Question 1

Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

Accepted Answer

A) The demand for pizzas decreases and the demand for tacos increases. 
B) The demand for both goods decreases. 
C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D) The quantity of pizza demanded decreases and the demand for tacos increases. 
E) The demand for each decreases because both are normal goods. 
A) The demand for pizzas decreases and the demand for tacos increases. 
B) The demand for both goods decreases. 
C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D) The quantity of pizza demanded decreases and the demand for tacos increases. 
E) The demand for each decreases because both are normal goods.

Question 2

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri

Question 3

A scooter uses much less gasoline than does a car. Suppose the price of gasoline rises substantially. Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

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

Question 4

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

Accepted Answer

A) will rise. 
B) will fall 
C) will remain the same. 
D) might rise, fall, or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers. 
A) will rise. 
B) will fall 
C) will remain the same. 
D) might rise, fall, or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 5

Which of the following increases the supply of a product?

Accepted Answer

A) lower prices for the resources used to produce the product 
B) some producers going bankrupt and leaving the industry 
C) a higher price for the product 
D) an increase in the expected future price of the product 
E) a decrease in productivity. 
A) lower prices for the resources used to produce the product 
B) some producers going bankrupt and leaving the industry 
C) a higher price for the product 
D) an increase in the expected future price of the product 
E) a decrease in productivity.

Question 6

List the factors that 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 7

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 8

If the number of sellers decreases, then the supply curve ________ and the supply ________.

Accepted Answer

A) shifts rightward; increases 
B) shifts rightward; decreases 
C) shifts leftward; increases 
D) shifts leftward; decreases 
E) does not shift; does not change but there is a decrease in the quantity supplied 
A) shifts rightward; increases 
B) shifts rightward; decreases 
C) shifts leftward; increases 
D) shifts leftward; decreases 
E) does not shift; does not change but there is a decrease in the quantity supplied

Question 9

Which of the following is true regarding demand?
I. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
Ii. Demand refers to one quantity at one time.
Iii. "Demand" and " quantity demanded" are the same thing.

Accepted Answer

A) i only 
B) ii only 
C) both i and ii 
D) iii only 
E) both ii and iii 
A) i only 
B) ii only 
C) both i and ii 
D) iii only 
E) both ii and iii

Question 10

Which of the following is true?

Accepted Answer

A) For an inferior good, when income increases, the demand curve shifts leftward. 
B) If the price of a substitute rises, the demand curve shifts leftward. 
C) If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D) An increase in population shifts the demand curve leftward. 
E) An increase in the cost of producing a good shifts the demand curve leftward. 
A) For an inferior good, when income increases, the demand curve shifts leftward. 
B) If the price of a substitute rises, the demand curve shifts leftward. 
C) If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D) An increase in population shifts the demand curve leftward. 
E) An increase in the cost of producing a good shifts the demand curve leftward.

Question 11

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { cellular phone) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \
\hline 100 & 50 & 100 \
80 & 55 & 80 \
50 & 60 & 60 \
20 & 100 & 40 \
\hline
\end{array}$$
-Using the data in the table above, at the price of $80 a phone,

Accepted Answer

A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium. 
A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium.

Question 12

Over the next few years more and more people prefer to ride on scooters. Which of the figures above best illustrates how this change 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 tastes 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 tastes will affect the supply curve not the demand curve.

Question 13

-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 14

Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production. In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply. The result is that the price of autos will ________ and the number of autos sold will ________.

Accepted Answer

A) rise; perhaps change but we can't say if it increases, decreases, or stays the same 
B) rise; increase 
C) rise; decrease 
D) fall; perhaps change but we can't say if it increases, decreases, or stays the same 
E) fall; decrease 
A) rise; perhaps change but we can't say if it increases, decreases, or stays the same 
B) rise; increase 
C) rise; decrease 
D) fall; perhaps change but we can't say if it increases, decreases, or stays the same 
E) fall; decrease

Question 15

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 16

To find the market demand curve for in-line skates, we must

Accepted Answer

A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates. 
A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 17

-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 18

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 19

One reason the demand for laptop computers might increase is a

Accepted Answer

A) fall in the price of a laptop computers. 
B) fall in price of desktop computers. 
C) a change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D) poor quality performance record for laptop computers. 
E) a decrease in income if laptops are a normal good. 
A) fall in the price of a laptop computers. 
B) fall in price of desktop computers. 
C) a change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D) poor quality performance record for laptop computers. 
E) a decrease in income if laptops are a normal good.

Question 20

If an early frost destroys most of the apple crop, the equilibrium price of an apple ________ and the equilibrium quantity ________.

Accepted Answer

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

Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

When does a shortage occur?

A scooter uses much less gasoline than does a car. Suppose the price of gasoline rises substantially. Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

Which of the following increases the supply of a product?

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

At prices above the equilibrium price, what occurs?

If the number of sellers decreases, then the supply curve and the supply .

Which of the following is true regarding demand? I. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii. Demand refers to one quantity at one time. Iii. "Demand" and " quantity demanded" are the same thing.

Which of the following is true?

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the table above, at the price of $80 a phone,

Over the next few years more and more people prefer to ride on scooters. Which of the figures above best illustrates how this change affects the demand curve for scooters?

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

The equilibrium price of a good occurs if the

To find the market demand curve for in-line skates, we must

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

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

One reason the demand for laptop computers might increase is a

If an early frost destroys most of the apple crop, the equilibrium price of an apple and the equilibrium quantity .

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

Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?

When does a shortage occur?

A scooter uses much less gasoline than does a car. Suppose the price of gasoline rises substantially. Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

Which of the following increases the supply of a product?

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

At prices above the equilibrium price, what occurs?

If the number of sellers decreases, then the supply curve ________ and the supply ________.

Which of the following is true regarding demand? I. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii. Demand refers to one quantity at one time. Iii. "Demand" and " quantity demanded" are the same thing.

Which of the following is true?

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the table above, at the price of $80 a phone,

Over the next few years more and more people prefer to ride on scooters. Which of the figures above best illustrates how this change affects the demand curve for scooters?

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

The equilibrium price of a good occurs if the

To find the market demand curve for in-line skates, we must

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

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

One reason the demand for laptop computers might increase is a

If an early frost destroys most of the apple crop, the equilibrium price of an apple ________ and the equilibrium quantity ________.

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

If the number of sellers decreases, then the supply curve and the supply .

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

If an early frost destroys most of the apple crop, the equilibrium price of an apple and the equilibrium quantity .