Question 1

A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ________ and the quantity of corn ________.

Accepted Answer

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

Question 2

-Pizza is a normal good. Which figure above shows the effect of a decrease in consumers' incomes?

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 3

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________ and the equilibrium quantity of cream cheese ________.

Accepted Answer

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

Question 4

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 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 or service is the

Accepted Answer

A) list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B) list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C) one quantity produced at a variety of prices. 
D) quantity produced at one price. 
A) list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B) list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C) one quantity produced at a variety of prices. 
D) quantity produced at one price.

Question 7

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,

Accepted Answer

A) the demand for milk increases. 
B) the quantity demanded of milk increases. 
C) the price of milk falls to encourage people to drink more milk. 
D) the demand for milk is not affected. 
E) the demand for milk decreases because the price of milk rises. 
A) the demand for milk increases. 
B) the quantity demanded of milk increases. 
C) the price of milk falls to encourage people to drink more milk. 
D) the demand for milk is not affected. 
E) the demand for milk decreases because the price of milk rises.

Question 8

Which of the following increases the supply of gasoline?

Accepted Answer

A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline, such as crude oil 
D) a decrease in the demand for gas-guzzling, sport utility vehicles 
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good 
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline, such as crude oil 
D) a decrease in the demand for gas-guzzling, sport utility vehicles 
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good

Question 9

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Accepted Answer

A) rise; increase 
B) rise; decrease 
C) fall; increase 
D) fall; decrease 
E) not change; increase 
A) rise; increase 
B) rise; decrease 
C) fall; increase 
D) fall; decrease 
E) not change; increase

Question 10

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.

Question 11

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

Accepted Answer

A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter. 
A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter.

Question 12

-Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figures above best illustrates how this fall in price 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 change in the price of a bicycle 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 change in the price of a bicycle will affect the supply curve not the demand curve.

Question 13

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

Accepted Answer

A) shift of a supply curve. 
B) shift of the price curve. 
C) movement along a supply curve. 
D) movement along the price curve. 
E) movement along the quantity curve. 
A) shift of a supply curve. 
B) shift of the price curve. 
C) movement along a supply curve. 
D) movement along the price curve. 
E) movement along the quantity curve.

Question 14

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

Accepted Answer

A) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
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) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
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.

Question 15

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 16

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

Accepted Answer

A) equilibrium price of peanut butter definitely falls. 
B) equilibrium quantity of peanut definitely decreases. 
C) equilibrium price of peanut butter might rise or fall. 
D) equilibrium quantity of peanut butter definitely increases. 
E) equilibrium price of peanut butter definitely rises. 
A) equilibrium price of peanut butter definitely falls. 
B) equilibrium quantity of peanut definitely decreases. 
C) equilibrium price of peanut butter might rise or fall. 
D) equilibrium quantity of peanut butter definitely increases. 
E) equilibrium price of peanut butter definitely rises.

Question 17

What is the "quantity demanded"?

Accepted Answer

A) the amount of a good people desire 
B) the amount of a good people are able and willing to buy during a specific time period and at a given price 
C) the amount of a good people are able and willing to buy at all possible prices 
D) the maximum amount of a good that can be consumed during a specific time period 
E) the minimum amount of a good that people are willing to buy during a specific time period and at a given price 
A) the amount of a good people desire 
B) the amount of a good people are able and willing to buy during a specific time period and at a given price 
C) the amount of a good people are able and willing to buy at all possible prices 
D) the maximum amount of a good that can be consumed during a specific time period 
E) the minimum amount of a good that people are willing to buy during a specific time period and at a given price

Question 18

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

Accepted Answer

A) increases; shifts rightward 
B) increases; shifts leftward 
C) decrease; shifts rightward 
D) decreases; shifts leftward 
E) increases; does not shift 
A) increases; shifts rightward 
B) increases; shifts leftward 
C) decrease; shifts rightward 
D) decreases; shifts leftward 
E) increases; does not shift

Question 19

$$\begin{array} { c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per latte) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (lattes per hour) }
\end{array} \
\hline 1 & 90 \
2 & 80 \
3 & 60 \
4 & 30 \
\hline
\end{array}$$
-The table above gives the demand schedule for lattes at the Bottomless Cup. If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A) 90 
B) 30 
C) 80 
D) 60 
E) 230 
A) 90 
B) 30 
C) 80 
D) 60 
E) 230

Question 20

-The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

Accepted Answer

A) equilibrium quantity of computers will increase. 
B) equilibrium quantity of computers will decrease. 
C) equilibrium price of a computer will rise. 
D) equilibrium price of a computer will fall. 
E) equilibrium quantity of computers might increase, decrease, or not change. 
A) equilibrium quantity of computers will increase. 
B) equilibrium quantity of computers will decrease. 
C) equilibrium price of a computer will rise. 
D) equilibrium price of a computer will fall. 
E) equilibrium quantity of computers might increase, decrease, or not change.

A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn and the quantity of corn .

-Pizza is a normal good. Which figure above shows the effect of a decrease in consumers' incomes?

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese and the equilibrium quantity of cream cheese .

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

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 or service is the

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,

Which of the following increases the supply of gasoline?

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will and the equilibrium quantity of electricity will .

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

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

-Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

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

When demand increases,

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

What is the "quantity demanded"?

The number of corn producers increases, so the supply of corn and the supply curve of corn .

Price (dollars per latte) Quantity demanded (lattes per hour) 1 90 2 80 3 60 4 30 -The table above gives the demand schedule for lattes at the Bottomless Cup. If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

-The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

Getting Started

The Us and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 4: Demand and Supply

A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ________ and the quantity of corn ________.

-Pizza is a normal good. Which figure above shows the effect of a decrease in consumers' incomes?

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________ and the equilibrium quantity of cream cheese ________.

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

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 or service is the

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,

Which of the following increases the supply of gasoline?

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

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

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

-Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

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

When demand increases,

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

What is the "quantity demanded"?

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

Price (dollars per latte) Quantity demanded (lattes per hour) 1 90 2 80 3 60 4 30 -The table above gives the demand schedule for lattes at the Bottomless Cup. If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

-The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

Getting Started

The Us and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn and the quantity of corn .

Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese and the equilibrium quantity of cream cheese .

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will and the equilibrium quantity of electricity will .

The number of corn producers increases, so the supply of corn and the supply curve of corn .