Question 1

A decrease in the price of eggs will result in an increase in the:

Accepted Answer

A) demand for eggs. 
B) supply of eggs. 
C) quantity of eggs supplied. 
D) quantity of eggs demanded. 
A) demand for eggs. 
B) supply of eggs. 
C) quantity of eggs supplied. 
D) quantity of eggs demanded.

Question 2

An increase in demand for good X can be caused by a decrease in the price of X.

Accepted Answer

A) True 
 B)False

Question 3

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 movie rentals 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 4

Use the following to answer question:  
-(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.A temporary price of $4 in this market would result in a _____ of _____ bushels per period.

Accepted Answer

A) surplus;4,000 
B) shortage;2,000 
C) shortage;4,000 
D) surplus;2,000 
A) surplus;4,000 
B) shortage;2,000 
C) shortage;4,000 
D) surplus;2,000

Question 5

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Accepted Answer

A) demand for;right 
B) demand for;left 
C) supply of;right 
D) supply of;left 
A) demand for;right 
B) demand for;left 
C) supply of;right 
D) supply of;left

Question 6

An increase in the price of sugar (an ingredient for soft drinks)and an increased concern about tooth decay caused by the consumption of soft drinks will have which result in in the soft drink market?

Accepted Answer

A) There will be an increase in both the equilibrium price and quantity. 
B) Equilibrium quantity will decrease,but equilibrium price may decrease,increase,or stay the same. 
C) There will be a decrease in both equilibrium price and quantity. 
D) Equilibrium quantity will increase,but equilibrium price may decrease,increase,or stay the same. 
A) There will be an increase in both the equilibrium price and quantity. 
B) Equilibrium quantity will decrease,but equilibrium price may decrease,increase,or stay the same. 
C) There will be a decrease in both equilibrium price and quantity. 
D) Equilibrium quantity will increase,but equilibrium price may decrease,increase,or stay the same.

Question 7

It is almost certain that the equilibrium quantity 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) the supply curve shifts to the left and demand shifts to the right. 
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) the supply curve shifts to the left and demand shifts to the right. 
D) supply shifts to the left and demand stays the same.

Question 8

Use the following to answer question:  
-(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.50,there is a:

Accepted Answer

A) surplus of 35 bags per month. 
B) shortage of 35 bags per month. 
C) surplus of 70 bags per month. 
D) shortage of 70 bags per month. 
A) surplus of 35 bags per month. 
B) shortage of 35 bags per month. 
C) surplus of 70 bags per month. 
D) shortage of 70 bags per month.

Question 9

Use the following to answer question:  
-(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S1 and D,any price lower than _____ will exert pressure for the price to _____.

Accepted Answer

A) $2.00;fall 
B) $2.50;rise 
C) $3.00;rise 
D) $2.50;fall 
A) $2.00;fall 
B) $2.50;rise 
C) $3.00;rise 
D) $2.50;fall

Question 10

Assuming that tablets are normal goods,which factor will NOT increase demand for tablets?

Accepted Answer

A) an increase in the incomes of tablet users 
B) cool new computer games that can only be played on tablets 
C) a very large company that makes tablets going out of business 
D) the price of laptop computers increasing 
A) an increase in the incomes of tablet users 
B) cool new computer games that can only be played on tablets 
C) a very large company that makes tablets going out of business 
D) the price of laptop computers increasing

Question 11

Which factor would cause an INCREASE in the supply of a good?

Accepted Answer

A) input prices rising 
B) a fall in the price of the good 
C) an increase in the number of sellers 
D) expectations of future price increases 
A) input prices rising 
B) a fall in the price of the good 
C) an increase in the number of sellers 
D) expectations of future price increases

Question 12

The typical supply curve illustrates that:

Accepted Answer

A) other things equal,the quantity supplied for a good is inversely related to the price of a good. 
B) other things equal,the supply of the good creates its own demand for the good. 
C) other things equal,the quantity supplied for a good is positively related to the price of a good. 
D) price and quantity supplied are unrelated. 
A) other things equal,the quantity supplied for a good is inversely related to the price of a good. 
B) other things equal,the supply of the good creates its own demand for the good. 
C) other things equal,the quantity supplied for a good is positively related to the price of a good. 
D) price and quantity supplied are unrelated.

Question 13

Which factor is MOST likely to shift the supply of milk to the right?

Accepted Answer

A) a tax on each gallon of milk produced 
B) an increase in household income,milk being a normal good 
C) a decrease in the price of feed given to dairy cows 
D) the bankruptcy of many small dairy farms 
A) a tax on each gallon of milk produced 
B) an increase in household income,milk being a normal good 
C) a decrease in the price of feed given to dairy cows 
D) the bankruptcy of many small dairy farms

Question 14

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 vast new oilfields are discovered offshore of California and gasoline prices fall.Which panel BEST describes how this will affect the market for sport utility vehicles,a complement in consumption to gasoline?

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 15

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 scientists discover that eating asparagus slows the aging process.Which panel BEST describes how this will affect the market for asparagus?

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

Which factor would cause an INCREASE in the supply of a good?

Accepted Answer

A) an increase in input prices 
B) suppliers' expectations of higher prices in the future 
C) an increase in the price of the good 
D) a decrease in the price of resources used in production 
A) an increase in input prices 
B) suppliers' expectations of higher prices in the future 
C) an increase in the price of the good 
D) a decrease in the price of resources used in production

Question 17

Which factor is NOT a determinant of supply?

Accepted Answer

A) expectations regarding future prices 
B) the technology of production 
C) the cost of production 
D) consumer tastes 
A) expectations regarding future prices 
B) the technology of production 
C) the cost of production 
D) consumer tastes

Question 18

Markets that are characterized by many buyers and many sellers are:

Accepted Answer

A) inefficient. 
B) competitive. 
C) foreign. 
D) monopolies. 
A) inefficient. 
B) competitive. 
C) foreign. 
D) monopolies.

Question 19

Which statement is TRUE of an inferior good?

Accepted Answer

A) When income increases,demand remains unchanged. 
B) When income increases,demand decreases. 
C) When income increases,demand increases. 
D) Income and demand are unrelated. 
A) When income increases,demand remains unchanged. 
B) When income increases,demand decreases. 
C) When income increases,demand increases. 
D) Income and demand are unrelated.

Question 20

In the market for grass-fed beef,what would cause a price increase?

Accepted Answer

A) The price of chicken decreases. 
B) Doctors tell patients that beef is full of saturated fat that causes heart attacks. 
C) The prices of grass and corn increase. 
D) There is a movement in the United States toward vegetarianism. 
A) The price of chicken decreases. 
B) Doctors tell patients that beef is full of saturated fat that causes heart attacks. 
C) The prices of grass and corn increase. 
D) There is a movement in the United States toward vegetarianism.

A decrease in the price of eggs will result in an increase in the:

An increase in demand for good X can be caused by a decrease in the price of X.

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 movie rentals would result in a change illustrated by the move from:

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.A temporary price of $4 in this market would result in a _ of _ bushels per period.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _ Blu-ray players shifting to the _.

An increase in the price of sugar (an ingredient for soft drinks)and an increased concern about tooth decay caused by the consumption of soft drinks will have which result in in the soft drink market?

It is almost certain that the equilibrium quantity will fall when:

Use the following to answer question: -(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.50,there is a:

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _ will exert pressure for the price to _.

Assuming that tablets are normal goods,which factor will NOT increase demand for tablets?

Which factor would cause an INCREASE in the supply of a good?

The typical supply curve illustrates that:

Which factor is MOST likely to shift the supply of milk to the right?

Which factor would cause an INCREASE in the supply of a good?

Which factor is NOT a determinant of supply?

Markets that are characterized by many buyers and many sellers are:

Which statement is TRUE of an inferior good?

In the market for grass-fed beef,what would cause a price increase?

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

A decrease in the price of eggs will result in an increase in the:

An increase in demand for good X can be caused by a decrease in the price of X.

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 movie rentals would result in a change illustrated by the move from:

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.A temporary price of $4 in this market would result in a _____ of _____ bushels per period.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

An increase in the price of sugar (an ingredient for soft drinks)and an increased concern about tooth decay caused by the consumption of soft drinks will have which result in in the soft drink market?

It is almost certain that the equilibrium quantity will fall when:

Use the following to answer question: -(Table: The Market for Chocolate-Covered Peanuts)Use Table: The Market for Chocolate-Covered Peanuts.If the price of chocolate-covered peanuts is $0.50,there is a:

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S1 and D,any price lower than _____ will exert pressure for the price to _____.

Assuming that tablets are normal goods,which factor will NOT increase demand for tablets?

Which factor would cause an INCREASE in the supply of a good?

The typical supply curve illustrates that:

Which factor is MOST likely to shift the supply of milk to the right?

Which factor would cause an INCREASE in the supply of a good?

Which factor is NOT a determinant of supply?

Markets that are characterized by many buyers and many sellers are:

Which statement is TRUE of an inferior good?

In the market for grass-fed beef,what would cause a price increase?

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.A temporary price of $4 in this market would result in a _ of _ bushels per period.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _ Blu-ray players shifting to the _.

Use the following to answer question: -(Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.Given the initial equilibrium of S₁ and D,any price lower than _ will exert pressure for the price to _.