Question 1

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 2

If both supply and demand decrease by the same amount,the equilibrium price

Accepted Answer

A) does not change. 
B) rises. 
C) falls. 
D) cannot be predicted. 
E) None of the answers is correct because the price depends on what happens to the equilibrium quantity. 
A) does not change. 
B) rises. 
C) falls. 
D) cannot be predicted. 
E) None of the answers is correct because the price depends on what happens to the equilibrium quantity.

Question 3

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

Accepted Answer

A) an increase in the cost of hard drives 
B) an increase in the productivity of the workers manufacturing laptops 
C) a decrease in the price of laptops 
D) an increase in the price of laptops 
E) an increase in the number of laptop manufactures and sellers 
A) an increase in the cost of hard drives 
B) an increase in the productivity of the workers manufacturing laptops 
C) a decrease in the price of laptops 
D) an increase in the price of laptops 
E) an increase in the number of laptop manufactures and sellers

Question 4

-In the figure above,a price of $15 per dozen roses results in

Accepted Answer

A) equilibrium. 
B) a shortage. 
C) a surplus. 
D) downward pressure on the price of roses. 
E) an eventual leftward shift of the demand curve and/or rightward shift of the supply curve. 
A) equilibrium. 
B) a shortage. 
C) a surplus. 
D) downward pressure on the price of roses. 
E) an eventual leftward shift of the demand curve and/or rightward shift of the supply curve.

Question 5

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Accepted Answer

A) an increase in consumers' preferences for corn 
B) an increase in consumers' income if corn is a normal good 
C) an increase in labor costs of producing corn 
D) an improvement in the technology of producing corn 
E) an increase in consumers' income if corn is an inferior good 
A) an increase in consumers' preferences for corn 
B) an increase in consumers' income if corn is a normal good 
C) an increase in labor costs of producing corn 
D) an improvement in the technology of producing corn 
E) an increase in consumers' income if corn is an inferior good

Question 6

An increase in both the equilibrium price and 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 answers 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 answers is correct.

Question 7

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

The answer of Consumers can use either natural gas or...

Question 8

An increase in the number of pineapple growers results in

Accepted Answer

A) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D) no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E) None of the above answers is correct. 
A) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D) no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E) None of the above answers is correct.

Question 9

Suppose the price of leather used to produce shoes increases.The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

Accepted Answer

A) increases;shifts rightward 
B) increases;shifts leftward 
C) decreases;shifts rightward 
D) decreases;shifts leftward 
E) does not change;does not shift 
A) increases;shifts rightward 
B) increases;shifts leftward 
C) decreases;shifts rightward 
D) decreases;shifts leftward 
E) does not change;does not shift

Question 10

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

Accepted Answer

A) inferior goods. 
B) substitute goods. 
C) complementary goods. 
D) normal goods. 
E) The questions errs because it is the quantity of used cars,NOT the demand for used cars,that will change when the price of a new car falls. 
A) inferior goods. 
B) substitute goods. 
C) complementary goods. 
D) normal goods. 
E) The questions errs because it is the quantity of used cars,NOT the demand for used cars,that will change when the price of a new car falls.

Question 11

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Accepted Answer

A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine. 
A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine.

Question 12

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

A) will rise. 
B) will fall. 
C) will remain the same. 
D) might rise,fall,or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers. 
A) will rise. 
B) will fall. 
C) will remain the same. 
D) might rise,fall,or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 13

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange ________ 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 14

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

Accepted Answer

A) leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
A) leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

Question 15

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. 
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.

Question 16

The quantity supplied of a good or service is the

Accepted Answer

A) list of all quantities at different prices,as illustrated by a supply schedule and a supply curve. 
B) list of all quantities at different prices,as illustrated by a demand schedule and a demand curve. 
C) one quantity produced at a variety of prices. 
D) quantity produced at one price. 
A) list of all quantities at different prices,as illustrated by a supply schedule and a supply curve. 
B) list of all quantities at different prices,as illustrated by a demand schedule and a demand curve. 
C) one quantity produced at a variety of prices. 
D) quantity produced at one price.

Question 17

When demand increases,

Accepted Answer

A) consumers are willing to buy more at any price. 
B) consumers buy more of the good only if its price falls. 
C) the price is lower at any level of quantity demanded. 
D) consumers buy more of the good only if its price rises. 
E) the demand curve shifts leftward. 
A) consumers are willing to buy more at any price. 
B) consumers buy more of the good only if its price falls. 
C) the price is lower at any level of quantity demanded. 
D) consumers buy more of the good only if its price rises. 
E) the demand curve shifts leftward.

Question 18

Which of the following increases the demand for a good?

Accepted Answer

A) a rise in the price of a complement 
B) the expectation that future income will be higher 
C) an increase in income,assuming the good is an inferior good 
D) a decrease in the number of buyers 
E) a fall in the price of a substitute 
A) a rise in the price of a complement 
B) the expectation that future income will be higher 
C) an increase in income,assuming the good is an inferior good 
D) a decrease in the number of buyers 
E) a fall in the price of a substitute

Question 19

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

Accepted Answer

A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) a decrease in the number of sweater buyers 
A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) a decrease in the number of sweater buyers

Question 20

The market demand curve for mousetraps is

Accepted Answer

A) found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct. 
A) found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct.

What is the law of demand?

If both supply and demand decrease by the same amount,the equilibrium price

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

-In the figure above,a price of $15 per dozen roses results in

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

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

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

An increase in the number of pineapple growers results in

Suppose the price of leather used to produce shoes increases.The higher price of leather the supply of shoes and the supply curve of shoes .

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange and the equilibrium quantity .

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

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

The quantity supplied of a good or service is the

When demand increases,

Which of the following increases the demand for a good?

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

The market demand curve for mousetraps is

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 law of demand?

If both supply and demand decrease by the same amount,the equilibrium price

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

-In the figure above,a price of $15 per dozen roses results in

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

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

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

An increase in the number of pineapple growers results in

Suppose the price of leather used to produce shoes increases.The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange ________ and the equilibrium quantity ________.

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

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

The quantity supplied of a good or service is the

When demand increases,

Which of the following increases the demand for a good?

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

The market demand curve for mousetraps is

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

Suppose the price of leather used to produce shoes increases.The higher price of leather the supply of shoes and the supply curve of shoes .

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange and the equilibrium quantity .