Question 1

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 A

Question 2

An increase in the price of off-road vehicles will result in

Accepted Answer

A)  a smaller quantity of off-road vehicles supplied. 
B)  a larger quantity of off-road vehicles supplied. 
C)  an increase in the demand for off-road vehicles. 
D)  a decrease in the supply of off-road vehicles. 
A)  a smaller quantity of off-road vehicles supplied. 
B)  a larger quantity of off-road vehicles supplied. 
C)  an increase in the demand for off-road vehicles. 
D)  a decrease in the supply of off-road vehicles. B

Question 3

Suppose that when the price of hamburgers decreases,the Ruiz family increases their purchases of ketchup.To the Ruiz family,

Accepted Answer

A)  hamburgers and ketchup are complements. 
B)  hamburgers and ketchup and substitutes. 
C)  hamburgers and ketchup are normal goods. 
D)  hamburgers are normal goods and hot dogs are inferior goods. 
A)  hamburgers and ketchup are complements. 
B)  hamburgers and ketchup and substitutes. 
C)  hamburgers and ketchup are normal goods. 
D)  hamburgers are normal goods and hot dogs are inferior goods. A

Question 4

Explain the difference between a normal good and an inferior good.

Accepted Answer

A normal good is something for which the

Question 5

The law of demand implies,holding everything else constant,that as the price of gelato

Accepted Answer

A)  increases, the demand for gelato will increase. 
B)  increases, the quantity of gelato demanded will increase. 
C)  decreases, the quantity of gelato demanded will increase. 
D)  decreases, the demand for gelato will increase. 
A)  increases, the demand for gelato will increase. 
B)  increases, the quantity of gelato demanded will increase. 
C)  decreases, the quantity of gelato demanded will increase. 
D)  decreases, the demand for gelato will increase.

Question 6

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen.One can conclude that

Accepted Answer

A)  the law of supply has been violated. 
B)  the demand for swimming pool maintenance services has increased. 
C)  the supply of swimming pool maintenance services has decreased. 
D)  swimming pool maintenance services are becoming more technologically advanced. 
A)  the law of supply has been violated. 
B)  the demand for swimming pool maintenance services has increased. 
C)  the supply of swimming pool maintenance services has decreased. 
D)  swimming pool maintenance services are becoming more technologically advanced.

Question 7

If,in response to an increase in the price of chocolate the quantity of chocolate demanded decreases,economists would describe this as

Accepted Answer

A)  a decrease in demand. 
B)  a decrease in quantity demanded. 
C)  a change in consumer income. 
D)  a decrease in consumers' taste for chocolate. 
A)  a decrease in demand. 
B)  a decrease in quantity demanded. 
C)  a change in consumer income. 
D)  a decrease in consumers' taste for chocolate.

Question 8

Technological advances have resulted in lower prices for digital cameras.What is the impact of this on the market for traditional (non-digital)cameras?

Accepted Answer

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

Question 9

Table 3-3
  
-Refer to Table 3-3.The table contains information about the corn market.Use the table to answer the following questions.
a. What are the equilibrium price and quantity of corn?
b.Suppose the prevailing price is $9 per bushel.Is there a shortage or a surplus in the market?
c.What is the quantity of the shortage or surplus?
d.How many bushels will be sold if the market price is $9 per bushel?
e.If the market price is $9 per bushel,what must happen to restore equilibrium in the market?
f.At what price will suppliers be able to sell 22,000 bushels of corn?
g.Suppose the market price is $21 per bushel.Is there a shortage or a surplus in the market?
h.What is the quantity of the shortage or surplus?
i.How many bushels will be sold if the market price is $21 per bushel?
j.If the market price is $21 per bushel,what must happen to restore equilibrium in the market?

Accepted Answer

a.Equilibrium price = $15; Equilibrium q

Question 10

How does the decreasing use of traditional cameras affect the market for traditional camera film?

Accepted Answer

A)  The demand curve for traditional camera film shifts to the right. 
B)  The quantity of traditional camera film demanded decreases. 
C)  The quantity of traditional camera film demanded increases. 
D)  The demand curve for traditional camera film shifts to the left. 
A)  The demand curve for traditional camera film shifts to the right. 
B)  The quantity of traditional camera film demanded decreases. 
C)  The quantity of traditional camera film demanded increases. 
D)  The demand curve for traditional camera film shifts to the left.

Question 11

In October,market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October,holding everything else constant?

Accepted Answer

A)  The supply curve shifts to the right. 
B)  The supply curve shifts to the left. 
C)  The quantity demanded and the quantity supplied of platinum increase. 
D)  The demand curve shifts to the right. 
A)  The supply curve shifts to the right. 
B)  The supply curve shifts to the left. 
C)  The quantity demanded and the quantity supplied of platinum increase. 
D)  The demand curve shifts to the right.

Question 12

What are the five variables that will shift the demand curve?

