Question 1

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

Accepted Answer

A) the demand for milk increases. 
B) the quantity demanded of milk increases. 
C) the price of milk falls to encourage people to drink more milk. 
D) the demand for milk is not affected. 
E) the demand for milk decreases because the price of milk rises. 
A) the demand for milk increases. 
B) the quantity demanded of milk increases. 
C) the price of milk falls to encourage people to drink more milk. 
D) the demand for milk is not affected. 
E) the demand for milk decreases because the price of milk rises.

Question 2

-In the above figure,the shift in the demand curve from D to D2 can be the result of

Accepted Answer

A) an increase in income if pizza is a normal good. 
B) an increase in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in the supply of pizza that raises the price of pizza. 
A) an increase in income if pizza is a normal good. 
B) an increase in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in the supply of pizza that raises the price of pizza.

Question 3

Which of the following increases the demand for a good or service?

Accepted Answer

A) a fall in the price of the good or service 
B) a smaller number of consumers wanting to buy the good or service 
C) a rise in the price of the good or service 
D) a rise in the price of a substitute good or service 
E) a rise in the price of a complement 
A) a fall in the price of the good or service 
B) a smaller number of consumers wanting to buy the good or service 
C) a rise in the price of the good or service 
D) a rise in the price of a substitute good or service 
E) a rise in the price of a complement

Question 4

-Scooters and bicycles are substitutes.Suppose that the price of a bicycle falls.Which of the figures above best illustrates how this fall in price 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 change in the price of a bicycle 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 change in the price of a bicycle will affect the supply curve not the demand curve.

Question 5

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A) 90 
B) 30 
C) 80 
D) 60 
E) 230 
A) 90 
B) 30 
C) 80 
D) 60 
E) 230

Question 6

Ramen noodles are a staple food item for many college students.Ramen noodles are very inexpensive,easy to prepare,and can be combined easily with other foods.After students graduate,find employment,and earn a higher income,they decrease their Ramen noodle purchases significantly.In this case,Ramen noodles are

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a complement for higher income people. 
D) a substitute good. 
E) None of the above answers is correct. 
A) a normal good. 
B) an inferior good. 
C) a complement for higher income people. 
D) a substitute good. 
E) None of the above answers is correct.

Question 7

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which 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 8

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

Accepted Answer

A) an increase in the demand for gasoline. 
B) a decrease in the demand for gasoline. 
C) no change in the quantity of gasoline demanded. 
D) a decrease in the quantity of gasoline demanded. 
E) More information is needed to determine if the demand for gasoline increases or decreases. 
A) an increase in the demand for gasoline. 
B) a decrease in the demand for gasoline. 
C) no change in the quantity of gasoline demanded. 
D) a decrease in the quantity of gasoline demanded. 
E) More information is needed to determine if the demand for gasoline increases or decreases.

Question 9

If there is a surplus of tacos,then the

Accepted Answer

A) quantity of tacos demanded equals the quantity of tacos supplied. 
B) quantity of tacos demanded is greater than the quantity of tacos supplied. 
C) quantity of tacos demanded is less than the quantity of tacos supplied. 
D) market is at equilibrium. 
E) supply curve of tacos will shift leftward to eliminate the surplus. 
A) quantity of tacos demanded equals the quantity of tacos supplied. 
B) quantity of tacos demanded is greater than the quantity of tacos supplied. 
C) quantity of tacos demanded is less than the quantity of tacos supplied. 
D) market is at equilibrium. 
E) supply curve of tacos will shift leftward to eliminate the surplus.

Question 10

Which of the following increases the supply of a good?

Accepted Answer

A) The price of a complement in production decreases. 
B) Producers expect higher prices for the good in the future. 
C) Productivity improves. 
D) Prices of inputs used to produce the good rise. 
E) The number of producers decreases. 
A) The price of a complement in production decreases. 
B) Producers expect higher prices for the good in the future. 
C) Productivity improves. 
D) Prices of inputs used to produce the good rise. 
E) The number of producers decreases.

Question 11

-The above figure shows the market for pizza.The market is in equilibrium when new pizza firms enter the market.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 12

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits,
I.the quantity of new automobiles supplied decreases.
Ii.the supply of new automobiles decreases.
Iii.the supply of new automobiles increases.

Accepted Answer

A) only i 
B) only ii 
C) only iii 
D) both i and ii 
E) Neither i,ii,nor iii is correct. 
A) only i 
B) only ii 
C) only iii 
D) both i and ii 
E) Neither i,ii,nor iii is correct.

Question 13

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

Accepted Answer

A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward. 
A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward.

Question 14

Consider the market for wheat.If there is an improvement in harvesting technology,

Accepted Answer

A) the supply curve for wheat shifts rightward. 
B) the demand curve for wheat shifts rightward. 
C) there is a movement up along the demand curve. 
D) the equilibrium price rises. 
E) the demand curve for wheat shifts leftward. 
A) the supply curve for wheat shifts rightward. 
B) the demand curve for wheat shifts rightward. 
C) there is a movement up along the demand curve. 
D) the equilibrium price rises. 
E) the demand curve for wheat shifts leftward.

Question 15

A demand curve

Accepted Answer

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

Question 16

When the price of oranges increases,

Accepted Answer

A) the supply of oranges increases. 
B) the quantity of oranges demanded increases. 
C) the quantity of oranges supplied increases. 
D) the supply of oranges decreases. 
E) none of the above 
A) the supply of oranges increases. 
B) the quantity of oranges demanded increases. 
C) the quantity of oranges supplied increases. 
D) the supply of oranges decreases. 
E) none of the above

Question 17

An increase in the number of fast-food restaurants

Accepted Answer

A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals. 
A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals.

Question 18

A decrease in the price of a complement in production leads to

Accepted Answer

A) a decrease in the supply of the good in question. 
B) an increase in the supply of the good in question. 
C) no change in the supply of the good in question. 
D) a decrease in the quantity supplied of the good in question. 
E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question. 
A) a decrease in the supply of the good in question. 
B) an increase in the supply of the good in question. 
C) no change in the supply of the good in question. 
D) a decrease in the quantity supplied of the good in question. 
E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.

Question 19

The downward slope of a demand curve

Accepted Answer

A) represents the law of demand. 
B) shows that as the price of a good rises,consumers increase the quantity they demand. 
C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. 
D) indicates how demand changes when incomes rise and the good is a normal good. 
E) indicates how demand changes when the price changes and the good is a normal good. 
A) represents the law of demand. 
B) shows that as the price of a good rises,consumers increase the quantity they demand. 
C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. 
D) indicates how demand changes when incomes rise and the good is a normal good. 
E) indicates how demand changes when the price changes and the good is a normal good.

Question 20

The phrase "a change in demand" most directly implies a

Accepted Answer

A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve. 
A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve.

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

-In the above figure,the shift in the demand curve from D to D2 can be the result of

Which of the following increases the demand for a good or service?

-Scooters and bicycles are substitutes.Suppose that the price of a bicycle falls.Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which point represents the most likely new price and quantity?

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

If there is a surplus of tacos,then the

Which of the following increases the supply of a good?

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

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, I.the quantity of new automobiles supplied decreases. Ii.the supply of new automobiles decreases. Iii.the supply of new automobiles increases.

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

Consider the market for wheat.If there is an improvement in harvesting technology,

A demand curve

When the price of oranges increases,

An increase in the number of fast-food restaurants

A decrease in the price of a complement in production leads to

The downward slope of a demand curve

The phrase "a change in demand" most directly implies a

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 American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

-In the above figure,the shift in the demand curve from D to D2 can be the result of

Which of the following increases the demand for a good or service?

-Scooters and bicycles are substitutes.Suppose that the price of a bicycle falls.Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which point represents the most likely new price and quantity?

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

If there is a surplus of tacos,then the

Which of the following increases the supply of a good?

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

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, I.the quantity of new automobiles supplied decreases. Ii.the supply of new automobiles decreases. Iii.the supply of new automobiles increases.

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

Consider the market for wheat.If there is an improvement in harvesting technology,

A demand curve

When the price of oranges increases,

An increase in the number of fast-food restaurants

A decrease in the price of a complement in production leads to

The downward slope of a demand curve

The phrase "a change in demand" most directly implies a

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