Question 1

Which of the following always raises the equilibrium price?

Accepted Answer

A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply

Question 2

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 3

-In the above figure,a price of $35 per dozen would result in

Accepted Answer

A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices. 
A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices.

Question 4

If the price of chocolate chip cookies rises,then

Accepted Answer

A)  the demand curve for chocolate chip cookies shifts rightward. 
B)  the demand curve for chocolate chip cookies shifts leftward. 
C)  there is a movement downward along the demand curve for chocolate chip cookies. 
D)  there is a movement upward along the demand curve for chocolate chip cookies. 
A)  the demand curve for chocolate chip cookies shifts rightward. 
B)  the demand curve for chocolate chip cookies shifts leftward. 
C)  there is a movement downward along the demand curve for chocolate chip cookies. 
D)  there is a movement upward along the demand curve for chocolate chip cookies.

Question 5

-Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Accepted Answer

A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers 
A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers

Question 6

In 2011,the price of peanuts was rising,which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future.Suppose the effect on the buyers was larger than the effect on the sellers.Consequently,in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Accepted Answer

A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase 
A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase

Question 7

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward,the equilibrium

Accepted Answer

A)  price of bottled water definitely increases. 
B)  price of bottled water definitely decreases. 
C)  quantity of bottled water definitely increases. 
D)  quantity of bottled water definitely decreases. 
A)  price of bottled water definitely increases. 
B)  price of bottled water definitely decreases. 
C)  quantity of bottled water definitely increases. 
D)  quantity of bottled water definitely decreases.

Question 8

An inferior good is a good for which demand

Accepted Answer

A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases. 
A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases.

Question 9

Doctors find that one aspirin per day reduces the risk of heart attacks.Demand for aspirin will

Accepted Answer

A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate. 
A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate.

Question 10

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward,the equilibrium

Accepted Answer

A)  price of bottled water definitely increases. 
B)  price of bottled water definitely decreases. 
C)  quantity of bottled water definitely increases. 
D)  quantity of bottled water definitely decreases. 
A)  price of bottled water definitely increases. 
B)  price of bottled water definitely decreases. 
C)  quantity of bottled water definitely increases. 
D)  quantity of bottled water definitely decreases.

Question 11

The law of demand implies that demand curves

Accepted Answer

A)  slope down. 
B)  slope up. 
C)  shift rightward whenever the price rises. 
D)  shift leftward whenever the price rises. 
A)  slope down. 
B)  slope up. 
C)  shift rightward whenever the price rises. 
D)  shift leftward whenever the price rises.

Question 12

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks.The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________.

Accepted Answer

A)  increases; increases; rises 
B)  decreases; increases; rises 
C)  increases; decreases; might rise, fall, or stay the same 
D)  decreases; increases; might rise, fall, or stay the same 
A)  increases; increases; rises 
B)  decreases; increases; rises 
C)  increases; decreases; might rise, fall, or stay the same 
D)  decreases; increases; might rise, fall, or stay the same

Question 13

If a producer can use resources to produce either good A or good B,then A and B are

Accepted Answer

A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption. 
A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption.

Question 14

You notice that the price and quantity of wheat both decrease.This observation can be the result of the

Accepted Answer

A)  demand curve for wheat shifting rightward. 
B)  demand curve for wheat shifting leftward. 
C)  supply curve of wheat shifting rightward. 
D)  supply curve of wheat shifting leftward. 
A)  demand curve for wheat shifting rightward. 
B)  demand curve for wheat shifting leftward. 
C)  supply curve of wheat shifting rightward. 
D)  supply curve of wheat shifting leftward.

Question 15

-The above figures show the market for oranges.Which figure(s) shows the effect of an increase in the price of bananas,a substitute for oranges?