Accepted Answer

1.Income
2.Price of

Question 13

The supply curve for watches

Accepted Answer

A)  shows the supply of watches consumers are willing and able to buy at any given price. 
B)  is downward sloping. 
C)  shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase. 
D)  shows the relationship between the price of watches and the quantity of watches supplied. 
A)  shows the supply of watches consumers are willing and able to buy at any given price. 
B)  is downward sloping. 
C)  shows the relationship between the quantity of watches firms are willing and able to supply and the quantity of watches consumers are willing and able to purchase. 
D)  shows the relationship between the price of watches and the quantity of watches supplied.

Question 14

Holding everything else constant,an increase in the price of MP3 players will result in

Accepted Answer

A)  a decrease in the quantity of MP3 players supplied. 
B)  a decrease in the demand for MP3 players. 
C)  an increase in the supply of MP3 players. 
D)  a decrease in the quantity of MP3 players demanded. 
A)  a decrease in the quantity of MP3 players supplied. 
B)  a decrease in the demand for MP3 players. 
C)  an increase in the supply of MP3 players. 
D)  a decrease in the quantity of MP3 players demanded.

Question 15

Studies have shown that drinking one glass of red wine per day may help prevent heart disease.Assume this is true,and favorable weather has increased the grape harvest of California vineyards.In the market for red wine,these two developments would

Accepted Answer

A)  increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. 
B)  increase demand and increase supply resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. 
C)  increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. 
D)  increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine. 
A)  increase demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. 
B)  increase demand and increase supply resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of red wine. 
C)  increase demand and increase supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. 
D)  increase demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.

Question 16

An inferior good is a good for which the quantity demanded decreases as the price increases,holding everything else constant.

Accepted Answer

A) True 
 B)False

Question 17

A normal good is a good for which the demanded increases as income decreases,holding everything else constant.

Accepted Answer

A) True 
 B)False

Question 18

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve.

Accepted Answer

The answer of Use the following supply schedule for cherries...

Question 19

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 D2 and S1 (point C)) Which of the following changes would cause the equilibrium to change to point B?

Accepted Answer

A)  A positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples. 
B)  An increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples. 
C)  An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease. 
D)  A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples. 
A)  A positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples. 
B)  An increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples. 
C)  An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease. 
D)  A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples.

Question 20

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone

Accepted Answer

A)  strawberries and whipped cream are complements. 
B)  strawberries and whipped cream and substitutes. 
C)  strawberries and whipped cream are normal goods. 
D)  strawberries are a normal good and whipped cream is an inferior good. 
A)  strawberries and whipped cream are complements. 
B)  strawberries and whipped cream and substitutes. 
C)  strawberries and whipped cream are normal goods. 
D)  strawberries are a normal good and whipped cream is an inferior good.

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

An increase in the price of off-road vehicles will result in

Suppose that when the price of hamburgers decreases,the Ruiz family increases their purchases of ketchup.To the Ruiz family,

Explain the difference between a normal good and an inferior good.

The law of demand implies,holding everything else constant,that as the price of gelato

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen.One can conclude that

If,in response to an increase in the price of chocolate the quantity of chocolate demanded decreases,economists would describe this as

Technological advances have resulted in lower prices for digital cameras.What is the impact of this on the market for traditional (non-digital)cameras?

How does the decreasing use of traditional cameras affect the market for traditional camera film?

In October,market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October,holding everything else constant?

What are the five variables that will shift the demand curve?

The supply curve for watches

Holding everything else constant,an increase in the price of MP3 players will result in

Studies have shown that drinking one glass of red wine per day may help prevent heart disease.Assume this is true,and favorable weather has increased the grape harvest of California vineyards.In the market for red wine,these two developments would

An inferior good is a good for which the quantity demanded decreases as the price increases,holding everything else constant.

A normal good is a good for which the demanded increases as income decreases,holding everything else constant.

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve.

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 D₂ and S₁ (point C)) Which of the following changes would cause the equilibrium to change to point B?

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone

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

Filters

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

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

An increase in the price of off-road vehicles will result in

Suppose that when the price of hamburgers decreases,the Ruiz family increases their purchases of ketchup.To the Ruiz family,

Explain the difference between a normal good and an inferior good.

The law of demand implies,holding everything else constant,that as the price of gelato

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen.One can conclude that

If,in response to an increase in the price of chocolate the quantity of chocolate demanded decreases,economists would describe this as

Technological advances have resulted in lower prices for digital cameras.What is the impact of this on the market for traditional (non-digital)cameras?

How does the decreasing use of traditional cameras affect the market for traditional camera film?

In October,market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October,holding everything else constant?

What are the five variables that will shift the demand curve?

The supply curve for watches

Holding everything else constant,an increase in the price of MP3 players will result in

Studies have shown that drinking one glass of red wine per day may help prevent heart disease.Assume this is true,and favorable weather has increased the grape harvest of California vineyards.In the market for red wine,these two developments would

An inferior good is a good for which the quantity demanded decreases as the price increases,holding everything else constant.

A normal good is a good for which the demanded increases as income decreases,holding everything else constant.

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve.

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 D2 and S1 (point C)) Which of the following changes would cause the equilibrium to change to point B?

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone

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

Filters

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 D₂ and S₁ (point C)) Which of the following changes would cause the equilibrium to change to point B?