Question 1

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 2

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 3

Consider the market for peanut butter. If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas, the

Accepted Answer

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

Question 4

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

Accepted Answer

The equilibrium pric

Question 5

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

Accepted Answer

A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat. 
A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat.

Question 6

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 7

-The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Accepted Answer

A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied. 
A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied.

Question 8

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars } \
\text { per stapler) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} \
\hline 8 & 10 & 90 \
7 & 40 & 80 \
6 & 70 & 70 \
5 & 100 & 60 \
\hline
\end{array}$$
-Using the data in the table above, if the price of a stapler is $5, then there is a ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A) surplus; is greater than 
B) surplus; is less than 
C) shortage; is greater than 
D) shortage; is less than 
E) neither a surplus nor a shortage; equals 
A) surplus; is greater than 
B) surplus; is less than 
C) shortage; is greater than 
D) shortage; is less than 
E) neither a surplus nor a shortage; equals

Question 9

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 10

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

Accepted Answer

A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good. 
A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good.

Question 11

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

Accepted Answer

A) demand for hot dogs increases. 
B) demand for hot dogs decreases. 
C) quantity of hot dogs demanded increases. 
D) quantity of hot dogs demanded decreases. 
E) More information is needed to determine if the demand increases or decreases. 
A) demand for hot dogs increases. 
B) demand for hot dogs decreases. 
C) quantity of hot dogs demanded increases. 
D) quantity of hot dogs demanded decreases. 
E) More information is needed to determine if the demand increases or decreases.

Question 12

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars } \
\text { per stapler) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} \
\hline 8 & 10 & 90 \
7 & 40 & 80 \
6 & 70 & 70 \
5 & 100 & 60 \
\hline
\end{array}$$
-Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

Accepted Answer

A) 10,000 and $8. 
B) 90,000 and $8. 
C) 100,000 and $5. 
D) 70,000 and $6. 
E) 60,000 and $5. 
A) 10,000 and $8. 
B) 90,000 and $8. 
C) 100,000 and $5. 
D) 70,000 and $6. 
E) 60,000 and $5.

Question 13

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

Accepted Answer

A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases but there is no shift in the supply curve. 
D) The quantity supplied decreases but there is no shift in the supply curve. 
E) The quantity supplied decreases and the supply curve shifts leftward. 
A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases but there is no shift in the supply curve. 
D) The quantity supplied decreases but there is no shift in the supply curve. 
E) The quantity supplied decreases and the supply curve shifts leftward.

Question 14

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 15

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 16

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then 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 17

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 18

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

Accepted Answer

A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes, not the demand. 
A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes, not the demand.

Question 19

In the above figure, an increase in productivity

Accepted Answer

A) shifts the supply curve from S to S₁. 
B) shifts the supply curve from S to S₂. 
C) results in a movement from point a to point b. 
D) results in a movement from point b to point a. 
E) has no effect. 
A) shifts the supply curve from S to S₁. 
B) shifts the supply curve from S to S₂. 
C) results in a movement from point a to point b. 
D) results in a movement from point b to point a. 
E) has no effect.

Question 20

The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

Accepted Answer

A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine. 
A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine.

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

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

Consider the market for peanut butter. If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas, the

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

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

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

-The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

When does a surplus occur?

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

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

Price (dollars per stapler) Quantity demanded (thousands of staplers per week) Quantity supplied (thousands of staplers per week) 8 10 90 7 40 80 6 70 70 5 100 60 -Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

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?

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

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

In the above figure, an increase in productivity

The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

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

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

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

Consider the market for peanut butter. If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas, the

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

It is expected that the price of a bushel of wheat will increase in one month. This belief will result in

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

-The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

When does a surplus occur?

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

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

Price (dollars per stapler) Quantity demanded (thousands of staplers per week) Quantity supplied (thousands of staplers per week) 8 10 90 7 40 80 6 70 70 5 100 60 -Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

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?

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

-The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of the following occurs immediately?

In the above figure, an increase in productivity

The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

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