Question 1

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,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 2

If macaroni and cheese is an inferior good,then a decrease in income results in

Accepted Answer

A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese. 
E)  Both answers A and D are correct. 
A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese. 
E)  Both answers A and D are correct.

Question 3

What are substitutes in production?

Accepted Answer

Goods are substitutes in produ

Question 4

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

Accepted Answer

A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact. 
A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 5

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 6

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is ________ the quantity supplied and the price of the good will ________.

Accepted Answer

A)  less then; fall 
B)  greater than; rise 
C)  greater than; fall 
D)  less than; rise 
E)  equal to; fall 
A)  less then; fall 
B)  greater than; rise 
C)  greater than; fall 
D)  less than; rise 
E)  equal to; fall

Question 7

When there is a shortage of parking spaces at your college,the

Accepted Answer

A)  demand for parking spaces is greater than the supply. 
B)  supply of parking spaces is greater than the demand. 
C)  quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D)  quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E)  Both answers A and D are correct. 
A)  demand for parking spaces is greater than the supply. 
B)  supply of parking spaces is greater than the demand. 
C)  quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D)  quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E)  Both answers A and D are correct.

Question 8

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

Accepted Answer

A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer 
A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer

Question 9

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplied of a goo

Question 10

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Accepted Answer

A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease. 
A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease.

Question 11

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.

Question 12

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C

Question 13

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

Accepted Answer

A)  Demand and supply increased by an equal amount. 
B)  Demand and supply decreased by an equal amount. 
C)  Demand increased and supply decreased by an equal amount. 
D)  Demand decreased and supply increased by an equal amount. 
E)  Demand increased by a larger magnitude than supply decreased. 
A)  Demand and supply increased by an equal amount. 
B)  Demand and supply decreased by an equal amount. 
C)  Demand increased and supply decreased by an equal amount. 
D)  Demand decreased and supply increased by an equal amount. 
E)  Demand increased by a larger magnitude than supply decreased.

Question 14

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A)  Figure A only 
B)  Figure B only 
C)  Figure C only 
D)  Figure D only 
E)  Both Figure A and Figure D 
A)  Figure A only 
B)  Figure B only 
C)  Figure C only 
D)  Figure D only 
E)  Both Figure A and Figure D

Question 15

-The diagram above illustrates the market for apartments in Victoria,British Columbia.
a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b.What is the equilibrium rent and quantity of apartments?

Accepted Answer

a.If the rent is $300 per mont

Question 16

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 17

-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)  a decrease in the number of corn growers 
B)  a decrease the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the seed used to grow the corn 
D)  an decrease in buyers' incomes if corn is an inferior good 
E)  an increased belief among buyers that corn is healthy 
A)  a decrease in the number of corn growers 
B)  a decrease the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the seed used to grow the corn 
D)  an decrease in buyers' incomes if corn is an inferior good 
E)  an increased belief among buyers that corn is healthy

Question 18

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.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

Market equilibrium occurs when

Accepted Answer

A)  the quantity demanded equals the quantity supplied. 
B)  the market is changing rapidly. 
C)  other things remain the same. 
D)  buyers get the lowest possible price. 
E)  everyone who wants the good gets the quantity he or she wants. 
A)  the quantity demanded equals the quantity supplied. 
B)  the market is changing rapidly. 
C)  other things remain the same. 
D)  buyers get the lowest possible price. 
E)  everyone who wants the good gets the quantity he or she wants.

Question 20

The equilibrium price of a good occurs if the

Accepted Answer

A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers. 
A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers.

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

If macaroni and cheese is an inferior good,then a decrease in income results in

What are substitutes in production?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

When the price of rice rises,

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is the quantity supplied and the price of the good will .

When there is a shortage of parking spaces at your college,the

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

What leads to a decrease in the quantity supplied of a good or service?

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

The market demand curve for mousetraps is

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The diagram above illustrates the market for apartments in Victoria,British Columbia. a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b.What is the equilibrium rent and quantity of apartments?

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

-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?

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity?

Market equilibrium occurs when

The equilibrium price of a good occurs if 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

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

If macaroni and cheese is an inferior good,then a decrease in income results in

What are substitutes in production?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

When the price of rice rises,

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is ________ the quantity supplied and the price of the good will ________.

When there is a shortage of parking spaces at your college,the

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

What leads to a decrease in the quantity supplied of a good or service?

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

The market demand curve for mousetraps is

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus,which of the following occurred?

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The diagram above illustrates the market for apartments in Victoria,British Columbia. a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b.What is the equilibrium rent and quantity of apartments?

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

-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?

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity?

Market equilibrium occurs when

The equilibrium price of a good occurs if 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

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is the quantity supplied and the price of the good will .