Question 1

If the price of a product is above equilibrium,what forces it down?

Accepted Answer

When the price is above equilibrium,a su

Question 2

Figure 3-2  
-Refer to Figure 3-2.An increase in the number of firms in the market would be represented by a movement from

Accepted Answer

A)  A to B. 
B)  B to A. 
C)  S1 to S2. 
D)  S2 to S1. 
A)  A to B. 
B)  B to A. 
C)  S1 to S2. 
D)  S2 to S1.

Question 3

A decrease in the price of GPS systems will result in

Accepted Answer

A)  a smaller quantity of GPS systems supplied. 
B)  a larger quantity of GPS systems supplied. 
C)  a decrease in the demand for GPS systems. 
D)  an increase in the supply of GPS systems. 
A)  a smaller quantity of GPS systems supplied. 
B)  a larger quantity of GPS systems supplied. 
C)  a decrease in the demand for GPS systems. 
D)  an increase in the supply of GPS systems.

Question 4

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Accepted Answer

A)  There is no difference between the two terms; they both refer to a shift of the supply curve. 
B)  There is no difference between the two terms; they both refer to a movement along a given supply curve. 
C)  An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. 
D)  An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price. 
A)  There is no difference between the two terms; they both refer to a shift of the supply curve. 
B)  There is no difference between the two terms; they both refer to a movement along a given supply curve. 
C)  An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. 
D)  An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.

Question 5

Table 3-2
  
-Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $55,the quantity demanded in the market would be

Accepted Answer

A)  42 oz. 
B)  136 oz. 
C)  178 oz. 
D)  233 oz. 
A)  42 oz. 
B)  136 oz. 
C)  178 oz. 
D)  233 oz.

Question 6

A(n)________ is represented by a leftward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

Accepted Answer

A)  decrease in demand; increase in demand 
B)  decrease in demand; increase in quantity demanded 
C)  increase in demand; decrease in quantity demanded 
D)  decrease in quantity demanded; decrease in demand 
A)  decrease in demand; increase in demand 
B)  decrease in demand; increase in quantity demanded 
C)  increase in demand; decrease in quantity demanded 
D)  decrease in quantity demanded; decrease in demand

Question 7

If the price of orchids falls,the substitution effect due to the price change will cause

Accepted Answer

A)  an increase in the demand for orchids. 
B)  an increase in the demand for roses, a substitute for orchids. 
C)  an increase in the quantity demanded of orchids. 
D)  an increase in the quantity supplied of orchids. 
A)  an increase in the demand for orchids. 
B)  an increase in the demand for roses, a substitute for orchids. 
C)  an increase in the quantity demanded of orchids. 
D)  an increase in the quantity supplied of orchids.

Question 8

Figure 3-4  
-Refer to Figure 3-4.If the price is $10,

Accepted Answer

A)  there would be a surplus of 600 units. 
B)  there would be a shortage of 600 units. 
C)  there would be a surplus of 200 units. 
D)  there would be a shortage of 200 units. 
A)  there would be a surplus of 600 units. 
B)  there would be a shortage of 600 units. 
C)  there would be a surplus of 200 units. 
D)  there would be a shortage of 200 units.

Question 9

In June,buyers of titanium expect that the price of titanium will fall in July.What happens in the titanium market in June,holding everything else constant?

Accepted Answer

A)  The demand curve shifts to the right. 
B)  The quantity demanded increases. 
C)  The quantity demanded decreases 
D)  The demand curve shifts to the left. 
A)  The demand curve shifts to the right. 
B)  The quantity demanded increases. 
C)  The quantity demanded decreases 
D)  The demand curve shifts to the left.

Question 10

If the Apple iPhone and the Samsung Galaxy are considered substitutes,then,other things equal,an increase in the price of the iPhone will

Accepted Answer

A)  decrease the demand for the iPhone. 
B)  increase the demand for the Galaxy. 
C)  increase the quantity demanded for the Galaxy. 
D)  increase the quantity demanded for the iPhone. 
A)  decrease the demand for the iPhone. 
B)  increase the demand for the Galaxy. 
C)  increase the quantity demanded for the Galaxy. 
D)  increase the quantity demanded for the iPhone.

Question 11

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

Accepted Answer

A)  the supply curve shifted to the right resulting in a decrease in the equilibrium price. 
B)  the supply curve shifted to the right resulting in an increase in the equilibrium price. 
C)  the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
D)  the demand curve shifted to the right resulting in an increase in the equilibrium price. 
A)  the supply curve shifted to the right resulting in a decrease in the equilibrium price. 
B)  the supply curve shifted to the right resulting in an increase in the equilibrium price. 
C)  the demand curve shifted to the left resulting in a decrease in the equilibrium price. 
D)  the demand curve shifted to the right resulting in an increase in the equilibrium price.

Question 12

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  increasing; increasing or decreasing 
B)  increasing or decreasing; decreasing 
C)  decreasing; increasing or decreasing 
D)  increasing or decreasing; increasing 
A)  increasing; increasing or decreasing 
B)  increasing or decreasing; decreasing 
C)  decreasing; increasing or decreasing 
D)  increasing or decreasing; increasing

Question 13

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

Accepted Answer

A)  a decrease in the equilibrium quantity of lobster and no change in the equilibrium price. 
B)  an increase in the equilibrium price of lobster and no change in the equilibrium quantity. 
C)  an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease. 
D)  a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease. 
A)  a decrease in the equilibrium quantity of lobster and no change in the equilibrium price. 
B)  an increase in the equilibrium price of lobster and no change in the equilibrium quantity. 
C)  an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease. 
D)  a decrease in the equilibrium quantity of lobster; the equilibrium price may increase or decrease.

Question 14

If a decrease in income leads to in a decrease in the demand for mac and cheese,then mac and cheese is

Accepted Answer

A)  a normal good. 
B)  a neutral good. 
C)  a complement. 
D)  a necessity. 
A)  a normal good. 
B)  a neutral good. 
C)  a complement. 
D)  a necessity.

Question 15

All else equal,as the price of a product falls,the quantity supplied increases.

Accepted Answer

A) True 
 B)False

Question 16

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,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 titanium increase. 
D)  The demand curve shifts to the left. 
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 titanium increase. 
D)  The demand curve shifts to the left.

Question 17

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve.As a result

Accepted Answer

A)  both the equilibrium price and quantity of MP3 players will decrease. 
B)  the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase. 
C)  the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. 
D)  the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease. 
A)  both the equilibrium price and quantity of MP3 players will decrease. 
B)  the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase. 
C)  the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. 
D)  the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

Question 18

What is the ceteris paribus condition?

Accepted Answer

The ceteris paribus condition

Question 19

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power.

Accepted Answer

A)  ceteris paribus 
B)  population 
C)  substitution 
D)  income 
A)  ceteris paribus 
B)  population 
C)  substitution 
D)  income

Question 20

Figure 3-4  
-Refer to Figure 3-4.If the price is $15,

Accepted Answer

A)  there would be a surplus of 300 units. 
B)  there would be a shortage of 300 units. 
C)  there would be a surplus of 400 units. 
D)  there would be a shortage of 400 units. 
A)  there would be a surplus of 300 units. 
B)  there would be a shortage of 300 units. 
C)  there would be a surplus of 400 units. 
D)  there would be a shortage of 400 units.

If the price of a product is above equilibrium,what forces it down?

Figure 3-2 -Refer to Figure 3-2.An increase in the number of firms in the market would be represented by a movement from

A decrease in the price of GPS systems will result in

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $55,the quantity demanded in the market would be

A(n) is represented by a leftward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

If the price of orchids falls,the substitution effect due to the price change will cause

Figure 3-4 -Refer to Figure 3-4.If the price is $10,

In June,buyers of titanium expect that the price of titanium will fall in July.What happens in the titanium market in June,holding everything else constant?

If the Apple iPhone and the Samsung Galaxy are considered substitutes,then,other things equal,an increase in the price of the iPhone will

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef,this would be represented by the equilibrium price and the equilibrium quantity .

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

If a decrease in income leads to in a decrease in the demand for mac and cheese,then mac and cheese is

All else equal,as the price of a product falls,the quantity supplied increases.

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve.As a result

What is the ceteris paribus condition?

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power.

Figure 3-4 -Refer to Figure 3-4.If the price is $15,

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

If the price of a product is above equilibrium,what forces it down?

Figure 3-2 -Refer to Figure 3-2.An increase in the number of firms in the market would be represented by a movement from

A decrease in the price of GPS systems will result in

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $55,the quantity demanded in the market would be

A(n)________ is represented by a leftward shift of the demand curve while a(n)________ is represented by a movement along a given demand curve.

If the price of orchids falls,the substitution effect due to the price change will cause

Figure 3-4 -Refer to Figure 3-4.If the price is $10,

In June,buyers of titanium expect that the price of titanium will fall in July.What happens in the titanium market in June,holding everything else constant?

If the Apple iPhone and the Samsung Galaxy are considered substitutes,then,other things equal,an increase in the price of the iPhone will

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

If a decrease in income leads to in a decrease in the demand for mac and cheese,then mac and cheese is

All else equal,as the price of a product falls,the quantity supplied increases.

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve.As a result

What is the ceteris paribus condition?

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power.

Figure 3-4 -Refer to Figure 3-4.If the price is $15,

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

A(n) is represented by a leftward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef,this would be represented by the equilibrium price and the equilibrium quantity .