Question 1

-The graph illustrates the supply of sweaters. A fall in the price of sweaters brings

Accepted Answer

A) a movement along the supply curve. 
B) a decrease in the quantity supplied of sweaters. 
C) a shift of the supply curve. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) a movement along the supply curve. 
B) a decrease in the quantity supplied of sweaters. 
C) a shift of the supply curve. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 2

Why does an increase in supply lead to lower prices?

Accepted Answer

When the supply of a good, such as compu

Question 3

The law of demand implies that, other things remaining the same,

Accepted Answer

A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C) as income increases, the quantity of cheeseburgers demanded increases. 
D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E) as more people demand cheeseburgers, the quantity demanded increases. 
A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C) as income increases, the quantity of cheeseburgers demanded increases. 
D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E) as more people demand cheeseburgers, the quantity demanded increases.

Question 4

Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same,

Accepted Answer

A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all. 
A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all.

Question 5

-The above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. 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 6

If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________.

Accepted Answer

A) less than; rise 
B) less than; fall 
C) greater than; rise 
D) greater than; fall 
E) equal to; fall 
A) less than; rise 
B) less than; fall 
C) greater than; rise 
D) greater than; fall 
E) equal to; fall

Question 7

-In the above figure, the movement from point a to point b reflects

Accepted Answer

A) an increase in the price of pizza. 
B) an increase in the supply of pizza. 
C) an increase in the number of producers of pizza. 
D) a decrease in the cost of the tomato sauce used to produce pizza. 
E) a decrease in income if pizza is a normal good. 
A) an increase in the price of pizza. 
B) an increase in the supply of pizza. 
C) an increase in the number of producers of pizza. 
D) a decrease in the cost of the tomato sauce used to produce pizza. 
E) a decrease in income if pizza is a normal good.

Question 8

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

Accepted Answer

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

Question 9

-The graph illustrates the supply of sweaters. Which of the following events will increase the quantity supplied of sweaters?

Accepted Answer

A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) a decrease in the number of sweater buyers 
A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) a decrease in the number of sweater buyers

Question 10

Suppose that the price of bread rises. This rise could be the result of

Accepted Answer

A) a decrease in the supply of bread. 
B) an increase in the supply of bread. 
C) a decrease in the demand for bread. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) a decrease in the supply of bread. 
B) an increase in the supply of bread. 
C) a decrease in the demand for bread. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 11

A demand schedule

Accepted Answer

A) shows the quantity demanded at one price. 
B) is a graph showing a relationship between the quantity demanded and the price of a good. 
C) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D) shows that demand is on schedule. 
E) shows how the demand changes when the supply changes. 
A) shows the quantity demanded at one price. 
B) is a graph showing a relationship between the quantity demanded and the price of a good. 
C) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D) shows that demand is on schedule. 
E) shows how the demand changes when the supply changes.

Question 12

When moving along a demand curve, which of the following changes?

Accepted Answer

A) the consumers' incomes 
B) the prices of other goods 
C) the number of buyers 
D) the price of the good 
E) the consumers' preferences 
A) the consumers' incomes 
B) the prices of other goods 
C) the number of buyers 
D) the price of the good 
E) the consumers' preferences

Question 13

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

Accepted Answer

A) demand for Dell computers increases. 
B) demand for Apple computers increases. 
C) demand for Apple computers decreases. 
D) supply of Dell computers increases. 
E) demand for Dell computers decreases. 
A) demand for Dell computers increases. 
B) demand for Apple computers increases. 
C) demand for Apple computers decreases. 
D) supply of Dell computers increases. 
E) demand for Dell computers decreases.

Question 14

In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

Accepted Answer

The higher price could have been brought

Question 15

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

Accepted Answer

A) a decrease in income if pizza is a normal good. 
B) a decrease in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E) new technology that increases the profit from producing pizza. 
A) a decrease in income if pizza is a normal good. 
B) a decrease in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) an increase in the number of teenagers, all of whom demand more pizza than do other age groups. 
E) new technology that increases the profit from producing pizza.

Question 16

-The above figure shows the market for laptops. Which of the following causes a movement from A to B?

Accepted Answer

A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops 
A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops

Question 17

The market demand curve

Accepted Answer

A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping. 
A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping.

Question 18

-The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

Accepted Answer

A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) an increase in income if sweaters are a normal good 
A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) an increase in income if sweaters are a normal good

Question 19

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Accepted Answer

The equilibrium price unambiguously fall

Question 20

Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

-The graph illustrates the supply of sweaters. A fall in the price of sweaters brings

Why does an increase in supply lead to lower prices?

The law of demand implies that, other things remaining the same,

Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same,

-The above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. What point represents the most likely new price and quantity?

If there is a surplus of a good, the quantity demanded is the quantity supplied and the price will .

-In the above figure, the movement from point a to point b reflects

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

-The graph illustrates the supply of sweaters. Which of the following events will increase the quantity supplied of sweaters?

Suppose that the price of bread rises. This rise could be the result of

A demand schedule

When moving along a demand curve, which of the following changes?

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

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

-The above figure shows the market for laptops. Which of the following causes a movement from A to B?

The market demand curve

-The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

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 graph illustrates the supply of sweaters. A fall in the price of sweaters brings

Why does an increase in supply lead to lower prices?

The law of demand implies that, other things remaining the same,

Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same,

-The above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. What point represents the most likely new price and quantity?

If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________.

-In the above figure, the movement from point a to point b reflects

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

-The graph illustrates the supply of sweaters. Which of the following events will increase the quantity supplied of sweaters?

Suppose that the price of bread rises. This rise could be the result of

A demand schedule

When moving along a demand curve, which of the following changes?

Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the

In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

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

-The above figure shows the market for laptops. Which of the following causes a movement from A to B?

The market demand curve

-The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

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 there is a surplus of a good, the quantity demanded is the quantity supplied and the price will .

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