Question 1

Wants, as opposed to demands,

Accepted Answer

A)  are the unlimited desires of the consumer. 
B)  are the goods the consumer plans to acquire. 
C)  are the goods the consumer has acquired. 
D)  depend on the price. 
A)  are the unlimited desires of the consumer. 
B)  are the goods the consumer plans to acquire. 
C)  are the goods the consumer has acquired. 
D)  depend on the price.

Question 2

A change in which of the following shifts the demand curve for hamburgers?

Accepted Answer

A)  an increase in the price of the meat used to produce hamburgers 
B)  an increase in the price of a hamburger 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an increase in the number of hamburger restaurants 
A)  an increase in the price of the meat used to produce hamburgers 
B)  an increase in the price of a hamburger 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an increase in the number of hamburger restaurants

Question 3

If the quantity demanded exceeds the quantity supplied, then there is

Accepted Answer

A)  a shortage, and the price is below the equilibrium price. 
B)  a shortage, and the price is above the equilibrium price. 
C)  a surplus, and the price is below the equilibrium price. 
D)  a surplus, and the price is above the equilibrium price. 
A)  a shortage, and the price is below the equilibrium price. 
B)  a shortage, and the price is above the equilibrium price. 
C)  a surplus, and the price is below the equilibrium price. 
D)  a surplus, and the price is above the equilibrium price.

Question 4

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result,

Accepted Answer

A)  the equilibrium price of B will fall and the equilibrium price of A will rise. 
B)  the equilibrium price of B will rise and the equilibrium price of A will fall. 
C)  the equilibrium prices of both A and B will rise. 
D)  the equilibrium prices of both A and B will fall. 
A)  the equilibrium price of B will fall and the equilibrium price of A will rise. 
B)  the equilibrium price of B will rise and the equilibrium price of A will fall. 
C)  the equilibrium prices of both A and B will rise. 
D)  the equilibrium prices of both A and B will fall.

Question 5

When the price of a pizza decreases from $14 to $12,

Accepted Answer

A)  the income effect means people buy less pizza. 
B)  the income effect points out that the total purchasing power of people who buy pizza increases. 
C)  the income effect means that the demand for pizza will not change. 
D)  None of the above answers is correct. 
A)  the income effect means people buy less pizza. 
B)  the income effect points out that the total purchasing power of people who buy pizza increases. 
C)  the income effect means that the demand for pizza will not change. 
D)  None of the above answers is correct.

Question 6

If income increases or the price of a complement falls, the

Accepted Answer

A)  demand curve for a normal good shifts leftward. 
B)  demand curve for a normal good shifts rightward. 
C)  supply curve of a normal good shifts leftward. 
D)  supply curve of a normal good shifts rightward. 
A)  demand curve for a normal good shifts leftward. 
B)  demand curve for a normal good shifts rightward. 
C)  supply curve of a normal good shifts leftward. 
D)  supply curve of a normal good shifts rightward.

Question 7

Which of the following decreases the supply of restaurant meals?

Accepted Answer

A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls. 
A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls.

Question 8

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

Accepted Answer

A)  a rise in the price of spinach 
B)  a newly discovered health benefit from eating spinach 
C)  an increase in the price of broccoli, a substitute for spinach 
D)  an increase in income for all spinach lovers 
A)  a rise in the price of spinach 
B)  a newly discovered health benefit from eating spinach 
C)  an increase in the price of broccoli, a substitute for spinach 
D)  an increase in income for all spinach lovers

Question 9

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

Accepted Answer

A) True 
 B)False

Question 10

As the price of a pound of peanuts falls, the

Accepted Answer

A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases. 
A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases.

Question 11

An increase in demand combined with no change in supply

Accepted Answer

A)  raises the equilibrium price. 
B)  lowers the equilibrium price. 
C)  results in only a movement rightward along the demand curve. 
D)  decreases demand because the supply curve does not shift. 
A)  raises the equilibrium price. 
B)  lowers the equilibrium price. 
C)  results in only a movement rightward along the demand curve. 
D)  decreases demand because the supply curve does not shift.

Question 12

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Accepted Answer

A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls. 
A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.

Question 13

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a substitute for fruit snacks?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 14

If the price of a hot dog is $2 and the price of a hamburger is $4, then the

Accepted Answer

A)  relative price of a hot dog is 1/2 of a hamburger per hot dog. 
B)  money price of a hot dog is 2 hamburgers per hot dog. 
C)  relative price of a hamburger is 1/2 of a hot dog per hamburger. 
D)  money price of a hamburger is 2 hot dogs per hamburger. 
A)  relative price of a hot dog is 1/2 of a hamburger per hot dog. 
B)  money price of a hot dog is 2 hamburgers per hot dog. 
C)  relative price of a hamburger is 1/2 of a hot dog per hamburger. 
D)  money price of a hamburger is 2 hot dogs per hamburger.

Question 15

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

Accepted Answer

A)  demand curve shifting rightward. 
B)  demand curve shifting leftward. 
C)  supply curve shifting rightward. 
D)  supply curve shifting leftward. 
A)  demand curve shifting rightward. 
B)  demand curve shifting leftward. 
C)  supply curve shifting rightward. 
D)  supply curve shifting leftward.

Question 16

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 17

The equilibrium price is the price at which the quantity

Accepted Answer

A)  sold equals the quantity bought. 
B)  demanded equals the quantity sold. 
C)  demanded equals the quantity supplied. 
D)  supplied equals the quantity bought. 
A)  sold equals the quantity bought. 
B)  demanded equals the quantity sold. 
C)  demanded equals the quantity supplied. 
D)  supplied equals the quantity bought.

Question 18

The relative price of a good is greater than the money price of a good.

Accepted Answer

A) True 
 B)False

Question 19

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Accepted Answer

A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d. 
A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d.

Question 20

As the relative price of a good falls, the substitution effect implies that people buy

Accepted Answer

A)  less of that good and more of its substitutes. 
B)  more of that good and less of its substitutes. 
C)  less of that good and less of its substitutes. 
D)  more of that good and more of its substitutes. 
A)  less of that good and more of its substitutes. 
B)  more of that good and less of its substitutes. 
C)  less of that good and less of its substitutes. 
D)  more of that good and more of its substitutes.

Exam 3: Demand and Supply

Wants, as opposed to demands,

A change in which of the following shifts the demand curve for hamburgers?

If the quantity demanded exceeds the quantity supplied, then there is

For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result,

When the price of a pizza decreases from $14 to $12,

If income increases or the price of a complement falls, the

Which of the following decreases the supply of restaurant meals?

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

As the price of a pound of peanuts falls, the

An increase in demand combined with no change in supply

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in the price of a substitute for fruit snacks?

If the price of a hot dog is $2 and the price of a hamburger is $4, then the

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

The equilibrium price is the price at which the quantity

The relative price of a good is greater than the money price of a good.

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

As the relative price of a good falls, the substitution effect implies that people buy

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