Question 1

The quantity supplied of a good is

Accepted Answer

A) the same thing as the quantity demanded at each price. 
B) the amount that the people are willing and able to sell during a given time period at a specified price. 
C) equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D) the amount the firm will sell when it can sell all it wants. 
E) always larger than the quantity demanded at each price. 
A) the same thing as the quantity demanded at each price. 
B) the amount that the people are willing and able to sell during a given time period at a specified price. 
C) equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D) the amount the firm will sell when it can sell all it wants. 
E) always larger than the quantity demanded at each price.

Question 2

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ 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

Question 3

The impact of an increase in the price of a particular good is illustrated as a

Accepted Answer

A) leftward shift in its demand curve. 
B) rightward shift in its demand curve. 
C) movement upward and to the left along its demand curve. 
D) movement downward and to the right along its demand curve. 
E) rightward shift in its demand curve and a movement upward and to the left along its demand curve. 
A) leftward shift in its demand curve. 
B) rightward shift in its demand curve. 
C) movement upward and to the left along its demand curve. 
D) movement downward and to the right along its demand curve. 
E) rightward shift in its demand curve and a movement upward and to the left along its demand curve.

Question 4

Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Accepted Answer

A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward. 
A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward.

Question 5

Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today

Accepted Answer

A) the supply curve for leather shoes shifts rightward. 
B) the supply curve for leather shoes shifts leftward. 
C) there is a movement along the supply curve for leather shoes. 
D) the equilibrium price of leather shoes falls. 
E) the equilibrium quantity of leather shoes increases. 
A) the supply curve for leather shoes shifts rightward. 
B) the supply curve for leather shoes shifts leftward. 
C) there is a movement along the supply curve for leather shoes. 
D) the equilibrium price of leather shoes falls. 
E) the equilibrium quantity of leather shoes increases.

Question 6

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

Accepted Answer

A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change. 
A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change.

Question 7

A supply curve

Accepted Answer

A) slopes downward. 
B) slopes upward. 
C) is a graph of the relationship between quantity supplied of a good and its price. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct. 
A) slopes downward. 
B) slopes upward. 
C) is a graph of the relationship between quantity supplied of a good and its price. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct.

Question 8

-Contractors can use plywood or brick to construct walls. Suppose the price of bricks increases. Which of the figures above best illustrates the effect of this change on the market for plywood?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A or Figure C depending on how contractors react to the higher price of bricks. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A or Figure C depending on how contractors react to the higher price of bricks.

Question 9

Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?

Accepted Answer

A) an advance in the technology used to produce personal computers 
B) an increase in the number of firms producing personal computer 
C) a fall in the cost of the components used to assemble personal computers 
D) a rise the price of a personal computer 
E) a change in the expected future price of a personal computer. 
A) an advance in the technology used to produce personal computers 
B) an increase in the number of firms producing personal computer 
C) a fall in the cost of the components used to assemble personal computers 
D) a rise the price of a personal computer 
E) a change in the expected future price of a personal computer.

Question 10

The phrase "a change in demand" most directly implies a

Accepted Answer

A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve. 
A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve.

Question 11

The law of demand refers to how

Accepted Answer

A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes. 
A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes.

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, if the price of a stapler is $8, 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 13

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Accepted Answer

A) The demand for sushi would decrease. 
B) The demand for sushi would be unaffected, but the price would increase. 
C) The demand for sushi could increase or decrease. 
D) The demand for sushi would increase. 
E) The demand for sushi would be unaffected, but the price would decrease. 
A) The demand for sushi would decrease. 
B) The demand for sushi would be unaffected, but the price would increase. 
C) The demand for sushi could increase or decrease. 
D) The demand for sushi would increase. 
E) The demand for sushi would be unaffected, but the price would decrease.

Question 14

Which of the following indicates that the law of supply applies to makers of soda?

Accepted Answer

A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda. 
A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda.

Question 15

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

Accepted Answer

A) Both the supply and the demand for new houses increased and the supply increased by more than the demand. 
B) The demand for new houses increased and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased and the demand for new houses did not change. 
E) The supply of new houses increased and the demand for new houses did not change. 
A) Both the supply and the demand for new houses increased and the supply increased by more than the demand. 
B) The demand for new houses increased and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased and the demand for new houses did not change. 
E) The supply of new houses increased and the demand for new houses did not change.

Question 16

Car insurance and cars are complements. If the price of car insurance increases, the

Accepted Answer

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

Question 17

What happens to the demand for a good if a complement's price increases?

Accepted Answer

A) The demand decreases and the demand curve shifts rightward. 
B) The demand increases and the demand curve shifts rightward. 
C) The demand decreases and the demand curve shifts leftward. 
D) The demand increases and the demand curve shifts leftward. 
E) There is no impact on demand for the good and the demand curve does not shift. 
A) The demand decreases and the demand curve shifts rightward. 
B) The demand increases and the demand curve shifts rightward. 
C) The demand decreases and the demand curve shifts leftward. 
D) The demand increases and the demand curve shifts leftward. 
E) There is no impact on demand for the good and the demand curve does not shift.

Question 18

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

Accepted Answer

A) The wage paid carpenters who build new houses might have risen. 
B) A technological advance in framing a new house might have occurred. 
C) The rent for nearby apartments might have fallen. 
D) More home buyers might have moved into the area. 
E) The cost of wood framing used to build houses might have fallen. 
A) The wage paid carpenters who build new houses might have risen. 
B) A technological advance in framing a new house might have occurred. 
C) The rent for nearby apartments might have fallen. 
D) More home buyers might have moved into the area. 
E) The cost of wood framing used to build houses might have fallen.

Question 19

-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) an increase in the number of corn growers 
B) an increase the price of wheat, a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good 
A) an increase in the number of corn growers 
B) an increase the price of wheat, a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good

Question 20

Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying plans?

Accepted Answer

A) the price of a substitute good 
B) income 
C) expectations 
D) preferences 
E) the price of a complement good 
A) the price of a substitute good 
B) income 
C) expectations 
D) preferences 
E) the price of a complement good

The quantity supplied of a good is

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange and the equilibrium quantity .

The impact of an increase in the price of a particular good is illustrated as a

Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

A supply curve

-Contractors can use plywood or brick to construct walls. Suppose the price of bricks increases. Which of the figures above best illustrates the effect of this change on the market for plywood?

Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?

The phrase "a change in demand" most directly implies a

The law of demand refers to how

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Which of the following indicates that the law of supply applies to makers of soda?

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

Car insurance and cars are complements. If the price of car insurance increases, the

What happens to the demand for a good if a complement's price increases?

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

-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?

Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying plans?

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

The quantity supplied of a good is

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________.

The impact of an increase in the price of a particular good is illustrated as a

Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today

People come to expect that the price of a gallon of gasoline will rise next week. As a result,

A supply curve

-Contractors can use plywood or brick to construct walls. Suppose the price of bricks increases. Which of the figures above best illustrates the effect of this change on the market for plywood?

Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?

The phrase "a change in demand" most directly implies a

The law of demand refers to how

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

Which of the following indicates that the law of supply applies to makers of soda?

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

Car insurance and cars are complements. If the price of car insurance increases, the

What happens to the demand for a good if a complement's price increases?

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

-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?

Suppose that tattoos gained immense popularity with retired people as well as college students. This gain in popularity best reflects which of the following influences on buying plans?

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 a freeze destroys oranges before they are harvested, the equilibrium price of an orange and the equilibrium quantity .