Question 1

Figure 3-5
  
-Refer to Figure 3-5.At a price of $10,the quantity sold

Accepted Answer

A)  is 2 units. 
B)  is 4 units. 
C)  is 6 units. 
D)  is 8 units. 
A)  is 2 units. 
B)  is 4 units. 
C)  is 6 units. 
D)  is 8 units.

Question 2

If a decrease in income leads to an increase in the demand for sardines,then sardines are

Accepted Answer

A)  an inferior good. 
B)  a neutral good. 
C)  a necessity. 
D)  a normal good. 
A)  an inferior good. 
B)  a neutral good. 
C)  a necessity. 
D)  a normal good.

Question 3

Figure 3-8
  
- Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point E). Which of the following changes would cause the equilibrium to change to point A?

Accepted Answer

A)  a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples 
B)  an increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples 
C)  an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease 
D)  a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples 
A)  a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples 
B)  an increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples 
C)  an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease 
D)  a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples

Question 4

A change in all of the following variables will change the market demand for a product except

Accepted Answer

A)  the price of the product. 
B)  population and demographics. 
C)  income. 
D)  tastes. 
A)  the price of the product. 
B)  population and demographics. 
C)  income. 
D)  tastes.

Question 5

Which of the following is evidence of a surplus of bananas?

Accepted Answer

A)  Firms raise the price of bananas. 
B)  The price of bananas is lowered in order to increase sales. 
C)  The equilibrium price of bananas rises due to an increase in demand. 
D)  The quantity of bananas demanded is greater than the quantity supplied. 
A)  Firms raise the price of bananas. 
B)  The price of bananas is lowered in order to increase sales. 
C)  The equilibrium price of bananas rises due to an increase in demand. 
D)  The quantity of bananas demanded is greater than the quantity supplied.

Question 6

If the United States placed an embargo on Swedish products,what would happen in the U.S.market for Swedish furniture?

Accepted Answer

A)  The supply curve would shift to the left. 
B)  The supply curve would shift to the right. 
C)  The demand curve would shift to the right. 
D)  The demand curve would shift to the left. 
A)  The supply curve would shift to the left. 
B)  The supply curve would shift to the right. 
C)  The demand curve would shift to the right. 
D)  The demand curve would shift to the left.

Question 7

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,then economists would describe this as

Accepted Answer

A)  an increase in demand. 
B)  an increase in quantity demanded. 
C)  a change in consumer income. 
D)  an increase in consumers' taste for coffee. 
A)  an increase in demand. 
B)  an increase in quantity demanded. 
C)  a change in consumer income. 
D)  an increase in consumers' taste for coffee.

Question 8

A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.

Accepted Answer

A) True 
 B)False

Question 9

Figure 3-8
  
- Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₂ (point B). If there is an decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

Accepted Answer

A)  The equilibrium point will move from B to A. 
B)  The equilibrium point will move from B to C. 
C)  There will be no change in the equilibrium point. 
D)  The equilibrium point will move from B to E. 
A)  The equilibrium point will move from B to A. 
B)  The equilibrium point will move from B to C. 
C)  There will be no change in the equilibrium point. 
D)  The equilibrium point will move from B to E.

Question 10

Which of the following statements is true?

Accepted Answer

A)  An increase in demand causes an increase in the equilibrium price; the increase in price causes supply to increase. 
B)  A decrease in supply causes the equilibrium price to rise; the increase in price then results in a decrease in quantity demanded. 
C)  If both demand and supply decrease, there must be a decrease in the equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand increases and supply decreases one cannot determine if the equilibrium price will increase or decrease without knowing which change is greater. 
A)  An increase in demand causes an increase in the equilibrium price; the increase in price causes supply to increase. 
B)  A decrease in supply causes the equilibrium price to rise; the increase in price then results in a decrease in quantity demanded. 
C)  If both demand and supply decrease, there must be a decrease in the equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand increases and supply decreases one cannot determine if the equilibrium price will increase or decrease without knowing which change is greater.

Question 11

Figure 3-1
  
-Refer to Figure 3-1.If the product represented is a normal good,an increase in income would be represented by a movement from

Accepted Answer

A)  A to B. 
B)  B to A. 
C)  D₁ to D₂. 
D)  D₂ to D₁. 
A)  A to B. 
B)  B to A. 
C)  D₁ to D₂. 
D)  D₂ to D₁.

Question 12

At a product's equilibrium price

Accepted Answer

A)  anyone who needs the product will be able to buy the product, regardless of ability to pay. 
B)  the federal government will provide the product to anyone who cannot afford it. 
C)  not all sellers who are willing to accept the price will find buyers for their products. 
D)  any buyer who is willing and able to pay the price will find a seller for the product. 
A)  anyone who needs the product will be able to buy the product, regardless of ability to pay. 
B)  the federal government will provide the product to anyone who cannot afford it. 
C)  not all sellers who are willing to accept the price will find buyers for their products. 
D)  any buyer who is willing and able to pay the price will find a seller for the product.

Question 13

If the price of music downloads was to decrease,then

Accepted Answer

A)  the demand for MP3 players would decrease. 
B)  the demand for MP3 players would increase. 
C)  the supply of MP3 players would increase. 
D)  the quantity of MP3 players demanded would decrease. 
A)  the demand for MP3 players would decrease. 
B)  the demand for MP3 players would increase. 
C)  the supply of MP3 players would increase. 
D)  the quantity of MP3 players demanded would decrease.

Question 14

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

Accepted Answer

A)  a decrease in the equilibrium quantity of lobster and no change in the equilibrium price. 
B)  an increase in the equilibrium price of lobster and no change in the equilibrium quantity. 
C)  an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease. 
D)  a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease. 
A)  a decrease in the equilibrium quantity of lobster and no change in the equilibrium price. 
B)  an increase in the equilibrium price of lobster and no change in the equilibrium quantity. 
C)  an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease. 
D)  a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease.

Question 15

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

Accepted Answer

A)  a decrease in supply and an increase in demand 
B)  a decrease in demand 
C)  an increase in supply and an increase in demand greater than the increase in supply 
D)  a decrease in supply and a decrease in demand 
A)  a decrease in supply and an increase in demand 
B)  a decrease in demand 
C)  an increase in supply and an increase in demand greater than the increase in supply 
D)  a decrease in supply and a decrease in demand

Question 16

A(n)________ is represented by a rightward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

Accepted Answer

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

Question 17

If the price of train tickets decreases,what will be the impact in the market for bus travel?

Accepted Answer

A)  The demand curve for bus travel shifts to the right. 
B)  The quantity of bus travel demanded increases. 
C)  The demand curve for bus travel shifts to the left. 
D)  The quantity of bus travel demanded decreases. 
A)  The demand curve for bus travel shifts to the right. 
B)  The quantity of bus travel demanded increases. 
C)  The demand curve for bus travel shifts to the left. 
D)  The quantity of bus travel demanded decreases.

Question 18

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery,and fewer doctors decide to enter the field of joint replacement surgery?

Accepted Answer

A)  Demand will decrease, but this will not shift the supply curve. 
B)  Supply will decrease, but this will not shift the demand curve. 
C)  Demand and supply will both decrease. 
D)  Demand will decrease and supply will increase. 
A)  Demand will decrease, but this will not shift the supply curve. 
B)  Supply will decrease, but this will not shift the demand curve. 
C)  Demand and supply will both decrease. 
D)  Demand will decrease and supply will increase.

Question 19

In response to a shortage,the market price of a good will rise.As the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Accepted Answer

A) True 
 B)False

Question 20

Market equilibrium occurs where supply equals demand.

Accepted Answer

A) True 
 B)False

Figure 3-5 -Refer to Figure 3-5.At a price of $10,the quantity sold

If a decrease in income leads to an increase in the demand for sardines,then sardines are

Figure 3-8 - Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point E). Which of the following changes would cause the equilibrium to change to point A?

A change in all of the following variables will change the market demand for a product except

Which of the following is evidence of a surplus of bananas?

If the United States placed an embargo on Swedish products,what would happen in the U.S.market for Swedish furniture?

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,then economists would describe this as

A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.

Which of the following statements is true?

Figure 3-1 -Refer to Figure 3-1.If the product represented is a normal good,an increase in income would be represented by a movement from

At a product's equilibrium price

If the price of music downloads was to decrease,then

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

A(n) is represented by a rightward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

If the price of train tickets decreases,what will be the impact in the market for bus travel?

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery,and fewer doctors decide to enter the field of joint replacement surgery?

In response to a shortage,the market price of a good will rise.As the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Market equilibrium occurs where supply equals demand.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 3: Where Prices Come From: The Interaction of Demand and Supply

Figure 3-5 -Refer to Figure 3-5.At a price of $10,the quantity sold

If a decrease in income leads to an increase in the demand for sardines,then sardines are

Figure 3-8 - Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point E). Which of the following changes would cause the equilibrium to change to point A?

A change in all of the following variables will change the market demand for a product except

Which of the following is evidence of a surplus of bananas?

If the United States placed an embargo on Swedish products,what would happen in the U.S.market for Swedish furniture?

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,then economists would describe this as

A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.

Which of the following statements is true?

Figure 3-1 -Refer to Figure 3-1.If the product represented is a normal good,an increase in income would be represented by a movement from

At a product's equilibrium price

If the price of music downloads was to decrease,then

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

A(n)________ is represented by a rightward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

If the price of train tickets decreases,what will be the impact in the market for bus travel?

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery,and fewer doctors decide to enter the field of joint replacement surgery?

In response to a shortage,the market price of a good will rise.As the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Market equilibrium occurs where supply equals demand.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

A(n) is represented by a rightward shift of the demand curve while a(n) is represented by a movement along a given demand curve.