Question 1

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

Accepted Answer

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

Question 2

Scarcity guarantees that

Accepted Answer

A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied. 
A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied. B

Question 3

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers?

Accepted Answer

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

Question 4

If the price of a video rental is below its equilibrium price, there will be a ________ of video rentals and the price will ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Question 5

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

Accepted Answer

A)  rises; decreases 
B)  rises; increases 
C)  falls; decreases 
D)  falls; increases 
A)  rises; decreases 
B)  rises; increases 
C)  falls; decreases 
D)  falls; increases

Question 6

-The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

Accepted Answer

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

Question 7

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  normal. 
D)  inferior. 
A)  complements. 
B)  substitutes. 
C)  normal. 
D)  inferior.

Question 8

Which of the following statements is CORRECT?

Accepted Answer

A)  When demand decreases, both the price and the quantity increase. 
B)  When demand increases, both the price and the quantity decrease. 
C)  When supply increases, the quantity increases and the price falls. 
D)  When supply decreases, both the price and the quantity decrease. 
A)  When demand decreases, both the price and the quantity increase. 
B)  When demand increases, both the price and the quantity decrease. 
C)  When supply increases, the quantity increases and the price falls. 
D)  When supply decreases, both the price and the quantity decrease.

Question 9

Which of the following shifts the demand curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year

Question 10

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

Accepted Answer

A)  an increase in the price of coffee. 
B)  a decrease in the price of coffee. 
C)  a rightward shift in the demand curve for coffee. 
D)  a leftward shift of the supply curve of coffee. 
A)  an increase in the price of coffee. 
B)  a decrease in the price of coffee. 
C)  a rightward shift in the demand curve for coffee. 
D)  a leftward shift of the supply curve of coffee.

Question 11

In a supply and demand figure, the equilibrium price and quantity are found at the

Accepted Answer

A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves. 
A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves.

Question 12

An unusually warm winter shifts the

Accepted Answer

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

Question 13

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following influences people's buying plans and does not shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences 
A)  the price of the good 
B)  the prices of related goods 
C)  income 
D)  preferences

Question 15

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC ________ and the quantity of PCs sold ________.

Accepted Answer

A)  rose; decreased 
B)  rose; increased 
C)  fell; decreased 
D)  fell; increased 
A)  rose; decreased 
B)  rose; increased 
C)  fell; decreased 
D)  fell; increased

Question 16

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

Accepted Answer

A)  The price of gardening books definitely increases. 
B)  The quantity of gardening books definitely increases. 
C)  The price of gardening books might increase or decrease. 
D)  The quantity of gardening books definitely stays the same. 
A)  The price of gardening books definitely increases. 
B)  The quantity of gardening books definitely increases. 
C)  The price of gardening books might increase or decrease. 
D)  The quantity of gardening books definitely stays the same.

Question 17

A change in the price of a good

Accepted Answer

A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it. 
A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it.

Question 18

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 19

When the price is below the equilibrium price, the quantity demanded

Accepted Answer

A)  is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity. 
B)  is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity. 
C)  exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity. 
D)  exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity. 
A)  is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity. 
B)  is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity. 
C)  exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity. 
D)  exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.

Question 20

Each point on the demand curve reflects

Accepted Answer

A)  all the wants of a given household. 
B)  the highest price consumers are willing and able to pay for that particular unit of a good. 
C)  the highest price sellers will accept for all units they are producing. 
D)  the lowest-cost technology available to produce a good. 
A)  all the wants of a given household. 
B)  the highest price consumers are willing and able to pay for that particular unit of a good. 
C)  the highest price sellers will accept for all units they are producing. 
D)  the lowest-cost technology available to produce a good.

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

Scarcity guarantees that

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers?

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

-The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Which of the following statements is CORRECT?

Which of the following shifts the demand curve for oranges?

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

In a supply and demand figure, the equilibrium price and quantity are found at the

An unusually warm winter shifts the

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Which of the following influences people's buying plans and does not shift the demand curve?

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC and the quantity of PCs sold .

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

A change in the price of a good

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

When the price is below the equilibrium price, the quantity demanded

Each point on the demand curve reflects

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 3: Demand and Supply

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

Scarcity guarantees that

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers?

If the price of a video rental is below its equilibrium price, there will be a ________ of video rentals and the price will ________.

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

-The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Which of the following statements is CORRECT?

Which of the following shifts the demand curve for oranges?

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

In a supply and demand figure, the equilibrium price and quantity are found at the

An unusually warm winter shifts the

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

Which of the following influences people's buying plans and does not shift the demand curve?

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC ________ and the quantity of PCs sold ________.

Consider gardening books. What will happen to the market for these books as gardening becomes more popular and simultaneously printing costs increase?

A change in the price of a good

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

When the price is below the equilibrium price, the quantity demanded

Each point on the demand curve reflects

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

If the price of a video rental is below its equilibrium price, there will be a of video rentals and the price will .

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

Between 2000 and 2015, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC and the quantity of PCs sold .