Question 1

When demand increases,

Accepted Answer

A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward. 
A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward.

Question 2

If there is a surplus of tacos, then the

Accepted Answer

A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus. 
A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus.

Question 3

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves, the

Accepted Answer

A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases. 
A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases.

Question 4

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Accepted Answer

A)  shifts; causes 
B)  shifts; does not cause 
C)  does not shift; causes 
D)  does not shift; does not cause 
E)  None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change. 
A)  shifts; causes 
B)  shifts; does not cause 
C)  does not shift; causes 
D)  does not shift; does not cause 
E)  None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

Question 5

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Accepted Answer

A)  a decrease in the price of a compact disc 
B)  an increase in the price of a compact disc 
C)  a decrease in the number of suppliers of compact discs 
D)  an increase in the price of the resources used to produce compact discs 
E)  new technology that lowers the cost of producing compact discs 
A)  a decrease in the price of a compact disc 
B)  an increase in the price of a compact disc 
C)  a decrease in the number of suppliers of compact discs 
D)  an increase in the price of the resources used to produce compact discs 
E)  new technology that lowers the cost of producing compact discs

Question 6

To be part of the supply for a good, a producer must be

Accepted Answer

A)  only able to supply the good. 
B)  only willing to supply the good. 
C)  both able and willing to supply the good. 
D)  both able and willing to supply the good, and have already identified a buyer. 
E)  both able and willing to supply the good, and have already sold the good. 
A)  only able to supply the good. 
B)  only willing to supply the good. 
C)  both able and willing to supply the good. 
D)  both able and willing to supply the good, and have already identified a buyer. 
E)  both able and willing to supply the good, and have already sold the good.

Question 7

-In the figure above, what is the equilibrium price and quantity?

Accepted Answer

The equilibrium pric

Question 8

The law of demand implies that, other things remaining the same,

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases.

Question 9

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Accepted Answer

A)  the demand for hot dogs will increase. 
B)  the demand for hot dog buns will decrease. 
C)  the quantity demanded of hotdogs will decrease. 
D)  the demand for hot dog buns will increase. 
E)  the quantity demanded of hot dog buns will increase. 
A)  the demand for hot dogs will increase. 
B)  the demand for hot dog buns will decrease. 
C)  the quantity demanded of hotdogs will decrease. 
D)  the demand for hot dog buns will increase. 
E)  the quantity demanded of hot dog buns will increase.

Question 10

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price ________, and the equilibrium quantity is ________.

Accepted Answer

A)  rises; increases 
B)  rises; does not change 
C)  falls; does not change 
D)  falls; decreases 
E)  falls; increases 
A)  rises; increases 
B)  rises; does not change 
C)  falls; does not change 
D)  falls; decreases 
E)  falls; increases

Question 11

-The above figure shows the market for pizza.The market is in equilibrium when new pizza firms enter the market.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 12

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service 
A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service

Question 13

A student at New York University used to take the Redhound bus when she visited her grandmother in Boston.After graduating, although the bus fare and the plane fare were the same as they were when she was a student, with a well paid job on Wall Street she now takes the plane to Boston to visit her grandmother.For this student, travel by Redhound bus is

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute good. 
D)  a complement good. 
E)  a good with negative preferences. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute good. 
D)  a complement good. 
E)  a good with negative preferences.

Question 14

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

Accepted Answer

A)  falls; decreases 
B)  falls; increases 
C)  rises; decreases 
D)  rises; increases 
E)  falls; does not change 
A)  falls; decreases 
B)  falls; increases 
C)  rises; decreases 
D)  rises; increases 
E)  falls; does not change

Question 15

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Accepted Answer

A)  The law of demand is being used to increase the quantity demanded. 
B)  The store is trying to increase its customers' demand for the product. 
C)  The store manager must be trying to drive away customers by selling low quality products. 
D)  The store is trying to increase its consumer's incomes by increasing their purchasing power. 
E)  The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen. 
A)  The law of demand is being used to increase the quantity demanded. 
B)  The store is trying to increase its customers' demand for the product. 
C)  The store manager must be trying to drive away customers by selling low quality products. 
D)  The store is trying to increase its consumer's incomes by increasing their purchasing power. 
E)  The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question 16

Advances in productivity increase supply because they

Accepted Answer

A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good. 
A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good.

Question 17

Consider the market for cellular phones.Which of the following shifts the demand curve rightward?

Accepted Answer

A)  an increase in the price of cellular phones 
B)  a decrease in the price of cellular phones 
C)  an increase in the price of regular phone service, a substitute for cellular phones 
D)  a decrease in the number of cellular phone buyers 
E)  an increase in the supply of cellular phones. 
A)  an increase in the price of cellular phones 
B)  a decrease in the price of cellular phones 
C)  an increase in the price of regular phone service, a substitute for cellular phones 
D)  a decrease in the number of cellular phone buyers 
E)  an increase in the supply of cellular phones.

Question 18

$$\begin{array} { c c c } 
\text { Price } & { \begin{array} { c } 
\text { Quantity s upplied } \
\text { (manicures per day) }
\end{array} } \
\text { (dollars per manicure) } & \text { Nancy's Nails } & \text { Fancy Nails } \
\hline 10 & 5 & 10 \
15 & 10 & 16 \
20 & 14 & 20 \
25 & 16 & 23 \
\hline
\end{array}$$
-The table above shows supply schedules for the two nail salons in town, Nancy's Nails and Fancy Nails.What is the market supply of manicures?

Accepted Answer

None

Question 19

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

Accepted Answer

A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold 
A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold

Question 20

People consume more soup as temperatures falls.So, as cold weather approaches,

Accepted Answer

A)  the quantity of soup demanded increases. 
B)  the demand for soup increases. 
C)  people move closer to their demand curve for soup. 
D)  people move farther beyond their demand curves. 
E)  both the demand and the quantity demanded of soup increase. 
A)  the quantity of soup demanded increases. 
B)  the demand for soup increases. 
C)  people move closer to their demand curve for soup. 
D)  people move farther beyond their demand curves. 
E)  both the demand and the quantity demanded of soup increase.

When demand increases,

If there is a surplus of tacos, then the

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves, the

A change in the price of a good its supply curve and a movement along its supply curve.

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

To be part of the supply for a good, a producer must be

-In the figure above, what is the equilibrium price and quantity?

The law of demand implies that, other things remaining the same,

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price , and the equilibrium quantity is .

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

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

When the demand for a good decreases, its equilibrium price and equilibrium quantity .

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Advances in productivity increase supply because they

Consider the market for cellular phones.Which of the following shifts the demand curve rightward?

Price Quantity s upplied (manicures per day) (dollars per manicure) Nancy's Nails Fancy Nails 10 5 10 15 10 16 20 14 20 25 16 23 -The table above shows supply schedules for the two nail salons in town, Nancy's Nails and Fancy Nails.What is the market supply of manicures?

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

People consume more soup as temperatures falls.So, as cold weather approaches,

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 demand increases,

If there is a surplus of tacos, then the

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves, the

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

To be part of the supply for a good, a producer must be

-In the figure above, what is the equilibrium price and quantity?

The law of demand implies that, other things remaining the same,

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price ________, and the equilibrium quantity is ________.

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

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Advances in productivity increase supply because they

Consider the market for cellular phones.Which of the following shifts the demand curve rightward?

Price Quantity s upplied (manicures per day) (dollars per manicure) Nancy's Nails Fancy Nails 10 5 10 15 10 16 20 14 20 25 16 23 -The table above shows supply schedules for the two nail salons in town, Nancy's Nails and Fancy Nails.What is the market supply of manicures?

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

People consume more soup as temperatures falls.So, as cold weather approaches,

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 change in the price of a good its supply curve and a movement along its supply curve.

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price , and the equilibrium quantity is .

When the demand for a good decreases, its equilibrium price and equilibrium quantity .