Question 1

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Accepted Answer

A) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
D) there is a shortage and the price of t-shirts will fall. 
E) there is a surplus and the price of t-shirts will fall. 
A) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
D) there is a shortage and the price of t-shirts will fall. 
E) there is a surplus and the price of t-shirts will fall.

Question 2

Teenagers drink more soda than other age groups.If the number of teenagers increases,everything else remaining the same,

Accepted Answer

A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward,leftward,or not at all. 
A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward,leftward,or not at all.

Question 3

Milk can be used to produce cheese or butter.If the price of a pound of butter rises,what happens to the supply of cheese?

Accepted Answer

A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same,and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same,and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase,decrease,or stay the same depending on what happens to the supply of butter. 
A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same,and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same,and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase,decrease,or stay the same depending on what happens to the supply of butter.

Question 4

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

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 5

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) Both the supply and the demand for new houses increased,and the supply increased by more than the demand. 
B) The demand for new houses increased,and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased,and the demand for new houses did not change. 
E) The supply of new houses increased,and the demand for new houses did not change. 
A) Both the supply and the demand for new houses increased,and the supply increased by more than the demand. 
B) The demand for new houses increased,and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased,and the demand for new houses did not change. 
E) The supply of new houses increased,and the demand for new houses did not change.

Question 6

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Accepted Answer

A) supply of bottled water decreases. 
B) quantity demanded of bottled water increases. 
C) quantity demanded of bottled water does not change. 
D) price of bottled water rises. 
E) supply curve shifts leftward. 
A) supply of bottled water decreases. 
B) quantity demanded of bottled water increases. 
C) quantity demanded of bottled water does not change. 
D) price of bottled water rises. 
E) supply curve shifts leftward.

Question 7

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

Accepted Answer

Generally,college students' incomes are

Question 8

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Question 9

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then 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

Which of the following results in an increase in the supply of a good or service?

Accepted Answer

A) a fall in the price of the good or service 
B) a smaller number of sellers producing the good or service 
C) an increase in foreign imports of the good or service 
D) higher taxes imposed upon producers of the good or service 
E) a rise in the price of the good or service 
A) a fall in the price of the good or service 
B) a smaller number of sellers producing the good or service 
C) an increase in foreign imports of the good or service 
D) higher taxes imposed upon producers of the good or service 
E) a rise in the price of the good or service

Question 11

A supply curve

Accepted Answer

A) slopes downward. 
B) slopes upward. 
C) is a graph of the relationship between quantity supplied of a good and its price. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct. 
A) slopes downward. 
B) slopes upward. 
C) is a graph of the relationship between quantity supplied of a good and its price. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct.

Question 12

If the price of iPods decreases,

Accepted Answer

A) there will be a movement down along the supply curve for iPods. 
B) there will be a rightward shift in the iPod supply curve. 
C) there will be a movement up along the supply curve for iPods. 
D) the supply curve for iPods shifts leftward. 
E) there has been a decrease in the price of iTunes songs. 
A) there will be a movement down along the supply curve for iPods. 
B) there will be a rightward shift in the iPod supply curve. 
C) there will be a movement up along the supply curve for iPods. 
D) the supply curve for iPods shifts leftward. 
E) there has been a decrease in the price of iTunes songs.

Question 13

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable. )

Accepted Answer

A) an increase in the price of a rutabaga 
B) an exceptionally cold summer that killed much of the rutabaga crop 
C) a fall in the price of fertilizer used to grow rutabagas 
D) Both answers A and C shift the supply curve of rutabagas rightward. 
E) Both answers A and B shift the supply curve of rutabagas rightward. 
A) an increase in the price of a rutabaga 
B) an exceptionally cold summer that killed much of the rutabaga crop 
C) a fall in the price of fertilizer used to grow rutabagas 
D) Both answers A and C shift the supply curve of rutabagas rightward. 
E) Both answers A and B shift the supply curve of rutabagas rightward.

Question 14

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.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 15

When a surplus of rice occurs,

Accepted Answer

A) the price of rice rises. 
B) the price of rice falls. 
C) there is a balance between the forces of supply and demand. 
D) the quantity demanded is greater than quantity supplied at the current price. 
E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus. 
A) the price of rice rises. 
B) the price of rice falls. 
C) there is a balance between the forces of supply and demand. 
D) the quantity demanded is greater than quantity supplied at the current price. 
E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.

Question 16

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,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 17

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

Accepted Answer

A) a decrease in demand. 
B) an increase in supply. 
C) a decrease in supply. 
D) an increase in demand. 
E) None of the above is correct. 
A) a decrease in demand. 
B) an increase in supply. 
C) a decrease in supply. 
D) an increase in demand. 
E) None of the above is correct.

Question 18

A demand schedule

Accepted Answer

A) shows the quantity demanded at one price. 
B) is a graph showing a relationship between the quantity demanded and the price of a good. 
C) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D) shows that demand is on schedule. 
E) shows how the demand changes when the supply changes. 
A) shows the quantity demanded at one price. 
B) is a graph showing a relationship between the quantity demanded and the price of a good. 
C) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D) shows that demand is on schedule. 
E) shows how the demand changes when the supply changes.

Question 19

-In the above figure,an increase in productivity

Accepted Answer

A) shifts the supply curve from S to S1. 
B) shifts the supply curve from S to S2. 
C) results in a movement from point a to point b. 
D) results in a movement from point b to point a. 
E) has no effect. 
A) shifts the supply curve from S to S1. 
B) shifts the supply curve from S to S2. 
C) results in a movement from point a to point b. 
D) results in a movement from point b to point a. 
E) has no effect.

Question 20

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

Accepted Answer

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

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Teenagers drink more soda than other age groups.If the number of teenagers increases,everything else remaining the same,

Milk can be used to produce cheese or butter.If the price of a pound of butter rises,what happens to the supply of cheese?

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

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

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

What is the difference between quantity supplied and supply?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

Which of the following results in an increase in the supply of a good or service?

A supply curve

If the price of iPods decreases,

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable. )

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

When a surplus of rice occurs,

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

A demand schedule

-In the above figure,an increase in productivity

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

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

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Teenagers drink more soda than other age groups.If the number of teenagers increases,everything else remaining the same,

Milk can be used to produce cheese or butter.If the price of a pound of butter rises,what happens to the supply of cheese?

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

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

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

What is the difference between quantity supplied and supply?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

Which of the following results in an increase in the supply of a good or service?

A supply curve

If the price of iPods decreases,

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable. )

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

When a surplus of rice occurs,

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

A demand schedule

-In the above figure,an increase in productivity

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

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

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