Question 1

Assuming steak and potatoes are complements,other things being equal,an increase in the price of steak,will:

Accepted Answer

A)  increase the demand for potatoes. 
B)  decrease the demand for potatoes. 
C)  increase the demand for steak. 
D)  decrease the demand for steak. 
A)  increase the demand for potatoes. 
B)  decrease the demand for potatoes. 
C)  increase the demand for steak. 
D)  decrease the demand for steak.

Question 2

The law of demand says that the lower the price charged for a good,ceteris paribus,the:

Accepted Answer

A)  greater the quantity demanded per period of time. 
B)  greater the demand for the good per period of time. 
C)  smaller the demand for the good per period of time. 
D)  smaller the quantity demanded per period of time. 
E)  larger the supply of the good per period of time. 
A)  greater the quantity demanded per period of time. 
B)  greater the demand for the good per period of time. 
C)  smaller the demand for the good per period of time. 
D)  smaller the quantity demanded per period of time. 
E)  larger the supply of the good per period of time.

Question 3

Assume that eggnog and cookies are complements.If the price of eggnog goes up,what happens to the demand for cookies?

Accepted Answer

A)  Demand for cookies increases. 
B)  Demand for cookies decreases. 
C)  Demand for cookies remains unchanged. 
D)  The shift in demand will depend on the original price of cookies. 
A)  Demand for cookies increases. 
B)  Demand for cookies decreases. 
C)  Demand for cookies remains unchanged. 
D)  The shift in demand will depend on the original price of cookies.

Question 4

An economist has conducted extensive research and has found that Jones Cola is a substitute for Tucker Cola.Ceteris paribus,the price of Jones Cola increases.The impact on the demand curve for Tucker Cola is a(n):

Accepted Answer

A)  increase in demand. 
B)  decrease in demand. 
C)  increase in quantity demanded. 
D)  decrease in quantity demanded. 
A)  increase in demand. 
B)  decrease in demand. 
C)  increase in quantity demanded. 
D)  decrease in quantity demanded.

Question 5

There is news that the price of Tucker's Root Beer will increase significantly next week.If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right,the position of this demand curve has reacted to a change in:

Accepted Answer

A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  the number of buyers. 
E)  expectations. 
A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  the number of buyers. 
E)  expectations.

Question 6

The development of new technology typically:

Accepted Answer

A)  shifts the supply curve to the right. 
B)  reduces profits. 
C)  results in a downward movement along a supply curve. 
D)  increases costs of production. 
E)  shifts the demand curve to the right. 
A)  shifts the supply curve to the right. 
B)  reduces profits. 
C)  results in a downward movement along a supply curve. 
D)  increases costs of production. 
E)  shifts the demand curve to the right.

Question 7

Exhibit 3-1 Market demand
  
-Suppose there are only three people in the economy: Jane,Harry,and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $4 is ____.

Accepted Answer

A)  3 
B)  25 
C)  17 
D)  8 
E)  36 
A)  3 
B)  25 
C)  17 
D)  8 
E)  36

Question 8

The price of a good will fall when:

Accepted Answer

A)  there is a shortage of the good. 
B)  there is a surplus of the good. 
C)  demand for the good increases. 
D)  the supply of the good decreases. 
A)  there is a shortage of the good. 
B)  there is a surplus of the good. 
C)  demand for the good increases. 
D)  the supply of the good decreases.

Question 9

Exhibit 3-1 Market demand
  
-Suppose there are only three people in the economy: Jane,Harry,and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $5 is ____.

Accepted Answer

A)  3 
B)  25 
C)  17 
D)  8 
E)  26 
A)  3 
B)  25 
C)  17 
D)  8 
E)  26

Question 10

A decrease in the number of dry cleaners in an area is represented by a(n):

Accepted Answer

A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve. 
E)  vertical dry cleaning supply curve. 
A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve. 
E)  vertical dry cleaning supply curve.

Question 11

A supply curve:

Accepted Answer

A)  has a negative slope. 
B)  is based on the assumption of a stable demand curve. 
C)  illustrates the negative relationship between price and quantity supplied. 
D)  illustrates the positive relationship between price and quantity supplied. 
E)  shifts about in random fashion. 
A)  has a negative slope. 
B)  is based on the assumption of a stable demand curve. 
C)  illustrates the negative relationship between price and quantity supplied. 
D)  illustrates the positive relationship between price and quantity supplied. 
E)  shifts about in random fashion.

Question 12

If the price of coffee decreases,the demand curve for tea (a substitute good)will:

Accepted Answer

A)  remain unchanged. 
B)  shift to the right. 
C)  shift to the left. 
D)  do none of the above 
A)  remain unchanged. 
B)  shift to the right. 
C)  shift to the left. 
D)  do none of the above

Question 13

Three of the four events described below might reasonably be expected to shift the demand curve for Tacos to a new position.One would not shift the demand curve.The single exception is:

Accepted Answer

A)  a change in people's tastes with respect to Tacos. 
B)  an increase in the money income of beef consumers. 
C)  a widespread advertising campaign undertaken by the producers of a product competitive with Tacos. 
D)  a fall in the price of Tacos. 
A)  a change in people's tastes with respect to Tacos. 
B)  an increase in the money income of beef consumers. 
C)  a widespread advertising campaign undertaken by the producers of a product competitive with Tacos. 
D)  a fall in the price of Tacos.

Question 14

The market demand is the:

Accepted Answer

A)  sum of all individual demand curves in a market. 
B)  sum of all individual prices in a market. 
C)  sum of all individual demand curves and supplies in a market. 
D)  vertical sum of all individual demand curves. 
A)  sum of all individual demand curves in a market. 
B)  sum of all individual prices in a market. 
C)  sum of all individual demand curves and supplies in a market. 
D)  vertical sum of all individual demand curves.

Question 15

Assume that brand X is an inferior good and name brand Y is a normal good.An increase in consumer income,other things being equal,will cause a(n):

Accepted Answer

A)  upward movement along the demand curve for name brand Y. 
B)  downward movement along the demand curve for brand X. 
C)  rightward shift in the demand curve for brand X. 
D)  leftward shift in the demand curve for brand X. 
A)  upward movement along the demand curve for name brand Y. 
B)  downward movement along the demand curve for brand X. 
C)  rightward shift in the demand curve for brand X. 
D)  leftward shift in the demand curve for brand X.

Question 16

Which of the following causes the demand for veggie burgers to increase?

Accepted Answer

A)  A decline in the price of veggie burgers. 
B)  An increase in the price of tofu burgers, perceived as a substitute by veggie-burger consumers. 
C)  An increase in the price of burger buns. 
D)  A technological innovation that lowers the cost of producing veggie burgers. 
A)  A decline in the price of veggie burgers. 
B)  An increase in the price of tofu burgers, perceived as a substitute by veggie-burger consumers. 
C)  An increase in the price of burger buns. 
D)  A technological innovation that lowers the cost of producing veggie burgers.

Question 17

Which of the following would not cause a shift in the supply curve for a good?

Accepted Answer

A)  An increase in demand for that good. 
B)  An increase in the cost of labor used to produce that good. 
C)  A change in the cost of raw materials used to produce that good. 
D)  A decrease in the cost of machinery used to produce that good. 
A)  An increase in demand for that good. 
B)  An increase in the cost of labor used to produce that good. 
C)  A change in the cost of raw materials used to produce that good. 
D)  A decrease in the cost of machinery used to produce that good.

Question 18

Other things being equal,the effect of a decrease in the price of Coca-Cola would cause which of the following?

Accepted Answer

A)  A rightward shift in the demand curve for Coca-Cola. 
B)  A downward movement along the demand curve for Coca-Cola. 
C)  A leftward shift in the demand curve for Coca-Cola. 
D)  An upward movement along the demand curve for Coca-Cola. 
A)  A rightward shift in the demand curve for Coca-Cola. 
B)  A downward movement along the demand curve for Coca-Cola. 
C)  A leftward shift in the demand curve for Coca-Cola. 
D)  An upward movement along the demand curve for Coca-Cola.

Question 19

When economists say the quantity supplied of a product has decreased,they mean the:

Accepted Answer

A)  supply curve has shifted to the left. 
B)  supply curve has shifted to the right. 
C)  price of the product has risen, and consequently, suppliers are producing more of it. 
D)  price of the product has fallen, and consequently, suppliers are producing less of it. 
A)  supply curve has shifted to the left. 
B)  supply curve has shifted to the right. 
C)  price of the product has risen, and consequently, suppliers are producing more of it. 
D)  price of the product has fallen, and consequently, suppliers are producing less of it.

Question 20

A leftward shift of a supply curve is called a(n):

Accepted Answer

A)  decrease in demand. 
B)  increase in supply. 
C)  decrease in supply. 
D)  increase in quantity supplied. 
E)  decrease in quantity supplied. 
A)  decrease in demand. 
B)  increase in supply. 
C)  decrease in supply. 
D)  increase in quantity supplied. 
E)  decrease in quantity supplied.

Exam 3: Part 1: Market Demand and Supply

Assuming steak and potatoes are complements,other things being equal,an increase in the price of steak,will:

The law of demand says that the lower the price charged for a good,ceteris paribus,the:

Assume that eggnog and cookies are complements.If the price of eggnog goes up,what happens to the demand for cookies?

An economist has conducted extensive research and has found that Jones Cola is a substitute for Tucker Cola.Ceteris paribus,the price of Jones Cola increases.The impact on the demand curve for Tucker Cola is a(n):

There is news that the price of Tucker's Root Beer will increase significantly next week.If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right,the position of this demand curve has reacted to a change in:

The development of new technology typically:

Exhibit 3-1 Market demand -Suppose there are only three people in the economy: Jane,Harry,and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $4 is ____.

The price of a good will fall when:

Exhibit 3-1 Market demand -Suppose there are only three people in the economy: Jane,Harry,and Bob.The individual demand for corn for each of these consumers is given in Exhibit 3-1.The total quantity demanded of corn if the market price is $5 is ____.

A decrease in the number of dry cleaners in an area is represented by a(n):

A supply curve:

If the price of coffee decreases,the demand curve for tea (a substitute good)will:

Three of the four events described below might reasonably be expected to shift the demand curve for Tacos to a new position.One would not shift the demand curve.The single exception is:

The market demand is the:

Assume that brand X is an inferior good and name brand Y is a normal good.An increase in consumer income,other things being equal,will cause a(n):

Which of the following causes the demand for veggie burgers to increase?

Which of the following would not cause a shift in the supply curve for a good?

Other things being equal,the effect of a decrease in the price of Coca-Cola would cause which of the following?

When economists say the quantity supplied of a product has decreased,they mean the:

A leftward shift of a supply curve is called a(n):

Introducing the Economic Way of Thinking

A: Appendix: Applying Graphs to Economics

Production Possibilities,Opportunity Cost,and Economic Growth

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters