Question 1

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.Supply in this market is upward sloping.If the price of good Y is $12:

Accepted Answer

A) the quantity demanded will be greater than 150 units. 
B) the quantity supplied will be less than 150 units. 
C) there will be an excess demand for good Y. 
D) there will be an excess supply of good Y. 
A) the quantity demanded will be greater than 150 units. 
B) the quantity supplied will be less than 150 units. 
C) there will be an excess demand for good Y. 
D) there will be an excess supply of good Y.

Question 2

Suppose there is an excess supply of chemical engineers in India.Over time,the salaries for chemical engineers will fall in India.

Accepted Answer

A) True 
 B)False

Question 3

Use the following to answer question:  
-(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If there is an increase in preference for coconuts,it will be represented in the figure as a:

Accepted Answer

A) shift from D1 to D2 
B) movement from point A to point B 
C) shift from D1 to D3 
D) movement from point B to point E 
A) shift from D1 to D2 
B) movement from point A to point B 
C) shift from D1 to D3 
D) movement from point B to point E

Question 4

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:

Accepted Answer

A) income. 
B) consumer expectations. 
C) consumer preferences. 
D) prices of other goods. 
A) income. 
B) consumer expectations. 
C) consumer preferences. 
D) prices of other goods.

Question 5

Use the following to answer question:  
-(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.When the supply curve shifted from the initial equilibrium,the new intersection of supply and demand has a price of _____ and quantity of 400.This supply shift could have resulted from _____.

Accepted Answer

A) $1.50;an increase in consumers' income 
B) $1.50;an improvement in refining technology 
C) $2.00;an increase in the number of buyers 
D) $2.00;an increase in consumers' income 
A) $1.50;an increase in consumers' income 
B) $1.50;an improvement in refining technology 
C) $2.00;an increase in the number of buyers 
D) $2.00;an increase in consumers' income

Question 6

Use the following to answer question:  
-(Figure: The Supply of Online Movie Rentals)Use Figure: The Supply of Online Movie Rentals.A decrease in the price of online movies sold by movie producers to rental outlets like Amazon and Apple would result in a change illustrated by the move from:

Accepted Answer

A) n to o in panel A. 
B) p to q in panel B. 
C) s to t in panel C. 
D) u to v in panel D. 
A) n to o in panel A. 
B) p to q in panel B. 
C) s to t in panel C. 
D) u to v in panel D.

Question 7

A decrease in the price of a good will result in:

Accepted Answer

A) an increase in demand. 
B) an increase in supply. 
C) an increase in the quantity demanded. 
D) more being supplied. 
A) an increase in demand. 
B) an increase in supply. 
C) an increase in the quantity demanded. 
D) more being supplied.

Question 8

Suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests.At the same time,the price of ceramics used to produce the vests falls.The equilibrium price of bulletproof vests _____ and the equilibrium quantity produced _____.

Accepted Answer

A) increases;increases 
B) decreases;decreases 
C) probably changes,but in an ambiguous direction;probably changes,but in an ambiguous direction 
D) probably changes,but in an ambiguous direction;increases 
A) increases;increases 
B) decreases;decreases 
C) probably changes,but in an ambiguous direction;probably changes,but in an ambiguous direction 
D) probably changes,but in an ambiguous direction;increases

Question 9

Which factor will NOT cause an increase in the supply of cornflakes?

Accepted Answer

A) an increase in the price of cornflakes 
B) a cost-saving improvement in the technology of corn production 
C) a reduction in the price of corn 
D) the expectation by producers that the price of cornflakes will fall in the future 
A) an increase in the price of cornflakes 
B) a cost-saving improvement in the technology of corn production 
C) a reduction in the price of corn 
D) the expectation by producers that the price of cornflakes will fall in the future

Question 10

If supply is upward sloping,an increase in demand,all other things unchanged,will result in a(n)_____ in equilibrium price and a(n)_____ in equilibrium quantity.

Accepted Answer

A) increase;increase 
B) decrease;decrease 
C) decrease;increase 
D) increase;decrease 
A) increase;increase 
B) decrease;decrease 
C) decrease;increase 
D) increase;decrease

Question 11

Use the following to answer question:  
-(Figure: Four Markets for Online Movie Rentals)Use Figure: Four Markets for Online Movie Rentals.Which of the graphs shows what may happen if D1 or S1 is the original curve and D2 or S2 is the new curve and if some of the online stores that rent online movie rentals close?

Accepted Answer

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

Question 12

Use the following to answer question:  
-(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be excess demand for the good at a price of P3.

Accepted Answer

A) True 
 B)False

Question 13

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 a drought destroys one-third of the nation's peanut crop.Which panel BEST describes how this will affect the market for peanuts?

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 14

Which factor would cause a DECREASE in the supply of a good?

Accepted Answer

A) an increase in the price of goods that are used in production 
B) suppliers' expectations of lower prices in the future 
C) an advancement in the technology for producing the good 
D) an increase in the number of producers 
A) an increase in the price of goods that are used in production 
B) suppliers' expectations of lower prices in the future 
C) an advancement in the technology for producing the good 
D) an increase in the number of producers

Question 15

Rice and potatoes are substitutes in consumption.If the price of rice rises and there is a bumper crop of potatoes,in the market for potatoes one would expect the equilibrium price to _____ and the equilibrium quantity to _____.

Accepted Answer

A) fall,rise,or stay the same;rise 
B) rise;fall 
C) fall;fall 
D) rise;fall,rise,or stay the same 
A) fall,rise,or stay the same;rise 
B) rise;fall 
C) fall;fall 
D) rise;fall,rise,or stay the same

Question 16

Which factor will raise the price of milk?

Accepted Answer

A) a shift to the right of the supply curve for milk 
B) a shift to the right of the demand curve for milk 
C) an increase in the number of milk suppliers 
D) a decrease in the number of milk buyers 
A) a shift to the right of the supply curve for milk 
B) a shift to the right of the demand curve for milk 
C) an increase in the number of milk suppliers 
D) a decrease in the number of milk buyers

Question 17

Which two goods are most likely substitutes in consumption?

Accepted Answer

A) loaves of bread and sticks of butter 
B) loaves of bread and toasters 
C) loaves of bread and hamburger buns 
D) loaves of bread and gasoline 
A) loaves of bread and sticks of butter 
B) loaves of bread and toasters 
C) loaves of bread and hamburger buns 
D) loaves of bread and gasoline

Question 18

A decrease in the price of a good will generally result in a(n):

Accepted Answer

A) increase in demand. 
B) increase in supply. 
C) increase in the quantity demanded. 
D) increase in the quantity supplied. 
A) increase in demand. 
B) increase in supply. 
C) increase in the quantity demanded. 
D) increase in the quantity supplied.

Question 19

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

Accepted Answer

A) an increase in the quantity of cigarettes demanded. 
B) a decrease in the demand for cigarettes. 
C) no change in smoking habits. 
D) an increase in the price of cigarettes. 
A) an increase in the quantity of cigarettes demanded. 
B) a decrease in the demand for cigarettes. 
C) no change in smoking habits. 
D) an increase in the price of cigarettes.

Question 20

The demand for a good will increase if:

Accepted Answer

A) there is a decrease in the price of the good. 
B) the price of inputs needed in the production of the good decrease. 
C) there is an increase in the number of consumers in this market. 
D) the price of a complementary good increases. 
A) there is a decrease in the price of the good. 
B) the price of inputs needed in the production of the good decrease. 
C) there is an increase in the number of consumers in this market. 
D) the price of a complementary good increases.

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.Supply in this market is upward sloping.If the price of good Y is $12:

Suppose there is an excess supply of chemical engineers in India.Over time,the salaries for chemical engineers will fall in India.

Use the following to answer question: -(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If there is an increase in preference for coconuts,it will be represented in the figure as a:

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:

Use the following to answer question: -(Figure: The Supply of Online Movie Rentals)Use Figure: The Supply of Online Movie Rentals.A decrease in the price of online movies sold by movie producers to rental outlets like Amazon and Apple would result in a change illustrated by the move from:

A decrease in the price of a good will result in:

Which factor will NOT cause an increase in the supply of cornflakes?

If supply is upward sloping,an increase in demand,all other things unchanged,will result in a(n)_ in equilibrium price and a(n)_ in equilibrium quantity.

Use the following to answer question: -(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be excess demand for the good at a price of P₃.

Which factor would cause a DECREASE in the supply of a good?

Rice and potatoes are substitutes in consumption.If the price of rice rises and there is a bumper crop of potatoes,in the market for potatoes one would expect the equilibrium price to _ and the equilibrium quantity to _.

Which factor will raise the price of milk?

Which two goods are most likely substitutes in consumption?

A decrease in the price of a good will generally result in a(n):

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

The demand for a good will increase if:

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

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units.Supply in this market is upward sloping.If the price of good Y is $12:

Suppose there is an excess supply of chemical engineers in India.Over time,the salaries for chemical engineers will fall in India.

Use the following to answer question: -(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If there is an increase in preference for coconuts,it will be represented in the figure as a:

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:

Use the following to answer question: -(Figure: The Supply of Online Movie Rentals)Use Figure: The Supply of Online Movie Rentals.A decrease in the price of online movies sold by movie producers to rental outlets like Amazon and Apple would result in a change illustrated by the move from:

A decrease in the price of a good will result in:

Which factor will NOT cause an increase in the supply of cornflakes?

If supply is upward sloping,an increase in demand,all other things unchanged,will result in a(n)_____ in equilibrium price and a(n)_____ in equilibrium quantity.

Use the following to answer question: -(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be excess demand for the good at a price of P3.

Which factor would cause a DECREASE in the supply of a good?

Rice and potatoes are substitutes in consumption.If the price of rice rises and there is a bumper crop of potatoes,in the market for potatoes one would expect the equilibrium price to _____ and the equilibrium quantity to _____.

Which factor will raise the price of milk?

Which two goods are most likely substitutes in consumption?

A decrease in the price of a good will generally result in a(n):

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

The demand for a good will increase if:

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

If supply is upward sloping,an increase in demand,all other things unchanged,will result in a(n)_ in equilibrium price and a(n)_ in equilibrium quantity.

Use the following to answer question: -(Figure: Supply,Demand,and Equilibrium)Use Figure: Supply,Demand,and Equilibrium.In the figure,there will be excess demand for the good at a price of P₃.

Rice and potatoes are substitutes in consumption.If the price of rice rises and there is a bumper crop of potatoes,in the market for potatoes one would expect the equilibrium price to _ and the equilibrium quantity to _.