Question 1

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

Accepted Answer

A) does not change. 
B) rises. 
C) falls. 
D) might rise,fall,or not change,but the change can never be predicted. 
E) might rise,fall,or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers. 
A) does not change. 
B) rises. 
C) falls. 
D) might rise,fall,or not change,but the change can never be predicted. 
E) might rise,fall,or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question 2

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

Accepted Answer

A) a decrease in the supply of electric cars so that the supply curve shifts leftward. 
B) a decrease in the supply of electric cars so that the supply curve shifts rightward. 
C) an increase in the supply of electric cars so that the supply curve shifts leftward. 
D) an increase in the supply electric cars so that the supply curve shifts rightward. 
E) no change in the supply of electric cars,only a change in the quantity supplied of electric cars. 
A) a decrease in the supply of electric cars so that the supply curve shifts leftward. 
B) a decrease in the supply of electric cars so that the supply curve shifts rightward. 
C) an increase in the supply of electric cars so that the supply curve shifts leftward. 
D) an increase in the supply electric cars so that the supply curve shifts rightward. 
E) no change in the supply of electric cars,only a change in the quantity supplied of electric cars.

Question 3

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Accepted Answer

A) the supply curve of film shifts rightward. 
B) the demand curve for film shifts leftward. 
C) there is a movement up along the demand curve for film. 
D) there is a movement down along the demand curve for film. 
E) neither the demand curve nor the supply curve for film shifts;instead there is a movement along both. 
A) the supply curve of film shifts rightward. 
B) the demand curve for film shifts leftward. 
C) there is a movement up along the demand curve for film. 
D) there is a movement down along the demand curve for film. 
E) neither the demand curve nor the supply curve for film shifts;instead there is a movement along both.

Question 4

-Using the data in the table above,if the price of a stapler is $5,then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A) a surplus;is greater than 
B) a surplus;is less than 
C) a shortage;is greater than 
D) a shortage;is less than 
E) neither a surplus nor a shortage;equals 
A) a surplus;is greater than 
B) a surplus;is less than 
C) a shortage;is greater than 
D) a shortage;is less than 
E) neither a surplus nor a shortage;equals

Question 5

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D2 can be the result of

Accepted Answer

A) a decrease in the price of soda,a complement to pizza. 
B) an increase in the price of hamburgers,a substitute for pizza. 
C) a decrease in income. 
D) a study that shows that pizza is a very healthy food. 
E) an increase in the cost of producing pizza. 
A) a decrease in the price of soda,a complement to pizza. 
B) an increase in the price of hamburgers,a substitute for pizza. 
C) a decrease in income. 
D) a study that shows that pizza is a very healthy food. 
E) an increase in the cost of producing pizza.

Question 6

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________,and the equilibrium quantity of scooters ________.

Accepted Answer

A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases 
E) does not change;decreases 
A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases 
E) does not change;decreases

Question 7

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Accepted Answer

A) there is a surplus and the price of t-shirts will rise. 
B) there is a shortage and the price of t-shirts will rise. 
C) there is a shortage and the price of t-shirts will fall. 
D) there is a surplus and the price of t-shirts will fall. 
E) the market is in equilibrium. 
A) there is a surplus and the price of t-shirts will rise. 
B) there is a shortage and the price of t-shirts will rise. 
C) there is a shortage and the price of t-shirts will fall. 
D) there is a surplus and the price of t-shirts will fall. 
E) the market is in equilibrium.

Question 8

The number of corn producers increases,so the supply of corn ________ and the supply curve of corn ________.

Accepted Answer

A) increases;shifts rightward 
B) increases;shifts leftward 
C) decrease;shifts rightward 
D) decreases;shifts leftward 
E) increases;does not shift 
A) increases;shifts rightward 
B) increases;shifts leftward 
C) decrease;shifts rightward 
D) decreases;shifts leftward 
E) increases;does not shift

Question 9

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

Accepted Answer

A) downward;decreases 
B) downward;increases 
C) upward;decreases 
D) upward;increases 
E) downward;does not change 
A) downward;decreases 
B) downward;increases 
C) upward;decreases 
D) upward;increases 
E) downward;does not change

Question 10

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 11

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A) a decrease in the costs of production 
B) an increase in the product's price 
C) an advance in the technology used to produce the good 
D) an increase in the price of another product that the suppliers can produce 
E) an increase in the number of firms producing the good or service 
A) a decrease in the costs of production 
B) an increase in the product's price 
C) an advance in the technology used to produce the good 
D) an increase in the price of another product that the suppliers can produce 
E) an increase in the number of firms producing the good or service

Question 12

Which of the following is correct?
I.A surplus puts downward pressure on the price of a good.
Ii.A shortage puts upward pressure on the price of a good.
Iii.There is no surplus or shortage at equilibrium.

Accepted Answer

A) i and ii 
B) i and iii 
C) ii and iii 
D) i,ii,and iii 
E) only iii 
A) i and ii 
B) i and iii 
C) ii and iii 
D) i,ii,and iii 
E) only iii

Question 13

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

Accepted Answer

A) the supply curve for leather shoes shifts rightward. 
B) the supply curve for leather shoes shifts leftward. 
C) there is a movement along the supply curve for leather shoes. 
D) the equilibrium price of leather shoes falls. 
E) the equilibrium quantity of leather shoes increases. 
A) the supply curve for leather shoes shifts rightward. 
B) the supply curve for leather shoes shifts leftward. 
C) there is a movement along the supply curve for leather shoes. 
D) the equilibrium price of leather shoes falls. 
E) the equilibrium quantity of leather shoes increases.

Question 14

In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above because a prohibition cannot be illustrated using demand and supply figures. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above because a prohibition cannot be illustrated using demand and supply figures.

Question 15

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A) rising;increasing 
B) rising;decreasing 
C) falling;increasing 
D) falling;decreasing 
E) falling;not changing 
A) rising;increasing 
B) rising;decreasing 
C) falling;increasing 
D) falling;decreasing 
E) falling;not changing

Question 16

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Accepted Answer

Yes,the information in the tab

Question 17

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

Accepted Answer

A) supply of sweaters decreases and the demand for sweaters does not change. 
B) supply of sweaters increases and the demand for sweaters does not change. 
C) quantity of sweaters supplied increases. 
D) quantity of sweaters supplied decreases. 
E) supply of sweaters increases and the demand for sweaters increases. 
A) supply of sweaters decreases and the demand for sweaters does not change. 
B) supply of sweaters increases and the demand for sweaters does not change. 
C) quantity of sweaters supplied increases. 
D) quantity of sweaters supplied decreases. 
E) supply of sweaters increases and the demand for sweaters increases.

Question 18

If macaroni and cheese is an inferior good,then a decrease in income results in

Accepted Answer

A) an increase in the demand for macaroni and cheese. 
B) a decrease in the demand for macaroni and cheese. 
C) an increase in the supply of macaroni and cheese. 
D) a decrease in the supply of macaroni and cheese. 
E) Both answers A and D are correct. 
A) an increase in the demand for macaroni and cheese. 
B) a decrease in the demand for macaroni and cheese. 
C) an increase in the supply of macaroni and cheese. 
D) a decrease in the supply of macaroni and cheese. 
E) Both answers A and D are correct.

Question 19

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Accepted Answer

A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change. 
A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change.

Question 20

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters 
A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

Consider the market for camera film.If more people start using digital cameras,which do not require film,

-Using the data in the table above,if the price of a stapler is $5,then there is of staplers and the quantity of staplers demanded the quantity of staplers supplied.

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D2 can be the result of

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ,and the equilibrium quantity of scooters .

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

The number of corn producers increases,so the supply of corn and the supply curve of corn .

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Which of the following is correct? I.A surplus puts downward pressure on the price of a good. Ii.A shortage puts upward pressure on the price of a good. Iii.There is no surplus or shortage at equilibrium.

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

If macaroni and cheese is an inferior good,then a decrease in income results in

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Which of the following results in a movement upward along the supply curve for movies in theaters?

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 4: Demand and Supply

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

Consider the market for camera film.If more people start using digital cameras,which do not require film,

-Using the data in the table above,if the price of a stapler is $5,then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D2 can be the result of

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________,and the equilibrium quantity of scooters ________.

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

The number of corn producers increases,so the supply of corn ________ and the supply curve of corn ________.

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Which of the following is correct? I.A surplus puts downward pressure on the price of a good. Ii.A shortage puts upward pressure on the price of a good. Iii.There is no surplus or shortage at equilibrium.

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

If macaroni and cheese is an inferior good,then a decrease in income results in

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Which of the following results in a movement upward along the supply curve for movies in theaters?

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-Using the data in the table above,if the price of a stapler is $5,then there is of staplers and the quantity of staplers demanded the quantity of staplers supplied.

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ,and the equilibrium quantity of scooters .

The number of corn producers increases,so the supply of corn and the supply curve of corn .

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .