Question 1

The price of eggs might go up because:

Accepted Answer

A)  of an increase in the price of bacon. 
B)  the price of chicken feed increased. 
C)  the supply of eggs increased. 
D)  the demand for eggs fell. 
A)  of an increase in the price of bacon. 
B)  the price of chicken feed increased. 
C)  the supply of eggs increased. 
D)  the demand for eggs fell.

Question 2

A price above the equilibrium price will:

Accepted Answer

A)  result in quantity supplied being less than quantity demanded. 
B)  result in a shortage. 
C)  create pressure for price to fall. 
D)  tend to rise over time. 
A)  result in quantity supplied being less than quantity demanded. 
B)  result in a shortage. 
C)  create pressure for price to fall. 
D)  tend to rise over time.

Question 3

How a supply curve is sloped and located is affected by:

Accepted Answer

A)  consumer preferences. 
B)  resource prices. 
C)  the number of consumers. 
D)  all of the above. 
A)  consumer preferences. 
B)  resource prices. 
C)  the number of consumers. 
D)  all of the above.

Question 4

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel best describes how this will affect the market for peanuts?

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 5

The primary difference between a change in supply and a change in the quantity supplied is:

Accepted Answer

A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve. 
A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.

Question 6

The intersection of the supply and demand curves indicates:

Accepted Answer

A)  the equilibrium solution in the market. 
B)  a surplus that will cause the price to fall. 
C)  a shortage that will cause the price to rise. 
D)  the quantity demanded exceeds the quantity supplied. 
A)  the equilibrium solution in the market. 
B)  a surplus that will cause the price to fall. 
C)  a shortage that will cause the price to rise. 
D)  the quantity demanded exceeds the quantity supplied.

Question 7

An increase in supply is caused by:

Accepted Answer

A)  an increase in resource prices. 
B)  suppliers' expectations of higher prices in the future. 
C)  an increase in the price of a good using the same resources. 
D)  a decrease in the price of a good using the same resources. 
A)  an increase in resource prices. 
B)  suppliers' expectations of higher prices in the future. 
C)  an increase in the price of a good using the same resources. 
D)  a decrease in the price of a good using the same resources.

Question 8

Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.

Accepted Answer

A) True 
 B)False

Question 9

-(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

Accepted Answer

A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d). 
A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d).

Question 10

The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

Accepted Answer

A)  140; 40 
B)  175; 60 
C)  175; 80 
D)  210; 50 
A)  140; 40 
B)  175; 60 
C)  175; 80 
D)  210; 50

Question 11

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses?

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 12

Which of the following is false?

Accepted Answer

A)  If demand increases and supply decreases, equilibrium price will go up. 
B)  If demand remains constant and supply increases, equilibrium price will go down. 
C)  If demand decreases and supply increases, equilibrium price will rise. 
D)  If supply is unchanged and demand decreases, equilibrium price will fall. 
A)  If demand increases and supply decreases, equilibrium price will go up. 
B)  If demand remains constant and supply increases, equilibrium price will go down. 
C)  If demand decreases and supply increases, equilibrium price will rise. 
D)  If supply is unchanged and demand decreases, equilibrium price will fall.

Question 13

If the demand for housing increases and the supply of housing decreases:

Accepted Answer

A)  price will go up and quantity will go down. 
B)  price and quantity will both go up. 
C)  price will increase, but the quantity change is indeterminate. 
D)  the quantity will be higher, but the change in price is indeterminate. 
A)  price will go up and quantity will go down. 
B)  price and quantity will both go up. 
C)  price will increase, but the quantity change is indeterminate. 
D)  the quantity will be higher, but the change in price is indeterminate.

Question 14

-(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events. Suppose consumer incomes increase. Which panel best describes how this will affect the market for used furniture, an inferior good?

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

-(Exhibit: Demand and Supply of Wheat) If a price of $10 temporarily exists in this market, a:

Accepted Answer

A)  shortage of 10,000 bushels will result. 
B)  shortage of 8,000 bushels will result. 
C)  surplus of 8,000 bushels will result. 
D)  surplus of 6,000 bushels will result. 
A)  shortage of 10,000 bushels will result. 
B)  shortage of 8,000 bushels will result. 
C)  surplus of 8,000 bushels will result. 
D)  surplus of 6,000 bushels will result.

Question 16

Which statement best illustrates complementary goods?

Accepted Answer

A)  The price of tennis rackets declines so your economics instructor decides to take tennis lessons and purchases several cans of new tennis balls. 
B)  The price of Apple Macintosh computers declines so your economics instructor sells his or her IBM personal computer and buys a Macintosh. 
C)  After receiving a promotion and a hefty year-end bonus from the college, your economics instructor decides to stop buying denim jeans and switches to clothing befitting his or her loftier position on the faculty. 
D)  Fearing that the price of pipe tobacco will rise next year, your economics professor goes to his local tobacconist and purchases an ample supply to last for several years. 
A)  The price of tennis rackets declines so your economics instructor decides to take tennis lessons and purchases several cans of new tennis balls. 
B)  The price of Apple Macintosh computers declines so your economics instructor sells his or her IBM personal computer and buys a Macintosh. 
C)  After receiving a promotion and a hefty year-end bonus from the college, your economics instructor decides to stop buying denim jeans and switches to clothing befitting his or her loftier position on the faculty. 
D)  Fearing that the price of pipe tobacco will rise next year, your economics professor goes to his local tobacconist and purchases an ample supply to last for several years.

Question 17

A current price below the equilibrium price will result in a surplus.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following most correctly states the law of demand?

Accepted Answer

A)  As the price falls all other things unchanged, demand will go up. 
B)  As the price goes up, all other things unchanged, demand will go down. 
C)  As the price falls, all other things unchanged, the quantity demanded will go down. 
D)  As the price falls, all other things unchanged, the quantity demanded will increase. 
A)  As the price falls all other things unchanged, demand will go up. 
B)  As the price goes up, all other things unchanged, demand will go down. 
C)  As the price falls, all other things unchanged, the quantity demanded will go down. 
D)  As the price falls, all other things unchanged, the quantity demanded will increase.

Question 19

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's grapefruit crop. Which panel best describes how this will affect the market for Vitamin B-12 tablets, which are a substitute for grapefruit?

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 20

-(Exhibit: Shifts in Demand and Supply) Which graph best illustrates what happened in the desktop calculators market when handheld calculators were invented and came on the market?

Accepted Answer

A)  the movement from M to N in Panel (a). 
B)  the movement from O to P in Panel (b). 
C)  the movement from N to M in Panel (a). 
D)  the movement from P to O in Panel (b). 
A)  the movement from M to N in Panel (a). 
B)  the movement from O to P in Panel (b). 
C)  the movement from N to M in Panel (a). 
D)  the movement from P to O in Panel (b).

The price of eggs might go up because:

A price above the equilibrium price will:

How a supply curve is sloped and located is affected by:

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel best describes how this will affect the market for peanuts?

The primary difference between a change in supply and a change in the quantity supplied is:

The intersection of the supply and demand curves indicates:

An increase in supply is caused by:

Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.

-(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses?

Which of the following is false?

If the demand for housing increases and the supply of housing decreases:

-(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events. Suppose consumer incomes increase. Which panel best describes how this will affect the market for used furniture, an inferior good?

-(Exhibit: Demand and Supply of Wheat) If a price of $10 temporarily exists in this market, a:

Which statement best illustrates complementary goods?

A current price below the equilibrium price will result in a surplus.

Which of the following most correctly states the law of demand?

-(Exhibit: Shifts in Demand and Supply) Which graph best illustrates what happened in the desktop calculators market when handheld calculators were invented and came on the market?

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

The price of eggs might go up because:

A price above the equilibrium price will:

How a supply curve is sloped and located is affected by:

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel best describes how this will affect the market for peanuts?

The primary difference between a change in supply and a change in the quantity supplied is:

The intersection of the supply and demand curves indicates:

An increase in supply is caused by:

Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.

-(Exhibit: The Demand for music downloads) A decrease in the fee charged for music downloads would result in a change illustrated by:

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses?

Which of the following is false?

If the demand for housing increases and the supply of housing decreases:

-(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events. Suppose consumer incomes increase. Which panel best describes how this will affect the market for used furniture, an inferior good?

-(Exhibit: Demand and Supply of Wheat) If a price of $10 temporarily exists in this market, a:

Which statement best illustrates complementary goods?

A current price below the equilibrium price will result in a surplus.

Which of the following most correctly states the law of demand?

-(Exhibit: Shifts in Demand and Supply) Which graph best illustrates what happened in the desktop calculators market when handheld calculators were invented and came on the market?

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

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.