Question 1

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

Accepted Answer

A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water 
A)  a fall in the price of soda 
B)  a rise in the price of a fitness club membership 
C)  an increase in the number of buyers of bottled water 
D)  a fall in the price of bottled water 
E)  a rise in the price of bottled water D

Question 2

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. B

Question 3

Which of the following will increase the supply of a product?

Accepted Answer

A)  an increase in the price of the product 
B)  an increase in the demand for the product 
C)  an increase in the number of sellers 
D)  a decrease in the demand for the product 
E)  an increase in the price of inputs 
A)  an increase in the price of the product 
B)  an increase in the demand for the product 
C)  an increase in the number of sellers 
D)  a decrease in the demand for the product 
E)  an increase in the price of inputs C

Question 4

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 5

An increase in the productivity of producing jeans results in

Accepted Answer

A)  the quantity of jeans supplied increasing. 
B)  the supply of jeans increasing. 
C)  buyers demanding more jeans because they are now more efficiently produced. 
D)  buyers demanding fewer jeans because their price will fall, which signals lower quality. 
E)  some change, but the impact on the supply of jeans is impossible to predict. 
A)  the quantity of jeans supplied increasing. 
B)  the supply of jeans increasing. 
C)  buyers demanding more jeans because they are now more efficiently produced. 
D)  buyers demanding fewer jeans because their price will fall, which signals lower quality. 
E)  some change, but the impact on the supply of jeans is impossible to predict.

Question 6

When the price of rice rises,

Accepted Answer

A)  the market quantity supplied of rice increases. 
B)  the market supply of rice increases. 
C)  the market quantity of rice demanded decreases. 
D)  Both A and C are true. 
E)  Both A and B are true. 
A)  the market quantity supplied of rice increases. 
B)  the market supply of rice increases. 
C)  the market quantity of rice demanded decreases. 
D)  Both A and C are true. 
E)  Both A and B are true.

Question 7

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute for camcorders. 
D)  a complement to camcorders. 
E)  made using advanced technology. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute for camcorders. 
D)  a complement to camcorders. 
E)  made using advanced technology.

Question 8

Which of the following increases the supply of a good and shifts its supply curve rightward?

Accepted Answer

A)  a smaller number of producers 
B)  a higher wage paid to workers in the industry 
C)  a technological advance in how the good is produced 
D)  an increase in the cost of the resources used to produce the good 
E)  an increase in the price of the good 
A)  a smaller number of producers 
B)  a higher wage paid to workers in the industry 
C)  a technological advance in how the good is produced 
D)  an increase in the cost of the resources used to produce the good 
E)  an increase in the price of the good

Question 9

-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 10

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 11

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Accepted Answer

A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift, nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift, but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward. 
A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift, nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift, but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward.

Question 12

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Accepted Answer

A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct. 
A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct.

Question 13

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 14

-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 15

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 16

Which of the following is true regarding demand?
i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii.Demand refers to one quantity at one time.
iii."Demand" and "quantity demanded" are the same thing.

Accepted Answer

A)  i only 
B)  ii only 
C)  both i and ii 
D)  iii only 
E)  both ii and iii 
A)  i only 
B)  ii only 
C)  both i and ii 
D)  iii only 
E)  both ii and iii

Question 17

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 18

A market is defined as

Accepted Answer

A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another. 
A)  a physical place where people buy only goods. 
B)  a physical place where people buy both goods and services. 
C)  a store where people buy physical goods. 
D)  any arrangement that brings buyers and sellers together. 
E)  a place where one good is bartered for another.

Question 19

If the price of tangerines increases,the price of oranges also rises because

Accepted Answer

A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good. 
A)  consumers consider the two goods complements and so sellers decreased the supply of oranges. 
B)  consumers consider the two goods substitutes and demand for oranges increases. 
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease. 
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges. 
E)  buyers' incomes must have decreased and oranges are an inferior good.

Question 20

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

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

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

Which of the following will increase the supply of a product?

An increase in the productivity of producing jeans results in

When the price of rice rises,

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Which of the following increases the supply of a good and shifts its supply curve rightward?

-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?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

If the supply of solar panels increases,

-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?

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?

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and "quantity demanded" are the same thing.

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ,and the equilibrium quantity .

A market is defined as

If the price of tangerines increases,the price of oranges also rises because

Which of the following increases the demand for a good?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

-According to the figure above,which of the following events will increase the quantity demanded of bottled water?

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

Which of the following will increase the supply of a product?

An increase in the productivity of producing jeans results in

When the price of rice rises,

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

Which of the following increases the supply of a good and shifts its supply curve rightward?

-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?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

If the supply of solar panels increases,

-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?

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?

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and "quantity demanded" are the same thing.

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ________,and the equilibrium quantity ________.

A market is defined as

If the price of tangerines increases,the price of oranges also rises because

Which of the following increases the demand for a good?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ,and the equilibrium quantity .