Question 1

What is the difference between a normal good and an inferior good.Give an example of each.

Accepted Answer

A good is a normal good if an increase i

Question 2

If the supply of solar panels increases,

Accepted Answer

A) the price and quantity of solar panels increases. 
B) the demand for solar panels increases. 
C) the quantity demanded of solar panels decreases. 
D) the price of solar panels decreases and the quantity increases. 
E) None of the above. 
A) the price and quantity of solar panels increases. 
B) the demand for solar panels increases. 
C) the quantity demanded of solar panels decreases. 
D) the price of solar panels decreases and the quantity increases. 
E) None of the above.

Question 3

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

Accepted Answer

At a price of $8 there is a su

Question 4

If the number of sellers decreases,then the supply curve ________ and the supply ________.

Accepted Answer

A) shifts rightward;increases 
B) shifts rightward;decreases 
C) shifts leftward;increases 
D) shifts leftward;decreases 
E) does not shift;does not change,but there is a decrease in the quantity supplied 
A) shifts rightward;increases 
B) shifts rightward;decreases 
C) shifts leftward;increases 
D) shifts leftward;decreases 
E) does not shift;does not change,but there is a decrease in the quantity supplied

Question 5

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

Accepted Answer

A) It shifts the supply curve leftward. 
B) It shifts the supply curve rightward. 
C) It does not shift the supply curve or create a movement along it. 
D) The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward,leftward,or not at all. 
E) It creates a movement downward along the supply curve. 
A) It shifts the supply curve leftward. 
B) It shifts the supply curve rightward. 
C) It does not shift the supply curve or create a movement along it. 
D) The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward,leftward,or not at all. 
E) It creates a movement downward along the supply curve.

Question 6

A rise in the price of a substitute in production for a good leads to

Accepted Answer

A) an increase in the supply of that good. 
B) a decrease in the supply of that good. 
C) no change in the supply of that good;instead there is a change in the quantity supplied. 
D) a decrease in the quantity of that good supplied. 
E) no change in either the supply or the quantity supplied of the good. 
A) an increase in the supply of that good. 
B) a decrease in the supply of that good. 
C) no change in the supply of that good;instead there is a change in the quantity supplied. 
D) a decrease in the quantity of that good supplied. 
E) no change in either the supply or the quantity supplied of the good.

Question 7

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

Accepted Answer

A) decrease. 
B) perhaps increase,decrease,or stay the same,but more information is needed to determine which it does. 
C) stay the same. 
D) increase. 
E) definitely either stay the same or decrease. 
A) decrease. 
B) perhaps increase,decrease,or stay the same,but more information is needed to determine which it does. 
C) stay the same. 
D) increase. 
E) definitely either stay the same or decrease.

Question 8

-Suppose Katie,Mark,and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above,what is the market demand curve for ice cream?

Accepted Answer

The answer of  
-Suppose Katie,Mark,and Bobby are the only...

Question 9

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.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 10

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Accepted Answer

A) The wage paid carpenters who build new houses might have risen. 
B) A technological advance in framing a new house might have occurred. 
C) The rent for nearby apartments might have fallen. 
D) More home buyers might have moved into the area. 
E) The cost of wood framing used to build houses might have fallen. 
A) The wage paid carpenters who build new houses might have risen. 
B) A technological advance in framing a new house might have occurred. 
C) The rent for nearby apartments might have fallen. 
D) More home buyers might have moved into the area. 
E) The cost of wood framing used to build houses might have fallen.

Question 11

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

Accepted Answer

A) Demand and supply increased by an equal amount. 
B) Demand and supply decreased by an equal amount. 
C) Demand increased and supply decreased by an equal amount. 
D) Demand decreased and supply increased by an equal amount. 
E) Demand increased by a larger magnitude than supply decreased. 
A) Demand and supply increased by an equal amount. 
B) Demand and supply decreased by an equal amount. 
C) Demand increased and supply decreased by an equal amount. 
D) Demand decreased and supply increased by an equal amount. 
E) Demand increased by a larger magnitude than supply decreased.

Question 12

Which of the following shifts the supply curve of popcorn leftward?

Accepted Answer

A) a decrease in the price of popcorn 
B) an increase in the price of popcorn 
C) a technological development in the production of popcorn 
D) a decrease in the number of popcorn suppliers 
E) a decrease in the cost of producing popcorn 
A) a decrease in the price of popcorn 
B) an increase in the price of popcorn 
C) a technological development in the production of popcorn 
D) a decrease in the number of popcorn suppliers 
E) a decrease in the cost of producing popcorn

Question 13

-The above table gives the demand and supply schedules for cat food.If the price is $1.00 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 $1.00 per pound

Question 14

Which of the following brings only an increase in the quantity demanded of a good?

Accepted Answer

A) a decrease in income,assuming the good is an inferior good 
B) a rise in the price of a substitute good 
C) a fall in the price of the good itself 
D) an expectation that the good's price will rise in the future 
E) a decrease in income,assuming the good is a normal good 
A) a decrease in income,assuming the good is an inferior good 
B) a rise in the price of a substitute good 
C) a fall in the price of the good itself 
D) an expectation that the good's price will rise in the future 
E) a decrease in income,assuming the good is a normal good

Question 15

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Accepted Answer

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

Question 16

The law of supply states that,other things remaining the same,

Accepted Answer

A) demand increases when supply increases. 
B) if the price of a good increases,firms buy less of it. 
C) if the price of a good increases,the quantity supplied increases. 
D) as people's income increase,the supply of goods increases. 
E) if the price of a good increases,the supply increases. 
A) demand increases when supply increases. 
B) if the price of a good increases,firms buy less of it. 
C) if the price of a good increases,the quantity supplied increases. 
D) as people's income increase,the supply of goods increases. 
E) if the price of a good increases,the supply increases.

Question 17

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

Accepted Answer

A) The law of demand is being used to increase the quantity demanded. 
B) The store is trying to increase its customers' demand for the product. 
C) The store manager must be trying to drive away customers by selling low quality products. 
D) The store is trying to increase its customers' incomes by increasing their purchasing power. 
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen. 
A) The law of demand is being used to increase the quantity demanded. 
B) The store is trying to increase its customers' demand for the product. 
C) The store manager must be trying to drive away customers by selling low quality products. 
D) The store is trying to increase its customers' incomes by increasing their purchasing power. 
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question 18

When demand increases and supply decreases by the same amount,the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

A) decreases;rises 
B) decreases;falls 
C) decreases;does not change 
D) decreases;might rise,fall,or not change 
E) does not change;might rise,fall,or not change 
A) decreases;rises 
B) decreases;falls 
C) decreases;does not change 
D) decreases;might rise,fall,or not change 
E) does not change;might rise,fall,or not change

Question 19

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 20

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

Accepted Answer

A) increases the demand for peanuts. 
B) decreases the demand for peanuts. 
C) decreases the demand for soda. 
D) increases the demand for soda. 
E) has no effect on the demand for peanuts,though it does change the quantity demanded of peanuts. 
A) increases the demand for peanuts. 
B) decreases the demand for peanuts. 
C) decreases the demand for soda. 
D) increases the demand for soda. 
E) has no effect on the demand for peanuts,though it does change the quantity demanded of peanuts.

What is the difference between a normal good and an inferior good.Give an example of each.

If the supply of solar panels increases,

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

If the number of sellers decreases,then the supply curve and the supply .

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

A rise in the price of a substitute in production for a good leads to

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-Suppose Katie,Mark,and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above,what is the market demand curve for ice cream?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

Which of the following shifts the supply curve of popcorn leftward?

Which of the following brings only an increase in the quantity demanded of a good?

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

The law of supply states that,other things remaining the same,

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

When demand increases and supply decreases by the same amount,the equilibrium quantity and the equilibrium price .

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

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

What is the difference between a normal good and an inferior good.Give an example of each.

If the supply of solar panels increases,

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

If the number of sellers decreases,then the supply curve ________ and the supply ________.

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

A rise in the price of a substitute in production for a good leads to

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-Suppose Katie,Mark,and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above,what is the market demand curve for ice cream?

-The above figure shows the market for pizza.The market is in equilibrium when some of the pizza firms go out of business.What point represents the most likely new price and quantity?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

Which of the following shifts the supply curve of popcorn leftward?

Which of the following brings only an increase in the quantity demanded of a good?

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

The law of supply states that,other things remaining the same,

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

When demand increases and supply decreases by the same amount,the equilibrium quantity ________ and the equilibrium price ________.

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

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 the number of sellers decreases,then the supply curve and the supply .

When demand increases and supply decreases by the same amount,the equilibrium quantity and the equilibrium price .