Question 1

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Accepted Answer

A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct. 
A)  the demand for personal computers decreased. 
B)  the initial price was too high and nobody bought personal computers. 
C)  there were technological advances in the production of personal computers. 
D)  people's incomes increased and personal computers are an inferior good. 
E)  None of the above answers is correct.

Question 2

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 3

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 4

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 5

The law of demand refers to how

Accepted Answer

A)  demand changes when people's incomes change. 
B)  demand changes when the prices of substitutes and complements change. 
C)  the quantity demanded changes when the price of the good changes. 
D)  the price of the good changes when people's demand for the good changes. 
E)  the quantity demanded changes when the demand for the good changes. 
A)  demand changes when people's incomes change. 
B)  demand changes when the prices of substitutes and complements change. 
C)  the quantity demanded changes when the price of the good changes. 
D)  the price of the good changes when people's demand for the good changes. 
E)  the quantity demanded changes when the demand for the good changes.

Question 6

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A)  the amount people are willing to buy 
B)  the amount people are able to buy 
C)  the amount people are willing and able to offer 
D)  the amount people are willing and able to buy 
E)  the amount people are willing to buy because it is the amount sellers are willing to sell 
A)  the amount people are willing to buy 
B)  the amount people are able to buy 
C)  the amount people are willing and able to offer 
D)  the amount people are willing and able to buy 
E)  the amount people are willing to buy because it is the amount sellers are willing to sell

Question 7

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ 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 8

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Accepted Answer

A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both. 
A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.

Question 9

Consider the market for peanut butter.If there is an increase in the price of peanuts,

Accepted Answer

A)  there is an upward movement along the supply curve for peanut butter. 
B)  the supply curve for peanuts shifts rightward. 
C)  there is a decrease in the supply of peanuts. 
D)  there is a decrease in the supply of peanut butter. 
E)  there is a decrease in the demand for peanut butter. 
A)  there is an upward movement along the supply curve for peanut butter. 
B)  the supply curve for peanuts shifts rightward. 
C)  there is a decrease in the supply of peanuts. 
D)  there is a decrease in the supply of peanut butter. 
E)  there is a decrease in the demand for peanut butter.

Question 10

A normal good is defined as a good

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls. 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls.

Question 11

An increase in the quantity demanded is shown as

Accepted Answer

A)  a movement along the demand curve. 
B)  a movement toward the demand curve. 
C)  a rightward shift of the demand curve. 
D)  a leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve. 
A)  a movement along the demand curve. 
B)  a movement toward the demand curve. 
C)  a rightward shift of the demand curve. 
D)  a leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve.

Question 12

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

Question 13

Which of the following shifts the demand curve for movies rightward?

Accepted Answer

A)  an increase in the price of NetFlix, a substitute for movies 
B)  an increase in the price of movie tickets 
C)  a decrease in the price of move tickets 
D)  an increase in movie star salaries 
E)  an increase in the price of HDTV sets 
A)  an increase in the price of NetFlix, a substitute for movies 
B)  an increase in the price of movie tickets 
C)  a decrease in the price of move tickets 
D)  an increase in movie star salaries 
E)  an increase in the price of HDTV sets

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

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri

Question 16

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Question 17

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 18

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.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 19

If the supply of iPods increases,then
i.the supply curve for iPods has shifted rightward.
ii.the price of iPods has decreased.
iii.there will be a movement upward along the iPod supply curve.

Accepted Answer

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

Question 20

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Accepted Answer

A)  Your demand for cars will decrease. 
B)  The market supply of cars will increase. 
C)  Your demand for cars will increase. 
D)  The market supply of cars will decrease. 
E)  The demand and the supply for cars will decrease. 
A)  Your demand for cars will decrease. 
B)  The market supply of cars will increase. 
C)  Your demand for cars will increase. 
D)  The market supply of cars will decrease. 
E)  The demand and the supply for cars will decrease.

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

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

When the price of oranges increases,

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

The law of demand refers to how

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Consider the market for peanut butter.If there is an increase in the price of peanuts,

A normal good is defined as a good

An increase in the quantity demanded is shown as

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

Which of the following shifts the demand curve for movies rightward?

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

When does a shortage occur?

When does a surplus occur?

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

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

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

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

When the price of oranges increases,

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

The law of demand refers to how

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Consider the market for peanut butter.If there is an increase in the price of peanuts,

A normal good is defined as a good

An increase in the quantity demanded is shown as

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

Which of the following shifts the demand curve for movies rightward?

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

When does a shortage occur?

When does a surplus occur?

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

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

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

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .