Question 1

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters 
A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters

Question 2

Changes in which of the following factors do NOT shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  buyers' incomes 
C)  the price of a substitute good 
D)  the number of buyers 
E)  the price expected in the future 
A)  the price of the good 
B)  buyers' incomes 
C)  the price of a substitute good 
D)  the number of buyers 
E)  the price expected in the future

Question 3

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

Accepted Answer

A)  a decrease in the price of NetFlix, a substitute for movies 
B)  a decrease in the price of movie tickets 
C)  an increase in the price of movie tickets 
D)  an increase in movie star salaries 
E)  an increase in incomes, assuming movies are a normal good 
A)  a decrease in the price of NetFlix, a substitute for movies 
B)  a decrease in the price of movie tickets 
C)  an increase in the price of movie tickets 
D)  an increase in movie star salaries 
E)  an increase in incomes, assuming movies are a normal good

Question 4

If the demand and supply both increase equally,then the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

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

Question 5

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks are a normal good.Draw a...

Question 6

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 7

As a falling price eliminates a surplus in the jersey market,

Accepted Answer

A)  the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward. 
B)  consumers increase the quantity of jerseys they demand. 
C)  producers increase the quantity of jerseys they supply. 
D)  producers decrease the quantity of jerseys they supply, and buyers decrease the quantity of jerseys they demand. 
E)  the demand curve for jerseys shifts rightward, and the supply curve of jerseys shifts leftward. 
A)  the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward. 
B)  consumers increase the quantity of jerseys they demand. 
C)  producers increase the quantity of jerseys they supply. 
D)  producers decrease the quantity of jerseys they supply, and buyers decrease the quantity of jerseys they demand. 
E)  the demand curve for jerseys shifts rightward, and the supply curve of jerseys shifts leftward.

Question 8

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

Accepted Answer

A)  The supply of wheat increased and the supply of corn decreased. 
B)  The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C)  The supply of wheat increased and the quantity of corn supplied decreased 
D)  The quantity of wheat supplied increased and the supply of corn decreased. 
E)  The supply of wheat decreased and the supply of corn decreased. 
A)  The supply of wheat increased and the supply of corn decreased. 
B)  The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C)  The supply of wheat increased and the quantity of corn supplied decreased 
D)  The quantity of wheat supplied increased and the supply of corn decreased. 
E)  The supply of wheat decreased and the supply of corn decreased.

Question 9

When moving along a demand curve,which of the following changes?

Accepted Answer

A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences 
A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences

Question 10

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Accepted Answer

A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 11

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________,and the equilibrium price of gasoline ________.

Accepted Answer

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

Question 12

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

Accepted Answer

A)  both the price and the quantity. 
B)  either the price or the quantity, but not both. 
C)  only the price. 
D)  only the quantity. 
E)  neither the price nor the quantity. 
A)  both the price and the quantity. 
B)  either the price or the quantity, but not both. 
C)  only the price. 
D)  only the quantity. 
E)  neither the price nor the quantity.

Question 13

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 14

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand 
A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand

Question 15

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 16

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

Accepted Answer

A)  Oil producers have higher costs of production in the summer. 
B)  Sellers have to earn profits during the summer to cover losses in the winter. 
C)  There is increased driving by families going on vacation. 
D)  There is less competition among oil refineries in the summer. 
E)  The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs. 
A)  Oil producers have higher costs of production in the summer. 
B)  Sellers have to earn profits during the summer to cover losses in the winter. 
C)  There is increased driving by families going on vacation. 
D)  There is less competition among oil refineries in the summer. 
E)  The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs.

Question 17

Wheat is used to produce cereal.When the price of wheat falls,the

Accepted Answer

A)  demand for wheat increases. 
B)  supply of wheat decreases. 
C)  supply of cereal increases. 
D)  demand for cereal increases. 
E)  demand for cereal decreases. 
A)  demand for wheat increases. 
B)  supply of wheat decreases. 
C)  supply of cereal increases. 
D)  demand for cereal increases. 
E)  demand for cereal decreases.

Question 18

The law of supply reflects the fact that

Accepted Answer

A)  people buy more of a good when its price falls. 
B)  suppliers have an incentive to use their resources in the way that brings the biggest return. 
C)  higher prices are more attractive to consumers because they signal a higher quality product. 
D)  businesses can sell more goods at lower prices. 
E)  the demand curve is downward sloping. 
A)  people buy more of a good when its price falls. 
B)  suppliers have an incentive to use their resources in the way that brings the biggest return. 
C)  higher prices are more attractive to consumers because they signal a higher quality product. 
D)  businesses can sell more goods at lower prices. 
E)  the demand curve is downward sloping.

Question 19

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

Accepted Answer

A)  a requirement that all students at universities have an iPod 
B)  a decrease in the price of iPods 
C)  a decrease in the price of Zunes, a substitute for iPods 
D)  an increase in the price of iPods 
E)  an increase in people's incomes 
A)  a requirement that all students at universities have an iPod 
B)  a decrease in the price of iPods 
C)  a decrease in the price of Zunes, a substitute for iPods 
D)  an increase in the price of iPods 
E)  an increase in people's incomes

Question 20

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

Accepted Answer

A)  quantity of ceiling fans demanded and a surplus of ceiling fans. 
B)  demand for ceiling fans and a rise in the price of a ceiling fan. 
C)  demand for ceiling fans and a surplus of ceiling fans. 
D)  supply of ceiling fans and no change in the price of a ceiling fan. 
E)  demand for ceiling fans and in the supply of ceiling fans. 
A)  quantity of ceiling fans demanded and a surplus of ceiling fans. 
B)  demand for ceiling fans and a rise in the price of a ceiling fan. 
C)  demand for ceiling fans and a surplus of ceiling fans. 
D)  supply of ceiling fans and no change in the price of a ceiling fan. 
E)  demand for ceiling fans and in the supply of ceiling fans.

Which of the following results in a movement upward along the supply curve for movies in theaters?

Changes in which of the following factors do NOT shift the demand curve?

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

If the demand and supply both increase equally,then the equilibrium price and the equilibrium quantity .

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

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

As a falling price eliminates a surplus in the jersey market,

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

When moving along a demand curve,which of the following changes?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ,and the equilibrium price of gasoline .

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

The downward slope of a demand curve

Which of the following definitely results in a product's equilibrium price rising?

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 .

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

Wheat is used to produce cereal.When the price of wheat falls,the

The law of supply reflects the fact that

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

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

Which of the following results in a movement upward along the supply curve for movies in theaters?

Changes in which of the following factors do NOT shift the demand curve?

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

If the demand and supply both increase equally,then the equilibrium price ________ and the equilibrium quantity ________.

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

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

As a falling price eliminates a surplus in the jersey market,

If a higher price for wheat decreases the quantity of corn being produced,which of the following describes what has occurred?

When moving along a demand curve,which of the following changes?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________,and the equilibrium price of gasoline ________.

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

The downward slope of a demand curve

Which of the following definitely results in a product's equilibrium price rising?

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 ________.

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

Wheat is used to produce cereal.When the price of wheat falls,the

The law of supply reflects the fact that

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

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

If the demand and supply both increase equally,then the equilibrium price and the equilibrium quantity .

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ,and the equilibrium price of gasoline .

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 .