Question 1

When demand increases,

Accepted Answer

A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward. 
A)  consumers are willing to buy more at any price. 
B)  consumers buy more of the good only if its price falls. 
C)  the price is lower at any level of quantity demanded. 
D)  consumers buy more of the good only if its price rises. 
E)  the demand curve shifts leftward.

Question 2

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Accepted Answer

A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases, but there is no shift in the supply curve. 
D)  The quantity supplied decreases, but there is no shift in the supply curve. 
E)  The quantity supplied decreases, and the supply curve shifts leftward. 
A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases, but there is no shift in the supply curve. 
D)  The quantity supplied decreases, but there is no shift in the supply curve. 
E)  The quantity supplied decreases, and the supply curve shifts leftward.

Question 3

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Accepted Answer

A)  The equilibrium price of taco chips falls, and the equilibrium quantity decreases. 
B)  The equilibrium price of taco chips rises, and the equilibrium quantity decreases. 
C)  There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. 
D)  The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. 
E)  The equilibrium price of taco chips rises, and the equilibrium quantity increases. 
A)  The equilibrium price of taco chips falls, and the equilibrium quantity decreases. 
B)  The equilibrium price of taco chips rises, and the equilibrium quantity decreases. 
C)  There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. 
D)  The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. 
E)  The equilibrium price of taco chips rises, and the equilibrium quantity increases.

Question 4

A supply curve

Accepted Answer

A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 5

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

Accepted Answer

A)  the demand for milk increases. 
B)  the quantity demanded of milk increases. 
C)  the price of milk falls to encourage people to drink more milk. 
D)  the demand for milk is not affected. 
E)  the demand for milk decreases because the price of milk rises. 
A)  the demand for milk increases. 
B)  the quantity demanded of milk increases. 
C)  the price of milk falls to encourage people to drink more milk. 
D)  the demand for milk is not affected. 
E)  the demand for milk decreases because the price of milk rises.

Question 6

List the factors that change supply and shift the supply curve.Tell what happens to supply and the supply curve when there is an increase in the factor.

Accepted Answer

The factors that change supply are produ

Question 7

At prices above the equilibrium price,what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 8

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Accepted Answer

A)  shortage, so the price falls and quantity demanded increases. 
B)  surplus, so the price falls and quantity demanded increases. 
C)  shortage, so the price rises and quantity demanded decreases. 
D)  surplus, so the price rises and quantity demanded increases. 
E)  surplus, so the price falls and quantity supplied increases. 
A)  shortage, so the price falls and quantity demanded increases. 
B)  surplus, so the price falls and quantity demanded increases. 
C)  shortage, so the price rises and quantity demanded decreases. 
D)  surplus, so the price rises and quantity demanded increases. 
E)  surplus, so the price falls and quantity supplied increases.

Question 9

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

Question 10

-In the above figure,the movement from point a to point b reflects

Accepted Answer

A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza. 
A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza.

Question 11

Advances in productivity increase supply because they might

Accepted Answer

A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good. 
A)  increase the price expected in the future. 
B)  decrease the number of goods available. 
C)  decrease the cost of production. 
D)  raise the prices of resources used to produce the good. 
E)  increase the number of firms producing the good.

Question 12

-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)  an increase in consumers' preferences for corn 
B)  an increase in consumers' income if corn is a normal good 
C)  an increase in labor costs of producing corn 
D)  an improvement in the technology of producing corn 
E)  an increase in consumers' income if corn is an inferior good 
A)  an increase in consumers' preferences for corn 
B)  an increase in consumers' income if corn is a normal good 
C)  an increase in labor costs of producing corn 
D)  an improvement in the technology of producing corn 
E)  an increase in consumers' income if corn is an inferior good

Question 13

-In the above figure,the shift in the supply curve from S to S? reflects

Accepted Answer

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

Question 14

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo

Question 15

Which of the following increases the demand for a good or service?

Accepted Answer

A)  a fall in the price of the good or service 
B)  a smaller number of consumers wanting to buy the good or service 
C)  a rise in the price of the good or service 
D)  a rise in the price of a substitute good or service 
E)  a rise in the price of a complement 
A)  a fall in the price of the good or service 
B)  a smaller number of consumers wanting to buy the good or service 
C)  a rise in the price of the good or service 
D)  a rise in the price of a substitute good or service 
E)  a rise in the price of a complement

Question 16

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

Accepted Answer

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

Question 17

If a market begins in equilibrium and then the demand curve shifts leftward,a

Accepted Answer

A)  shortage is created, which is eliminated by a fall in price. 
B)  shortage is created, which is eliminated by a rise in price. 
C)  surplus is created, which is eliminated by a fall in price. 
D)  surplus is created, which is eliminated by a rise in price. 
E)  surplus is created, which is eliminated by the supply curve shifting leftward. 
A)  shortage is created, which is eliminated by a fall in price. 
B)  shortage is created, which is eliminated by a rise in price. 
C)  surplus is created, which is eliminated by a fall in price. 
D)  surplus is created, which is eliminated by a rise in price. 
E)  surplus is created, which is eliminated by the supply curve shifting leftward.

Question 18

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

Accepted Answer

The answer of  
-The table above shows supply schedules...

Question 19

-Using the data in the table above,the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50,000 and $100. 
B)  80,000 and $80. 
C)  60,000 and $50. 
D)  40,000 and $20. 
E)  100,000 and $20. 
A)  50,000 and $100. 
B)  80,000 and $80. 
C)  60,000 and $50. 
D)  40,000 and $20. 
E)  100,000 and $20.

Question 20

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

Accepted Answer

A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold 
A)  the amount that people are able to sell 
B)  the amount that people are willing to sell 
C)  the amount that people are able and willing to sell 
D)  the amount that people are willing and able to buy 
E)  the amount sold

When demand increases,

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

A supply curve

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

List the factors that change supply and shift the supply curve.Tell what happens to supply and the supply curve when there is an increase in the factor.

At prices above the equilibrium price,what occurs?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

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

-In the above figure,the movement from point a to point b reflects

Advances in productivity increase supply because they might

-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?

-In the above figure,the shift in the supply curve from S to S? reflects

What is the difference between quantity supplied and supply?

Which of the following increases the demand for a good or service?

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

If a market begins in equilibrium and then the demand curve shifts leftward,a

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

-Using the data in the table above,the equilibrium quantity and equilibrium price for a cellular telephone is

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

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 demand increases,

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

A supply curve

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

List the factors that change supply and shift the supply curve.Tell what happens to supply and the supply curve when there is an increase in the factor.

At prices above the equilibrium price,what occurs?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

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

-In the above figure,the movement from point a to point b reflects

Advances in productivity increase supply because they might

-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?

-In the above figure,the shift in the supply curve from S to S? reflects

What is the difference between quantity supplied and supply?

Which of the following increases the demand for a good or service?

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

If a market begins in equilibrium and then the demand curve shifts leftward,a

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

-Using the data in the table above,the equilibrium quantity and equilibrium price for a cellular telephone is

The quantity supplied of a good,service,or resource is ________ during a specified period and at a specified price.

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