Question 1

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ 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 2

Market demand curves are obtained by

Accepted Answer

A) determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B) observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C) summing the quantities every consumer is willing to buy at each different price. 
D) observing the behavior of an individual consumer in a market. 
E) averaging the quantities every consumer is willing to buy at each different price. 
A) determining the price each consumer is willing to pay for the good and summing those prices across all consumers. 
B) observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. 
C) summing the quantities every consumer is willing to buy at each different price. 
D) observing the behavior of an individual consumer in a market. 
E) averaging the quantities every consumer is willing to buy at each different price.

Question 3

An increase in the productivity of producing jeans results in

Accepted Answer

A) the quantity of jeans supplied increasing. 
B) the supply of jeans increasing. 
C) buyers demanding more jeans because they are now more efficiently produced. 
D) buyers demanding fewer jeans because their price will fall,which signals lower quality. 
E) some change,but the impact on the supply of jeans is impossible to predict. 
A) the quantity of jeans supplied increasing. 
B) the supply of jeans increasing. 
C) buyers demanding more jeans because they are now more efficiently produced. 
D) buyers demanding fewer jeans because their price will fall,which signals lower quality. 
E) some change,but the impact on the supply of jeans is impossible to predict.

Question 4

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 5

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

Accepted Answer

A) there is a movement along the supply curve of peanut butter. 
B) the price of peanut butter rises. 
C) the quantity of peanut butter increases. 
D) there is a shift in the supply curve for jelly. 
E) the demand curve for peanut butter does not shift;instead there is a movement along it. 
A) there is a movement along the supply curve of peanut butter. 
B) the price of peanut butter rises. 
C) the quantity of peanut butter increases. 
D) there is a shift in the supply curve for jelly. 
E) the demand curve for peanut butter does not shift;instead there is a movement along it.

Question 6

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D0 to D2?

Accepted Answer

A) a decrease in the price of Zunes,a substitute for iPods 
B) an increase in the price of iPods 
C) a requirement that all students at universities have an iPod 
D) a decrease in the price of iPods 
E) a decrease in people's incomes if iPods are a normal good 
A) a decrease in the price of Zunes,a substitute for iPods 
B) an increase in the price of iPods 
C) a requirement that all students at universities have an iPod 
D) a decrease in the price of iPods 
E) a decrease in people's incomes if iPods are a normal good

Question 7

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 8

Which of the following lowers the equilibrium price of a canoe?

Accepted Answer

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

Question 9

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Accepted Answer

A) a decrease in the price of a compact disc 
B) an increase in the price of a compact disc 
C) a decrease in the number of suppliers of compact discs 
D) an increase in the price of the resources used to produce compact discs 
E) new technology that lowers the cost of producing compact discs 
A) a decrease in the price of a compact disc 
B) an increase in the price of a compact disc 
C) a decrease in the number of suppliers of compact discs 
D) an increase in the price of the resources used to produce compact discs 
E) new technology that lowers the cost of producing compact discs

Question 10

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn ________ and the quantity of corn ________.

Accepted Answer

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

Question 11

When there is a shortage of parking spaces at your college,the

Accepted Answer

A) demand for parking spaces is greater than the supply. 
B) supply of parking spaces is greater than the demand. 
C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E) Both answers A and D are correct. 
A) demand for parking spaces is greater than the supply. 
B) supply of parking spaces is greater than the demand. 
C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E) Both answers A and D are correct.

Question 12

A demand schedule shows

Accepted Answer

A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity. 
A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

Question 13

People consume more soup as temperatures falls.So,as cold weather approaches,

Accepted Answer

A) the quantity of soup demanded increases. 
B) the demand for soup increases. 
C) people move closer to their demand curve for soup. 
D) people move farther beyond their demand curves. 
E) both the demand and the quantity demanded of soup increase. 
A) the quantity of soup demanded increases. 
B) the demand for soup increases. 
C) people move closer to their demand curve for soup. 
D) people move farther beyond their demand curves. 
E) both the demand and the quantity demanded of soup increase.

Question 14

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.73,then

Accepted Answer

A) there is a surplus of gasoline in Tulsa. 
B) there is a shortage of gasoline in Tulsa. 
C) the gasoline market in Tulsa is in equilibrium. 
D) Without more information we cannot determine if there is a surplus,a shortage,or an equilibrium in the gasoline market in Tulsa. 
E) There is neither a surplus nor a shortage,but the market is NOT in equilibrium. 
A) there is a surplus of gasoline in Tulsa. 
B) there is a shortage of gasoline in Tulsa. 
C) the gasoline market in Tulsa is in equilibrium. 
D) Without more information we cannot determine if there is a surplus,a shortage,or an equilibrium in the gasoline market in Tulsa. 
E) There is neither a surplus nor a shortage,but the market is NOT in equilibrium.

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

Market demand curves are obtained by

An increase in the productivity of producing jeans results in

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D0 to D2?

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ,and the equilibrium quantity .

Which of the following lowers the equilibrium price of a canoe?

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn and the quantity of corn .

When there is a shortage of parking spaces at your college,the

A demand schedule shows

People consume more soup as temperatures falls.So,as cold weather approaches,

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.73,then

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 an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Market demand curves are obtained by

An increase in the productivity of producing jeans results in

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D0 to D2?

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.

Which of the following lowers the equilibrium price of a canoe?

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn ________ and the quantity of corn ________.

When there is a shortage of parking spaces at your college,the

A demand schedule shows

People consume more soup as temperatures falls.So,as cold weather approaches,

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.73,then

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 an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ,and the equilibrium quantity .

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn and the quantity of corn .