Question 1

Suppose that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Accepted Answer

A) The price will increase,but quantity may increase,decrease,or stay the same. 
B) The price will decrease,but quantity may increase,decrease,or stay the same. 
C) The price will decrease and quantity will decrease. 
D) The price will increase and quantity will increase. 
A) The price will increase,but quantity may increase,decrease,or stay the same. 
B) The price will decrease,but quantity may increase,decrease,or stay the same. 
C) The price will decrease and quantity will decrease. 
D) The price will increase and quantity will increase.

Question 2

Use the following to answer question:  
-(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If a price of $10 temporarily exists in this market,a _____ of _____ bushels per period will result.

Accepted Answer

A) shortage;10,000 
B) shortage;8,000 
C) surplus;8,000 
D) surplus;4,000 
A) shortage;10,000 
B) shortage;8,000 
C) surplus;8,000 
D) surplus;4,000

Question 3

If goods A and Z are complements,an increase in the price of good Z will:

Accepted Answer

A) increase the demand for good A. 
B) decrease the demand for good A. 
C) decrease the demand for good Z. 
D) decrease the demand for both good A and good Z. 
A) increase the demand for good A. 
B) decrease the demand for good A. 
C) decrease the demand for good Z. 
D) decrease the demand for both good A and good Z.

Question 4

Suppose there is an excess demand for water in Florida.This means that we can expect the price of water to increase in Florida over time.

Accepted Answer

A) True 
 B)False

Question 5

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The figure shows how supply and demand might shift in response to specific events.Suppose the technology for producing ethanol fuel improves.Which panel BEST describes how this will affect the market for ethanol?

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 6

The law of demand is illustrated by a demand curve that is:

Accepted Answer

A) horizontal. 
B) downward sloping. 
C) vertical. 
D) upward sloping. 
A) horizontal. 
B) downward sloping. 
C) vertical. 
D) upward sloping.

Question 7

A decrease in demand and a decrease in supply will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.

Accepted Answer

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

Question 8

A shift of the demand curve for thin-crust pizza would NOT be caused by a change in:

Accepted Answer

A) buyers' incomes. 
B) the price of thin-crust pizza. 
C) the price of thick-crust pizza. 
D) the popularity of thin-crust pizza. 
A) buyers' incomes. 
B) the price of thin-crust pizza. 
C) the price of thick-crust pizza. 
D) the popularity of thin-crust pizza.

Question 9

Use the following to answer question:  
-(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.A factor that may have changed supply from S1 to S2 is:

Accepted Answer

A) better technology in the production of gasoline. 
B) increased demand. 
C) lower labor productivity in gasoline production. 
D) increased prices of substitutes in production for gasoline. 
A) better technology in the production of gasoline. 
B) increased demand. 
C) lower labor productivity in gasoline production. 
D) increased prices of substitutes in production for gasoline.

Question 10

If the demand for tires goes down when the price of gas goes up,then tires and gas are:

Accepted Answer

A) substitutes. 
B) complements. 
C) both expensive. 
D) both inexpensive. 
A) substitutes. 
B) complements. 
C) both expensive. 
D) both inexpensive.

Question 11

Recent research suggests that certain plastic containers may have cancer-causing particles in them.As a result of this research being made public,one would expect:

Accepted Answer

A) the demand for such containers to decrease. 
B) the quantity demanded for such containers to increase. 
C) no effect. 
D) the price of the containers to change because of a movement along the demand curve. 
A) the demand for such containers to decrease. 
B) the quantity demanded for such containers to increase. 
C) no effect. 
D) the price of the containers to change because of a movement along the demand curve.

Question 12

Use the following to answer question:  
-(Figure: Shifts in Demand and Supply)Use Figure: Shifts in Demand and Supply.The figure shows how supply and demand might shift in response to specific events.Suppose the population increases.Which panel BEST describes how this will affect the market for apples?

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

It is certain that the equilibrium price will rise when the supply curve shifts to the _____ and the demand curve shifts to the _____.

Accepted Answer

A) right;right 
B) right;left 
C) left;left 
D) left;right 
A) right;right 
B) right;left 
C) left;left 
D) left;right

Question 14

For most goods,purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

Accepted Answer

A) inferior. 
B) direct. 
C) normal. 
D) indirect. 
A) inferior. 
B) direct. 
C) normal. 
D) indirect.

Question 15

If the price of a commodity increases,you can usually expect the:

Accepted Answer

A) supply to increase. 
B) quantity supplied to increase. 
C) quantity supplied to decrease. 
D) supply curve to shift to the right. 
A) supply to increase. 
B) quantity supplied to increase. 
C) quantity supplied to decrease. 
D) supply curve to shift to the right.

Question 16

Use the following to answer question:  
-(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

Accepted Answer

A) $0.80 
B) $0.60 
C) $0.40 
D) $0.30 
A) $0.80 
B) $0.60 
C) $0.40 
D) $0.30

Question 17

If the price of eggs decreased,it would probably result in _____ in the demand for bacon,a complement good.

Accepted Answer

A) a decrease 
B) an increase 
C) no change 
D) random fluctuations 
A) a decrease 
B) an increase 
C) no change 
D) random fluctuations

Question 18

It is certain that the equilibrium price will fall 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 increase. 
D) supply decreases 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 increase. 
D) supply decreases and demand stays the same.

Question 19

A negative relationship between the quantity demanded and price is called the law of:

Accepted Answer

A) demand. 
B) marginality. 
C) efficiency. 
D) supply. 
A) demand. 
B) marginality. 
C) efficiency. 
D) supply.

Question 20

Over the past few years,the technology associated with producing flat-panel televisions has improved.This has led to a(n)_____ in the _____ flat-panel televisions.

Accepted Answer

A) increase;supply of 
B) decrease;demand for 
C) decrease;supply of 
D) decrease;quantity supplied of 
A) increase;supply of 
B) decrease;demand for 
C) decrease;supply of 
D) decrease;quantity supplied of

Suppose that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If a price of $10 temporarily exists in this market,a _ of _ bushels per period will result.

If goods A and Z are complements,an increase in the price of good Z will:

Suppose there is an excess demand for water in Florida.This means that we can expect the price of water to increase in Florida over time.

The law of demand is illustrated by a demand curve that is:

A decrease in demand and a decrease in supply will lead to a(n)_ in equilibrium quantity and a(n)_ in equilibrium price.

A shift of the demand curve for thin-crust pizza would NOT be caused by a change in:

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.A factor that may have changed supply from S₁ to S₂ is:

If the demand for tires goes down when the price of gas goes up,then tires and gas are:

Recent research suggests that certain plastic containers may have cancer-causing particles in them.As a result of this research being made public,one would expect:

It is certain that the equilibrium price will rise when the supply curve shifts to the _ and the demand curve shifts to the _.

For most goods,purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

If the price of a commodity increases,you can usually expect the:

Use the following to answer question: -(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

If the price of eggs decreased,it would probably result in _____ in the demand for bacon,a complement good.

It is certain that the equilibrium price will fall when:

A negative relationship between the quantity demanded and price is called the law of:

Over the past few years,the technology associated with producing flat-panel televisions has improved.This has led to a(n)_ in the _ flat-panel televisions.

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 that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If a price of $10 temporarily exists in this market,a _____ of _____ bushels per period will result.

If goods A and Z are complements,an increase in the price of good Z will:

Suppose there is an excess demand for water in Florida.This means that we can expect the price of water to increase in Florida over time.

The law of demand is illustrated by a demand curve that is:

A decrease in demand and a decrease in supply will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.

A shift of the demand curve for thin-crust pizza would NOT be caused by a change in:

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.A factor that may have changed supply from S1 to S2 is:

If the demand for tires goes down when the price of gas goes up,then tires and gas are:

Recent research suggests that certain plastic containers may have cancer-causing particles in them.As a result of this research being made public,one would expect:

It is certain that the equilibrium price will rise when the supply curve shifts to the _____ and the demand curve shifts to the _____.

For most goods,purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes.Such goods are known as:

If the price of a commodity increases,you can usually expect the:

Use the following to answer question: -(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

If the price of eggs decreased,it would probably result in _____ in the demand for bacon,a complement good.

It is certain that the equilibrium price will fall when:

A negative relationship between the quantity demanded and price is called the law of:

Over the past few years,the technology associated with producing flat-panel televisions has improved.This has led to a(n)_____ in the _____ flat-panel televisions.

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

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If a price of $10 temporarily exists in this market,a _ of _ bushels per period will result.

A decrease in demand and a decrease in supply will lead to a(n)_ in equilibrium quantity and a(n)_ in equilibrium price.

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.A factor that may have changed supply from S₁ to S₂ is:

It is certain that the equilibrium price will rise when the supply curve shifts to the _ and the demand curve shifts to the _.

Over the past few years,the technology associated with producing flat-panel televisions has improved.This has led to a(n)_ in the _ flat-panel televisions.