Question 1

Excess supply occurs when suppliers are prepared to sell more at a market price than buyers are prepared to purchase.

Accepted Answer

A) True 
 B)False

Question 2

Higher income usually means

Accepted Answer

A)  a shift to the left on the demand curve. 
B)  a static change on the demand curve. 
C)  higher demand. 
D)  lower demand. 
A)  a shift to the left on the demand curve. 
B)  a static change on the demand curve. 
C)  higher demand. 
D)  lower demand.

Question 3

Left to themselves,most markets will eventually reach market equilibrium.

Accepted Answer

A) True 
 B)False

Question 4

Government action can cause a significant market demand shift.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  does not exist. 
B)  is between $2 and $3. 
C)  is greater than $4. 
D)  is equal to exactly $2. 
A)  does not exist. 
B)  is between $2 and $3. 
C)  is greater than $4. 
D)  is equal to exactly $2.

Question 6

Refer to the figure.Which of the following is true?

Accepted Answer

A)  At a price of $10, there would be neither excess demand for nor excess supply of pizza. 
B)  At a price of $8, there would be excess demand for pizza. 
C)  At a price of $5, there would be neither excess demand for nor excess supply of pizza. 
D)  At a price of $0.50, there would be excess supply of pizza. 
A)  At a price of $10, there would be neither excess demand for nor excess supply of pizza. 
B)  At a price of $8, there would be excess demand for pizza. 
C)  At a price of $5, there would be neither excess demand for nor excess supply of pizza. 
D)  At a price of $0.50, there would be excess supply of pizza.

Question 7

A demand shift to the right generally leads to

Accepted Answer

A)  higher prices and lower quantities. 
B)  lower prices and higher quantities. 
C)  higher prices and higher output. 
D)  lower prices and higher output. 
A)  higher prices and lower quantities. 
B)  lower prices and higher quantities. 
C)  higher prices and higher output. 
D)  lower prices and higher output.

Question 8

If interest rates go up for a given product,quantity demanded will

Accepted Answer

A)  remain unchanged. 
B)  decrease. 
C)  increase. 
D)  be affected by a shift of the demand curve to the right. 
A)  remain unchanged. 
B)  decrease. 
C)  increase. 
D)  be affected by a shift of the demand curve to the right.

Question 9

An increase in oil prices may cause

Accepted Answer

A)  demand to curve to the right. 
B)  a reduction in the quantity of oil demanded. 
C)  market equilibrium. 
D)  market price reductions. 
A)  demand to curve to the right. 
B)  a reduction in the quantity of oil demanded. 
C)  market equilibrium. 
D)  market price reductions.

Question 10

An increase in supply is shown graphically as a __________ shift of the supply curve,and as a result of an increase in supply,equilibrium price will __________.

Accepted Answer

A)  rightward; decrease 
B)  rightward; increase 
C)  leftward; decrease 
D)  leftward; increase 
A)  rightward; decrease 
B)  rightward; increase 
C)  leftward; decrease 
D)  leftward; increase

Question 11

Which is NOT an example of inelastic supply?

Accepted Answer

A)  Golf courses in a market. 
B)  Hotel rooms in a market during a convention. 
C)  Bottled water. 
D)  Tickets to a sold-out concert. 
A)  Golf courses in a market. 
B)  Hotel rooms in a market during a convention. 
C)  Bottled water. 
D)  Tickets to a sold-out concert.

Question 12

How does a lower price alleviate the problem of excess supply?

Accepted Answer

A)  A lower price increases the number of potential sellers and the number of potential buyers. 
B)  A lower price increases the number of potential sellers and decreases the number of potential buyers. 
C)  A lower price decreases the number of potential sellers and the number of potential buyers. 
D)  A lower price decreases the number of potential sellers and increases the number of potential buyers. 
A)  A lower price increases the number of potential sellers and the number of potential buyers. 
B)  A lower price increases the number of potential sellers and decreases the number of potential buyers. 
C)  A lower price decreases the number of potential sellers and the number of potential buyers. 
D)  A lower price decreases the number of potential sellers and increases the number of potential buyers.

Question 13

When music downloading was introduced,what impact did that have on the demand curve for CDs?

Accepted Answer

Downloading music decreased the need for

Question 14

Refer to the figure.In the market for medium cheese pizzas,the equilibrium price is

Accepted Answer

A)  $10. 
B)  $8. 
C)  $5. 
D)  $0.50. 
A)  $10. 
B)  $8. 
C)  $5. 
D)  $0.50.

Question 15

When a demand curve shifts to the right,

Accepted Answer

A)  demand increases, equilibrium price increases, and equilibrium quantity increases. 
B)  demand decreases. 
C)  the equilibrium price remains stable. 
D)  demand decreases, and equilibrium price decreases. 
A)  demand increases, equilibrium price increases, and equilibrium quantity increases. 
B)  demand decreases. 
C)  the equilibrium price remains stable. 
D)  demand decreases, and equilibrium price decreases.

Question 16

After Hurricane Katrina,the supply curve for gasoline

Accepted Answer

A)  shifted to the right. 
B)  shifted to the left. 
C)  reached equilibrium. 
D)  hit market price. 
A)  shifted to the right. 
B)  shifted to the left. 
C)  reached equilibrium. 
D)  hit market price.

Question 17

When does market equilibrium change in a given market?

Accepted Answer

Market equilibrium changes when either t

Question 18

The gap between quantity supplied and quantity demanded is usually closed over time by the

Accepted Answer

A)  demand curve. 
B)  supply curve. 
C)  market mechanism. 
D)  invisible face. 
A)  demand curve. 
B)  supply curve. 
C)  market mechanism. 
D)  invisible face.

Question 19

Higher interest rates can cause the demand curve for cars to

Accepted Answer

A)  shift to the right. 
B)  shift to the left. 
C)  remain unchanged. 
D)  reach equilibrium price. 
A)  shift to the right. 
B)  shift to the left. 
C)  remain unchanged. 
D)  reach equilibrium price.

Question 20

After Hurricane Katrina,the supply curve for oil shifted to the left,and as a result

Accepted Answer

A)  gas prices remained at the equilibrium price. 
B)  a new equilibrium price was reached. 
C)  market balance was achieved. 
D)  market price was reached. 
A)  gas prices remained at the equilibrium price. 
B)  a new equilibrium price was reached. 
C)  market balance was achieved. 
D)  market price was reached.

Excess supply occurs when suppliers are prepared to sell more at a market price than buyers are prepared to purchase.

Higher income usually means

Left to themselves,most markets will eventually reach market equilibrium.

Government action can cause a significant market demand shift.

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

Refer to the figure.Which of the following is true?

A demand shift to the right generally leads to

If interest rates go up for a given product,quantity demanded will

An increase in oil prices may cause

An increase in supply is shown graphically as a shift of the supply curve,and as a result of an increase in supply,equilibrium price will .

Which is NOT an example of inelastic supply?

How does a lower price alleviate the problem of excess supply?

When music downloading was introduced,what impact did that have on the demand curve for CDs?

Refer to the figure.In the market for medium cheese pizzas,the equilibrium price is

When a demand curve shifts to the right,

After Hurricane Katrina,the supply curve for gasoline

When does market equilibrium change in a given market?

The gap between quantity supplied and quantity demanded is usually closed over time by the

Higher interest rates can cause the demand curve for cars to

After Hurricane Katrina,the supply curve for oil shifted to the left,and as a result

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

Excess supply occurs when suppliers are prepared to sell more at a market price than buyers are prepared to purchase.

Higher income usually means

Left to themselves,most markets will eventually reach market equilibrium.

Government action can cause a significant market demand shift.

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

Refer to the figure.Which of the following is true?

A demand shift to the right generally leads to

If interest rates go up for a given product,quantity demanded will

An increase in oil prices may cause

An increase in supply is shown graphically as a __________ shift of the supply curve,and as a result of an increase in supply,equilibrium price will __________.

Which is NOT an example of inelastic supply?

How does a lower price alleviate the problem of excess supply?

When music downloading was introduced,what impact did that have on the demand curve for CDs?

Refer to the figure.In the market for medium cheese pizzas,the equilibrium price is

When a demand curve shifts to the right,

After Hurricane Katrina,the supply curve for gasoline

When does market equilibrium change in a given market?

The gap between quantity supplied and quantity demanded is usually closed over time by the

Higher interest rates can cause the demand curve for cars to

After Hurricane Katrina,the supply curve for oil shifted to the left,and as a result

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

An increase in supply is shown graphically as a shift of the supply curve,and as a result of an increase in supply,equilibrium price will .