Question 1

Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________.

Accepted Answer

A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change 
A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change

Question 2

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

Accepted Answer

A)  It shifts the supply curve leftward. 
B)  It shifts the supply curve rightward. 
C)  It does not shift the supply curve or create a movement along it. 
D)  The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all. 
E)  It creates a movement downward along the supply curve. 
A)  It shifts the supply curve leftward. 
B)  It shifts the supply curve rightward. 
C)  It does not shift the supply curve or create a movement along it. 
D)  The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward, leftward, or not at all. 
E)  It creates a movement downward along the supply curve.

Question 3

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

Accepted Answer

A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact. 
A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 4

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology, then the

Accepted Answer

A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward. 
A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward.

Question 5

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i. the quantity of new automobiles supplied decreases.
Ii) the supply of new automobiles decreases.
Iii) the supply of new automobiles increases.

Accepted Answer

A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct. 
A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct.

Question 6

The quantity supplied of a good is

Accepted Answer

A)  the same thing as the quantity demanded at each price. 
B)  the amount that the people are willing and able to sell during a given time period at a specified price. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm will sell when it can sell all it wants. 
E)  is always larger than the quantity demanded at each price. 
A)  the same thing as the quantity demanded at each price. 
B)  the amount that the people are willing and able to sell during a given time period at a specified price. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm will sell when it can sell all it wants. 
E)  is always larger than the quantity demanded at each price.

Question 7

Which of the following increases the supply of a good?

Accepted Answer

A)  a decrease in the price of a complement in production 
B)  producers expect higher prices for the good in the future 
C)  productivity improves 
D)  prices of inputs used to produce the good rise 
E)  The number of producers decreases. 
A)  a decrease in the price of a complement in production 
B)  producers expect higher prices for the good in the future 
C)  productivity improves 
D)  prices of inputs used to produce the good rise 
E)  The number of producers decreases.

Question 8

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good, then which 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 9

What leads to a decrease in the quantity demanded of a good or service?

Accepted Answer

The quantity demande

Question 10

An increase in the number of pineapple growers results in

Accepted Answer

A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct. 
A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct.

Question 11

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute for camcorders. 
D)  a complement to camcorders. 
E)  made using advanced technology. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute for camcorders. 
D)  a complement to camcorders. 
E)  made using advanced technology.

Question 12

Which of the following indicates that the law of supply applies to makers of soda?

Accepted Answer

A)  An increase in the price of a soda leads to an increase in the demand for soda. 
B)  An increase in the price of a soda leads to an increase in the supply of soda. 
C)  An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D)  A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E)  A decrease in the price of a soda leads to an increase in the supply of soda. 
A)  An increase in the price of a soda leads to an increase in the demand for soda. 
B)  An increase in the price of a soda leads to an increase in the supply of soda. 
C)  An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D)  A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E)  A decrease in the price of a soda leads to an increase in the supply of soda.

Question 13

A market is defined as

Accepted Answer

A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another. 
A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another.

Question 14

-The above figures show the market for HD televisions. If cable television providers lower the price of providing HD cable service, which figure shows the effect of this change ?

Accepted Answer

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

Question 15

If good weather conditions results in a larger than normal crop of peaches, then the

Accepted Answer

A)  equilibrium price of peaches rises and the equilibrium quantity of peaches increases. 
B)  equilibrium price of peaches falls and the equilibrium quantity of peaches increases. 
C)  demand curve for peaches shifts leftward. 
D)  increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. 
E)  equilibrium price of peaches falls and the equilibrium quantity of peaches decreases. 
A)  equilibrium price of peaches rises and the equilibrium quantity of peaches increases. 
B)  equilibrium price of peaches falls and the equilibrium quantity of peaches increases. 
C)  demand curve for peaches shifts leftward. 
D)  increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. 
E)  equilibrium price of peaches falls and the equilibrium quantity of peaches decreases.

Question 16

In the above figure, the shift in the demand curve from D to D₁ can be the result of

Accepted Answer

A)  a decrease in income if pizza is a normal good. 
B)  a decrease in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E)  new technology that increases the profit from producing pizza. 
A)  a decrease in income if pizza is a normal good. 
B)  a decrease in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E)  new technology that increases the profit from producing pizza.

Question 17

$\begin{array}{ccc}
\begin{array}{c}
\text { Quantity demanded } \
\text { (tons of cat food per year) }
\end{array} & \begin{array}{c}
\text { Price } \
\text { (dollars per pound of cat } \
\text { food) }
\end{array} & \begin{array}{c}
\text { Quantity supplied } \
\text { (tons of cat food per year) }
\end{array} \
\hline 52 & 1.00 & 15 \
46 & 1.50 & 26 \
43 & 2.00 & 34 \
40 & 2.50 & 40 \
35 & 3.00 & 44
\end{array}$
-The above table gives the demand and supply schedules for cat food.If the price is $1.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price?
 If there is a shortage, how much is the shortage?
 If there is a surplus, how much is the surplus?
 If $3.00 is the equilibrium price, what is the equilibrium quantity?
w

Accepted Answer

At a price of $1.00 per pound

Question 18

Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Question 19

List the factors change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 20

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

Accepted Answer

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

Demand curves slope because as the price increases and other things remain the same, the quantity demanded .

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology, then the

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i. the quantity of new automobiles supplied decreases. Ii) the supply of new automobiles decreases. Iii) the supply of new automobiles increases.

The quantity supplied of a good is

Which of the following increases the supply of a good?

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good, then which point represents the most likely new price and quantity?

What leads to a decrease in the quantity demanded of a good or service?

An increase in the number of pineapple growers results in

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Which of the following indicates that the law of supply applies to makers of soda?

A market is defined as

-The above figures show the market for HD televisions. If cable television providers lower the price of providing HD cable service, which figure shows the effect of this change ?

If good weather conditions results in a larger than normal crop of peaches, then the

In the above figure, the shift in the demand curve from D to D₁ can be the result of

List the factors change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

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

Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________.

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology, then the

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i. the quantity of new automobiles supplied decreases. Ii) the supply of new automobiles decreases. Iii) the supply of new automobiles increases.

The quantity supplied of a good is

Which of the following increases the supply of a good?

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good, then which point represents the most likely new price and quantity?

What leads to a decrease in the quantity demanded of a good or service?

An increase in the number of pineapple growers results in

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Which of the following indicates that the law of supply applies to makers of soda?

A market is defined as

-The above figures show the market for HD televisions. If cable television providers lower the price of providing HD cable service, which figure shows the effect of this change ?

If good weather conditions results in a larger than normal crop of peaches, then the

In the above figure, the shift in the demand curve from D to D₁ can be the result of

List the factors change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

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

Demand curves slope because as the price increases and other things remain the same, the quantity demanded .