Question 1

A change in the demand for apples could result from any of the following EXCEPT

Accepted Answer

A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income. 
A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income.

Question 2

There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must

Accepted Answer

A) add the prices that each buyer will pay at every quantity. 
B) add the quantities that each buyer will purchase at every price. 
C) multiply the price times quantity for each buyer and then add the resulting products together. 
D) average the price each buyer is willing to pay for each given quantity. 
E) give up because there is no way to find the market demand. 
A) add the prices that each buyer will pay at every quantity. 
B) add the quantities that each buyer will purchase at every price. 
C) multiply the price times quantity for each buyer and then add the resulting products together. 
D) average the price each buyer is willing to pay for each given quantity. 
E) give up because there is no way to find the market demand.

Question 3

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel. If the price of diesel fuel falls, there is

Accepted Answer

A) an increase in the supply of home heating oil. 
B) a decrease in the supply of home heating oil. 
C) an increase in the quantity of home heating oil supplied. 
D) a decrease in the quantity of home heating oil supplied. 
E) an increase in the demand for home heating oil. 
A) an increase in the supply of home heating oil. 
B) a decrease in the supply of home heating oil. 
C) an increase in the quantity of home heating oil supplied. 
D) a decrease in the quantity of home heating oil supplied. 
E) an increase in the demand for home heating oil.

Question 4

A student at New York University used to take the Redhound bus when she visited her grandmother in Boston. After graduating, although the bus fare and the plane fare were the same as they were when she was a student, with a well paid job on Wall Street she now takes the plane to Boston to visit her grandmother. For this student, travel by Redhound bus is

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complement good. 
E) a good with negative preferences. 
A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complement good. 
E) a good with negative preferences.

Question 5

A demand schedule shows

Accepted Answer

A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity. 
A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

Question 6

-The above figures show the market for HD televisions. If people's incomes increase and HD televisions are a normal good, 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 7

Suppose Ramen noodles, an inexpensive but a quite tasty dish, are an inferior good. Why do grocery stores in college towns, that is, towns with a large fraction of college students, stock a lot of Ramen noodles?

Accepted Answer

Generally, college students' incomes are

Question 8

Advances in productivity increase supply because they might

Accepted Answer

A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good. 
A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good.

Question 9

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts ________, the equilibrium price will ________.

Accepted Answer

A) rightward; decrease 
B) leftward; decrease 
C) rightward; increase 
D) leftward; not change 
E) rightward; not change 
A) rightward; decrease 
B) leftward; decrease 
C) rightward; increase 
D) leftward; not change 
E) rightward; not change

Question 10

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell 
A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell

Question 11

-Which figure above shows the effect of a decrease in the number of pizza sellers?

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 12

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

Accepted Answer

The quantity supplied of a goo

Question 13

EBay

Accepted Answer

A) will be considered a market when the Internet firms are profitable. 
B) is a market because buyers and sellers are brought together to buy and sell. 
C) would be a market if there was only one physical location. 
D) cannot function as a market. 
E) is not a market because buyers can buy from only one seller at any point in time. 
A) will be considered a market when the Internet firms are profitable. 
B) is a market because buyers and sellers are brought together to buy and sell. 
C) would be a market if there was only one physical location. 
D) cannot function as a market. 
E) is not a market because buyers can buy from only one seller at any point in time.

Question 14

An increase in the number of fast-food restaurants

Accepted Answer

A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals. 
A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals.

Question 15

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.73, 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 16

-The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What 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 17

-Scooters are a normal good and buyers' incomes decrease. 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 decrease in income 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 decrease in income will affect the supply curve not the demand curve.

Question 18

Which of the following shifts the supply curve for oranges?

Accepted Answer

A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas, a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers 
A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas, a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers

Question 19

The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A) rising; increasing 
B) rising; decreasing 
C) falling; increasing 
D) falling; decreasing 
E) falling; not changing 
A) rising; increasing 
B) rising; decreasing 
C) falling; increasing 
D) falling; decreasing 
E) falling; not changing

Question 20

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

Accepted Answer

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

A change in the demand for apples could result from any of the following EXCEPT

There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel. If the price of diesel fuel falls, there is

A demand schedule shows

-The above figures show the market for HD televisions. If people's incomes increase and HD televisions are a normal good, which figure shows the effect of this change?

Suppose Ramen noodles, an inexpensive but a quite tasty dish, are an inferior good. Why do grocery stores in college towns, that is, towns with a large fraction of college students, stock a lot of Ramen noodles?

Advances in productivity increase supply because they might

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts , the equilibrium price will .

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-Which figure above shows the effect of a decrease in the number of pizza sellers?

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

EBay

An increase in the number of fast-food restaurants

-The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

-Scooters are a normal good and buyers' incomes decrease. Which of the figures above best illustrates how this change affects the demand curve for scooters?

Which of the following shifts the supply curve for oranges?

The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer and the quantity .

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline and the equilibrium price of gasoline .

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 change in the demand for apples could result from any of the following EXCEPT

There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel. If the price of diesel fuel falls, there is

A demand schedule shows

-The above figures show the market for HD televisions. If people's incomes increase and HD televisions are a normal good, which figure shows the effect of this change?

Suppose Ramen noodles, an inexpensive but a quite tasty dish, are an inferior good. Why do grocery stores in college towns, that is, towns with a large fraction of college students, stock a lot of Ramen noodles?

Advances in productivity increase supply because they might

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts ________, the equilibrium price will ________.

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-Which figure above shows the effect of a decrease in the number of pizza sellers?

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

EBay

An increase in the number of fast-food restaurants

-The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

-Scooters are a normal good and buyers' incomes decrease. Which of the figures above best illustrates how this change affects the demand curve for scooters?

Which of the following shifts the supply curve for oranges?

The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer ________ and the quantity ________.

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

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

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts , the equilibrium price will .

The technology associated with manufacturing computers has advanced enormously. This change has led to the price of a computer and the quantity .

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline and the equilibrium price of gasoline .