Question 1

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

Accepted Answer

A)  supply increases. 
B)  supply decreases. 
C)  quantity supplied increases. 
D)  quantity supplied decreases. 
E)  price falls to restore the equilibrium. 
A)  supply increases. 
B)  supply decreases. 
C)  quantity supplied increases. 
D)  quantity supplied decreases. 
E)  price falls to restore the equilibrium.

Question 2

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Accepted Answer

A)  the demand curve for hauling freight has shifted leftward. 
B)  the supply curve for hauling freight has shifted leftward. 
C)  the demand curve for hauling freight has shifted rightward. 
D)  the supply curve for hauling freight has shifted rightward. 
E)  neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher. 
A)  the demand curve for hauling freight has shifted leftward. 
B)  the supply curve for hauling freight has shifted leftward. 
C)  the demand curve for hauling freight has shifted rightward. 
D)  the supply curve for hauling freight has shifted rightward. 
E)  neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.

Question 3

-The number of logging firms increases.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 and Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A and Figure D

Question 4

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Accepted Answer

A)  equilibrium quantity of computers will increase. 
B)  equilibrium quantity of computers will decrease. 
C)  equilibrium price of a computer will rise. 
D)  equilibrium price of a computer will fall. 
E)  equilibrium quantity of computers might increase, decrease, or not change. 
A)  equilibrium quantity of computers will increase. 
B)  equilibrium quantity of computers will decrease. 
C)  equilibrium price of a computer will rise. 
D)  equilibrium price of a computer will fall. 
E)  equilibrium quantity of computers might increase, decrease, or not change.

Question 5

Which of the following shifts the supply curve of popcorn leftward?

Accepted Answer

A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn 
A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn

Question 6

Market equilibrium occurs when

Accepted Answer

A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices. 
A)  all markets become equal. 
B)  the quantity demanded equals the quantity supplied. 
C)  opposing forces pull demand and supply apart. 
D)  demand and supply move in opposite direction. 
E)  demand and supply change so that they are equal at all possible prices.

Question 7

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

A)  will rise. 
B)  will fall 
C)  will remain the same. 
D)  might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E)  None of the above answers is correct. 
A)  will rise. 
B)  will fall 
C)  will remain the same. 
D)  might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E)  None of the above answers is correct.

Question 8

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then 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 9

If there is a surplus of tacos,then the

Accepted Answer

A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus. 
A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus.

Question 10

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service 
A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service

Question 11

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

A)  rises; decreases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; decreases 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  rises; increases 
A)  rises; decreases 
B)  perhaps changes but we can't say if it rises, falls, or stays the same; decreases 
C)  falls; increases 
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E)  rises; increases

Question 12

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  increased; did not change 
D)  decreased; did not change 
E)  did not change; increased 
A)  increased; increased 
B)  increased; decreased 
C)  increased; did not change 
D)  decreased; did not change 
E)  did not change; increased

Question 13

If the number of sellers decreases,then the supply curve ________ and the supply ________.

Accepted Answer

A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change, but there is a decrease in the quantity supplied 
A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change, but there is a decrease in the quantity supplied

Question 14

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

Accepted Answer

A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied. 
A)  a decrease in the supply of kayaks. 
B)  a decrease in the quantity of kayaks supplied. 
C)  an increase in the supply of kayaks. 
D)  an increase in the quantity of kayaks supplied. 
E)  an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 15

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

Accepted Answer

A)  demand curve for peanuts slopes downward. 
B)  demand for peanuts increases when income increases. 
C)  demand for peanuts increases when the price of one of its substitutes rises. 
D)  peanuts have both substitutes and complements. 
E)  demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded. 
A)  demand curve for peanuts slopes downward. 
B)  demand for peanuts increases when income increases. 
C)  demand for peanuts increases when the price of one of its substitutes rises. 
D)  peanuts have both substitutes and complements. 
E)  demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.

Question 16

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Accepted Answer

A)  The wage paid carpenters who build new houses might have risen. 
B)  A technological advance in framing a new house might have occurred. 
C)  The rent for nearby apartments might have fallen. 
D)  More home buyers might have moved into the area. 
E)  The cost of wood framing used to build houses might have fallen. 
A)  The wage paid carpenters who build new houses might have risen. 
B)  A technological advance in framing a new house might have occurred. 
C)  The rent for nearby apartments might have fallen. 
D)  More home buyers might have moved into the area. 
E)  The cost of wood framing used to build houses might have fallen.

Question 17

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

Accepted Answer

A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve. 
A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve.

Question 18

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,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 19

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

Accepted Answer

A)  an increase in the price of smart phones 
B)  a decrease in the price of smart phones 
C)  an increase in the price of land-line phone service, a substitute for smart phones 
D)  a decrease in the number of smart phone buyers 
E)  an increase in the supply of smart phones. 
A)  an increase in the price of smart phones 
B)  a decrease in the price of smart phones 
C)  an increase in the price of land-line phone service, a substitute for smart phones 
D)  a decrease in the number of smart phone buyers 
E)  an increase in the supply of smart phones.

Question 20

Which of the following is correct?
i.A surplus puts downward pressure on the price of a good.
ii.A shortage puts upward pressure on the price of a good.
iii.There is no surplus or shortage at equilibrium.

Accepted Answer

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

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

-The number of logging firms increases.Which of the figures above best illustrates this change?

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Which of the following shifts the supply curve of popcorn leftward?

Market equilibrium occurs when

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

If there is a surplus of tacos,then the

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline and the equilibrium quantity .

If the number of sellers decreases,then the supply curve and the supply .

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change?

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

Which of the following is correct? i.A surplus puts downward pressure on the price of a good. ii.A shortage puts upward pressure on the price of a good. iii.There is no surplus or shortage at equilibrium.

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 the demand curve shifts rightward and the market moves to a new equilibrium,then the

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

-The number of logging firms increases.Which of the figures above best illustrates this change?

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Which of the following shifts the supply curve of popcorn leftward?

Market equilibrium occurs when

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

If there is a surplus of tacos,then the

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

If the number of sellers decreases,then the supply curve ________ and the supply ________.

The law of supply states that other things remaining the same,a decrease in the price of a kayak leads to

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change?

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

Which of the following is correct? i.A surplus puts downward pressure on the price of a good. ii.A shortage puts upward pressure on the price of a good. iii.There is no surplus or shortage at equilibrium.

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

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline and the equilibrium quantity .

If the number of sellers decreases,then the supply curve and the supply .