Question 1

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

Accepted Answer

A)  The supply of salsa increases. 
B)  The supply of salsa decreases. 
C)  There is no change to either the supply of salsa or the quantity of salsa supplied. 
D)  There is no change to the supply of salsa, but the quantity of salsa supplied increases. 
E)  There is no change to the supply of salsa, but the quantity of salsa supplied decreases. 
A)  The supply of salsa increases. 
B)  The supply of salsa decreases. 
C)  There is no change to either the supply of salsa or the quantity of salsa supplied. 
D)  There is no change to the supply of salsa, but the quantity of salsa supplied increases. 
E)  There is no change to the supply of salsa, but the quantity of salsa supplied decreases.

Question 2

"Other things remaining the same,if the price of a good rises,the quantity supplied of that good increases." This sentence describes a

Accepted Answer

A)  shift of a supply curve. 
B)  shift of the price curve. 
C)  movement along a supply curve. 
D)  movement along the price curve. 
E)  movement along the quantity curve. 
A)  shift of a supply curve. 
B)  shift of the price curve. 
C)  movement along a supply curve. 
D)  movement along the price curve. 
E)  movement along the quantity curve.

Question 3

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Accepted Answer

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

Question 4

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks and milk are substitutes for...

Question 5

-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 6

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

Accepted Answer

A)  The law of demand is being used to increase the quantity demanded. 
B)  The store is trying to increase its customers' demand for the product. 
C)  The store manager must be trying to drive away customers by selling low quality products. 
D)  The store is trying to increase its customers' incomes by increasing their purchasing power. 
E)  The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen. 
A)  The law of demand is being used to increase the quantity demanded. 
B)  The store is trying to increase its customers' demand for the product. 
C)  The store manager must be trying to drive away customers by selling low quality products. 
D)  The store is trying to increase its customers' incomes by increasing their purchasing power. 
E)  The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question 7

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 8

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

Accepted Answer

A)  there is a movement along the supply curve of peanut butter. 
B)  the price of peanut butter rises. 
C)  the quantity of peanut butter increases. 
D)  there is a shift in the supply curve for jelly. 
E)  the demand curve for peanut butter does not shift; instead there is a movement along it. 
A)  there is a movement along the supply curve of peanut butter. 
B)  the price of peanut butter rises. 
C)  the quantity of peanut butter increases. 
D)  there is a shift in the supply curve for jelly. 
E)  the demand curve for peanut butter does not shift; instead there is a movement along it.

Question 9

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Accepted Answer

The equilibrium price unambiguously fall

Question 10

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 11

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

Accepted Answer

A)  does not change. 
B)  rises. 
C)  falls. 
D)  might rise, fall, or not change, but the change can never be predicted. 
E)  might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers. 
A)  does not change. 
B)  rises. 
C)  falls. 
D)  might rise, fall, or not change, but the change can never be predicted. 
E)  might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question 12

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Accepted Answer

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

Question 13

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

Accepted Answer

A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change 
A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change

Question 14

A change in the demand for apples could result from any of the following EXCEPT

Accepted Answer

A)  a change in the number of buyers. 
B)  increased preferences for fresh fruit consumption for health reasons. 
C)  a change in the price of an apple. 
D)  a change in the price of a banana. 
E)  a change in income. 
A)  a change in the number of buyers. 
B)  increased preferences for fresh fruit consumption for health reasons. 
C)  a change in the price of an apple. 
D)  a change in the price of a banana. 
E)  a change in income.

Question 15

A rise in the price of a substitute in production for a good leads to

Accepted Answer

A)  an increase in the supply of that good. 
B)  a decrease in the supply of that good. 
C)  no change in the supply of that good; instead there is a change in the quantity supplied. 
D)  a decrease in the quantity of that good supplied. 
E)  no change in either the supply or the quantity supplied of the good. 
A)  an increase in the supply of that good. 
B)  a decrease in the supply of that good. 
C)  no change in the supply of that good; instead there is a change in the quantity supplied. 
D)  a decrease in the quantity of that good supplied. 
E)  no change in either the supply or the quantity supplied of the good.

Question 16

In the above figure,________ will shift in the demand curve from D to D?.

Accepted Answer

A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza 
A)  an increase in income if pizza is an inferior good 
B)  a decrease in the price of a sub sandwich, a substitute for pizza 
C)  buyers' expectation that pizza will be less expensive next week 
D)  a scientific article published that demonstrates eating pizza is good for one's health 
E)  a fall in the cost of producing pizza

Question 17

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

Accepted Answer

A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases. 
A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases.

Question 18

The market demand curve for mangos is

Accepted Answer

A)  the same as the demand curve of one buyer in a market with many buyers. 
B)  upward sloping because rich people can afford more mangos than poor people can buy. 
C)  the horizontal sum of the individual demand curves of all the buyers. 
D)  the vertical sum of the individual demand curves of all the buyers. 
E)  the horizontal average of the individual demand curves of all the buyers. 
A)  the same as the demand curve of one buyer in a market with many buyers. 
B)  upward sloping because rich people can afford more mangos than poor people can buy. 
C)  the horizontal sum of the individual demand curves of all the buyers. 
D)  the vertical sum of the individual demand curves of all the buyers. 
E)  the horizontal average of the individual demand curves of all the buyers.

Question 19

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Accepted Answer

A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease 
E)  not change; increase 
A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease 
E)  not change; increase

Question 20

-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.

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

"Other things remaining the same,if the price of a good rises,the quantity supplied of that good increases." This sentence describes a

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-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?

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

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

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

A change in the demand for apples could result from any of the following EXCEPT

A rise in the price of a substitute in production for a good leads to

In the above figure,________ will shift in the demand curve from D to D?.

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

The market demand curve for mangos is

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .

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

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

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

"Other things remaining the same,if the price of a good rises,the quantity supplied of that good increases." This sentence describes a

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-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?

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

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

Peanut butter and jelly are complements for many consumers.Consider the market for peanut butter.If there is an increase in the price of jelly,

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

For consumers,computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously,suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

A change in the demand for apples could result from any of the following EXCEPT

A rise in the price of a substitute in production for a good leads to

In the above figure,________ will shift in the demand curve from D to D?.

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

The market demand curve for mangos is

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

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

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

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .