Question 1

What is the relationship between computers and printers?

Accepted Answer

A) They are complementary products. 
B) They are competitive products. 
C) They are substitute products. 
D) They are cooperative products. 
E) They are rival products. 
A) They are complementary products. 
B) They are competitive products. 
C) They are substitute products. 
D) They are cooperative products. 
E) They are rival products.

Question 2

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

Accepted Answer

A) An increase in supply which leads to a decrease in the equilibrium price and an increase in demand. 
B) An increase in demand which leads to a decrease in the equilibrium price and an increase in supply. 
C) An increase in supply which leads to a decrease in the equilibrium price and an increase in the quantity demanded. 
D) An increase in demand which leads to a decrease in the equilibrium price and a decrease in supply. 
E) An increase in supply which leads to an increase in the equilibrium price and an increase in demand. 
A) An increase in supply which leads to a decrease in the equilibrium price and an increase in demand. 
B) An increase in demand which leads to a decrease in the equilibrium price and an increase in supply. 
C) An increase in supply which leads to a decrease in the equilibrium price and an increase in the quantity demanded. 
D) An increase in demand which leads to a decrease in the equilibrium price and a decrease in supply. 
E) An increase in supply which leads to an increase in the equilibrium price and an increase in demand.

Question 3

What is supply?

Accepted Answer

A) The total quantity of goods produced but not sold. 
B) The maximum possible quantity that producers could make available. 
C) The quantity made available by a typical producer. 
D) The quantities that producers are willing and able to sell per period of time at various prices. 
A) The total quantity of goods produced but not sold. 
B) The maximum possible quantity that producers could make available. 
C) The quantity made available by a typical producer. 
D) The quantities that producers are willing and able to sell per period of time at various prices.

Question 4

-Refer to the above information to answer this question.If demand increases by 20 units,what will be the new values of equilibrium price and quantity?

Accepted Answer

A) $45 and 120. 
B) $50 and 120. 
C) $55 and 120. 
D) $52.50 and 110. 
E) $52.50 and 120. 
A) $45 and 120. 
B) $50 and 120. 
C) $55 and 120. 
D) $52.50 and 110. 
E) $52.50 and 120.

Question 5

-Refer to the above information to answer this question.If both demand and supply increase by 40 units,what will be the new values of equilibrium price and quantity?

Accepted Answer

A) $40 and 140. 
B) $50 and 140. 
C) $60 and 100. 
D) $60 and 140. 
E) The price will be $50 but equilibrium is not possible. 
A) $40 and 140. 
B) $50 and 140. 
C) $60 and 100. 
D) $60 and 140. 
E) The price will be $50 but equilibrium is not possible.

Question 6

The following table shows the quantity demanded and quantity supplied of grapefruits (in millions of kilos):
  
-Refer to the table above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 million of kilos,what will be the new equilibrium price and quantity?

Accepted Answer

A) $2.25 and 24 million kilos 
B) $2.25 and 48 million kilos 
C) $2.75 and 44 million kilos 
D) $3.25 and 40 million kilos 
A) $2.25 and 24 million kilos 
B) $2.25 and 48 million kilos 
C) $2.75 and 44 million kilos 
D) $3.25 and 40 million kilos

Question 7

The product is a normal product.
  
-Refer to the graph above to answer this question.What does the distance Q1 to Q3 represent?

Accepted Answer

A) The increase in equilibrium quantity traded resulting from an increase in demand. 
B) The decrease in equilibrium quantity traded resulting from an increase in demand. 
C) The increase in equilibrium quantity traded resulting from an increase in quantity demanded. 
D) The increase in equilibrium quantity traded resulting from an increase in quantity supplied. 
E) A shortage at price P2. 
A) The increase in equilibrium quantity traded resulting from an increase in demand. 
B) The decrease in equilibrium quantity traded resulting from an increase in demand. 
C) The increase in equilibrium quantity traded resulting from an increase in quantity demanded. 
D) The increase in equilibrium quantity traded resulting from an increase in quantity supplied. 
E) A shortage at price P2.

Question 8

What is the term for a table that shows the various quantities demanded per period of time at different prices?

Accepted Answer

A) Production possibilities table. 
B) Demand schedule. 
C) Supply schedule. 
D) Market schedule. 
E) Schedule of equilibrium points. 
A) Production possibilities table. 
B) Demand schedule. 
C) Supply schedule. 
D) Market schedule. 
E) Schedule of equilibrium points.

Question 9

Explain the effects of a decrease in demand.

Accepted Answer

A decrease in demand will lead to a surp

Question 10

Assume that the market for jeans is initially in equilibrium.
a)Draw a demand and supply diagram to illustrate the initial equilibrium.
b)Explain the impact on the market for jeans if consumers expect the future price for jeans to increase.
c)Graphically illustrate the impact on the diagram you prepared for part (a).

Accepted Answer

a) @#IMG-DLM& 
b)An increase in the futu

Question 11

The product is a normal product.
  
-What will cause the supply of a product to decrease?

Accepted Answer

A) A decrease in the price of resources. 
B) An increase in the number of suppliers. 
C) The expectation of producers that the future price will be lower. 
D) An improvement in the technology of producing the product. 
E) An increase in the price of a substitute in production. 
A) A decrease in the price of resources. 
B) An increase in the number of suppliers. 
C) The expectation of producers that the future price will be lower. 
D) An improvement in the technology of producing the product. 
E) An increase in the price of a substitute in production.

Question 12

Briefly explain the six determinants of market supply.

Accepted Answer

The first determinant of supply is the p

Question 13

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?

Accepted Answer

A) Price will rise. 
B) Price must be $5. 
C) The quantity traded is 80. 
D) Buyers are only willing to pay $2 less than the current price in order to buy all of the quantity supplied. 
A) Price will rise. 
B) Price must be $5. 
C) The quantity traded is 80. 
D) Buyers are only willing to pay $2 less than the current price in order to buy all of the quantity supplied.

Question 14

What is the most likely reason that your instructor does not have a demand for a top-of-the-line BMW?

Accepted Answer

A) He or she does not wish to own such an expensive car. 
B) He or she does not want to own a German-made car. 
C) He or she would prefer to own no car at all. 
D) He or she cannot afford to own such an expensive car. 
A) He or she does not wish to own such an expensive car. 
B) He or she does not want to own a German-made car. 
C) He or she would prefer to own no car at all. 
D) He or she cannot afford to own such an expensive car.

Question 15

What is the term for a table showing the various quantities supplied per period of time at different prices?

Accepted Answer

A) Demand schedule. 
B) Price schedule. 
C) Supply schedule. 
D) Market supply. 
A) Demand schedule. 
B) Price schedule. 
C) Supply schedule. 
D) Market supply.

Question 16

The term "demand" means the quantities that people would like to purchase at various different prices.

Accepted Answer

A) True 
 B)False

Question 17

All of the following,except one,would cause an increase in demand for a normal product.Which is the exception?

Accepted Answer

A) An increase in consumers' incomes. 
B) An increase in the price of a substitute product. 
C) An increase in the size of the market. 
D) Consumer expectations of a lower future price for the product. 
A) An increase in consumers' incomes. 
B) An increase in the price of a substitute product. 
C) An increase in the size of the market. 
D) Consumer expectations of a lower future price for the product.

Question 18

-What does the term "demand" refer to?

Accepted Answer

A) The amounts that consumers are either willing or able to purchase at various prices. 
B) The amounts that consumers are both willing and able to purchase at various prices. 
C) The quantity purchased at the equilibrium price. 
D) The price consumers are willing to pay for a certain quantity of a product. 
A) The amounts that consumers are either willing or able to purchase at various prices. 
B) The amounts that consumers are both willing and able to purchase at various prices. 
C) The quantity purchased at the equilibrium price. 
D) The price consumers are willing to pay for a certain quantity of a product.

Question 19

What is the term for the total demand for a product by all consumers?

Accepted Answer

A) Schedule of wants. 
B) Market Supply. 
C) Product market. 
D) Quota. 
E) Market Demand. 
A) Schedule of wants. 
B) Market Supply. 
C) Product market. 
D) Quota. 
E) Market Demand.

Question 20

What is an inferior product?

Accepted Answer

A) It is a product which consumers buy more of as their incomes increase. 
B) It is a product which consumers buy less of as their incomes increase. 
C) It is a product which consumers buy less of as their incomes decrease. 
D) It is a low-quality luxury product. 
A) It is a product which consumers buy more of as their incomes increase. 
B) It is a product which consumers buy less of as their incomes increase. 
C) It is a product which consumers buy less of as their incomes decrease. 
D) It is a low-quality luxury product.

What is the relationship between computers and printers?

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

What is supply?

-Refer to the above information to answer this question.If demand increases by 20 units,what will be the new values of equilibrium price and quantity?

-Refer to the above information to answer this question.If both demand and supply increase by 40 units,what will be the new values of equilibrium price and quantity?

The product is a normal product. -Refer to the graph above to answer this question.What does the distance Q1 to Q3 represent?

What is the term for a table that shows the various quantities demanded per period of time at different prices?

Explain the effects of a decrease in demand.

The product is a normal product. -What will cause the supply of a product to decrease?

Briefly explain the six determinants of market supply.

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?

What is the most likely reason that your instructor does not have a demand for a top-of-the-line BMW?

What is the term for a table showing the various quantities supplied per period of time at different prices?

The term "demand" means the quantities that people would like to purchase at various different prices.

All of the following,except one,would cause an increase in demand for a normal product.Which is the exception?

-What does the term "demand" refer to?

What is the term for the total demand for a product by all consumers?

What is an inferior product?

The Economic Problem

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 2: Demand and Supply: An Introduction

What is the relationship between computers and printers?

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

What is supply?

-Refer to the above information to answer this question.If demand increases by 20 units,what will be the new values of equilibrium price and quantity?

-Refer to the above information to answer this question.If both demand and supply increase by 40 units,what will be the new values of equilibrium price and quantity?

The product is a normal product. -Refer to the graph above to answer this question.What does the distance Q1 to Q3 represent?

What is the term for a table that shows the various quantities demanded per period of time at different prices?

Explain the effects of a decrease in demand.

The product is a normal product. -What will cause the supply of a product to decrease?

Briefly explain the six determinants of market supply.

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?

What is the most likely reason that your instructor does not have a demand for a top-of-the-line BMW?

What is the term for a table showing the various quantities supplied per period of time at different prices?

The term "demand" means the quantities that people would like to purchase at various different prices.

All of the following,except one,would cause an increase in demand for a normal product.Which is the exception?

-What does the term "demand" refer to?

What is the term for the total demand for a product by all consumers?

What is an inferior product?

The Economic Problem

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters