Question 1

Peaches and cream are complements.When the price of peaches falls and the price of raw milk (used to make cream)rises:

Accepted Answer

A) the equilibrium price of cream rises and the equilibrium quantity of cream might rise or fall. 
B) the equilibrium price of cream falls and the equilibrium quantity of cream might rise or fall. 
C) the equilibrium price of cream falls and the equilibrium quantity of cream falls. 
D) the equilibrium price of cream falls and the equilibrium quantity of cream rises. 
A) the equilibrium price of cream rises and the equilibrium quantity of cream might rise or fall. 
B) the equilibrium price of cream falls and the equilibrium quantity of cream might rise or fall. 
C) the equilibrium price of cream falls and the equilibrium quantity of cream falls. 
D) the equilibrium price of cream falls and the equilibrium quantity of cream rises.

Question 2

A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the:

Accepted Answer

A) supply schedule. 
B) supply curve. 
C) demand schedule. 
D) demand curve. 
A) supply schedule. 
B) supply curve. 
C) demand schedule. 
D) demand curve.

Question 3

Using supply and demand analysis,if the "colony collapse disorder (CCD)" of honey bees caused a leftward shift of the supply curve for ice cream,then which of the following must be true?

Accepted Answer

A) The equilibrium price of ice cream increased and the equilibrium quantity decreased. 
B) The equilibrium price of ice cream decreased and the equilibrium quantity decreased. 
C) The equilibrium price of ice cream increased and the equilibrium quantity increased. 
D) The equilibrium price of ice cream decreased and the equilibrium quantity increased. 
A) The equilibrium price of ice cream increased and the equilibrium quantity decreased. 
B) The equilibrium price of ice cream decreased and the equilibrium quantity decreased. 
C) The equilibrium price of ice cream increased and the equilibrium quantity increased. 
D) The equilibrium price of ice cream decreased and the equilibrium quantity increased.

Question 4

Relative to hotdogs,hotdog buns are considered:

Accepted Answer

A) complements. 
B) substitutes. 
C) inputs. 
D) luxury goods. 
A) complements. 
B) substitutes. 
C) inputs. 
D) luxury goods.

Question 5

A surplus occurs when producers are willing to sell more than consumers are willing to buy.This is called an ________.

Accepted Answer

The answer of A surplus occurs when producers are willing...

Question 6

Which of the following are most likely to be considered substitutes to pizzas?

Accepted Answer

A) hamburgers 
B) cheese 
C) pepperoni 
D) soda 
A) hamburgers 
B) cheese 
C) pepperoni 
D) soda

Question 7

Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.

Accepted Answer

A) rise;rise 
B) rise;fall 
C) fall;rise 
D) fall;fall 
A) rise;rise 
B) rise;fall 
C) fall;rise 
D) fall;fall

Question 8

In the application,what was/were the reason(s)why a lower price of cigarettes will increase the quantity demanded for cigarettes?

Accepted Answer

A) lower prices make current smokers smoke more cigarettes. 
B) lower prices encourage people to start smoking. 
C) lower prices encourage people to quit smoking. 
D) A and B are both correct. 
A) lower prices make current smokers smoke more cigarettes. 
B) lower prices encourage people to start smoking. 
C) lower prices encourage people to quit smoking. 
D) A and B are both correct.

Question 9

A minimum supply price is defined as:

Accepted Answer

A) the lowest price at which a product is made available for sale. 
B) the lowest price at which a product is bought. 
C) the lowest cost to produce a good. 
D) the lowest price at which other sellers also want to sell the good. 
A) the lowest price at which a product is made available for sale. 
B) the lowest price at which a product is bought. 
C) the lowest cost to produce a good. 
D) the lowest price at which other sellers also want to sell the good.

Question 10

In economics,a change in preferences for the product causes a ________.

Accepted Answer

The answer of In economics,a change in preferences for the...

Question 11

Minimum wage laws are examples of:

Accepted Answer

A) price ceilings. 
B) equilibrium prices. 
C) price floors. 
D) minimum supply prices. 
A) price ceilings. 
B) equilibrium prices. 
C) price floors. 
D) minimum supply prices.

Question 12

Figure 4.7
-If supply decreases in Figure 4.7,then the equilibrium:

Accepted Answer

A) price and quantity rise. 
B) price rises and quantity falls. 
C) price falls and quantity rises. 
D) price and quantity fall. 
A) price and quantity rise. 
B) price rises and quantity falls. 
C) price falls and quantity rises. 
D) price and quantity fall.

Question 13

What is a "change in quantity demanded"? How is a "change in quantity demanded" illustrated in a demand diagram?

Accepted Answer

A "change in quantity demanded" refers t

Question 14

Becky demands more raisins as her income increases.From this,we can conclude that,for Becky:

Accepted Answer

A) raisins are an inferior good. 
B) raisins are a complementary good. 
C) raisins are a normal good. 
D) raisins are a substitute good. 
A) raisins are an inferior good. 
B) raisins are a complementary good. 
C) raisins are a normal good. 
D) raisins are a substitute good.

Question 15

What is the difference between an "individual demand curve" and a "market demand curve"?

Accepted Answer

An individual demand curve is a curve th

Question 16

Which of the following can increase the number of pizzas a seller is willing to sell at a given price?

Accepted Answer

A) The cost of inputs such as pepperoni and cheese goes up. 
B) The number of workers working in the pizza factory decreases. 
C) The amount of subsidies that pizza makers receive from the government decreases. 
D) A new technology is developed that allows producers to make the same sized pizza using less cheese and dough. 
A) The cost of inputs such as pepperoni and cheese goes up. 
B) The number of workers working in the pizza factory decreases. 
C) The amount of subsidies that pizza makers receive from the government decreases. 
D) A new technology is developed that allows producers to make the same sized pizza using less cheese and dough.

Question 17

Figure 4.2
-In Figure 4.2,which of the panels depicts a market in which there is an excess supply of a product?

Accepted Answer

A) Panel A 
B) Panel B 
C) Panel C 
D) None of the panels depicts a market in which there is an excess supply of a product. 
A) Panel A 
B) Panel B 
C) Panel C 
D) None of the panels depicts a market in which there is an excess supply of a product.

Question 18

According to the Application,which of the following is the result of the falling prices of wool worldwide?

Accepted Answer

A) lower demand for wool. 
B) higher demand for synthetic fibers. 
C) higher demand for wool. 
D) lower quantity supplied of wool. 
A) lower demand for wool. 
B) higher demand for synthetic fibers. 
C) higher demand for wool. 
D) lower quantity supplied of wool.

Question 19

Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice)reduces the risk of cancer and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

Accepted Answer

A) The price of apple juice might rise or fall and the quantity of apple juice falls. 
B) The price of apple juice might rise or fall and the quantity of apple juice rises. 
C) The price of apple juice falls and the quantity of apple juice falls. 
D) The quantity of apple juice might rise or fall and the price of apple juice rises. 
A) The price of apple juice might rise or fall and the quantity of apple juice falls. 
B) The price of apple juice might rise or fall and the quantity of apple juice rises. 
C) The price of apple juice falls and the quantity of apple juice falls. 
D) The quantity of apple juice might rise or fall and the price of apple juice rises.

Question 20

In the Application,what should we observe before we can undoubtedly attribute the lower drug prices to an increase in supply?

Accepted Answer

A) an increase in the equilibrium quantity 
B) a shortage 
C) a decrease in the equilibrium quantity 
D) a surplus 
A) an increase in the equilibrium quantity 
B) a shortage 
C) a decrease in the equilibrium quantity 
D) a surplus

Peaches and cream are complements.When the price of peaches falls and the price of raw milk (used to make cream)rises:

A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the:

Using supply and demand analysis,if the "colony collapse disorder (CCD)" of honey bees caused a leftward shift of the supply curve for ice cream,then which of the following must be true?

Relative to hotdogs,hotdog buns are considered:

A surplus occurs when producers are willing to sell more than consumers are willing to buy.This is called an ________.

Which of the following are most likely to be considered substitutes to pizzas?

Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will and the equilibrium price of cream will .

In the application,what was/were the reason(s)why a lower price of cigarettes will increase the quantity demanded for cigarettes?

A minimum supply price is defined as:

In economics,a change in preferences for the product causes a ________.

Minimum wage laws are examples of:

Figure 4.7 -If supply decreases in Figure 4.7,then the equilibrium:

What is a "change in quantity demanded"? How is a "change in quantity demanded" illustrated in a demand diagram?

Becky demands more raisins as her income increases.From this,we can conclude that,for Becky:

What is the difference between an "individual demand curve" and a "market demand curve"?

Which of the following can increase the number of pizzas a seller is willing to sell at a given price?

Figure 4.2 -In Figure 4.2,which of the panels depicts a market in which there is an excess supply of a product?

According to the Application,which of the following is the result of the falling prices of wool worldwide?

Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice)reduces the risk of cancer and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

In the Application,what should we observe before we can undoubtedly attribute the lower drug prices to an increase in supply?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 4: Demand, supply, and Market Equilibrium

Peaches and cream are complements.When the price of peaches falls and the price of raw milk (used to make cream)rises:

A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the:

Using supply and demand analysis,if the "colony collapse disorder (CCD)" of honey bees caused a leftward shift of the supply curve for ice cream,then which of the following must be true?

Relative to hotdogs,hotdog buns are considered:

A surplus occurs when producers are willing to sell more than consumers are willing to buy.This is called an ________.

Which of the following are most likely to be considered substitutes to pizzas?

Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.

In the application,what was/were the reason(s)why a lower price of cigarettes will increase the quantity demanded for cigarettes?

A minimum supply price is defined as:

In economics,a change in preferences for the product causes a ________.

Minimum wage laws are examples of:

Figure 4.7 -If supply decreases in Figure 4.7,then the equilibrium:

What is a "change in quantity demanded"? How is a "change in quantity demanded" illustrated in a demand diagram?

Becky demands more raisins as her income increases.From this,we can conclude that,for Becky:

What is the difference between an "individual demand curve" and a "market demand curve"?

Which of the following can increase the number of pizzas a seller is willing to sell at a given price?

Figure 4.2 -In Figure 4.2,which of the panels depicts a market in which there is an excess supply of a product?

According to the Application,which of the following is the result of the falling prices of wool worldwide?

Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice)reduces the risk of cancer and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

In the Application,what should we observe before we can undoubtedly attribute the lower drug prices to an increase in supply?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will and the equilibrium price of cream will .