Question 1

Exhibit 3-4  
-In Exhibit 3-4,if D1 and S1 are the original supply and demand curves and D2 and S2 are the new curves,respectively,then

Accepted Answer

A) demand has decreased. 
B) the original equilibrium quantity was Q1. 
C) supply has increased. 
D) the new equilibrium quantity is Q4. 
E) supply has decreased. 
A) demand has decreased. 
B) the original equilibrium quantity was Q1. 
C) supply has increased. 
D) the new equilibrium quantity is Q4. 
E) supply has decreased.

Question 2

Suppose a war in the Middle East destroys many oil fields.This will cause a(n)

Accepted Answer

A) redistribution of income from the rich to the poor. 
B) increase in the quantity of oil traded. 
C) increase in oil prices. 
D) decrease in the demand for oil. 
E) increase in the supply of oil. 
A) redistribution of income from the rich to the poor. 
B) increase in the quantity of oil traded. 
C) increase in oil prices. 
D) decrease in the demand for oil. 
E) increase in the supply of oil.

Question 3

Which of the following is not held constant when constructing a supply curve for good X?

Accepted Answer

A) Number of firms producing good X 
B) Price of inputs 
C) Price of good X 
D) Producer expectations 
E) Production technology 
A) Number of firms producing good X 
B) Price of inputs 
C) Price of good X 
D) Producer expectations 
E) Production technology

Question 4

It is impossible to use a supply and demand model to analyze the changes in gasoline prices during the mid-2000s.

Accepted Answer

A) True 
 B)False

Question 5

The demand for apples shifts rightward when consumers react to a lower apple price by buying more.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is false?

Accepted Answer

A) A demand curve is a visual representation of a demand schedule. 
B) A demand curve is typically drawn with quantity demanded on the horizontal axis. 
C) A demand curve is derived from different quantities produced. 
D) A demand curve is typically drawn with price on the vertical axis. 
E) A demand curve is always downward sloping. 
A) A demand curve is a visual representation of a demand schedule. 
B) A demand curve is typically drawn with quantity demanded on the horizontal axis. 
C) A demand curve is derived from different quantities produced. 
D) A demand curve is typically drawn with price on the vertical axis. 
E) A demand curve is always downward sloping.

Question 7

If there is a surplus of a product,we can conclude that

Accepted Answer

A) the product's price is above equilibrium. 
B) the product's price is too low for equilibrium. 
C) quantity demanded exceeds quantity supplied. 
D) the product's price will rise. 
E) consumers want to buy more than is being made available by producers. 
A) the product's price is above equilibrium. 
B) the product's price is too low for equilibrium. 
C) quantity demanded exceeds quantity supplied. 
D) the product's price will rise. 
E) consumers want to buy more than is being made available by producers.

Question 8

With a single supply and demand diagram,illustrate a shortage and a surplus.Carefully label the diagram.

Accepted Answer

The answer of With a single supply and demand diagram,illustrate...

Question 9

If the price of product X falls and this causes the demand for product Y to shift to the right,then we can conclude X and Y are

Accepted Answer

A) normal. 
B) inferior. 
C) complements. 
D) substitutes. 
E) not related. 
A) normal. 
B) inferior. 
C) complements. 
D) substitutes. 
E) not related.

Question 10

Using the supply and demand diagrams (one for each market),show what short-run changes in price and quantity would be expected in the following markets if worries about weight gain from fat consumption cause consumers to reduce the demand for ice cream.Each graph should contain the original and new demand and supply curves,and the original and new equilibrium prices and quantities.For each market,write one sentence explaining why each curve shifts or does not shift.
(A)Market for ice cream
(B)Market for nonfat ,low-calorie frozen yogurt
(C)Market for ice cream toppings

Accepted Answer

(A) The demand curve shifts to the left

Exam 3: The Supply and Demand Model

Exhibit 3-4 -In Exhibit 3-4,if D1 and S1 are the original supply and demand curves and D2 and S2 are the new curves,respectively,then

Suppose a war in the Middle East destroys many oil fields.This will cause a(n)

Which of the following is not held constant when constructing a supply curve for good X?

It is impossible to use a supply and demand model to analyze the changes in gasoline prices during the mid-2000s.

The demand for apples shifts rightward when consumers react to a lower apple price by buying more.

Which of the following statements is false?

If there is a surplus of a product,we can conclude that

With a single supply and demand diagram,illustrate a shortage and a surplus.Carefully label the diagram.

If the price of product X falls and this causes the demand for product Y to shift to the right,then we can conclude X and Y are

The Central Idea

Observing and Explaining the Economy

Subtleties of the Supply and Demand Model: Price Floors,price Ceilings,and Elasticity

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, transfers, and Income Distribution

Public Goods, externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth and Globalization

International Trade

International Finance

Reading,understanding,and Creating Graphs

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

Present Discounted Value

The Miracle of Compound Growth

Deriving the Growth Accounting Formula

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

Filters

Exhibit 3-4 -In Exhibit 3-4,if D₁ and S₁ are the original supply and demand curves and D₂ and S₂ are the new curves,respectively,then