Accepted Answer

A)  Figure A 
B)  Figure C 
C)  Figure D 
D)  Figure A and C 
A)  Figure A 
B)  Figure C 
C)  Figure D 
D)  Figure A and C

Question 16

In 2011,the price of peanuts was rising,which lead peanut butter buyers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Accepted Answer

A)  an increase in demand for peanut butter; an increase; an increase 
B)  an increase in supply of peanut butter; a decrease; an increase 
C)  a decrease in demand for peanut butter; a decrease; a decrease 
D)  a decrease in supply of peanut butter; an increase; a decrease 
A)  an increase in demand for peanut butter; an increase; an increase 
B)  an increase in supply of peanut butter; a decrease; an increase 
C)  a decrease in demand for peanut butter; a decrease; a decrease 
D)  a decrease in supply of peanut butter; an increase; a decrease

Question 17

In the market for bicycles,explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.

Accepted Answer

An increase in the price of steel is an

Question 18

In 2011,the price of peanuts was rising,which lead peanut butter sellers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Accepted Answer

A)  an increase in demand for peanut butter; an increase; an increase 
B)  an increase in supply of peanut butter; a decrease; an increase 
C)  a decrease in demand for peanut butter; a decrease; a decrease 
D)  a decrease in supply of peanut butter; an increase; a decrease 
A)  an increase in demand for peanut butter; an increase; an increase 
B)  an increase in supply of peanut butter; a decrease; an increase 
C)  a decrease in demand for peanut butter; a decrease; a decrease 
D)  a decrease in supply of peanut butter; an increase; a decrease

Question 19

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

Accepted Answer

A)  a fall in income if used cars are an inferior good 
B)  an increase in the wage rate paid to used car salespeople 
C)  Neither of the above because the question suggests a violation of the "law of demand." 
D)  Neither of the above because the question suggests a violation of the "law of supply." 
A)  a fall in income if used cars are an inferior good 
B)  an increase in the wage rate paid to used car salespeople 
C)  Neither of the above because the question suggests a violation of the "law of demand." 
D)  Neither of the above because the question suggests a violation of the "law of supply."

Question 20

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Which of the following always raises the equilibrium price?

When does a surplus occur?

-In the above figure,a price of $35 per dozen would result in

If the price of chocolate chip cookies rises,then

-Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward,the equilibrium

An inferior good is a good for which demand

Doctors find that one aspirin per day reduces the risk of heart attacks.Demand for aspirin will

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward,the equilibrium

The law of demand implies that demand curves

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks.The supply of aspirin and the demand for aspirin so that the equilibrium price of aspirin .

If a producer can use resources to produce either good A or good B,then A and B are

You notice that the price and quantity of wheat both decrease.This observation can be the result of the

-The above figures show the market for oranges.Which figure(s) shows the effect of an increase in the price of bananas,a substitute for oranges?

In 2011,the price of peanuts was rising,which lead peanut butter buyers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was which resulted in in the price of peanut butter and in the quantity of peanut butter.

In the market for bicycles,explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.

In 2011,the price of peanuts was rising,which lead peanut butter sellers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was which resulted in in the price of peanut butter and in the quantity of peanut butter.

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

What is the difference between quantity supplied and supply?

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 3: Demand and Supply

Which of the following always raises the equilibrium price?

When does a surplus occur?

-In the above figure,a price of $35 per dozen would result in

If the price of chocolate chip cookies rises,then

-Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward,the equilibrium

An inferior good is a good for which demand

Doctors find that one aspirin per day reduces the risk of heart attacks.Demand for aspirin will

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward,the equilibrium

The law of demand implies that demand curves

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks.The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________.

If a producer can use resources to produce either good A or good B,then A and B are

You notice that the price and quantity of wheat both decrease.This observation can be the result of the

-The above figures show the market for oranges.Which figure(s) shows the effect of an increase in the price of bananas,a substitute for oranges?

In the market for bicycles,explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

What is the difference between quantity supplied and supply?

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks.The supply of aspirin and the demand for aspirin so that the equilibrium price of aspirin .