Question 1

During the recession of 2007-2009

Accepted Answer

A)  casual dining restaurants like Olive Garden and Red Lobster experienced increased demand and fast-food restaurants like McDonald's and Subway experienced decreased demand. 
B)  casual dining restaurants like Olive Garden and Red Lobster experienced decreased demand and fast-food restaurants like McDonald's and Subway experienced increased demand. 
C)  both casual dining restaurants like Olive Garden and Red Lobster and fast-food restaurants like McDonald's and Subway experienced increased demand. 
D)  both casual dining restaurants like Olive Garden and Red Lobster and fast-food restaurants like McDonald's and Subway experienced decreased demand. 
A)  casual dining restaurants like Olive Garden and Red Lobster experienced increased demand and fast-food restaurants like McDonald's and Subway experienced decreased demand. 
B)  casual dining restaurants like Olive Garden and Red Lobster experienced decreased demand and fast-food restaurants like McDonald's and Subway experienced increased demand. 
C)  both casual dining restaurants like Olive Garden and Red Lobster and fast-food restaurants like McDonald's and Subway experienced increased demand. 
D)  both casual dining restaurants like Olive Garden and Red Lobster and fast-food restaurants like McDonald's and Subway experienced decreased demand.

Question 2

Figure 3-4  
-Refer to Figure 3-4.At a price of $10,how many units will be sold?

Accepted Answer

A)  200 
B)  400 
C)  600 
D)  800 
A)  200 
B)  400 
C)  600 
D)  800

Question 3

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?

Accepted Answer

A)  The demand curve for digital photo printing services shifts to the right. 
B)  The demand curve for digital photo printing services shifts to the left. 
C)  The supply curve for digital photo printing services shifts to the right. 
D)  The supply curve for digital photo printing services shifts to the left. 
A)  The demand curve for digital photo printing services shifts to the right. 
B)  The demand curve for digital photo printing services shifts to the left. 
C)  The supply curve for digital photo printing services shifts to the right. 
D)  The supply curve for digital photo printing services shifts to the left.

Question 4

Blu-ray players were introduced to the market in 2006,and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction.How did this change in technology affect the market for Blu-ray players?

Accepted Answer

A)  The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players. 
B)  The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players. 
C)  The new technology caused an decrease in the demand for Blu-ray players. 
D)  The new technology caused an increase in the quantity of Blu-ray players supplied. 
A)  The new technology caused an increase in the supply of Blu-ray players and a decrease in price of Blu-ray players. 
B)  The new technology caused an increase in the supply of Blu-ray players and an increase in price of Blu-ray players. 
C)  The new technology caused an decrease in the demand for Blu-ray players. 
D)  The new technology caused an increase in the quantity of Blu-ray players supplied.

Question 5

Technological advancements have led to lower prices and an increase in the sale of digital cameras.How does this affect the digital photo printing paper market?

Accepted Answer

A)  The demand curve for digital photo printing paper shifts to the right. 
B)  The demand curve for digital photo printing paper shifts to the left. 
C)  The supply curve for digital photo printing paper shifts to the right. 
D)  The supply curve for digital photo printing paper shifts to the left. 
A)  The demand curve for digital photo printing paper shifts to the right. 
B)  The demand curve for digital photo printing paper shifts to the left. 
C)  The supply curve for digital photo printing paper shifts to the right. 
D)  The supply curve for digital photo printing paper shifts to the left.

Question 6

Market equilibrium occurs where supply equals demand.

Accepted Answer

A) True 
 B)False

Question 7

The law of demand implies,holding everything else constant,that

Accepted Answer

A)  as the price of bagels increases, the quantity of bagels demanded will decrease. 
B)  as the price of bagels increases, the demand for bagels will decrease. 
C)  as the price of bagels increases, the quantity of bagels demanded will increase. 
D)  as the price of bagels increases, the demand for bagels will increase. 
A)  as the price of bagels increases, the quantity of bagels demanded will decrease. 
B)  as the price of bagels increases, the demand for bagels will decrease. 
C)  as the price of bagels increases, the quantity of bagels demanded will increase. 
D)  as the price of bagels increases, the demand for bagels will increase.

Question 8

All else equal,a shortage of display screens used in the manufacture of tablet computers would

Accepted Answer

A)  shift the supply curve for tablet computers to the right. 
B)  shift the supply curve for tablet computers to the left. 
C)  shift the demand curve for tablet computers to the right. 
D)  shift the demand curve for tablet computers to the left. 
A)  shift the supply curve for tablet computers to the right. 
B)  shift the supply curve for tablet computers to the left. 
C)  shift the demand curve for tablet computers to the right. 
D)  shift the demand curve for tablet computers to the left.

Question 9

Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest.What happens in the California wine market as a result of this announcement?

Accepted Answer

A)  The demand curve for California wine shifts to the left in anticipation of higher prices in the future. 
B)  The demand curve for California wine shifts to the right in anticipation of higher prices in the future. 
C)  The supply curve for California wine shifts to the right in anticipation of higher prices in the future. 
D)  The supply curve for California wine shifts to the left in anticipation of lower quantities in the future. 
A)  The demand curve for California wine shifts to the left in anticipation of higher prices in the future. 
B)  The demand curve for California wine shifts to the right in anticipation of higher prices in the future. 
C)  The supply curve for California wine shifts to the right in anticipation of higher prices in the future. 
D)  The supply curve for California wine shifts to the left in anticipation of lower quantities in the future.

Question 10

The income effect of a price change refers to the impact of a change in

Accepted Answer

A)  income on the price of a good. 
B)  demand when income changes. 
C)  the quantity demanded when income changes. 
D)  the price of a good on a consumer's purchasing power. 
A)  income on the price of a good. 
B)  demand when income changes. 
C)  the quantity demanded when income changes. 
D)  the price of a good on a consumer's purchasing power.

Question 11

A change in supply is represented by a shift of the supply curve.

Accepted Answer

A) True 
 B)False

Question 12

The Internet has created a new category in the book selling market,namely,the "barely used" book.How does the availability of barely used books affect the market for new books?

Accepted Answer

A)  The demand curve for new books shifts to the right. 
B)  The demand curve for new books shifts to the left. 
C)  The supply curve for new books shifts to the right. 
D)  The supply curve for new books shifts to the left. 
A)  The demand curve for new books shifts to the right. 
B)  The demand curve for new books shifts to the left. 
C)  The supply curve for new books shifts to the right. 
D)  The supply curve for new books shifts to the left.

Question 13

If consumers believe the price of iPads will decrease in the future,this will cause the demand for iPads to decrease now.

Accepted Answer

A) True 
 B)False

Question 14

The demand for lobster is higher in the summer than in the spring.If the price of lobster is lower in summer than in spring then

Accepted Answer

A)  the supply of lobster is lower in spring than in summer. 
B)  consumers' tastes for lobster are greater in spring than in summer. 
C)  there is a surplus of lobster in summer and a shortage of lobster in spring. 
D)  there are more substitutes for lobster in summer than there are in spring. 
A)  the supply of lobster is lower in spring than in summer. 
B)  consumers' tastes for lobster are greater in spring than in summer. 
C)  there is a surplus of lobster in summer and a shortage of lobster in spring. 
D)  there are more substitutes for lobster in summer than there are in spring.

Question 15

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

Accepted Answer

A) True 
 B)False

Question 16

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 D1 and S1 (point
A) none of the points shown
A)) If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?
B) B
C) C
D) E

Accepted Answer

Question 17

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 18

Figure 3-5  
-Refer to Figure 3-5.At a price of $15,

Accepted Answer

A)  there would be a surplus of 4 units. 
B)  there would be a shortage of 2 units. 
C)  there would be a surplus of 6 units. 
D)  there would be a shortage of 4 units. 
A)  there would be a surplus of 4 units. 
B)  there would be a shortage of 2 units. 
C)  there would be a surplus of 6 units. 
D)  there would be a shortage of 4 units.

Question 19

The market for tablet computers has grown rapidly over the past few years,due in part to the overwhelming success of the Apple iPad.Following the successful launch of the iPad in 2010,companies such as Toshiba,Samsung,Dell,and Amazon have all introduced products to compete with the iPad.The tablet computers introduced to compete with the iPad would be considered

Accepted Answer

A)  complements to the iPad. 
B)  substitutes for the iPad. 
C)  inferior goods compared to the iPad. 
D)  normal goods compared to the iPad. 
A)  complements to the iPad. 
B)  substitutes for the iPad. 
C)  inferior goods compared to the iPad. 
D)  normal goods compared to the iPad.

Question 20

In 2004,hurricanes destroyed a large portion of Florida's grapefruit crop.How did this affect the market price and market quantity of grapefruit?

Accepted Answer

The supply curve for grapefrui

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

During the recession of 2007-2009

Figure 3-4 -Refer to Figure 3-4.At a price of $10,how many units will be sold?

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?

Blu-ray players were introduced to the market in 2006,and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction.How did this change in technology affect the market for Blu-ray players?

Technological advancements have led to lower prices and an increase in the sale of digital cameras.How does this affect the digital photo printing paper market?

Market equilibrium occurs where supply equals demand.

The law of demand implies,holding everything else constant,that

All else equal,a shortage of display screens used in the manufacture of tablet computers would

Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest.What happens in the California wine market as a result of this announcement?

The income effect of a price change refers to the impact of a change in

A change in supply is represented by a shift of the supply curve.

The Internet has created a new category in the book selling market,namely,the "barely used" book.How does the availability of barely used books affect the market for new books?

If consumers believe the price of iPads will decrease in the future,this will cause the demand for iPads to decrease now.

The demand for lobster is higher in the summer than in the spring.If the price of lobster is lower in summer than in spring then

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

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

Figure 3-5 -Refer to Figure 3-5.At a price of $15,

In 2004,hurricanes destroyed a large portion of Florida's grapefruit crop.How did this affect the market price and market quantity of grapefruit?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Economic Efficiency, government Price Setting, and Taxes

Externalities, environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, taxes, and the Distribution of Income

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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