Question 1

Which of the following will increase the supply of a product?

Accepted Answer

A) an increase in the price of the product 
B) an increase in the demand for the product 
C) an increase in the number of sellers 
D) a decrease in the demand for the product 
E) an increase in the price of inputs 
A) an increase in the price of the product 
B) an increase in the demand for the product 
C) an increase in the number of sellers 
D) a decrease in the demand for the product 
E) an increase in the price of inputs

Question 2

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S0 to S2?

Accepted Answer

A) an increase in the cost of hard drives 
B) an increase in the productivity of the workers manufacturing laptops 
C) a decrease in the price of laptops 
D) an increase in the price of laptops 
E) a decrease in the number of laptop manufactures and sellers 
A) an increase in the cost of hard drives 
B) an increase in the productivity of the workers manufacturing laptops 
C) a decrease in the price of laptops 
D) an increase in the price of laptops 
E) a decrease in the number of laptop manufactures and sellers

Question 3

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Accepted Answer

A) The demand for sushi would decrease. 
B) The demand for sushi would be unaffected,but the price would increase. 
C) The demand for sushi could increase or decrease. 
D) The demand for sushi would increase. 
E) The demand for sushi would be unaffected,but the price would decrease. 
A) The demand for sushi would decrease. 
B) The demand for sushi would be unaffected,but the price would increase. 
C) The demand for sushi could increase or decrease. 
D) The demand for sushi would increase. 
E) The demand for sushi would be unaffected,but the price would decrease.

Question 4

What are substitutes in production?

Accepted Answer

Goods are substitutes in produ

Question 5

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

Accepted Answer

A) The supply increases. 
B) The supply decreases. 
C) The quantity supplied increases. 
D) The quantity supplied decreases. 
E) Both answers B and D are correct. 
A) The supply increases. 
B) The supply decreases. 
C) The quantity supplied increases. 
D) The quantity supplied decreases. 
E) Both answers B and D are correct.

Question 6

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

Accepted Answer

A) both the price and the quantity. 
B) either the price or the quantity,but not both. 
C) only the price. 
D) only the quantity. 
E) neither the price nor the quantity. 
A) both the price and the quantity. 
B) either the price or the quantity,but not both. 
C) only the price. 
D) only the quantity. 
E) neither the price nor the quantity.

Question 7

Wheat is used to produce cereal.When the price of wheat falls,the

Accepted Answer

A) demand for wheat increases. 
B) supply of wheat decreases. 
C) supply of cereal increases. 
D) demand for cereal increases. 
E) demand for cereal decreases. 
A) demand for wheat increases. 
B) supply of wheat decreases. 
C) supply of cereal increases. 
D) demand for cereal increases. 
E) demand for cereal decreases.

Question 8

Car insurance and cars are complements.If the price of car insurance increases,the

Accepted Answer

A) demand for cars decreases. 
B) demand for cars increases. 
C) quantity of cars demanded decreases. 
D) quantity of cars demanded increases. 
E) More information is needed to determine if the demand increases or decreases. 
A) demand for cars decreases. 
B) demand for cars increases. 
C) quantity of cars demanded decreases. 
D) quantity of cars demanded increases. 
E) More information is needed to determine if the demand increases or decreases.

Question 9

Wheat is used to produce cereal.When the price of wheat falls,the

Accepted Answer

A) demand for wheat increases. 
B) supply of wheat decreases. 
C) supply of cereal increases. 
D) demand for cereal increases. 
E) demand for cereal decreases. 
A) demand for wheat increases. 
B) supply of wheat decreases. 
C) supply of cereal increases. 
D) demand for cereal increases. 
E) demand for cereal decreases.

Question 10

-The above table gives the demand and supply schedules for cat food.If the price is $3.00 per pound of cat food,will there be a shortage,a surplus,or is this price the equilibrium price? If there is a shortage,how much is the shortage? If there is a surplus,how much is the surplus? If $3.00 is the equilibrium price,what is the equilibrium quantity?

Accepted Answer

At a price of $3.00 per pound

Question 11

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Accepted Answer

A) the demand curve for hauling freight has shifted leftward. 
B) the supply curve for hauling freight has shifted leftward. 
C) the demand curve for hauling freight has shifted rightward. 
D) the supply curve for hauling freight has shifted rightward. 
E) neither the supply curve nor the demand curve for hauling freight has shifted;the only change is that the price is higher. 
A) the demand curve for hauling freight has shifted leftward. 
B) the supply curve for hauling freight has shifted leftward. 
C) the demand curve for hauling freight has shifted rightward. 
D) the supply curve for hauling freight has shifted rightward. 
E) neither the supply curve nor the demand curve for hauling freight has shifted;the only change is that the price is higher.

