Question 1

Inferior goods are characterized by _____ demand as a result of increased income.

Accepted Answer

A)  higher 
B)  lower 
C)  no change in 
D)  sharp increases in 
A)  higher 
B)  lower 
C)  no change in 
D)  sharp increases in B

Question 2

In a movement along the demand curve,the demand schedule

Accepted Answer

A)  stays the same, as do prices. 
B)  increases, as do prices. 
C)  decreases, and prices decrease. 
D)  stays the same, and the price changes. 
A)  stays the same, as do prices. 
B)  increases, as do prices. 
C)  decreases, and prices decrease. 
D)  stays the same, and the price changes. D

Question 3

A luxury good is one whose demand ______ as income increases.

Accepted Answer

A)  rises slightly 
B)  rises sharply 
C)  decreases 
D)  stays flat 
A)  rises slightly 
B)  rises sharply 
C)  decreases 
D)  stays flat B

Question 4

The price at which the quantity supplied equals quantity demanded is the

Accepted Answer

A)  equilibrium quantity. 
B)  equilibrium market. 
C)  equilibrium price. 
D)  market price. 
A)  equilibrium quantity. 
B)  equilibrium market. 
C)  equilibrium price. 
D)  market price.

Question 5

Demand is inelastic if

Accepted Answer

A)  the quantity demanded changes along with the price. 
B)  the quantity demanded does not change very much even if the price changes dramatically. 
C)  the demand curves to the left. 
D)  the demand curves to the right. 
A)  the quantity demanded changes along with the price. 
B)  the quantity demanded does not change very much even if the price changes dramatically. 
C)  the demand curves to the left. 
D)  the demand curves to the right.

Question 6

What caused the decline in demand for Red Delicious apples?

Accepted Answer

A)  More varieties to choose from. 
B)  Transportation issues. 
C)  Consumers found them to be tasteless. 
D)  Genetic manipulation scared consumers. 
A)  More varieties to choose from. 
B)  Transportation issues. 
C)  Consumers found them to be tasteless. 
D)  Genetic manipulation scared consumers.

Question 7

What happened to the demand curve in the global cement market when China experienced a construction boom starting in 2004?

Accepted Answer

The demand curve shifted to the right af

Question 8

If financial aid were severely reduced,what would happen to the equilibrium quantity of education supplied by educational institutions?

Accepted Answer

A)  The quantity supplied would increase. 
B)  The quantity supplied would remain unchanged. 
C)  The quantity supplied would fall. 
D)  The change in quantity supplied would cause the quantity demanded to increase. 
A)  The quantity supplied would increase. 
B)  The quantity supplied would remain unchanged. 
C)  The quantity supplied would fall. 
D)  The change in quantity supplied would cause the quantity demanded to increase.

Question 9

The selling prices of houses in 2003 through 2006 reflected which market condition?

Accepted Answer

A)  Excess demand. 
B)  Excess supply. 
C)  Market equilibrium. 
D)  Market price. 
A)  Excess demand. 
B)  Excess supply. 
C)  Market equilibrium. 
D)  Market price.

Question 10

What happens when a supply curve shifts right?

Accepted Answer

When a supply curve shifts right (when s

Question 11

If a town begins requiring builders to build on one-acre lots,instead of smaller quarter-acre lots,the supply curve for new homes will

Accepted Answer

A)  shift to the left. 
B)  shift to the right. 
C)  reach market equilibrium. 
D)  reflect equilibrium pricing. 
A)  shift to the left. 
B)  shift to the right. 
C)  reach market equilibrium. 
D)  reflect equilibrium pricing.

Question 12

A normal good is one whose demand rises sharply as income increases.

Accepted Answer

A) True 
 B)False

Question 13

Hurricane Katrina caused refineries and oil rigs in New Orleans and in the Gulf of Mexico to close down.In the market for gasoline,Hurricane Katrina caused

Accepted Answer

A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in supply. 
D)  a decrease in supply. 
A)  an increase in demand. 
B)  a decrease in demand. 
C)  an increase in supply. 
D)  a decrease in supply.

Question 14

Excess demand generally causes prices to go down.

Accepted Answer

A) True 
 B)False

Question 15

$$\begin{array} { c | c | c } 
\text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 0 & 200 & 0 \
\$ 1 & 150 & 40 \
\$ 2 & 100 & 80 \
\$ 3 & 50 & 120 \
\$ 4 & 0 & 160
\end{array}$$ Refer to the table.In this market,the equilibrium price occurs where quantity demanded and quantity supplied are both

Accepted Answer

A)  greater than 50 but less than 80. 
B)  greater than 80 but less than 100. 
C)  greater than 100 but less than 120. 
D)  greater than 120. 
A)  greater than 50 but less than 80. 
B)  greater than 80 but less than 100. 
C)  greater than 100 but less than 120. 
D)  greater than 120.

Question 16

A demand shift changes the amount sellers want to supply at various prices.

Accepted Answer

A) True 
 B)False

Question 17

If supply is inelastic,then a demand shift will have a ____ effect on _______ than on quantity.

Accepted Answer

A)  smaller; demand 
B)  smaller; price 
C)  bigger; demand 
D)  bigger; price 
A)  smaller; demand 
B)  smaller; price 
C)  bigger; demand 
D)  bigger; price

Question 18

Movies delivered over the Internet might have what effect on movie theaters?

Accepted Answer

A)  A demand shift to the right. 
B)  A demand shift to the left. 
C)  A supply shift to the left. 
D)  No effect at all. 
A)  A demand shift to the right. 
B)  A demand shift to the left. 
C)  A supply shift to the left. 
D)  No effect at all.

Question 19

How might a government cause a demand shift to the right?

Accepted Answer

A)  By increasing taxes. 
B)  By requiring consumers to purchase certain products. 
C)  By regulating supplies. 
D)  By causing a shift in consumer tastes. 
A)  By increasing taxes. 
B)  By requiring consumers to purchase certain products. 
C)  By regulating supplies. 
D)  By causing a shift in consumer tastes.

Question 20

If a frost suddenly destroyed a big portion of the orange crop,a good with highly elastic demand,what would be the impact on quantity demanded and price?

Accepted Answer

A)  Quantity demanded would decrease a lot, and price would decrease. 
B)  Quantity demanded would increase a little, and price would remain stable or rise slightly. 
C)  Quantity demanded would decrease a little, and price would increase sharply. 
D)  Quantity demanded would decrease a lot, and price would remain stable or rise slightly. 
A)  Quantity demanded would decrease a lot, and price would decrease. 
B)  Quantity demanded would increase a little, and price would remain stable or rise slightly. 
C)  Quantity demanded would decrease a little, and price would increase sharply. 
D)  Quantity demanded would decrease a lot, and price would remain stable or rise slightly.

Inferior goods are characterized by _____ demand as a result of increased income.

In a movement along the demand curve,the demand schedule

A luxury good is one whose demand ______ as income increases.

The price at which the quantity supplied equals quantity demanded is the

Demand is inelastic if

What caused the decline in demand for Red Delicious apples?

What happened to the demand curve in the global cement market when China experienced a construction boom starting in 2004?

If financial aid were severely reduced,what would happen to the equilibrium quantity of education supplied by educational institutions?

The selling prices of houses in 2003 through 2006 reflected which market condition?

What happens when a supply curve shifts right?

If a town begins requiring builders to build on one-acre lots,instead of smaller quarter-acre lots,the supply curve for new homes will

A normal good is one whose demand rises sharply as income increases.

Hurricane Katrina caused refineries and oil rigs in New Orleans and in the Gulf of Mexico to close down.In the market for gasoline,Hurricane Katrina caused

Excess demand generally causes prices to go down.

Price Quantity Demanded Quantity Supplied \ 0 200 0 \ 1 150 40 \ 2 100 80 \ 3 50 120 \ 4 0 160 Refer to the table.In this market,the equilibrium price occurs where quantity demanded and quantity supplied are both

A demand shift changes the amount sellers want to supply at various prices.

If supply is inelastic,then a demand shift will have a effect on ___ than on quantity.

Movies delivered over the Internet might have what effect on movie theaters?

How might a government cause a demand shift to the right?

If a frost suddenly destroyed a big portion of the orange crop,a good with highly elastic demand,what would be the impact on quantity demanded and price?

Introduction

Demand and Supply: The Basics of the Market Economy

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 3: Market Equilibrium and Shifts

Inferior goods are characterized by _____ demand as a result of increased income.

In a movement along the demand curve,the demand schedule

A luxury good is one whose demand ______ as income increases.

The price at which the quantity supplied equals quantity demanded is the

Demand is inelastic if

What caused the decline in demand for Red Delicious apples?

What happened to the demand curve in the global cement market when China experienced a construction boom starting in 2004?

If financial aid were severely reduced,what would happen to the equilibrium quantity of education supplied by educational institutions?

The selling prices of houses in 2003 through 2006 reflected which market condition?

What happens when a supply curve shifts right?

If a town begins requiring builders to build on one-acre lots,instead of smaller quarter-acre lots,the supply curve for new homes will

A normal good is one whose demand rises sharply as income increases.

Hurricane Katrina caused refineries and oil rigs in New Orleans and in the Gulf of Mexico to close down.In the market for gasoline,Hurricane Katrina caused

Excess demand generally causes prices to go down.

Price Quantity Demanded Quantity Supplied \ 0 200 0 \ 1 150 40 \ 2 100 80 \ 3 50 120 \ 4 0 160 Refer to the table.In this market,the equilibrium price occurs where quantity demanded and quantity supplied are both

A demand shift changes the amount sellers want to supply at various prices.

If supply is inelastic,then a demand shift will have a ____ effect on _______ than on quantity.

Movies delivered over the Internet might have what effect on movie theaters?

How might a government cause a demand shift to the right?

If a frost suddenly destroyed a big portion of the orange crop,a good with highly elastic demand,what would be the impact on quantity demanded and price?

Introduction

Demand and Supply: The Basics of the Market Economy

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

If supply is inelastic,then a demand shift will have a effect on ___ than on quantity.