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C. 
D)  Figure C 
E)  None of the figures represent this change. 
A)  Figure A 
B)  Figure B 
C)  Figure C. 
D)  Figure C 
E)  None of the figures represent this change.

Question 8

A normal good is defined as a good

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls. 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls.

Question 9

In the above figure, ________ will shift in the demand curve from D to D₁.

Accepted Answer

A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza 
A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza

Question 10

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks are a normal good.Draw a...

Question 11

When there is a shortage of parking spaces at your college, the

Accepted Answer

A)  demand for parking spaces is greater than the supply. 
B)  supply of parking spaces is greater than the demand. 
C)  quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D)  quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E)  Both answers A and D are correct. 
A)  demand for parking spaces is greater than the supply. 
B)  supply of parking spaces is greater than the demand. 
C)  quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D)  quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E)  Both answers A and D are correct.

Question 12

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure B and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure B and Figure C

Question 13

The price of cotton clothing falls.As a result,

Accepted Answer

A)  the quantity demanded of cotton clothing increases. 
B)  the demand for cotton clothing increases. 
C)  the quantity demanded of cotton clothing decreases. 
D)  the demand for cotton clothing decreases. 
E)  both the demand for cotton clothing increases and the quantity demand of cotton clothing increases. 
A)  the quantity demanded of cotton clothing increases. 
B)  the demand for cotton clothing increases. 
C)  the quantity demanded of cotton clothing decreases. 
D)  the demand for cotton clothing decreases. 
E)  both the demand for cotton clothing increases and the quantity demand of cotton clothing increases.

Question 14

If the number of companies producing memory chips increases, then the

Accepted Answer

A)  supply of memory chips does not change. 
B)  supply of memory chips increases. 
C)  supply of memory chips decreases. 
D)  quantity of memory chips supplied increases. 
E)  demand for memory chips increases. 
A)  supply of memory chips does not change. 
B)  supply of memory chips increases. 
C)  supply of memory chips decreases. 
D)  quantity of memory chips supplied increases. 
E)  demand for memory chips increases.

Question 15

To find the market demand curve for in-line skates, we must

Accepted Answer

A)  add the quantities demanded at every price and every income by every buyer of in-line skates. 
B)  add the quantities demanded at prices that all buyers can afford to pay. 
C)  sum horizontally the individual demand curves of all the buyers. 
D)  take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E)  None of the above answers is correct because we need also to take account of the supply of in-line skates. 
A)  add the quantities demanded at every price and every income by every buyer of in-line skates. 
B)  add the quantities demanded at prices that all buyers can afford to pay. 
C)  sum horizontally the individual demand curves of all the buyers. 
D)  take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E)  None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 16

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Accepted Answer

A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward. 
A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward.

Question 17

A demand schedule shows

Accepted Answer

A)  the quantities that people plan to buy in all possible circumstances. 
B)  the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C)  the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D)  the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E)  the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity. 
A)  the quantities that people plan to buy in all possible circumstances. 
B)  the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C)  the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D)  the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E)  the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

Question 18

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Accepted Answer

A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease. 
A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease.

Question 19

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

Accepted Answer

A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases but there is no shift in the supply curve. 
D)  The quantity supplied decreases but there is no shift in the supply curve. 
E)  The quantity supplied decreases and the supply curve shifts leftward. 
A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases but there is no shift in the supply curve. 
D)  The quantity supplied decreases but there is no shift in the supply curve. 
E)  The quantity supplied decreases and the supply curve shifts leftward.

Question 20

Which of the following brings only an increase in the quantity demanded of a good?

Accepted Answer

A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good 
A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good

When the demand for blue jeans increases, what happens next?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Consider the market for bread.If the price of wheat rises, then the

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price , and the equilibrium quantity .

Which of the following increases the supply of a product?

Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

A normal good is defined as a good

In the above figure, ________ will shift in the demand curve from D to D₁.

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

When there is a shortage of parking spaces at your college, the

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

The price of cotton clothing falls.As a result,

If the number of companies producing memory chips increases, then the

To find the market demand curve for in-line skates, we must

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

A demand schedule shows

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

Which of the following brings only an increase in the quantity demanded of a good?

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

When the demand for blue jeans increases, what happens next?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Consider the market for bread.If the price of wheat rises, then the

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________, and the equilibrium quantity ________.

Which of the following increases the supply of a product?

Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

A normal good is defined as a good

In the above figure, ________ will shift in the demand curve from D to D₁.

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

When there is a shortage of parking spaces at your college, the

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

The price of cotton clothing falls.As a result,

If the number of companies producing memory chips increases, then the

To find the market demand curve for in-line skates, we must

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

A demand schedule shows

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

Which of the following brings only an increase in the quantity demanded of a good?

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

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price , and the equilibrium quantity .