Question 1

The supply schedule

Accepted Answer

A)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B)  is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C)  shows one quantity at one price. 
D)  is the schedule that suppliers have to keep or else they will be late. 
E)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change. 
A)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B)  is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C)  shows one quantity at one price. 
D)  is the schedule that suppliers have to keep or else they will be late. 
E)  shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change.

Question 2

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Accepted Answer

The equilibrium price unambiguously fall

Question 3

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 4

A demand curve

Accepted Answer

A)  has an upward slope. 
B)  has a downward slope. 
C)  is a graph of the relationship between quantity demanded of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  has an upward slope. 
B)  has a downward slope. 
C)  is a graph of the relationship between quantity demanded of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 5

If the price is below the equilibrium price,

Accepted Answer

A)  there is a surplus. 
B)  there is a shortage. 
C)  the supply curve will shift rightward. 
D)  the supply curve will shift leftward. 
E)  the demand curve will shift leftward. 
A)  there is a surplus. 
B)  there is a shortage. 
C)  the supply curve will shift rightward. 
D)  the supply curve will shift leftward. 
E)  the demand curve will shift leftward.

Question 6

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________, and the equilibrium quantity ________.

Accepted Answer

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

Question 7

$$\begin{array} { c c c c } 
\text { Price } & & { \text { Quantity supplied } } \
\text { (dollars per half gallon) } & \text { Ben \& Jerry's } & \text { Haagen Daas } & \text { Edy's } \
 6 & 18 & 30 & 10 \
5 & 14 & 25 & 8 \
4 & 10 & 20 & 6 \
\hline
\end{array}$$
-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply?
 Why or why not?

Accepted Answer

Yes, the information in the ta

Question 8

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

Accepted Answer

A)  The supply of salsa increases. 
B)  The supply of salsa decreases. 
C)  There is no change to either the supply of salsa or the quantity of salsa supplied. 
D)  There is no change to the supply of salsa but the quantity of salsa supplied increases. 
E)  There is no change to the supply of salsa but the quantity of salsa supplied decreases. 
A)  The supply of salsa increases. 
B)  The supply of salsa decreases. 
C)  There is no change to either the supply of salsa or the quantity of salsa supplied. 
D)  There is no change to the supply of salsa but the quantity of salsa supplied increases. 
E)  There is no change to the supply of salsa but the quantity of salsa supplied decreases.

Question 9

Which of the following helps explain why the law of supply exists?

Accepted Answer

A)  Larger outputs result in lower costs of production. 
B)  The law of increasing opportunity cost. 
C)  The costs of production remain constant throughout all levels of output. 
D)  Sellers realize that if the price increases, they make larger profits and do not need to change their production. 
E)  The law of demand. 
A)  Larger outputs result in lower costs of production. 
B)  The law of increasing opportunity cost. 
C)  The costs of production remain constant throughout all levels of output. 
D)  Sellers realize that if the price increases, they make larger profits and do not need to change their production. 
E)  The law of demand.

Question 10

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

Accepted Answer

A)  shortage exists and the price falls to restore equilibrium. 
B)  shortage exists and the price rises to restore equilibrium. 
C)  surplus exists and the price falls to restore equilibrium. 
D)  surplus exists and the price rises to restore equilibrium. 
E)  surplus exists but nothing happens until either the demand or the supply changes. 
A)  shortage exists and the price falls to restore equilibrium. 
B)  shortage exists and the price rises to restore equilibrium. 
C)  surplus exists and the price falls to restore equilibrium. 
D)  surplus exists and the price rises to restore equilibrium. 
E)  surplus exists but nothing happens until either the demand or the supply changes.

Question 11

$\begin{array}{ccc}
\begin{array}{c}
\text { Quantity demanded } \
\text { (tons of cat food per year) }
\end{array} & \begin{array}{c}
\text { Price } \
\text { (dollars per pound of cat } \
\text { food) }
\end{array} & \begin{array}{c}
\text { Quantity supplied } \
\text { (tons of cat food per year) }
\end{array} \
\hline 52 & 1.00 & 15 \
46 & 1.50 & 26 \
43 & 2.00 & 34 \
40 & 2.50 & 40 \
35 & 3.00 & 44
\end{array}$
-The above table gives the demand and supply schedules for cat food.If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

Accepted Answer

The equilibrium price is $1.50 per pound

Question 12

The market demand curve for mousetraps is

Accepted Answer

A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 13

The equilibrium price of a good occurs if the

Accepted Answer

A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers. 
A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers.

Question 14

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

Accepted Answer

A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct. 
A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct.

Question 15

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.

Accepted Answer

A)  less then; fall 
B)  greater than; rise 
C)  greater than; fall 
D)  less than; rise 
E)  equal to; fall 
A)  less then; fall 
B)  greater than; rise 
C)  greater than; fall 
D)  less than; rise 
E)  equal to; fall

Question 16

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

Accepted Answer

A)  an increase in the number of corn growers 
B)  an increase the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the fertilizer used to grow the corn 
D)  a belief among corn farmers that the price of a bushel of corn will be higher next month 
E)  an increase in income if corn is a normal good 
A)  an increase in the number of corn growers 
B)  an increase the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the fertilizer used to grow the corn 
D)  a belief among corn farmers that the price of a bushel of corn will be higher next month 
E)  an increase in income if corn is a normal good

Question 17

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

Accepted Answer

A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied. 
A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 18

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Accepted Answer

A)  An increase in the cost of hard drives. 
B)  An increase in the productivity of the workers manufacturing laptops. 
C)  A decrease in the price of laptops. 
D)  An increase in the price of laptops. 
E)  A decrease in the number of laptop manufactures and sellers. 
A)  An increase in the cost of hard drives. 
B)  An increase in the productivity of the workers manufacturing laptops. 
C)  A decrease in the price of laptops. 
D)  An increase in the price of laptops. 
E)  A decrease in the number of laptop manufactures and sellers.

Question 19

Consider the market for camera film.If more people start using digital cameras, which do not require film,

Accepted Answer

A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both. 
A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.

Question 20

-In the above figure, the shift in the supply curve from S to S₂ reflects

Accepted Answer

A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied. 
A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.

The supply schedule

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

A demand curve

If the price is below the equilibrium price,

The demand for cat food decreases while the supply increases.The equilibrium price of cat food , and the equilibrium quantity .

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

Which of the following helps explain why the law of supply exists?

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

The market demand curve for mousetraps is

The equilibrium price of a good occurs if the

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is the quantity supplied and the price of the good will .

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Consider the market for camera film.If more people start using digital cameras, which do not require film,

-In the above figure, the shift in the supply curve from S to S₂ reflects

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 supply schedule

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

A demand curve

If the price is below the equilibrium price,

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________, and the equilibrium quantity ________.

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

Which of the following helps explain why the law of supply exists?

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

The market demand curve for mousetraps is

The equilibrium price of a good occurs if the

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Consider the market for camera film.If more people start using digital cameras, which do not require film,

-In the above figure, the shift in the supply curve from S to S₂ reflects

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

The demand for cat food decreases while the supply increases.The equilibrium price of cat food , and the equilibrium quantity .

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is the quantity supplied and the price of the good will .