Question 1

-(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

Accepted Answer

A)  the move from n to o in Figure (a). 
B)  the move from p to q in Figure (b). 
C)  the move from s to t in Figure (c). 
D)  the move from u to v in Figure (d). 
A)  the move from n to o in Figure (a). 
B)  the move from p to q in Figure (b). 
C)  the move from s to t in Figure (c). 
D)  the move from u to v in Figure (d).

Question 2

The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

Accepted Answer

A)  10 
B)  15 
C)  20 
D)  25 
A)  10 
B)  15 
C)  20 
D)  25

Question 3

If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:

Accepted Answer

A)  will remain unchanged. 
B)  will fall to clear the market. 
C)  will either fall or remain unchanged. 
D)  is below the market equilibrium price. 
A)  will remain unchanged. 
B)  will fall to clear the market. 
C)  will either fall or remain unchanged. 
D)  is below the market equilibrium price.

Question 4

Define demand, supply, and equilibrium price.

Accepted Answer

Demand refers to the quantity of a good

Question 5

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

Accepted Answer

A)  income 
B)  consumer preferences 
C)  prices of other goods 
D)  demographic characteristics 
A)  income 
B)  consumer preferences 
C)  prices of other goods 
D)  demographic characteristics

Question 6

-(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

Accepted Answer

A)  a surplus of 8,000 bushels. 
B)  a shortage of 8,000 bushels. 
C)  a shortage of 10,000 bushels. 
D)  a surplus of 10,000 bushels. 
A)  a surplus of 8,000 bushels. 
B)  a shortage of 8,000 bushels. 
C)  a shortage of 10,000 bushels. 
D)  a surplus of 10,000 bushels.

Question 7

-(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S1 to S2 is

Accepted Answer

A)  better technology in the production of gasoline. 
B)  increased demand. 
C)  lower labor productivity. 
D)  increased prices of substitutes for gasoline. 
A)  better technology in the production of gasoline. 
B)  increased demand. 
C)  lower labor productivity. 
D)  increased prices of substitutes for gasoline.

Question 8

The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

Accepted Answer

A)  a surplus of 140 bags per month. 
B)  a shortage of 140 bags per month. 
C)  a surplus of 70 bags per month. 
D)  a shortage of 70 bags per month. 
A)  a surplus of 140 bags per month. 
B)  a shortage of 140 bags per month. 
C)  a surplus of 70 bags per month. 
D)  a shortage of 70 bags per month.

Question 9

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose the birth rate (the number of babies per female in the childbearing age bracket) decreases. Which panel best describes how this will affect the market for diapers?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 10

The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts) If Barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay for each bag is ________ cents.

Accepted Answer

A)  90 
B)  80 
C)  70 
D)  60 
A)  90 
B)  80 
C)  70 
D)  60

Question 11

A surplus is a result of equilibrium price being below the current price.

Accepted Answer

A) True 
 B)False

Question 12

A decrease in supply is caused by:

Accepted Answer

A)  an increase in returns from other alternative activities. 
B)  suppliers' expectations of lower prices in the future. 
C)  an advancement in the technology for producing the good. 
D)  a decrease in the price of a good using the same resources. 
A)  an increase in returns from other alternative activities. 
B)  suppliers' expectations of lower prices in the future. 
C)  an advancement in the technology for producing the good. 
D)  a decrease in the price of a good using the same resources.

Question 13

A decrease in the price of a good will, all other things unchanged, result in:

Accepted Answer

A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied. 
A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied.

Question 14

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing automotive gasoline improves. Which panel best describes how this will affect the market for gasoline additives, a complement of automotive gasoline?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 15

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

Accepted Answer

A) True 
 B)False

Question 16

The demand for a product is the quantity of it that people buy.

Accepted Answer

A) True 
 B)False

Question 17

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Accepted Answer

A) True 
 B)False

Question 18

Given that meat and potatoes are complementary goods, if the price of meat decreases substantially, there would be:

Accepted Answer

A)  an increase in the demand for potatoes. 
B)  an increase in the quantity of potatoes demanded. 
C)  a decrease in the demand for potatoes. 
D)  no change in the demand for potatoes. 
A)  an increase in the demand for potatoes. 
B)  an increase in the quantity of potatoes demanded. 
C)  a decrease in the demand for potatoes. 
D)  no change in the demand for potatoes.

Question 19

-(Exhibit: Demand and Supply of Gasoline) Given the equilibrium after a change in supply from S1 to S2:

Accepted Answer

A)  at the old price of $2.50, there will be pressure for the price to fall. 
B)  the new price will be $2.00. 
C)  the new quantity will be 400. 
D)  all of the above are true. 
A)  at the old price of $2.50, there will be pressure for the price to fall. 
B)  the new price will be $2.00. 
C)  the new quantity will be 400. 
D)  all of the above are true.

Question 20

A decrease in price will lead to an increase in demand.

Accepted Answer

A) True 
 B)False

-(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:

Define demand, supply, and equilibrium price.

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

-(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

-(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S₁ to S₂ is

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose the birth rate (the number of babies per female in the childbearing age bracket) decreases. Which panel best describes how this will affect the market for diapers?

The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If Barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay for each bag is ________ cents.

A surplus is a result of equilibrium price being below the current price.

A decrease in supply is caused by:

A decrease in the price of a good will, all other things unchanged, result in:

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

The demand for a product is the quantity of it that people buy.

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Given that meat and potatoes are complementary goods, if the price of meat decreases substantially, there would be:

-(Exhibit: Demand and Supply of Gasoline) Given the equilibrium after a change in supply from S₁ to S₂:

A decrease in price will lead to an increase in demand.

Economics: the Study of Choice

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Exam 3: Demand and Supply

-(Exhibit: The Supply of Music Downloads) A decrease in the price of music licenses sold by music companies to online sites would result in a change illustrated by:

The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:

Define demand, supply, and equilibrium price.

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

-(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

-(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S1 to S2 is

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose the birth rate (the number of babies per female in the childbearing age bracket) decreases. Which panel best describes how this will affect the market for diapers?

The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If Barbara is only able to purchase 20 bags of chocolate-covered peanuts, the maximum price she is willing and able to pay for each bag is ________ cents.

A surplus is a result of equilibrium price being below the current price.

A decrease in supply is caused by:

A decrease in the price of a good will, all other things unchanged, result in:

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

The demand for a product is the quantity of it that people buy.

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Given that meat and potatoes are complementary goods, if the price of meat decreases substantially, there would be:

-(Exhibit: Demand and Supply of Gasoline) Given the equilibrium after a change in supply from S1 to S2:

A decrease in price will lead to an increase in demand.

Economics: the Study of Choice

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

-(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S₁ to S₂ is

-(Exhibit: Demand and Supply of Gasoline) Given the equilibrium after a change in supply from S₁ to S₂: