Question 1

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat,this suggests that

Accepted Answer

A) at the regular price,there is a surplus of Super Bowl tickets. 
B) at the regular price,there is a shortage of Super Bowl tickets. 
C) at the regular price,the quantity of Super Bowl tickets demanded equals the quantity supplied. 
D) the scalper is making the football fan worse off. 
A) at the regular price,there is a surplus of Super Bowl tickets. 
B) at the regular price,there is a shortage of Super Bowl tickets. 
C) at the regular price,the quantity of Super Bowl tickets demanded equals the quantity supplied. 
D) the scalper is making the football fan worse off.

Question 2

Demand is defined as

Accepted Answer

A) a schedule of how much of an item people will purchase at any particular price of that item during a specified time period,other things being constant. 
B) a specific quantity of an item that people want at a particular price of that item during a specified time period,other things being constant. 
C) a schedule of how much of a good or service people will purchase at any particular price of a different item during the specified time period,other things being constant. 
D) a specific quantity of a good or service that people will purchase at one particular price of another item during a specified time period,other things being constant. 
A) a schedule of how much of an item people will purchase at any particular price of that item during a specified time period,other things being constant. 
B) a specific quantity of an item that people want at a particular price of that item during a specified time period,other things being constant. 
C) a schedule of how much of a good or service people will purchase at any particular price of a different item during the specified time period,other things being constant. 
D) a specific quantity of a good or service that people will purchase at one particular price of another item during a specified time period,other things being constant.

Question 3

The demand curve is downward sloping because

Accepted Answer

A) the price must rise to induce firms to increase quantity supplied. 
B) a reduction in the price of a good causes individuals to increase their purchase of that good. 
C) an increase in the price will cause a leftward shift in the demand curve. 
D) all of the above. 
A) the price must rise to induce firms to increase quantity supplied. 
B) a reduction in the price of a good causes individuals to increase their purchase of that good. 
C) an increase in the price will cause a leftward shift in the demand curve. 
D) all of the above.

Question 4

$$\begin{array} { c c c } 
\text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 5 & 5 & 25 \
\$ 4 & 10 & 20 \
\$ 3 & 15 & 15 \
\$ 2 & 20 & 10 \
\$ 1 & 25 & 5 \
\hline
\end{array}$$
-Using the above table,the market clearing price for this product is

Accepted Answer

A) $5. 
B) $4. 
C) $3. 
D) $2. 
A) $5. 
B) $4. 
C) $3. 
D) $2.

Question 5

Graphically,the market supply curve is obtained by

Accepted Answer

A) changing the ceteris paribus conditions. 
B) a change in quantity supplied. 
C) horizontally summing quantity supplied at various prices for individual producers. 
D) vertically summing quantity supplied at various prices for individual producers. 
A) changing the ceteris paribus conditions. 
B) a change in quantity supplied. 
C) horizontally summing quantity supplied at various prices for individual producers. 
D) vertically summing quantity supplied at various prices for individual producers.

Question 6

Consider the following: $$\begin{array} { l c c } 
\text { Item } & \text { Price/Last Year } & \text { Price/This Year } \
\hline \text { Hamburgers } & \$ 3.00 & \$ 4.00 \
\text { Movies } & \$ 5.00 & \$ 6.00 \
\hline
\end{array}$$ The relative price of movies this year has

Accepted Answer

A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer. 
A) increased. 
B) decreased. 
C) stayed the same. 
D) Not enough information has been given to calculate an answer.

Question 7

Each of the following would cause an increase in the supply of baseballs EXCEPT

Accepted Answer

A) an improvement in technology. 
B) a decrease in the cost of labor used to produce baseballs. 
C) an expectation that the price of baseballs will rise in the future. 
D) an increase in the number of baseball producers. 
A) an improvement in technology. 
B) a decrease in the cost of labor used to produce baseballs. 
C) an expectation that the price of baseballs will rise in the future. 
D) an increase in the number of baseball producers.

Question 8

A decrease in quantity demanded of a good is caused by

Accepted Answer

A) a decrease in income. 
B) a decrease in the price of a substitute. 
C) an increase in the price of the good. 
D) a change of tastes. 
A) a decrease in income. 
B) a decrease in the price of a substitute. 
C) an increase in the price of the good. 
D) a change of tastes.

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat,this suggests that

Demand is defined as

The demand curve is downward sloping because

Price Quantity Demanded Quantity Supplied \ 5 5 25 \ 4 10 20 \ 3 15 15 \ 2 20 10 \ 1 25 5 -Using the above table,the market clearing price for this product is

Graphically,the market supply curve is obtained by

Consider the following: Item Price/Last Year Price/This Year Hamburgers \ 3.00 \ 4.00 Movies \ 5.00 \ 6.00 The relative price of movies this year has

Each of the following would cause an increase in the supply of baseballs EXCEPT

A decrease in quantity demanded of a good is caused by

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 3: Demand and Supply

If a scalper for the Super Bowl is able to charge $10,000 for a front-row seat,this suggests that

Demand is defined as

The demand curve is downward sloping because

Price Quantity Demanded Quantity Supplied \ 5 5 25 \ 4 10 20 \ 3 15 15 \ 2 20 10 \ 1 25 5 -Using the above table,the market clearing price for this product is

Graphically,the market supply curve is obtained by

Consider the following: Item Price/Last Year Price/This Year Hamburgers \ 3.00 \ 4.00 Movies \ 5.00 \ 6.00 The relative price of movies this year has

Each of the following would cause an increase in the supply of baseballs EXCEPT

A decrease in quantity demanded of a good is caused by

The Nature of Economics

Scarcity and the World of Trade-Offs

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Demand and Supply Elasticity

Consumer Choice

Rents, profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters