Question 1

When a market is in equilibrium,the quantity:

Accepted Answer

A) demanded is equal to zero. 
B) demanded is equal to quantity supplied. 
C) demanded is greater than quantity supplied. 
D) supplied is zero. 
A) demanded is equal to zero. 
B) demanded is equal to quantity supplied. 
C) demanded is greater than quantity supplied. 
D) supplied is zero.

Question 2

Use the following to answer question:  
-(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If there is an increase in demand of 2,000 bushels per period at each price,the equilibrium price and quantity will be _____ and _____ bushels per period,respectively.

Accepted Answer

A) $5;5,000 
B) $6;7,000 
C) $7;7,000 
D) $8;8,000 
A) $5;5,000 
B) $6;7,000 
C) $7;7,000 
D) $8;8,000

Question 3

Which statement is CORRECT?

Accepted Answer

A) A change in demand is a movement along the demand curve,and a change in quantity demanded is a shift of the demand curve. 
B) Both a change in quantity demanded and a change in demand are movements along the demand curve,only in different directions. 
C) Both a change in quantity demanded and a change in demand are shifts of the demand curve,only in different directions. 
D) A change in quantity demanded is a movement along the demand curve,and a change in demand is a shift of the demand curve. 
A) A change in demand is a movement along the demand curve,and a change in quantity demanded is a shift of the demand curve. 
B) Both a change in quantity demanded and a change in demand are movements along the demand curve,only in different directions. 
C) Both a change in quantity demanded and a change in demand are shifts of the demand curve,only in different directions. 
D) A change in quantity demanded is a movement along the demand curve,and a change in demand is a shift of the demand curve.

Question 4

Use the following to answer question:  
-(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If coconuts are a normal good and the income level of consumers falls,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 C 
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 C

Question 5

Use the following to answer question:  
-(Table: Competitive Market for Good Z)Use Table: Competitive Market for Good Z.If the supply curve for good Z is linear,it can be expressed as:

Accepted Answer

A) Qs = 3P. 
B) Qs = 50 - 2P. 
C) Qs = 100 - 2P. 
D) Qs = Qd 
A) Qs = 3P. 
B) Qs = 50 - 2P. 
C) Qs = 100 - 2P. 
D) Qs = Qd

Question 6

_____ illustrates an inverse relationship between price and quantity.

Accepted Answer

A) A demand curve 
B) A supply curve 
C) A production possibility frontier 
D) Equilibrium 
A) A demand curve 
B) A supply curve 
C) A production possibility frontier 
D) Equilibrium

Question 7

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

Question 8

After graduation from college,you might have an increase in your income from a new job.If as a result you decide that you will purchase more T-bone steak and less hamburger,then for you hamburger is a(n)_____ good.

Accepted Answer

A) normal 
B) substitute 
C) complementary 
D) inferior 
A) normal 
B) substitute 
C) complementary 
D) inferior

Question 9

Which influence does NOT shift the supply curve?

Accepted Answer

A) people deciding that they want to buy more of the product 
B) a decrease in the price firms expect to receive in the future 
C) a rise in the wages paid to workers 
D) the development of a new production technology 
A) people deciding that they want to buy more of the product 
B) a decrease in the price firms expect to receive in the future 
C) a rise in the wages paid to workers 
D) the development of a new production technology

Question 10

Over the past several years,consumers have had an increasing interest in getting tattoos.This means that the _____ for tattoos has _____.

Accepted Answer

A) quantity demanded;increased 
B) demand;decreased 
C) demand;increased 
D) quantity demanded;decreased 
A) quantity demanded;increased 
B) demand;decreased 
C) demand;increased 
D) quantity demanded;decreased

Question 11

Use the following to answer question:  
-(Figure: The Blu-ray Disc Rental Market)Use Figure: The Blu-ray Disc Rental Market.At a rental price of $3,there will be:

Accepted Answer

A) equilibrium in the rental market for Blu-ray discs. 
B) an increase in demand. 
C) an excess supply of 40 Blu-ray disc rentals. 
D) an excess demand of 40 Blu-ray disc rentals. 
A) equilibrium in the rental market for Blu-ray discs. 
B) an increase in demand. 
C) an excess supply of 40 Blu-ray disc rentals. 
D) an excess demand of 40 Blu-ray disc rentals.

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 oil becomes more expensive.Which panel BEST describes how this will affect the market for gasoline,which is made from oil?

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

If in a competitive market the quantity supplied exceeds the quantity demanded,we expect prices to:

Accepted Answer

A) stay the same. 
B) rise. 
C) fall. 
D) rise first,then fall when demand decreases. 
A) stay the same. 
B) rise. 
C) fall. 
D) rise first,then fall when demand decreases.

Question 14

The market equilibrium is found at the:

Accepted Answer

A) price where quantity demanded exceeds quantity supplied. 
B) price where quantity demanded equals quantity supplied. 
C) price where quantity supplied exceeds quantity demanded. 
D) highest price possible in the market. 
A) price where quantity demanded exceeds quantity supplied. 
B) price where quantity demanded equals quantity supplied. 
C) price where quantity supplied exceeds quantity demanded. 
D) highest price possible in the market.

Question 15

The market for soybeans is initially in equilibrium,with an upward-sloping supply curve and a downward-sloping demand curve.Because of mad cow disease,producers decide to replace bone meal with soybeans in cattle feed.The likely effect is that the:

Accepted Answer

A) equilibrium price and quantity of soybeans will rise. 
B) equilibrium price and quantity of soybeans will fall. 
C) equilibrium quantity of soybeans will rise,but we can't determine what will happen to the equilibrium price. 
D) equilibrium price of soybeans will rise,but we can't determine what will happen to the equilibrium quantity. 
A) equilibrium price and quantity of soybeans will rise. 
B) equilibrium price and quantity of soybeans will fall. 
C) equilibrium quantity of soybeans will rise,but we can't determine what will happen to the equilibrium price. 
D) equilibrium price of soybeans will rise,but we can't determine what will happen to the equilibrium quantity.

Question 16

The law of demand states that,other things equal,as the price:

Accepted Answer

A) increases,the quantity demanded will increase. 
B) decreases,the demand curve will shift to the right. 
C) increases,demand will decrease. 
D) increases,the quantity demanded will decrease. 
A) increases,the quantity demanded will increase. 
B) decreases,the demand curve will shift to the right. 
C) increases,demand will decrease. 
D) increases,the quantity demanded will decrease.

Question 17

Which factor ALWAYS results in an increase in price and quantity?

Accepted Answer

A) an increase in supply and a decrease in demand 
B) an increase in demand with no change in supply 
C) an increase in supply with no change in demand 
D) a decrease in demand and supply 
A) an increase in supply and a decrease in demand 
B) an increase in demand with no change in supply 
C) an increase in supply with no change in demand 
D) a decrease in demand and supply

Question 18

An increase in income will always shift the demand curve to the right.

Accepted Answer

A) True 
 B)False

Question 19

Use the following to answer question:  
-(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If fish is a substitute good for coconuts and the price of fish increases,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 20

(Table: The Lemonade Market)Use Table: The Lemonade Market.If the price of lemonade is $1.25 per cup,we expect to see a:

Accepted Answer

A) rising price to eliminate the shortage. 
B) rising price to eliminate the surplus. 
C) falling price to eliminate the shortage. 
D) market in equilibrium. 
A) rising price to eliminate the shortage. 
B) rising price to eliminate the surplus. 
C) falling price to eliminate the shortage. 
D) market in equilibrium.

Exam 3: Supply and Demand

When a market is in equilibrium,the quantity:

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If there is an increase in demand of 2,000 bushels per period at each price,the equilibrium price and quantity will be _____ and _____ bushels per period,respectively.

Which statement is CORRECT?

Use the following to answer question: -(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If coconuts are a normal good and the income level of consumers falls,it will be represented in the figure as a:

Use the following to answer question: -(Table: Competitive Market for Good Z)Use Table: Competitive Market for Good Z.If the supply curve for good Z is linear,it can be expressed as:

_____ illustrates an inverse relationship between price and quantity.

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

After graduation from college,you might have an increase in your income from a new job.If as a result you decide that you will purchase more T-bone steak and less hamburger,then for you hamburger is a(n)_____ good.

Which influence does NOT shift the supply curve?

Over the past several years,consumers have had an increasing interest in getting tattoos.This means that the _____ for tattoos has _____.

Use the following to answer question: -(Figure: The Blu-ray Disc Rental Market)Use Figure: The Blu-ray Disc Rental Market.At a rental price of $3,there will be:

If in a competitive market the quantity supplied exceeds the quantity demanded,we expect prices to:

The market equilibrium is found at the:

The market for soybeans is initially in equilibrium,with an upward-sloping supply curve and a downward-sloping demand curve.Because of mad cow disease,producers decide to replace bone meal with soybeans in cattle feed.The likely effect is that the:

The law of demand states that,other things equal,as the price:

Which factor ALWAYS results in an increase in price and quantity?

An increase in income will always shift the demand curve to the right.

Use the following to answer question: -(Figure: Demand for Coconuts)Use Figure: Demand for Coconuts.If fish is a substitute good for coconuts and the price of fish increases,it will be represented in the figure as a:

(Table: The Lemonade Market)Use Table: The Lemonade Market.If the price of lemonade is $1.25 per cup,we expect to see a:

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 there is an increase in demand of 2,000 bushels per period at each price,the equilibrium price and quantity will be _ and _ bushels per period,respectively.

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

Over the past several years,consumers have had an increasing interest in getting tattoos.This means that the _ for tattoos has _.