Question 1

The price of microchips used to produce computers falls.As a result,the equilibrium price of computers _____ and the equilibrium quantity _____.

Accepted Answer

A) rises;increases 
B) rises;decreases 
C) falls;decreases 
D) falls;increases 
A) rises;increases 
B) rises;decreases 
C) falls;decreases 
D) falls;increases

Question 2

The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Accepted Answer

A) a bountiful harvest 
B) increasing production of corn-based ethanol 
C) decreasing household incomes,with corn being a normal good 
D) a decrease in the price of wheat,a substitute in consumption 
A) a bountiful harvest 
B) increasing production of corn-based ethanol 
C) decreasing household incomes,with corn being a normal good 
D) a decrease in the price of wheat,a substitute in consumption

Question 3

Alice goes to the local supermarket to purchase one package of kale.She often pays $1.50 for a package,but she finds they are on sale for $1 each.According to the law of demand,one can expect shoppers like Alice to:

Accepted Answer

A) purchase an alternative good. 
B) purchase more kale than they normally would. 
C) decide not to purchase kale . 
D) buy the same amount of kale as they always do,on average. 
A) purchase an alternative good. 
B) purchase more kale than they normally would. 
C) decide not to purchase kale . 
D) buy the same amount of kale as they always do,on average.

Question 4

Use the following to answer question:  
-(Figure: Supply and Demand in the Orange Juice Market)Use Figure: Supply and Demand in the Orange Juice Market.The market is in equilibrium at point C.Suppose most people drink orange juice only with champagne.What will be the new equilibrium point in the orange juice market if a law banning alcohol passes?

Accepted Answer

A) A 
B) B 
C) D 
D) E 
A) A 
B) B 
C) D 
D) E

Question 5

Which factor would NOT cause the supply curve to shift?

Accepted Answer

A) a change in the technology of production 
B) a change in factor costs 
C) a change in the price of the good 
D) a change in suppliers' expectations of future prices 
A) a change in the technology of production 
B) a change in factor costs 
C) a change in the price of the good 
D) a change in suppliers' expectations of future prices

Question 6

Use the following to answer question:  
-(Table: The Demand for Chocolate-Covered Peanuts)Use Table: The Demand for Chocolate-Covered Peanuts.If George,Barbara,and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.80,the total market quantity demanded is _____ bags per month.

Accepted Answer

A) 70 
B) 80 
C) 105 
D) 280 
A) 70 
B) 80 
C) 105 
D) 280

Question 7

It is certain that the equilibrium quantity will rise when:

Accepted Answer

A) the supply curve and the demand curve both shift to the right. 
B) the supply curve shifts to the right and the demand curve shifts to the left. 
C) supply and demand both shift to the left. 
D) supply shifts to the left and demand stays the same. 
A) the supply curve and the demand curve both shift to the right. 
B) the supply curve shifts to the right and the demand curve shifts to the left. 
C) supply and demand both shift to the left. 
D) supply shifts to the left and demand stays the same.

Question 8

Good X and good Y are substitutes.Holding all other things constant,this means that,when the price of good X increases,the demand for:

Accepted Answer

A) good X will increase. 
B) good Y will increase. 
C) both good X and good Y will increase. 
D) good Y will decrease. 
A) good X will increase. 
B) good Y will increase. 
C) both good X and good Y will increase. 
D) good Y will decrease.

Question 9

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The graph shows how supply and demand might shift in response to specific events.Suppose scientists discover that eating pomegranates causes aging.Which panel BEST describes how this will affect the market for pomegranates?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D 
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Question 10

In the market for tacos,a normal good,you observe that the equilibrium price and quantity have increased.This can be caused only by:

Accepted Answer

A) an increase in the price of beef. 
B) an increase in the wages of taco shop workers. 
C) fewer taco shops. 
D) an increase in the incomes of people who eat tacos. 
A) an increase in the price of beef. 
B) an increase in the wages of taco shop workers. 
C) fewer taco shops. 
D) an increase in the incomes of people who eat tacos.

Question 11

The _____ tomatoes will decrease if fertilizer prices rise.

Accepted Answer

A) demand for 
B) shortage of 
C) supply of 
D) equilibrium price of 
A) demand for 
B) shortage of 
C) supply of 
D) equilibrium price of

Question 12

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply IV)Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose the Surgeon General announces that eating chocolate prevents heart disease.Which panel BEST describes how this will affect the market for chocolate?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D 
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Question 13

High-fructose corn syrup,which is derived from corn,is an important ingredient in the production of many soft drinks.If the price of corn increases,one would expect the:

Accepted Answer

A) supply curve for soft drinks to shift left. 
B) quantity supplied of soft drinks to increase. 
C) demand for soft drinks to increase. 
D) supply curve for soft drinks to shift right. 
A) supply curve for soft drinks to shift left. 
B) quantity supplied of soft drinks to increase. 
C) demand for soft drinks to increase. 
D) supply curve for soft drinks to shift right.

Question 14

The cost of sensors used in making digital cameras falls,while a successful ad campaign makes digital cameras more fashionable.As a result,the equilibrium price of digital cameras _____ and the equilibrium quantity _____.

Accepted Answer

A) increases;increases 
B) increases;may increase,decrease,or stay the same 
C) may increase,decrease,or stay the same;increases 
D) decreases;increases 
A) increases;increases 
B) increases;may increase,decrease,or stay the same 
C) may increase,decrease,or stay the same;increases 
D) decreases;increases

Question 15

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply IV)Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose the price of lumber falls dramatically.Which panel BEST describes how this will affect the market for new houses?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D 
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Question 16

French fries and hamburgers are complements in consumption.Suppose the cost of the ingredients used to make hamburgers rises,so that the price of a hamburger rises.Then the equilibrium price of french fries _____ and the equilibrium quantity _____.

Accepted Answer

A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases 
A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases

Question 17

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply,we expect to see an increase in the demand for electric cars,higher electric car prices,and an increase in the equilibrium quantity of electric cars.

Accepted Answer

A) True 
 B)False

Question 18

The market price of airline flights increased recently.Some economists suggest that the price increased because several airlines went out of business.They believe that,in the market for flights:

Accepted Answer

A) supply increased. 
B) supply decreased. 
C) demand increased. 
D) demand decreased. 
A) supply increased. 
B) supply decreased. 
C) demand increased. 
D) demand decreased.

Question 19

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure shows how supply and demand might shift in response to specific events.Suppose a spring frost destroys one-third of the nation's artichoke crop.Which panel BEST describes how this will affect the market for mayonnaise,which is a complement to artichokes?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D 
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Question 20

A recent news story reported that the Organization of Petroleum Exporting Countries is expected to decrease the supply of oil next summer.Summer is traditionally a time of increased demand for oil because of vacation travel.What would be the combined effect of these two events on the summer market for gasoline?

Accepted Answer

A) an increase in the price and the quantity 
B) an increase in the price and an unpredictable change in the quantity 
C) an unpredictable change in both the price and the quantity 
D) an unpredictable change in the price and a decrease in the quantity 
A) an increase in the price and the quantity 
B) an increase in the price and an unpredictable change in the quantity 
C) an unpredictable change in both the price and the quantity 
D) an unpredictable change in the price and a decrease in the quantity

The price of microchips used to produce computers falls.As a result,the equilibrium price of computers _ and the equilibrium quantity _.

The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Alice goes to the local supermarket to purchase one package of kale.She often pays $1.50 for a package,but she finds they are on sale for $1 each.According to the law of demand,one can expect shoppers like Alice to:

Which factor would NOT cause the supply curve to shift?

It is certain that the equilibrium quantity will rise when:

Good X and good Y are substitutes.Holding all other things constant,this means that,when the price of good X increases,the demand for:

In the market for tacos,a normal good,you observe that the equilibrium price and quantity have increased.This can be caused only by:

The _____ tomatoes will decrease if fertilizer prices rise.

High-fructose corn syrup,which is derived from corn,is an important ingredient in the production of many soft drinks.If the price of corn increases,one would expect the:

The cost of sensors used in making digital cameras falls,while a successful ad campaign makes digital cameras more fashionable.As a result,the equilibrium price of digital cameras _ and the equilibrium quantity _.

French fries and hamburgers are complements in consumption.Suppose the cost of the ingredients used to make hamburgers rises,so that the price of a hamburger rises.Then the equilibrium price of french fries _ and the equilibrium quantity _.

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply,we expect to see an increase in the demand for electric cars,higher electric car prices,and an increase in the equilibrium quantity of electric cars.

The market price of airline flights increased recently.Some economists suggest that the price increased because several airlines went out of business.They believe that,in the market for flights:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 3: Supply and Demand

The price of microchips used to produce computers falls.As a result,the equilibrium price of computers _____ and the equilibrium quantity _____.

The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Alice goes to the local supermarket to purchase one package of kale.She often pays $1.50 for a package,but she finds they are on sale for $1 each.According to the law of demand,one can expect shoppers like Alice to:

Which factor would NOT cause the supply curve to shift?

It is certain that the equilibrium quantity will rise when:

Good X and good Y are substitutes.Holding all other things constant,this means that,when the price of good X increases,the demand for:

In the market for tacos,a normal good,you observe that the equilibrium price and quantity have increased.This can be caused only by:

The _____ tomatoes will decrease if fertilizer prices rise.

High-fructose corn syrup,which is derived from corn,is an important ingredient in the production of many soft drinks.If the price of corn increases,one would expect the:

The cost of sensors used in making digital cameras falls,while a successful ad campaign makes digital cameras more fashionable.As a result,the equilibrium price of digital cameras _____ and the equilibrium quantity _____.

French fries and hamburgers are complements in consumption.Suppose the cost of the ingredients used to make hamburgers rises,so that the price of a hamburger rises.Then the equilibrium price of french fries _____ and the equilibrium quantity _____.

If consumer tastes for electric cars increase over the next 10 years and there is no change in supply,we expect to see an increase in the demand for electric cars,higher electric car prices,and an increase in the equilibrium quantity of electric cars.

The market price of airline flights increased recently.Some economists suggest that the price increased because several airlines went out of business.They believe that,in the market for flights:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

The price of microchips used to produce computers falls.As a result,the equilibrium price of computers _ and the equilibrium quantity _.

The cost of sensors used in making digital cameras falls,while a successful ad campaign makes digital cameras more fashionable.As a result,the equilibrium price of digital cameras _ and the equilibrium quantity _.

French fries and hamburgers are complements in consumption.Suppose the cost of the ingredients used to make hamburgers rises,so that the price of a hamburger rises.Then the equilibrium price of french fries _ and the equilibrium quantity _.