Question 1

Use the table below to answer the following questions.
Table 3.4.1
  
-In Table 3.4.1,the equilibrium price is

Accepted Answer

A) $7 a unit. 
B) $5 a unit. 
C) $4 a unit. 
D) $3 a unit. 
E) $1 a unit. 
A) $7 a unit. 
B) $5 a unit. 
C) $4 a unit. 
D) $3 a unit. 
E) $1 a unit.

Question 2

Which market is an example of a market for services?

Accepted Answer

A) orange market 
B) tennis lessons market 
C) factor market 
D) foreign exchange market 
E) stock market 
A) orange market 
B) tennis lessons market 
C) factor market 
D) foreign exchange market 
E) stock market

Question 3

If we observe a fall 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.   Figure 3.4.1
-At price P3 in Figure 3.4.1,

Accepted Answer

A) this market is in equilibrium. 
B) there is a shortage in the amount of Q5 - Q1. 
C) there is a tendency for the price to rise. 
D) equilibrium quantity is Q5. 
E) there is a surplus in the amount of Q5 - Q1. 
A) this market is in equilibrium. 
B) there is a shortage in the amount of Q5 - Q1. 
C) there is a tendency for the price to rise. 
D) equilibrium quantity is Q5. 
E) there is a surplus in the amount of Q5 - Q1.

Question 5

The demand and supply model determines

Accepted Answer

A) relative prices. 
B) money prices. 
C) supply prices but not demand prices. 
D) demand prices but not supply prices. 
E) absolute prices. 
A) relative prices. 
B) money prices. 
C) supply prices but not demand prices. 
D) demand prices but not supply prices. 
E) absolute prices.

Question 6

Bottled water and health club memberships are

Accepted Answer

A) substitutes. 
B) complements. 
C) substitutes in production. 
D) complements in production. 
E) inferior goods. 
A) substitutes. 
B) complements. 
C) substitutes in production. 
D) complements in production. 
E) inferior goods.

Question 7

An increase in the price of ground beef

Accepted Answer

A) increases the demand for chicken,a substitute for ground beef. 
B) increases the demand for hamburger buns,a complement of ground beef. 
C) increases the quantity demanded of ground beef. 
D) decreases the demand for ground beef. 
E) increases the demand for ground beef. 
A) increases the demand for chicken,a substitute for ground beef. 
B) increases the demand for hamburger buns,a complement of ground beef. 
C) increases the quantity demanded of ground beef. 
D) decreases the demand for ground beef. 
E) increases the demand for ground beef.

Question 8

Use the table below to answer the following questions.
Table 3.4.1
  
-Refer to Table 3.4.1.A shortage occurs if

Accepted Answer

A) the price is $7 a unit. 
B) the price is $4 a unit. 
C) the price is $5 a unit. 
D) the price is below $4 a unit. 
E) the price is $6 a unit. 
A) the price is $7 a unit. 
B) the price is $4 a unit. 
C) the price is $5 a unit. 
D) the price is below $4 a unit. 
E) the price is $6 a unit.

Question 9

Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?

Accepted Answer

A) "Wage increases have forced us to raise our prices." 
B) "Our new,sophisticated equipment will enable us to undercut our competitors." 
C) "Raw material prices have sky-rocketed;we will have to pass the cost on to our customers." 
D) "We anticipate a big increase in demand.Our product price should rise,so we are planning for an increase in output." 
E) "New competitors in the industry are causing prices to fall." 
A) "Wage increases have forced us to raise our prices." 
B) "Our new,sophisticated equipment will enable us to undercut our competitors." 
C) "Raw material prices have sky-rocketed;we will have to pass the cost on to our customers." 
D) "We anticipate a big increase in demand.Our product price should rise,so we are planning for an increase in output." 
E) "New competitors in the industry are causing prices to fall."

Question 10

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.Suppose that the price of a designer sport t-shirt is $10.The market has ________ leading to ________.

Accepted Answer

A) an equilibrium;no change in the price 
B) a shortage;a fall in the price 
C) a shortage;a rise in the price 
D) a surplus;a fall in the price 
E) a surplus;a rise in the price 
A) an equilibrium;no change in the price 
B) a shortage;a fall in the price 
C) a shortage;a rise in the price 
D) a surplus;a fall in the price 
E) a surplus;a rise in the price

Question 11

Which of the following events leads to a rise in the price of oranges?

Accepted Answer

A) a rise in the price of apples if apples and oranges are substitutes 
B) a scientific discovery that oranges cause hair loss 
C) a decrease in income if oranges are a normal good 
D) good growing weather in Florida 
E) a technological improvement in the production of oranges 
A) a rise in the price of apples if apples and oranges are substitutes 
B) a scientific discovery that oranges cause hair loss 
C) a decrease in income if oranges are a normal good 
D) good growing weather in Florida 
E) a technological improvement in the production of oranges

Question 12

The price of a good will tend to fall if

Accepted Answer

A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true. 
A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true.

Question 13

The new method of tapping maple trees ________ the supply of maple syrup and ________ the quantity supplied of maple syrup.

Accepted Answer

A) increases;does not change 
B) increases;increases 
C) does not change;increases 
D) does not change;does not change 
E) does not change;decreases 
A) increases;does not change 
B) increases;increases 
C) does not change;increases 
D) does not change;does not change 
E) does not change;decreases

Question 14

If goods X and Y are substitutes in production,then a rise in the price of good X

Accepted Answer

A) increases the demand for good Y. 
B) decreases the demand for good Y. 
C) increases the supply of good Y. 
D) decreases the supply of good Y. 
E) might change the supply of Y;it depends on whether X and Y are also substitutes. 
A) increases the demand for good Y. 
B) decreases the demand for good Y. 
C) increases the supply of good Y. 
D) decreases the supply of good Y. 
E) might change the supply of Y;it depends on whether X and Y are also substitutes.

Question 15

"As fewer people buy computers,the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is ________ because ________.

Accepted Answer

A) false;the decrease in the demand for Internet service creates a surplus and to eliminate the surplus,supply increases 
B) true;when the demand for Internet service increases,the supply of Internet service increases so that the price of Internet service does not increase 
C) true,when the demand for Internet service increases,the supply of Internet service increases too so that no surplus occurs 
D) true;the increase in the price of Internet service increases the supply of Internet service to eliminate the shortage 
E) false;a decrease in demand for Internet service does not increase the price of Internet service and an increase in the price of Internet service does not increase the supply of Internet service 
A) false;the decrease in the demand for Internet service creates a surplus and to eliminate the surplus,supply increases 
B) true;when the demand for Internet service increases,the supply of Internet service increases so that the price of Internet service does not increase 
C) true,when the demand for Internet service increases,the supply of Internet service increases too so that no surplus occurs 
D) true;the increase in the price of Internet service increases the supply of Internet service to eliminate the shortage 
E) false;a decrease in demand for Internet service does not increase the price of Internet service and an increase in the price of Internet service does not increase the supply of Internet service

Question 16

Use the table below to answer the following questions.
Table 3.4.1
  
-Refer to Table 3.4.1.If the price is $3,then the shortage is

Accepted Answer

A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units. 
A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units.

Question 17

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.Professor Hyper publishes a new study,showing that coffee raises the test performance of students.Students double their demand for coffee and the quantity of coffee demanded at each price doubles.The new equilibrium price is $________,and the new equilibrium quantity is ________ cups a day.

Accepted Answer

A) 1.20;1,000 
B) 1.30;1,200 
C) 1.50;1,600 
D) 1.40;1,400 
E) 2.20;800 
A) 1.20;1,000 
B) 1.30;1,200 
C) 1.50;1,600 
D) 1.40;1,400 
E) 2.20;800

Question 18

Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold.Which one of the following is a likely explanation?

Accepted Answer

A) The law of demand is violated. 
B) The demand for A decreased. 
C) The demand for A increased. 
D) The supply of A increased. 
E) The supply of A decreased. 
A) The law of demand is violated. 
B) The demand for A decreased. 
C) The demand for A increased. 
D) The supply of A increased. 
E) The supply of A decreased.

Question 19

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.If the price is set at $80,there will be a

Accepted Answer

A) shortage of 200 units and price will rise. 
B) shortage of 200 units and demand will fall. 
C) surplus of 200 units and demand will rise. 
D) surplus of 200 units and supply will fall. 
E) surplus of 200 units and price will fall. 
A) shortage of 200 units and price will rise. 
B) shortage of 200 units and demand will fall. 
C) surplus of 200 units and demand will rise. 
D) surplus of 200 units and supply will fall. 
E) surplus of 200 units and price will fall.

Question 20

Networks increase the price they charge cable television firms for programming.As a result,the price of cable television rises.Choose the correct statement.

Accepted Answer

A) A movement occurs up along the demand curve for cable television and the quantity demanded increases. 
B) The demand curve for cable television shifts rightward. 
C) The demand curve for cable television shifts leftward. 
D) A movement occurs up along the demand curve for cable television and the quantity demanded decreases. 
E) The price of cable television does not change because subscribers are already paying a high enough price. 
A) A movement occurs up along the demand curve for cable television and the quantity demanded increases. 
B) The demand curve for cable television shifts rightward. 
C) The demand curve for cable television shifts leftward. 
D) A movement occurs up along the demand curve for cable television and the quantity demanded decreases. 
E) The price of cable television does not change because subscribers are already paying a high enough price.

Use the table below to answer the following questions. Table 3.4.1 -In Table 3.4.1,the equilibrium price is

Which market is an example of a market for services?

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

Use the figure below to answer the following questions. Figure 3.4.1 -At price P₃ in Figure 3.4.1,

The demand and supply model determines

Bottled water and health club memberships are

An increase in the price of ground beef

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.A shortage occurs if

Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?

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.Suppose that the price of a designer sport t-shirt is $10.The market has leading to .

Which of the following events leads to a rise in the price of oranges?

The price of a good will tend to fall if

The new method of tapping maple trees the supply of maple syrup and the quantity supplied of maple syrup.

If goods X and Y are substitutes in production,then a rise in the price of good X

"As fewer people buy computers,the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is because .

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $3,then the shortage is

Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold.Which one of the following is a likely explanation?

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.If the price is set at $80,there will be a

Networks increase the price they charge cable television firms for programming.As a result,the price of cable television rises.Choose the correct statement.

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

Use the table below to answer the following questions. Table 3.4.1 -In Table 3.4.1,the equilibrium price is

Which market is an example of a market for services?

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

Use the figure below to answer the following questions. Figure 3.4.1 -At price P3 in Figure 3.4.1,

The demand and supply model determines

Bottled water and health club memberships are

An increase in the price of ground beef

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.A shortage occurs if

Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?

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.Suppose that the price of a designer sport t-shirt is $10.The market has ________ leading to ________.

Which of the following events leads to a rise in the price of oranges?

The price of a good will tend to fall if

The new method of tapping maple trees ________ the supply of maple syrup and ________ the quantity supplied of maple syrup.

If goods X and Y are substitutes in production,then a rise in the price of good X

"As fewer people buy computers,the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is ________ because ________.

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $3,then the shortage is

Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold.Which one of the following is a likely explanation?

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.If the price is set at $80,there will be a

Networks increase the price they charge cable television firms for programming.As a result,the price of cable television rises.Choose the correct statement.

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 P₃ in Figure 3.4.1,

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.Suppose that the price of a designer sport t-shirt is $10.The market has leading to .

The new method of tapping maple trees the supply of maple syrup and the quantity supplied of maple syrup.

"As fewer people buy computers,the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is because .