Question 1

-Refer to the above figure.The equilibrium price and quantity are

Accepted Answer

A) $2 and 12 units. 
B) $6 and 9 units. 
C) $8 and 6 units. 
D) $10 and 1 unit. 
A) $2 and 12 units. 
B) $6 and 9 units. 
C) $8 and 6 units. 
D) $10 and 1 unit.

Question 2

-According to the above figure for a gasoline market,what happens when the price per gallon of gasoline jumps from $1 to $4?

Accepted Answer

A) A gasoline surplus is replaces by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results. 
A) A gasoline surplus is replaces by a gas shortage. 
B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. 
C) The market shortage is replaced by market equilibrium. 
D) A surplus of 40 million gallons/day results.

Question 3

What happens as the result of a surplus?

Accepted Answer

A) There is downward pressure on prices. 
B) There is upward pressure on prices. 
C) Consumers begin to view the good as an inferior good because it is too commonplace. 
D) Demand for the good increases. 
A) There is downward pressure on prices. 
B) There is upward pressure on prices. 
C) Consumers begin to view the good as an inferior good because it is too commonplace. 
D) Demand for the good increases.

Question 4

-At a market clearing price,

Accepted Answer

A) the quantity demanded will just equal the quantity supplied. 
B) there will be an excess quantity demanded. 
C) there will be a tendency for price to rise over time. 
D) the demand function will shift outward. 
A) the quantity demanded will just equal the quantity supplied. 
B) there will be an excess quantity demanded. 
C) there will be a tendency for price to rise over time. 
D) the demand function will shift outward.

Question 5

If the price of hot dogs increases,the demand for hot dog buns will

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) shift to the right. 
A) increase. 
B) decrease. 
C) remain constant. 
D) shift to the right.

Question 6

State the law of demand and illustrate it.Explain what is meant by the term "price" in the law of demand.

Accepted Answer

The law of demand states that when the p

Question 7

-Refer to the above table.The market quantity supplied when the price is $6 is

Accepted Answer

A) 0 
B) 5 
C) 10 
D) 20 
A) 0 
B) 5 
C) 10 
D) 20

Question 8

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

Accepted Answer

A) substitutes. 
B) complements. 
C) normal. 
D) inferior. 
A) substitutes. 
B) complements. 
C) normal. 
D) inferior.

Question 9

A market demand curve is found by

Accepted Answer

A) adding the prices each consumer would pay for each quantity. 
B) adding the prices and the quantities demanded by a consumer. 
C) adding the quantities demanded for each individual consumer at each price. 
D) taking the demand curve of the "representative" consumer. 
A) adding the prices each consumer would pay for each quantity. 
B) adding the prices and the quantities demanded by a consumer. 
C) adding the quantities demanded for each individual consumer at each price. 
D) taking the demand curve of the "representative" consumer.

Question 10

-Using the above figure,at which price is there neither excess quantity demanded nor excess quantity supplied?

Accepted Answer

A) P1 
B) P2 
C) P3 
D) none of these 
A) P1 
B) P2 
C) P3 
D) none of these

Question 11

Which of the following is an example of the law of supply?

Accepted Answer

A) The price of gum has increased so producers are making more gum. 
B) The price of labor has increased and producers decrease supply. 
C) The amount of a good purchased increases when the price decreases. 
D) Producers provide less of a good when the price increases. 
A) The price of gum has increased so producers are making more gum. 
B) The price of labor has increased and producers decrease supply. 
C) The amount of a good purchased increases when the price decreases. 
D) Producers provide less of a good when the price increases.

Question 12

According to the law of demand,

Accepted Answer

A) people buy more of a good when the price rises. 
B) people buy more of a good when their income rises. 
C) people buy more of a good when the relative price rises. 
D) people buy more of a good when the price falls. 
A) people buy more of a good when the price rises. 
B) people buy more of a good when their income rises. 
C) people buy more of a good when the relative price rises. 
D) people buy more of a good when the price falls.

Question 13

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 14

According to the law of demand

Accepted Answer

A) price and quantity demanded move in the same direction. 
B) price and quantity demanded move in opposite directions. 
C) ceteris paribus does not apply. 
D) price and quantity demanded are unrelated. 
A) price and quantity demanded move in the same direction. 
B) price and quantity demanded move in opposite directions. 
C) ceteris paribus does not apply. 
D) price and quantity demanded are unrelated.

Question 15

Total market supply can be derived by

Accepted Answer

A) horizontally summing individual supply curves at each and every price level. 
B) vertically summing individual supply curves at the current technology level. 
C) adding up the largest quantity demanded at various prices. 
D) looking at the changes in the price of raw materials needed to produce the product. 
A) horizontally summing individual supply curves at each and every price level. 
B) vertically summing individual supply curves at the current technology level. 
C) adding up the largest quantity demanded at various prices. 
D) looking at the changes in the price of raw materials needed to produce the product.

Question 16

The "real" price of a good is known as

Accepted Answer

A) the absolute price of the good. 
B) the dollar price of the good since we use dollars in the United States. 
C) relative price of the good. 
D) the price actually paid for a good instead of the sticker price. 
A) the absolute price of the good. 
B) the dollar price of the good since we use dollars in the United States. 
C) relative price of the good. 
D) the price actually paid for a good instead of the sticker price.

Question 17

If the demand of a good is inversely related to income,it must be

Accepted Answer

A) a bad good. 
B) an inferior good. 
C) a normal good. 
D) an everyday product. 
A) a bad good. 
B) an inferior good. 
C) a normal good. 
D) an everyday product.

Question 18

Other things being equal,an increase in wages paid to workers in the steel industry will cause

Accepted Answer

A) the quantity of steel demanded to increase. 
B) the quantity of steel supplied to decrease. 
C) the supply of steel to decrease. 
D) the demand for steel to decrease. 
A) the quantity of steel demanded to increase. 
B) the quantity of steel supplied to decrease. 
C) the supply of steel to decrease. 
D) the demand for steel to decrease.

Question 19

If a bottled soft drink and bottled juice are substitutes,when the price of the bottled soft drink rises,

Accepted Answer

A) demand for bottled juice rises. 
B) demand for bottled juice falls. 
C) quantity of bottled juice demanded falls. 
D) quantity of bottled juice demanded rises. 
A) demand for bottled juice rises. 
B) demand for bottled juice falls. 
C) quantity of bottled juice demanded falls. 
D) quantity of bottled juice demanded rises.

Question 20

When the amount supplied is greater at each price,there is a(n)

Accepted Answer

A) rightward shift in the supply curve. 
B) leftward shift in the supply curve. 
C) upward movement along the supply curve. 
D) downward movement along the supply curve. 
A) rightward shift in the supply curve. 
B) leftward shift in the supply curve. 
C) upward movement along the supply curve. 
D) downward movement along the supply curve.

-Refer to the above figure.The equilibrium price and quantity are

-According to the above figure for a gasoline market,what happens when the price per gallon of gasoline jumps from $1 to $4?

What happens as the result of a surplus?

-At a market clearing price,

If the price of hot dogs increases,the demand for hot dog buns will

State the law of demand and illustrate it.Explain what is meant by the term "price" in the law of demand.

-Refer to the above table.The market quantity supplied when the price is $6 is

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

A market demand curve is found by

-Using the above figure,at which price is there neither excess quantity demanded nor excess quantity supplied?

Which of the following is an example of the law of supply?

According to the law of demand,

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

According to the law of demand

Total market supply can be derived by

The "real" price of a good is known as

If the demand of a good is inversely related to income,it must be

Other things being equal,an increase in wages paid to workers in the steel industry will cause

If a bottled soft drink and bottled juice are substitutes,when the price of the bottled soft drink rises,

When the amount supplied is greater at each price,there is a(n)

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

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 3: Demand and Supply

-Refer to the above figure.The equilibrium price and quantity are

-According to the above figure for a gasoline market,what happens when the price per gallon of gasoline jumps from $1 to $4?

What happens as the result of a surplus?

-At a market clearing price,

If the price of hot dogs increases,the demand for hot dog buns will

State the law of demand and illustrate it.Explain what is meant by the term "price" in the law of demand.

-Refer to the above table.The market quantity supplied when the price is $6 is

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

A market demand curve is found by

-Using the above figure,at which price is there neither excess quantity demanded nor excess quantity supplied?

Which of the following is an example of the law of supply?

According to the law of demand,

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

According to the law of demand

Total market supply can be derived by

The "real" price of a good is known as

If the demand of a good is inversely related to income,it must be

Other things being equal,an increase in wages paid to workers in the steel industry will cause

If a bottled soft drink and bottled juice are substitutes,when the price of the bottled soft drink rises,

When the amount supplied is greater at each price,there is a(n)

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

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters