Question 1

A turnip is an inferior good if

Accepted Answer

A) an increase in the price of a turnip decreases the quantity of turnips that consumers want to buy. 
B) an increase in income decreases the demand for turnips. 
C) an increase in income increases the demand for turnips. 
D) turnips violate the law of demand. 
E) turnips are a low quality good. 
A) an increase in the price of a turnip decreases the quantity of turnips that consumers want to buy. 
B) an increase in income decreases the demand for turnips. 
C) an increase in income increases the demand for turnips. 
D) turnips violate the law of demand. 
E) turnips are a low quality good.

Question 2

If A is an inferior good and consumer income rises,the demand for A

Accepted Answer

A) increases,and the equilibrium price and the equilibrium quantity increase. 
B) increases and the equilibrium price rises,but the equilibrium quantity decreases. 
C) decreases,and the equilibrium price and the equilibrium quantity decrease. 
D) decreases and the equilibrium price falls,but the equilibrium quantity increases. 
E) decreases,the equilibrium price rises,and the equilibrium quantity decreases. 
A) increases,and the equilibrium price and the equilibrium quantity increase. 
B) increases and the equilibrium price rises,but the equilibrium quantity decreases. 
C) decreases,and the equilibrium price and the equilibrium quantity decrease. 
D) decreases and the equilibrium price falls,but the equilibrium quantity increases. 
E) decreases,the equilibrium price rises,and the equilibrium quantity decreases.

Question 3

If we observe a rise in the equilibrium price of good A,we know that the demand for A has

Accepted Answer

A) increased or the supply of A has decreased or both. 
B) increased or the supply of A has increased or both. 
C) decreased or the supply of A has increased or both. 
D) decreased or the supply of A has decreased or both. 
E) not changed. 
A) increased or the supply of A has decreased or both. 
B) increased or the supply of A has increased or both. 
C) decreased or the supply of A has increased or both. 
D) decreased or the supply of A has decreased or both. 
E) not changed.

Question 4

Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU
  
-Refer to Table 3.5.2.A premature frost destroys half the coffee trees.This change would be represented as a

Accepted Answer

A) leftward shift of the demand curve. 
B) rightward shift of the demand curve. 
C) leftward shift of the supply curve. 
D) rightward shift of the supply curve. 
E) movement down along the supply curve. 
A) leftward shift of the demand curve. 
B) rightward shift of the demand curve. 
C) leftward shift of the supply curve. 
D) rightward shift of the supply curve. 
E) movement down along the supply curve.

Question 5

Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU
  
-Refer to Table 3.5.2.If the price is set at $1.30 per cup,there is ________ leading to a price ________.

Accepted Answer

A) a shortage;rise 
B) a shortage;fall 
C) a surplus;rise 
D) a surplus;fall 
E) an equilibrium;rise 
A) a shortage;rise 
B) a shortage;fall 
C) a surplus;rise 
D) a surplus;fall 
E) an equilibrium;rise

Question 6

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result,the equilibrium price of

Accepted Answer

A) all computers rises. 
B) rival software packages falls leading to an overall increase in the equilibrium quantity of these packages. 
C) all software packages rises. 
D) Einstein computers rises,accompanied by an increase in the equilibrium quantity. 
E) Einstein computers rises,leading to a decrease in the equilibrium quantity. 
A) all computers rises. 
B) rival software packages falls leading to an overall increase in the equilibrium quantity of these packages. 
C) all software packages rises. 
D) Einstein computers rises,accompanied by an increase in the equilibrium quantity. 
E) Einstein computers rises,leading to a decrease in the equilibrium quantity.

Question 7

The demand curve slopes downward to the right because

Accepted Answer

A) an increase in income leads to increased consumption. 
B) when expected future prices rise,the quantity demanded increases. 
C) of the substitution effect and the income effect. 
D) of comparative advantage. 
E) as income rises,the quantity demanded increases. 
A) an increase in income leads to increased consumption. 
B) when expected future prices rise,the quantity demanded increases. 
C) of the substitution effect and the income effect. 
D) of comparative advantage. 
E) as income rises,the quantity demanded increases.

Question 8

Use the figure below to answer the following questions.   Figure 3.4.2
-Refer to Figure 3.4.2.When the price is $10 a unit,

Accepted Answer

A) consumers will buy 100 units of output. 
B) consumers will buy 500 units of output. 
C) consumers will buy nothing. 
D) a shortage occurs. 
E) the surplus is zero. 
A) consumers will buy 100 units of output. 
B) consumers will buy 500 units of output. 
C) consumers will buy nothing. 
D) a shortage occurs. 
E) the surplus is zero.

A turnip is an inferior good if

If A is an inferior good and consumer income rises,the demand for A

If we observe a rise in the equilibrium price of good A,we know that the demand for A has

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.A premature frost destroys half the coffee trees.This change would be represented as a

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.If the price is set at $1.30 per cup,there is leading to a price .

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result,the equilibrium price of

The demand curve slopes downward to the right because

Use the figure below to answer the following questions. Figure 3.4.2 -Refer to Figure 3.4.2.When the price is $10 a unit,

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 3: Demand and Supply

A turnip is an inferior good if

If A is an inferior good and consumer income rises,the demand for A

If we observe a rise in the equilibrium price of good A,we know that the demand for A has

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.A premature frost destroys half the coffee trees.This change would be represented as a

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.If the price is set at $1.30 per cup,there is ________ leading to a price ________.

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result,the equilibrium price of

The demand curve slopes downward to the right because

Use the figure below to answer the following questions. Figure 3.4.2 -Refer to Figure 3.4.2.When the price is $10 a unit,

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.If the price is set at $1.30 per cup,there is leading to a price .