Question 1

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

Accepted Answer

A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease. 
A)  demand and the supply of a good both increase. 
B)  demand for a good increases and the supply of it decreases. 
C)  demand for a good decreases and the supply of it increases. 
D)  demand and the supply of a good both decrease.

Question 2

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology, the

Accepted Answer

A)  demand curve shifts from D1 to D2 and the supply curve does not shift. 
B)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
C)  demand curve does not shift, and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
A)  demand curve shifts from D1 to D2 and the supply curve does not shift. 
B)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
C)  demand curve does not shift, and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2.

Question 3

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________.

Accepted Answer

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

Question 4

The Market for Wapanzo Beans
Quantity Demanded Price Quantity Supplied
(millions of pounds (dollars per (millions of pounds
per year) pound) per year)  
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the price of wapanzo beans will be

Accepted Answer

A)  $1 per pound. 
B)  $2 per pound. 
C)  $3 per pound. 
D)  $4 per pound. 
A)  $1 per pound. 
B)  $2 per pound. 
C)  $3 per pound. 
D)  $4 per pound.

Question 5

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 6

The existence of a shortage

Accepted Answer

A)  means resources are being allocated efficiently. 
B)  is impossible in a market economy. 
C)  pushes the price up. 
D)  pushes the price down. 
A)  means resources are being allocated efficiently. 
B)  is impossible in a market economy. 
C)  pushes the price up. 
D)  pushes the price down.

Question 7

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________.

Accepted Answer

A)  increases; increases; rises 
B)  decreases; increases; rises 
C)  increases; decreases; might rise, fall, or stay the same 
D)  decreases; increases; might rise, fall, or stay the same 
A)  increases; increases; rises 
B)  decreases; increases; rises 
C)  increases; decreases; might rise, fall, or stay the same 
D)  decreases; increases; might rise, fall, or stay the same

Question 8

Students can rent a Blu-ray movie at Campus Video for $4. As the price of Blu-ray players fall, the

Accepted Answer

A)  quantity supplied of Blu-ray movies will decrease. 
B)  demand for Blu-ray movies will increase. 
C)  supply of Blu-ray movies will decrease. 
D)  quantity demanded of Blu-ray movies will increase. 
A)  quantity supplied of Blu-ray movies will decrease. 
B)  demand for Blu-ray movies will increase. 
C)  supply of Blu-ray movies will decrease. 
D)  quantity demanded of Blu-ray movies will increase.

Question 9

Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus

Accepted Answer

A)  the demand curve for cable television service shifts rightward. 
B)  the demand curve for cable television service shifts leftward. 
C)  there is a movement down the demand curve for cable television to a higher quantity demanded. 
D)  there is a movement up the demand curve for cable television to a smaller quantity demanded. 
A)  the demand curve for cable television service shifts rightward. 
B)  the demand curve for cable television service shifts leftward. 
C)  there is a movement down the demand curve for cable television to a higher quantity demanded. 
D)  there is a movement up the demand curve for cable television to a smaller quantity demanded.

Question 10

If macaroni and cheese is an inferior good, then a decrease in income will result in

Accepted Answer

A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese. 
A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese.

Question 11

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise, the

Accepted Answer

A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2. 
A)  demand curve for bicycles shifts from D1 to D2. 
B)  demand curve for bicycles shifts from D2 to D1. 
C)  demand curve and the supply curve of bicycles do not shift. 
D)  supply curve of bicycles shifts from S1 to S2.

Question 12

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20. 
A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20.

Question 13

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Accepted Answer

A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell 
A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell

Question 14

Gruel is an inferior good. Hence, a decrease in people's incomes

Accepted Answer

A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward. 
A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward.

Question 15

When the price of a good is

Accepted Answer

A)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls. 
D)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises. 
A)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls. 
D)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises.

Question 16

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

Accepted Answer

A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements. 
A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements.

Question 17

A change in which of the following would NOT shift the supply curve for sneakers?

Accepted Answer

A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve. 
A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve.

Question 18

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

Accepted Answer

A)  rise. 
B)  fall. 
C)  remain the same. 
D)  rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves. 
A)  rise. 
B)  fall. 
C)  remain the same. 
D)  rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

Question 19

-The above figures show the market for hamburger meat. Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 20

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

Accepted Answer

The factors that change supply are techn

Exam 3: Demand and Supply

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology, the

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________.

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

The existence of a shortage

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________.

Students can rent a Blu-ray movie at Campus Video for $4. As the price of Blu-ray players fall, the

Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus

If macaroni and cheese is an inferior good, then a decrease in income will result in

-The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise, the

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Gruel is an inferior good. Hence, a decrease in people's incomes

When the price of a good is

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

A change in which of the following would NOT shift the supply curve for sneakers?

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

-The above figures show the market for hamburger meat. Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

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

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a in the market and the price will .

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin and the demand for aspirin so that the equilibrium price of aspirin .