Question 1

Which of the following will shift the supply curve of good X rightward?

Accepted Answer

A) a decrease in the wages of workers employed to produce good X 
B) an increase in the cost of capital used to produce good X 
C) an increase in the price of energy 
D) a decrease in the number of suppliers of good X 
E) the price of Y,a substitute in production for good X,rises 
A) a decrease in the wages of workers employed to produce good X 
B) an increase in the cost of capital used to produce good X 
C) an increase in the price of energy 
D) a decrease in the number of suppliers of good X 
E) the price of Y,a substitute in production for good X,rises

Question 2

Use the figure below to answer the following questions.   Figure 3.4.1
-At price P1 in Figure 3.4.1

Accepted Answer

A) there is a surplus in the amount of Q4 - Q2. 
B) there is a shortage in the amount of Q4 - Q2. 
C) there is a tendency for the price to fall. 
D) the equilibrium quantity is Q2. 
E) the equilibrium quantity is Q4. 
A) there is a surplus in the amount of Q4 - Q2. 
B) there is a shortage in the amount of Q4 - Q2. 
C) there is a tendency for the price to fall. 
D) the equilibrium quantity is Q2. 
E) the equilibrium quantity is Q4.

Question 3

Use the table below to answer the following questions.
Table 3.4.1
  
-Refer to Table 3.4.1.If the price is $7,then the surplus is

Accepted Answer

A) 360 units. 
B) 400 units. 
C) 160 units. 
D) zero units. 
E) 290 units. 
A) 360 units. 
B) 400 units. 
C) 160 units. 
D) zero units. 
E) 290 units.

Question 4

Use the figure below to answer the following questions.   Figure 3.5.2
Original equilibrium at 1.
-Refer to Figure 3.5.2,which represents the market for beans.If the price of peas,a substitute for beans,rises,and the cost of producing beans decreases,what is the new beans equilibrium,ceteris paribus?

Accepted Answer

A) 2 
B) 3 
C) 9 
D) 4 
E) 7 
A) 2 
B) 3 
C) 9 
D) 4 
E) 7

Question 5

The opportunity cost of a hot dog in terms of hamburgers is

Accepted Answer

A) the ratio of the slope of the supply curve of hot dogs to the slope of the supply curve of hamburgers. 
B) the ratio of the money price of a hot dog to the money price of a hamburger. 
C) the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
D) the money price of a hot dog minus the money price of a hamburger. 
E) smaller in the winter than in the summer. 
A) the ratio of the slope of the supply curve of hot dogs to the slope of the supply curve of hamburgers. 
B) the ratio of the money price of a hot dog to the money price of a hamburger. 
C) the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
D) the money price of a hot dog minus the money price of a hamburger. 
E) smaller in the winter than in the summer.

Question 6

Which one of the following would not shift the supply curve of good X to the right?

Accepted Answer

A) a fall in the price of the factors of production used in producing X 
B) a technological change that increases production of X 
C) a rise in the price of X 
D) an increase in the price of Y,a complement in production of X 
E) a fall in the price of Y,a substitute in production of X 
A) a fall in the price of the factors of production used in producing X 
B) a technological change that increases production of X 
C) a rise in the price of X 
D) an increase in the price of Y,a complement in production of X 
E) a fall in the price of Y,a substitute in production of X

Question 7

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
  
-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.The quantity of t-shirts demanded doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Accepted Answer

A) 12;240 
B) 8;400 
C) 16;400 
D) 12;120 
E) 16;200 
A) 12;240 
B) 8;400 
C) 16;400 
D) 12;120 
E) 16;200

Question 8

Which one of the following correctly describes how price adjustment eliminates a shortage?

Accepted Answer

A) As the price rises,the quantity demanded decreases and the quantity supplied increases. 
B) As the price rises,the quantity demanded increases and the quantity supplied decreases. 
C) As the price falls,the quantity demanded decreases and the quantity supplied increases. 
D) As the price falls,the quantity demanded increases and the quantity supplied decreases. 
E) As the price falls,the quantity demanded increases and the quantity supplied increases. 
A) As the price rises,the quantity demanded decreases and the quantity supplied increases. 
B) As the price rises,the quantity demanded increases and the quantity supplied decreases. 
C) As the price falls,the quantity demanded decreases and the quantity supplied increases. 
D) As the price falls,the quantity demanded increases and the quantity supplied decreases. 
E) As the price falls,the quantity demanded increases and the quantity supplied increases.

Question 9

Which market is an example of a market for factors of production?

Accepted Answer

A) furniture market 
B) apple market 
C) automobile market 
D) foreign exchange market 
E) computer programmer market 
A) furniture market 
B) apple market 
C) automobile market 
D) foreign exchange market 
E) computer programmer market

Question 10

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium.Pepsi is a substitute for coffee;cream is a complement of coffee.Consider the market for coffee.Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1.A technological improvement lowers the cost of producing coffee.At the same time,preferences for coffee decrease.The equilibrium quantity of coffee

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) increases or decreases depending on whether the price of coffee falls or rises. 
E) increases,decreases,or remains the same depending on the relative shifts of the demand and supply curves. 
A) increases. 
B) decreases. 
C) remains the same. 
D) increases or decreases depending on whether the price of coffee falls or rises. 
E) increases,decreases,or remains the same depending on the relative shifts of the demand and supply curves.

Question 11

Use the figure below to answer the following questions.   Figure 3.2.2
-Refer to Figure 3.2.2.Which one of the following represents a decrease in quantity demanded?

Accepted Answer

A) a shift from D1 to D2 
B) a shift from D2 to D1 
C) a movement from A to B 
D) a movement from the origin to any point on D1 
E) a movement from B to A 
A) a shift from D1 to D2 
B) a shift from D2 to D1 
C) a movement from A to B 
D) a movement from the origin to any point on D1 
E) a movement from B to A

Question 12

When the price of good A rises,the supply curve of good B shifts rightward.Which of the following statements are true?

Accepted Answer

A) A and B are substitutes. 
B) A and B are complements. 
C) A and B are substitutes in production. 
D) A and B are complements in production. 
E) A is a factor used in the production of B. 
A) A and B are substitutes. 
B) A and B are complements. 
C) A and B are substitutes in production. 
D) A and B are complements in production. 
E) A is a factor used in the production of B.

Question 13

The demand curve is P = 800 - 25QD.The supply curve is P = 500 + 25QS.At market equilibrium,the equilibrium quantity is ________ and the equilibrium price is ________.

Accepted Answer

A) 25;0.17 
B) 650;6.0 
C) 0.17;25 
D) 6.0;650 
E) 1,300;zero 
A) 25;0.17 
B) 650;6.0 
C) 0.17;25 
D) 6.0;650 
E) 1,300;zero

Question 14

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
  
-Refer to Table 3.5.1.Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns.As a result,demand decreases by 100 heaters at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 70;450 
B) 70;350 
C) 50;450 
D) 50;350 
E) 60;400 
A) 70;450 
B) 70;350 
C) 50;450 
D) 50;350 
E) 60;400

Question 15

The price at which sellers are not willing to supply a good is $70 a unit.As the quantity supplied of the good increases by one unit,the minimum price at which someone is willing to sell that unit increased by $5.What is the equation of this supply curve?

Accepted Answer

A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS 
A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS

Question 16

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium.Pepsi is a substitute for coffee;cream is a complement of coffee.Consider the market for coffee.Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1.If coffee is a normal good,then a decrease in income will

Accepted Answer

A) increase the price and the quantity demanded of coffee. 
B) increase the price and the quantity supplied of coffee. 
C) decrease the price and the quantity demanded of coffee. 
D) decrease the price and the quantity supplied of coffee. 
E) have no effect on the market for coffee. 
A) increase the price and the quantity demanded of coffee. 
B) increase the price and the quantity supplied of coffee. 
C) decrease the price and the quantity demanded of coffee. 
D) decrease the price and the quantity supplied of coffee. 
E) have no effect on the market for coffee.

Question 17

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

Accepted Answer

A) "Since our competitors raised their prices,our sales have doubled." 
B) "It has been an unusually harsh winter;our sales of wool scarves are up from last year." 
C) "We decided to cut our prices,and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "People are expecting a harsh winter next year,so the sales of our winter coats have increased." 
A) "Since our competitors raised their prices,our sales have doubled." 
B) "It has been an unusually harsh winter;our sales of wool scarves are up from last year." 
C) "We decided to cut our prices,and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "People are expecting a harsh winter next year,so the sales of our winter coats have increased."

Question 18

The y- axis intercept of the demand curve is 60 and the slope is - 8.The equation of the demand curve is

Accepted Answer

A) P = 8 - 60QD. 
B) P = 60 - 8QD. 
C) QD = 60 - 8P. 
D) P = 60 + 8QD. 
E) QD = 60 + 8P. 
A) P = 8 - 60QD. 
B) P = 60 - 8QD. 
C) QD = 60 - 8P. 
D) P = 60 + 8QD. 
E) QD = 60 + 8P.

Question 19

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
  
-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.This would be represented as a

Accepted Answer

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

Question 20

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
  
-Refer to Table 3.5.1.Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns.As a result,demand decreases by 100 heaters at each price.Simultaneously,the cost of production rises,and supply decreases by 100 heaters at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 70;450 
B) 70;350 
C) 50;450 
D) 50;350 
E) 60;300 
A) 70;450 
B) 70;350 
C) 50;450 
D) 50;350 
E) 60;300

Which of the following will shift the supply curve of good X rightward?

Use the figure below to answer the following questions. Figure 3.4.1 -At price P₁ in Figure 3.4.1

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $7,then the surplus is

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beans.If the price of peas,a substitute for beans,rises,and the cost of producing beans decreases,what is the new beans equilibrium,ceteris paribus?

The opportunity cost of a hot dog in terms of hamburgers is

Which one of the following would not shift the supply curve of good X to the right?

Which one of the following correctly describes how price adjustment eliminates a shortage?

Which market is an example of a market for factors of production?

Use the figure below to answer the following questions. Figure 3.2.2 -Refer to Figure 3.2.2.Which one of the following represents a decrease in quantity demanded?

When the price of good A rises,the supply curve of good B shifts rightward.Which of the following statements are true?

The demand curve is P = 800 - 25Q_D.The supply curve is P = 500 + 25Q_S.At market equilibrium,the equilibrium quantity is and the equilibrium price is .

The price at which sellers are not willing to supply a good is $70 a unit.As the quantity supplied of the good increases by one unit,the minimum price at which someone is willing to sell that unit increased by $5.What is the equation of this supply curve?

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

The y- axis intercept of the demand curve is 60 and the slope is - 8.The equation of the demand curve is

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

Which of the following will shift the supply curve of good X rightward?

Use the figure below to answer the following questions. Figure 3.4.1 -At price P1 in Figure 3.4.1

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $7,then the surplus is

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beans.If the price of peas,a substitute for beans,rises,and the cost of producing beans decreases,what is the new beans equilibrium,ceteris paribus?

The opportunity cost of a hot dog in terms of hamburgers is

Which one of the following would not shift the supply curve of good X to the right?

Which one of the following correctly describes how price adjustment eliminates a shortage?

Which market is an example of a market for factors of production?

Use the figure below to answer the following questions. Figure 3.2.2 -Refer to Figure 3.2.2.Which one of the following represents a decrease in quantity demanded?

When the price of good A rises,the supply curve of good B shifts rightward.Which of the following statements are true?

The demand curve is P = 800 - 25QD.The supply curve is P = 500 + 25QS.At market equilibrium,the equilibrium quantity is ________ and the equilibrium price is ________.

The price at which sellers are not willing to supply a good is $70 a unit.As the quantity supplied of the good increases by one unit,the minimum price at which someone is willing to sell that unit increased by $5.What is the equation of this supply curve?

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

The y- axis intercept of the demand curve is 60 and the slope is - 8.The equation of the demand curve is

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. Figure 3.4.1 -At price P₁ in Figure 3.4.1

The demand curve is P = 800 - 25Q_D.The supply curve is P = 500 + 25Q_S.At market equilibrium,the equilibrium quantity is and the equilibrium price is .