Question 1

One reason supply curves have an upward slope is because

Accepted Answer

A) increased supply will require increased technology. 
B) people will pay a higher price when less is supplied. 
C) a higher price brings a greater profit, so firms want to sell more of that good. 
D) to have more of the good supplied requires more firms to open. 
E) None of the above answers is correct because supply curves have a downward slope. 
A) increased supply will require increased technology. 
B) people will pay a higher price when less is supplied. 
C) a higher price brings a greater profit, so firms want to sell more of that good. 
D) to have more of the good supplied requires more firms to open. 
E) None of the above answers is correct because supply curves have a downward slope.

Question 2

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 3

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream. Using the demand schedules in the table above, what is the market demand curve for ice cream?

Accepted Answer

\[\begin{array} { c c } 
\begin{array} {

Question 4

Suppose that the productivity used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in productivity inc

Question 5

Which of the following results in a movement upward along the demand curve for movies?

Accepted Answer

A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) an increase in income, assuming that movies are a normal good 
D) a decrease in income, assuming that movies are a normal good 
E) a decrease in the price of NetFlix, a substitute for movies 
A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) an increase in income, assuming that movies are a normal good 
D) a decrease in income, assuming that movies are a normal good 
E) a decrease in the price of NetFlix, a substitute for movies

Question 6

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.

Question 7

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

Accepted Answer

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

Question 8

-A construction boom occurs and many of the new buildings need plywood for their framing. 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 or Figure C 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A or Figure C

Question 9

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 10

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters 
A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters

Question 11

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

The answer of Consumers can use either natural gas or...

Question 12

If income increases and the demand for bus rides decreases,

Accepted Answer

A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good. 
A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good.

Question 13

-The above figures show the market for HD televisions. Blu-ray players can be used to play HD movies. If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

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 14

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then

Accepted Answer

A) there is a surplus of gasoline in Tulsa. 
B) there is a shortage of gasoline in Tulsa. 
C) the gasoline market in Tulsa is in equilibrium. 
D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E) there is neither a surplus nor a shortage but the market is NOT in equilibrium. 
A) there is a surplus of gasoline in Tulsa. 
B) there is a shortage of gasoline in Tulsa. 
C) the gasoline market in Tulsa is in equilibrium. 
D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E) there is neither a surplus nor a shortage but the market is NOT in equilibrium.

Question 15

-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) a decrease in the number of corn growers 
B) a decrease the price of wheat, a substitute in production for corn 
C) an increase in the cost of the seed used to grow the corn 
D) an decrease in buyers' incomes if corn is an inferior good 
E) an increased belief among buyers that corn is healthy. 
A) a decrease in the number of corn growers 
B) a decrease the price of wheat, a substitute in production for corn 
C) an increase in the cost of the seed used to grow the corn 
D) an decrease in buyers' incomes if corn is an inferior good 
E) an increased belief among buyers that corn is healthy.

Question 16

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

Accepted Answer

The equilibrium price is $2.50

Question 17

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Question 18

Which of the following describes the law of demand? When other things remain the same, as

Accepted Answer

A) the price of gas falls, the quantity demanded of gas increases. 
B) the quantity demanded of bread increases, the price of bread falls. 
C) the price of peanut butter increases, the quantity demanded of jelly decreases. 
D) your income increases, you'll buy more hamburgers. 
E) more people decide to eat pizza, the demand for pizza increases. 
A) the price of gas falls, the quantity demanded of gas increases. 
B) the quantity demanded of bread increases, the price of bread falls. 
C) the price of peanut butter increases, the quantity demanded of jelly decreases. 
D) your income increases, you'll buy more hamburgers. 
E) more people decide to eat pizza, the demand for pizza increases.

Question 19

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington. Which of the figures above best illustrates the effect of this new law?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above because a prohibition cannot be illustrated using demand and supply figures. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above because a prohibition cannot be illustrated using demand and supply figures.

Question 20

Market equilibrium occurs when

Accepted Answer

A) the quantity demanded equals the quantity supplied. 
B) the market is changing rapidly. 
C) other things remain the same. 
D) buyers get the lowest possible price. 
E) everyone who wants the good gets the quantity he or she wants. 
A) the quantity demanded equals the quantity supplied. 
B) the market is changing rapidly. 
C) other things remain the same. 
D) buyers get the lowest possible price. 
E) everyone who wants the good gets the quantity he or she wants.

One reason supply curves have an upward slope is because

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

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream. Using the demand schedules in the table above, what is the market demand curve for ice cream?

Suppose that the productivity used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

Which of the following results in a movement upward along the demand curve for movies?

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

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

-A construction boom occurs and many of the new buildings need plywood for their framing. Which of the figures above best illustrates this change?

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

Which of the following results in a movement upward along the supply curve for movies in theaters?

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If income increases and the demand for bus rides decreases,

-The above figures show the market for HD televisions. Blu-ray players can be used to play HD movies. If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

-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?

Quantity demanded (tons of cat food per year) Price (dollars per pound of cat food) Quantity supplied (tons of cat food per year) 52 1.00 15 46 1.50 26 43 2.00 34 40 2.50 40 35 3.00 44 -The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?

What is the difference between quantity supplied and supply?

Which of the following describes the law of demand? When other things remain the same, as

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington. Which of the figures above best illustrates the effect of this new law?

Market equilibrium occurs when

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

One reason supply curves have an upward slope is because

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

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream. Using the demand schedules in the table above, what is the market demand curve for ice cream?

Suppose that the productivity used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

Which of the following results in a movement upward along the demand curve for movies?

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

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

-A construction boom occurs and many of the new buildings need plywood for their framing. Which of the figures above best illustrates this change?

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

Which of the following results in a movement upward along the supply curve for movies in theaters?

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If income increases and the demand for bus rides decreases,

-The above figures show the market for HD televisions. Blu-ray players can be used to play HD movies. If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

-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?

Quantity demanded (tons of cat food per year) Price (dollars per pound of cat food) Quantity supplied (tons of cat food per year) 52 1.00 15 46 1.50 26 43 2.00 34 40 2.50 40 35 3.00 44 -The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?

What is the difference between quantity supplied and supply?

Which of the following describes the law of demand? When other things remain the same, as

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington. Which of the figures above best illustrates the effect of this new law?

Market equilibrium occurs when

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

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