Question 1

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Accepted Answer

A) demand for Dell computers increases. 
B) demand for Apple computers increases. 
C) demand for Apple computers decreases. 
D) supply of Dell computers increases. 
E) demand for Dell computers decreases. 
A) demand for Dell computers increases. 
B) demand for Apple computers increases. 
C) demand for Apple computers decreases. 
D) supply of Dell computers increases. 
E) demand for Dell computers decreases.

Question 2

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

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

Question 3

-The above table gives the demand and supply schedules for cat food.If the supply increases by 20 tons at every price,what is the new equilibrium price and quantity?

Accepted Answer

The equilibrium price is $1.50 per pound

Question 4

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Accepted Answer

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

Question 5

Suppose that the price of bread rises.This rise could be the result of

Accepted Answer

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

Question 6

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks are a normal good.Draw a...

Question 7

-Using the data in the table above,if the price of a stapler is $8,then there is ________ of staplers,and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A) a surplus;is greater than 
B) a surplus;is less than 
C) a shortage;is greater than 
D) a shortage;is less than 
E) neither a surplus nor a shortage;equals 
A) a surplus;is greater than 
B) a surplus;is less than 
C) a shortage;is greater than 
D) a shortage;is less than 
E) neither a surplus nor a shortage;equals

Question 8

-Using the data in the table above,at the price of $80 a phone,

Accepted Answer

A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium. 
A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium.

Question 9

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,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 10

In the above figure,the shift in the demand curve from D to D1 can be the result of

Accepted Answer

A) a decrease in income if pizza is a normal good. 
B) a decrease in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) an increase in the number of teenagers,all of whom demand more pizza than do other age groups. 
E) new technology that increases the profit from producing pizza. 
A) a decrease in income if pizza is a normal good. 
B) a decrease in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) an increase in the number of teenagers,all of whom demand more pizza than do other age groups. 
E) new technology that increases the profit from producing pizza.

Question 11

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

Accepted Answer

A) a decrease in the supply of kayaks. 
B) a decrease in the quantity of kayaks supplied. 
C) an increase in the supply of kayaks. 
D) an increase in the quantity of kayaks supplied. 
E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied. 
A) a decrease in the supply of kayaks. 
B) a decrease in the quantity of kayaks supplied. 
C) an increase in the supply of kayaks. 
D) an increase in the quantity of kayaks supplied. 
E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 12

A surplus of cardboard boxes means that

Accepted Answer

A) at the current price of a cardboard box,the quantity demanded exceeds the quantity supplied. 
B) at the current price of a cardboard box,the quantity demanded is less than the quantity supplied. 
C) the current price of a cardboard box is less than the equilibrium price. 
D) at the current price of a cardboard box,the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. 
E) More information is needed to determine if the price of cardboard boxes is higher than,lower than,or equal to the equilibrium price. 
A) at the current price of a cardboard box,the quantity demanded exceeds the quantity supplied. 
B) at the current price of a cardboard box,the quantity demanded is less than the quantity supplied. 
C) the current price of a cardboard box is less than the equilibrium price. 
D) at the current price of a cardboard box,the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. 
E) More information is needed to determine if the price of cardboard boxes is higher than,lower than,or equal to the equilibrium price.

Question 13

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

Question 14

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

Accepted Answer

A) equilibrium quantity of bread increases. 
B) equilibrium quantity of peanut butter definitely decreases. 
C) equilibrium quantity of peanut butter might increase or might decrease. 
D) equilibrium price of peanut butter definitely rises. 
E) equilibrium price of peanut butter definitely falls. 
A) equilibrium quantity of bread increases. 
B) equilibrium quantity of peanut butter definitely decreases. 
C) equilibrium quantity of peanut butter might increase or might decrease. 
D) equilibrium price of peanut butter definitely rises. 
E) equilibrium price of peanut butter definitely falls.

Question 15

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.62,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.

Question 16

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

Accepted Answer

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

Question 17

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

Accepted Answer

A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat. 
A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat.

Question 18

-In the above figure,the movement from point a to point b reflects

Accepted Answer

A) a decrease in the price of pizza. 
B) an increase in the demand for pizza. 
C) an increase in the number of people who eat pizza. 
D) an increase in the price of the tomato sauce used to produce pizza. 
E) a decrease in the number of firms producing pizza. 
A) a decrease in the price of pizza. 
B) an increase in the demand for pizza. 
C) an increase in the number of people who eat pizza. 
D) an increase in the price of the tomato sauce used to produce pizza. 
E) a decrease in the number of firms producing pizza.

Question 19

If the price of carrots is below the equilibrium price,the

Accepted Answer

A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C) quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D) quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E) quantity supplied of carrots equals the quantity demanded. 
A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C) quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D) quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E) quantity supplied of carrots equals the quantity demanded.

Question 20

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Accepted Answer

A) studies showing using cellular phones can cause brain cancer 
B) a decrease in the price of cellular phones 
C) a decrease in the quantity demanded of cellular phones 
D) an increase in the services provided by cellular phones,such as text messaging 
E) an increase in the price of cellular phones 
A) studies showing using cellular phones can cause brain cancer 
B) a decrease in the price of cellular phones 
C) a decrease in the quantity demanded of cellular phones 
D) an increase in the services provided by cellular phones,such as text messaging 
E) an increase in the price of cellular phones

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The above table gives the demand and supply schedules for cat food.If the supply increases by 20 tons at every price,what is the new equilibrium price and quantity?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Suppose that the price of bread rises.This rise could be the result of

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

-Using the data in the table above,if the price of a stapler is $8,then there is of staplers,and the quantity of staplers demanded the quantity of staplers supplied.

-Using the data in the table above,at the price of $80 a phone,

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change?

In the above figure,the shift in the demand curve from D to D1 can be the result of

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

A surplus of cardboard boxes means that

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

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.62,then

When the demand for a good decreases,its equilibrium price and equilibrium quantity .

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-In the above figure,the movement from point a to point b reflects

If the price of carrots is below the equilibrium price,the

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

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

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The above table gives the demand and supply schedules for cat food.If the supply increases by 20 tons at every price,what is the new equilibrium price and quantity?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Suppose that the price of bread rises.This rise could be the result of

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

-Using the data in the table above,if the price of a stapler is $8,then there is ________ of staplers,and the quantity of staplers demanded ________ the quantity of staplers supplied.

-Using the data in the table above,at the price of $80 a phone,

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change?

In the above figure,the shift in the demand curve from D to D1 can be the result of

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

A surplus of cardboard boxes means that

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

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.62,then

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-In the above figure,the movement from point a to point b reflects

If the price of carrots is below the equilibrium price,the

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

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

-Using the data in the table above,if the price of a stapler is $8,then there is of staplers,and the quantity of staplers demanded the quantity of staplers supplied.

When the demand for a good decreases,its equilibrium price and equilibrium quantity .