Question 1

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in productivity inc

Question 2

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the figures represent this change. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the figures represent this change.

Question 3

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above answers is correct because the decrease in income will affect the supply curve not the demand curve.

Question 4

-In the above figure,the shift in the supply curve from S to S1 reflects

Accepted Answer

A) an increase in the quantity of pizza supplied. 
B) a decrease in the quantity of pizza supplied. 
C) an increase in the supply of pizza. 
D) a decrease in the supply of pizza. 
E) None of the above answers is correct. 
A) an increase in the quantity of pizza supplied. 
B) a decrease in the quantity of pizza supplied. 
C) an increase in the supply of pizza. 
D) a decrease in the supply of pizza. 
E) None of the above answers is correct.

Question 5

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a substitute for camcorders. 
D) a complement to camcorders. 
E) made using advanced technology. 
A) a normal good. 
B) an inferior good. 
C) a substitute for camcorders. 
D) a complement to camcorders. 
E) made using advanced technology.

Question 6

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,and the equilibrium quantity ________.

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 "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell 
A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell

Question 8

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.What point represents the most likely new price and quantity?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 9

In the above figure,________ will shift in the demand curve from D to D1.

Accepted Answer

A) an increase in income if pizza is an inferior good 
B) a decrease in the price of a sub sandwich,a substitute for pizza 
C) buyers' expectation that pizza will be less expensive next week 
D) a scientific article published that demonstrates eating pizza is good for one's health 
E) a fall in the cost of producing pizza 
A) an increase in income if pizza is an inferior good 
B) a decrease in the price of a sub sandwich,a substitute for pizza 
C) buyers' expectation that pizza will be less expensive next week 
D) a scientific article published that demonstrates eating pizza is good for one's health 
E) a fall in the cost of producing pizza

Question 10

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Accepted Answer

A) The supply of wheat increased and the supply of corn decreased. 
B) The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C) The supply of wheat increased and the quantity of corn supplied decreased 
D) The quantity of wheat supplied increased and the supply of corn decreased. 
E) The supply of wheat decreased and the supply of corn decreased. 
A) The supply of wheat increased and the supply of corn decreased. 
B) The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C) The supply of wheat increased and the quantity of corn supplied decreased 
D) The quantity of wheat supplied increased and the supply of corn decreased. 
E) The supply of wheat decreased and the supply of corn decreased.

Question 11

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

Accepted Answer

Advances in technology increase the supp

Question 12

-In the above figure,the shift in the supply curve from S to S2 might reflect

Accepted Answer

A) a decrease in the cost of the tomato sauce used to produce pizza. 
B) a decrease in the number of pizza producers. 
C) an increase in the price of a pizza. 
D) an increase in income if pizza is a normal good. 
E) an increase in the price of a good that is a substitute for consumers. 
A) a decrease in the cost of the tomato sauce used to produce pizza. 
B) a decrease in the number of pizza producers. 
C) an increase in the price of a pizza. 
D) an increase in income if pizza is a normal good. 
E) an increase in the price of a good that is a substitute for consumers.

Question 13

-In the figure above,what is the equilibrium price and quantity?

Accepted Answer

The equilibrium pric

Question 14

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in the supply combined with no change in the demand 
A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in the supply combined with no change in the demand

Question 15

Which of the following increases the supply of gasoline?

Accepted Answer

A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline,such as crude oil 
D) a decrease in the demand for gas-guzzling,sport utility vehicles 
E) an increase in income if gas-guzzling,sport utility vehicles are a normal good 
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline,such as crude oil 
D) a decrease in the demand for gas-guzzling,sport utility vehicles 
E) an increase in income if gas-guzzling,sport utility vehicles are a normal good

Question 16

The equilibrium price of a good occurs if the

Accepted Answer

A) quantity of the good demanded equals the quantity of the good supplied. 
B) quantity of the good demanded is greater than the quantity of the good supplied. 
C) quantity of the good demanded is less than the quantity of the good supplied. 
D) demand for the good is equal to the supply of the good. 
E) price of the good seems reasonable to most buyers. 
A) quantity of the good demanded equals the quantity of the good supplied. 
B) quantity of the good demanded is greater than the quantity of the good supplied. 
C) quantity of the good demanded is less than the quantity of the good supplied. 
D) demand for the good is equal to the supply of the good. 
E) price of the good seems reasonable to most buyers.

Question 17

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks and milk are substitutes for...

Question 18

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

Accepted Answer

A) Both equilibrium price and quantity increase. 
B) Equilibrium price increases. 
C) Equilibrium price decreases. 
D) Equilibrium quantity increases. 
E) Equilibrium quantity decreases. 
A) Both equilibrium price and quantity increase. 
B) Equilibrium price increases. 
C) Equilibrium price decreases. 
D) Equilibrium quantity increases. 
E) Equilibrium quantity decreases.

Question 19

If the demand for a good increases when people's incomes increase,

Accepted Answer

A) the good is an inferior good. 
B) the law of demand is violated. 
C) the good's demand curve must be slope upward. 
D) the good is a normal good. 
E) the good is a substitute good for an inferior good. 
A) the good is an inferior good. 
B) the law of demand is violated. 
C) the good's demand curve must be slope upward. 
D) the good is a normal good. 
E) the good is a substitute good for an inferior good.

Question 20

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-In the above figure,the shift in the supply curve from S to S1 reflects

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.What point represents the most likely new price and quantity?

In the above figure,________ will shift in the demand curve from D to D1.

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

-In the above figure,the shift in the supply curve from S to S2 might reflect

-In the figure above,what is the equilibrium price and quantity?

Which of the following definitely results in a product's equilibrium price rising?

Which of the following increases the supply of gasoline?

The equilibrium price of a good occurs if the

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

If the demand for a good increases when people's incomes increase,

When does a shortage occur?

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

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-In the above figure,the shift in the supply curve from S to S1 reflects

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,and the equilibrium quantity ________.

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.What point represents the most likely new price and quantity?

In the above figure,________ will shift in the demand curve from D to D1.

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

-In the above figure,the shift in the supply curve from S to S2 might reflect

-In the figure above,what is the equilibrium price and quantity?

Which of the following definitely results in a product's equilibrium price rising?

Which of the following increases the supply of gasoline?

The equilibrium price of a good occurs if the

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

If the demand for a good increases when people's incomes increase,

When does a shortage occur?

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

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .