Question 1

A movement along the demand curve for toothpaste would be caused by

Accepted Answer

A)  a change in the price of toothbrushes. 
B)  a change in consumer income. 
C)  a change in the price of toothpaste. 
D)  a change in population. 
A)  a change in the price of toothbrushes. 
B)  a change in consumer income. 
C)  a change in the price of toothpaste. 
D)  a change in population.

Question 2

If the demand for a product decreases and the supply of the same product decreases,the equilibrium price will decrease.

Accepted Answer

A) True 
 B)False

Question 3

Figure 3-2  
-Refer to Figure 3-2.An increase in the price of substitutes in production 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 4

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln.Which of the following events would cause the price differences in these letters to get smaller?

Accepted Answer

A)  The demand for Booth letters decreases. 
B)  The supply of Lincoln letters increases. 
C)  The demand for Lincoln letters increases and the supply of Booth letters increases. 
D)  The demand for Lincoln letters decreases and the demand for Booth letters increases. 
A)  The demand for Booth letters decreases. 
B)  The supply of Lincoln letters increases. 
C)  The demand for Lincoln letters increases and the supply of Booth letters increases. 
D)  The demand for Lincoln letters decreases and the demand for Booth letters increases.

Question 5

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

Accepted Answer

The answer of Use the following demand schedule for apples...

Question 6

Which of the following statements is true?

Accepted Answer

A)  An increase in supply causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. 
B)  A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand. 
C)  If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. 
A)  An increase in supply causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. 
B)  A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand. 
C)  If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

Question 7

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

Accepted Answer

A)  an increase in consumer income 
B)  a freeze that sharply reduces potato output 
C)  a decrease in consumer income 
D)  a technological advancement that results in a bumper crop of potatoes 
A)  an increase in consumer income 
B)  a freeze that sharply reduces potato output 
C)  a decrease in consumer income 
D)  a technological advancement that results in a bumper crop of potatoes

Question 8

Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?

Accepted Answer

A)  There is an increase in the supply of pool maintenance services. 
B)  There is a decrease in the demand for pool maintenance services. 
C)  There is a decrease in the quantity of pool maintenance services supplied. 
D)  There is a decrease in the supply of pool maintenance services. 
A)  There is an increase in the supply of pool maintenance services. 
B)  There is a decrease in the demand for pool maintenance services. 
C)  There is a decrease in the quantity of pool maintenance services supplied. 
D)  There is a decrease in the supply of pool maintenance services.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is evidence of a shortage of walnuts?

Accepted Answer

A)  Firms lower the price of walnuts. 
B)  The price of cashews is lowered in order to make up for the walnut shortage. 
C)  The equilibrium price of walnuts falls due to a decrease in demand. 
D)  The quantity demanded of walnuts is greater than the quantity supplied. 
A)  Firms lower the price of walnuts. 
B)  The price of cashews is lowered in order to make up for the walnut shortage. 
C)  The equilibrium price of walnuts falls due to a decrease in demand. 
D)  The quantity demanded of walnuts is greater than the quantity supplied.

Question 11

If the demand for a product increases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

Accepted Answer

A) True 
 B)False

Question 12

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

Accepted Answer

A)  the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium. 
B)  quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. 
C)  all consumers will be able to afford the product. 
D)  quantity demanded equals quantity supplied. The market price will then equal the equilibrium price. 
A)  the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium. 
B)  quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. 
C)  all consumers will be able to afford the product. 
D)  quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

Question 13

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal

Accepted Answer

A)  increase the demand for e-readers. 
B)  decrease the demand for e-readers. 
C)  increase the quantity demanded for e-readers. 
D)  decrease the quantity demanded for e-readers. 
A)  increase the demand for e-readers. 
B)  decrease the demand for e-readers. 
C)  increase the quantity demanded for e-readers. 
D)  decrease the quantity demanded for e-readers.

Question 14

In the United States,consumption per-person of carbonated soft drinks ________ between 2005 and 2013.

Accepted Answer

A)  declined by more than 15 percent 
B)  increased by approximately 22 percent 
C)  fell by almost 80 percent 
D)  remained virtually unchanged 
A)  declined by more than 15 percent 
B)  increased by approximately 22 percent 
C)  fell by almost 80 percent 
D)  remained virtually unchanged

Question 15

Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?

Accepted Answer

A)  a decrease in the price of orange juice processing 
B)  an increase in the cost of fertilizer used for orange groves 
C)  a decrease in income, assuming orange juice is a normal good 
D)  a decrease in the population 
A)  a decrease in the price of orange juice processing 
B)  an increase in the cost of fertilizer used for orange groves 
C)  a decrease in income, assuming orange juice is a normal good 
D)  a decrease in the population

Question 16

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

Accepted Answer

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

Question 17

If a demand curve shifts to the left,then

Accepted Answer

A)  demand has increased. 
B)  quantity demanded has increased. 
C)  demand has decreased. 
D)  quantity demanded has decreased. 
A)  demand has increased. 
B)  quantity demanded has increased. 
C)  demand has decreased. 
D)  quantity demanded has decreased.

Question 18

Which of the following statements is true?

Accepted Answer

A)  An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. 
B)  A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand. 
C)  If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. 
A)  An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. 
B)  A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand. 
C)  If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. 
D)  If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

Question 19

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Accepted Answer

A) True 
 B)False

Question 20

What is the difference between a supply schedule and a supply curve?

Accepted Answer

A supply schedule is a table that shows

A movement along the demand curve for toothpaste would be caused by

If the demand for a product decreases and the supply of the same product decreases,the equilibrium price will decrease.

Figure 3-2 -Refer to Figure 3-2.An increase in the price of substitutes in production would be represented by a movement from

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln.Which of the following events would cause the price differences in these letters to get smaller?

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

Which of the following statements is true?

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

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

Which of the following is evidence of a shortage of walnuts?

If the demand for a product increases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal

In the United States,consumption per-person of carbonated soft drinks ________ between 2005 and 2013.

Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

If a demand curve shifts to the left,then

Which of the following statements is true?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

What is the difference between a supply schedule and a supply curve?

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

A movement along the demand curve for toothpaste would be caused by

If the demand for a product decreases and the supply of the same product decreases,the equilibrium price will decrease.

Figure 3-2 -Refer to Figure 3-2.An increase in the price of substitutes in production would be represented by a movement from

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln.Which of the following events would cause the price differences in these letters to get smaller?

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

Which of the following statements is true?

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

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

Which of the following is evidence of a shortage of walnuts?

If the demand for a product increases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

If tablet computers are considered substitutes for e-readers,the decline in the price of tablet computers would,all else equal

In the United States,consumption per-person of carbonated soft drinks ________ between 2005 and 2013.

Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?

In 2004,hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit

If a demand curve shifts to the left,then

Which of the following statements is true?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

What is the difference between a supply schedule and a supply curve?

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