Question 12

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Accepted Answer

A) rise;increase 
B) rise;decrease 
C) fall;increase 
D) fall;decrease 
E) not change;increase 
A) rise;increase 
B) rise;decrease 
C) fall;increase 
D) fall;decrease 
E) not change;increase

Question 13

Advances in productivity increase supply because they might

Accepted Answer

A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good. 
A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good.

Question 14

When the price of rice rises,

Accepted Answer

A) the market quantity supplied of rice increases. 
B) the market supply of rice increases. 
C) the market quantity of rice demanded decreases. 
D) Both A and C are true. 
E) Both A and B are true. 
A) the market quantity supplied of rice increases. 
B) the market supply of rice increases. 
C) the market quantity of rice demanded decreases. 
D) Both A and C are true. 
E) Both A and B are true.

Question 15

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Accepted Answer

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

Question 16

Which of the following shifts the supply curve for oranges?

Accepted Answer

A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas,a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers 
A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas,a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers

Question 17

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Accepted Answer

A) shortage,so the price falls and quantity demanded increases. 
B) surplus,so the price falls and quantity demanded increases. 
C) shortage,so the price rises and quantity demanded decreases. 
D) surplus,so the price rises and quantity demanded increases. 
E) surplus,so the price falls and quantity supplied increases. 
A) shortage,so the price falls and quantity demanded increases. 
B) surplus,so the price falls and quantity demanded increases. 
C) shortage,so the price rises and quantity demanded decreases. 
D) surplus,so the price rises and quantity demanded increases. 
E) surplus,so the price falls and quantity supplied increases.

Question 18

Market equilibrium occurs when

Accepted Answer

A) all markets become equal. 
B) the quantity demanded equals the quantity supplied. 
C) opposing forces pull demand and supply apart. 
D) demand and supply move in opposite direction. 
E) demand and supply change so that they are equal at all possible prices. 
A) all markets become equal. 
B) the quantity demanded equals the quantity supplied. 
C) opposing forces pull demand and supply apart. 
D) demand and supply move in opposite direction. 
E) demand and supply change so that they are equal at all possible prices.

Question 19

The number of people looking to buy ceiling fans increases,so there is an increase in the

Accepted Answer

A) quantity of ceiling fans demanded and a surplus of ceiling fans. 
B) demand for ceiling fans and a rise in the price of a ceiling fan. 
C) demand for ceiling fans and a surplus of ceiling fans. 
D) supply of ceiling fans and no change in the price of a ceiling fan. 
E) demand for ceiling fans and in the supply of ceiling fans. 
A) quantity of ceiling fans demanded and a surplus of ceiling fans. 
B) demand for ceiling fans and a rise in the price of a ceiling fan. 
C) demand for ceiling fans and a surplus of ceiling fans. 
D) supply of ceiling fans and no change in the price of a ceiling fan. 
E) demand for ceiling fans and in the supply of ceiling fans.

Question 20

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

Accepted Answer

A) rises. 
B) falls. 
C) does not change. 
D) rises or does not change. 
E) rises or falls. 
A) rises. 
B) falls. 
C) does not change. 
D) rises or does not change. 
E) rises or falls.

Which of the following will increase the supply of a product?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S0 to S2?

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

What are substitutes in production?

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

Wheat is used to produce cereal.When the price of wheat falls,the

Car insurance and cars are complements.If the price of car insurance increases,the

Wheat is used to produce cereal.When the price of wheat falls,the

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .

Advances in productivity increase supply because they might

When the price of rice rises,

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Which of the following shifts the supply curve for oranges?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Market equilibrium occurs when

The number of people looking to buy ceiling fans increases,so there is an increase in the

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

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

Which of the following will increase the supply of a product?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S0 to S2?

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

What are substitutes in production?

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

Wheat is used to produce cereal.When the price of wheat falls,the

Car insurance and cars are complements.If the price of car insurance increases,the

Wheat is used to produce cereal.When the price of wheat falls,the

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Advances in productivity increase supply because they might

When the price of rice rises,

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Which of the following shifts the supply curve for oranges?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Market equilibrium occurs when

The number of people looking to buy ceiling fans increases,so there is an increase in the

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

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

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .