Question 1

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

Accepted Answer

A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes,not the demand. 
A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes,not the demand.

Question 2

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

Accepted Answer

A) an increase in the price of smart phones 
B) a decrease in the price of smart phones 
C) an increase in the price of land-line phone service,a substitute for smart phones 
D) a decrease in the number of smart phone buyers 
E) an increase in the supply of smart phones 
A) an increase in the price of smart phones 
B) a decrease in the price of smart phones 
C) an increase in the price of land-line phone service,a substitute for smart phones 
D) a decrease in the number of smart phone buyers 
E) an increase in the supply of smart phones

Question 3

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Accepted Answer

A) the equilibrium price definitely rises. 
B) the equilibrium price definitely falls. 
C) the equilibrium price definitely remains the same. 
D) the equilibrium quantity definitely increases. 
E) More information is needed to determine the effect on the equilibrium price. 
A) the equilibrium price definitely rises. 
B) the equilibrium price definitely falls. 
C) the equilibrium price definitely remains the same. 
D) the equilibrium quantity definitely increases. 
E) More information is needed to determine the effect on the equilibrium price.

Question 4

If good weather conditions result in a larger than normal crop of peaches,then the

Accepted Answer

A) equilibrium price of peaches rises,and the equilibrium quantity of peaches increases. 
B) equilibrium price of peaches falls,and the equilibrium quantity of peaches increases. 
C) demand curve for peaches shifts leftward. 
D) increase in the supply of peaches induces a greater demand for peaches,so that the equilibrium price rises and the equilibrium quantity increases. 
E) equilibrium price of peaches falls,and the equilibrium quantity of peaches decreases. 
A) equilibrium price of peaches rises,and the equilibrium quantity of peaches increases. 
B) equilibrium price of peaches falls,and the equilibrium quantity of peaches increases. 
C) demand curve for peaches shifts leftward. 
D) increase in the supply of peaches induces a greater demand for peaches,so that the equilibrium price rises and the equilibrium quantity increases. 
E) equilibrium price of peaches falls,and the equilibrium quantity of peaches decreases.

Question 5

Which of the following helps explain why the law of supply exists?

Accepted Answer

A) Larger outputs result in lower costs of production. 
B) The law of increasing opportunity cost 
C) The costs of production remain constant throughout all levels of output. 
D) Sellers realize that if the price increases,they make larger profits and do not need to change their production. 
E) The law of demand 
A) Larger outputs result in lower costs of production. 
B) The law of increasing opportunity cost 
C) The costs of production remain constant throughout all levels of output. 
D) Sellers realize that if the price increases,they make larger profits and do not need to change their production. 
E) The law of demand

Question 6

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

Accepted Answer

A) an increase in the supply of home heating oil. 
B) a decrease in the supply of home heating oil. 
C) an increase in the quantity of home heating oil supplied. 
D) a decrease in the quantity of home heating oil supplied. 
E) an increase in the demand for home heating oil. 
A) an increase in the supply of home heating oil. 
B) a decrease in the supply of home heating oil. 
C) an increase in the quantity of home heating oil supplied. 
D) a decrease in the quantity of home heating oil supplied. 
E) an increase in the demand for home heating oil.

Question 7

If income increases and the demand for bus rides decreases,

Accepted Answer

A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good. 
A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good.

Question 8

A normal good is defined as a good

Accepted Answer

A) with a downward sloping demand curve. 
B) for which demand increases when the price of a substitute rises. 
C) for which demand increases when income increases. 
D) for which demand increases when the number of demanders increases. 
E) for which demand increases when the price of a complement falls. 
A) with a downward sloping demand curve. 
B) for which demand increases when the price of a substitute rises. 
C) for which demand increases when income increases. 
D) for which demand increases when the number of demanders increases. 
E) for which demand increases when the price of a complement falls.

Question 9

When the demand for blue jeans increases,what happens next?

Accepted Answer

If the demand for blue jeans increases,t

Question 10

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

A) rises;increases 
B) perhaps changes but we can't say if it rises,falls,or stays the same;does not change 
C) falls;increases 
D) perhaps changes but we can't say if it rises,falls,or stays the same;increases 
E) falls;perhaps changes but we can't say if it increases,decreases,or stays the same 
A) rises;increases 
B) perhaps changes but we can't say if it rises,falls,or stays the same;does not change 
C) falls;increases 
D) perhaps changes but we can't say if it rises,falls,or stays the same;increases 
E) falls;perhaps changes but we can't say if it increases,decreases,or stays the same

Question 11

-Which figure above shows the effect of a technological advance in the production of pizza?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Both Figure A and Figure D 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Both Figure A and Figure D

Question 12

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Question 13

Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A or Figure C depending on how contractors react to the higher price of bricks. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A or Figure C depending on how contractors react to the higher price of bricks.

Question 14

-In the figure above,a price of $35 per dozen roses results in

Accepted Answer

A) a shortage. 
B) equilibrium. 
C) a surplus. 
D) upward pressure on the price of roses. 
E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve. 
A) a shortage. 
B) equilibrium. 
C) a surplus. 
D) upward pressure on the price of roses. 
E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.

Question 15

The market demand curve

Accepted Answer

A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping. 
A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping.

Question 16

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is ________ the quantity supplied and the price of the good will ________.

Accepted Answer

A) less then;fall 
B) greater than;rise 
C) greater than;fall 
D) less than;rise 
E) equal to;fall 
A) less then;fall 
B) greater than;rise 
C) greater than;fall 
D) less than;rise 
E) equal to;fall

Question 17

If the costs of producing pizza increase,which will occur?

Accepted Answer

A) The supply of pizza will decrease. 
B) The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C) Pizza will cease to be produced and sold. 
D) The demand curve for pizza will shift leftward when the price of a pizza increases. 
E) The demand curve for pizza will shift rightward when the price of a pizza increases. 
A) The supply of pizza will decrease. 
B) The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C) Pizza will cease to be produced and sold. 
D) The demand curve for pizza will shift leftward when the price of a pizza increases. 
E) The demand curve for pizza will shift rightward when the price of a pizza increases.

Question 18

Why does an increase in supply lead to lower prices?

Accepted Answer

When the supply of a good,such as comput

Question 19

If a market begins in equilibrium and then the demand curve shifts leftward,a

Accepted Answer

A) shortage is created,which is eliminated by a fall in price. 
B) shortage is created,which is eliminated by a rise in price. 
C) surplus is created,which is eliminated by a fall in price. 
D) surplus is created,which is eliminated by a rise in price. 
E) surplus is created,which is eliminated by the supply curve shifting leftward. 
A) shortage is created,which is eliminated by a fall in price. 
B) shortage is created,which is eliminated by a rise in price. 
C) surplus is created,which is eliminated by a fall in price. 
D) surplus is created,which is eliminated by a rise in price. 
E) surplus is created,which is eliminated by the supply curve shifting leftward.

Question 20

The law of demand refers to how

Accepted Answer

A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes. 
A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes.

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

If good weather conditions result in a larger than normal crop of peaches,then the

Which of the following helps explain why the law of supply exists?

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

If income increases and the demand for bus rides decreases,

A normal good is defined as a good

When the demand for blue jeans increases,what happens next?

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ,and the equilibrium quantity .

-Which figure above shows the effect of a technological advance in the production of pizza?

Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

-In the figure above,a price of $35 per dozen roses results in

The market demand curve

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is the quantity supplied and the price of the good will .

If the costs of producing pizza increase,which will occur?

Why does an increase in supply lead to lower prices?

If a market begins in equilibrium and then the demand curve shifts leftward,a

The law of demand refers to how

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

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

If good weather conditions result in a larger than normal crop of peaches,then the

Which of the following helps explain why the law of supply exists?

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

If income increases and the demand for bus rides decreases,

A normal good is defined as a good

When the demand for blue jeans increases,what happens next?

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

-Which figure above shows the effect of a technological advance in the production of pizza?

Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

-In the figure above,a price of $35 per dozen roses results in

The market demand curve

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is ________ the quantity supplied and the price of the good will ________.

If the costs of producing pizza increase,which will occur?

Why does an increase in supply lead to lower prices?

If a market begins in equilibrium and then the demand curve shifts leftward,a

The law of demand refers to how

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

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ,and the equilibrium quantity .

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is the quantity supplied and the price of the good will .