Question 1

If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.

Accepted Answer

A)  a decrease 
B)  an increase 
C)  no change 
D)  random fluctuations 
A)  a decrease 
B)  an increase 
C)  no change 
D)  random fluctuations

Question 2

The price of apples falls. What happens in the market for apple pies?

Accepted Answer

A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium quantity falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall. 
A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium quantity falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall.

Question 3

-(Exhibit: Demand and Supply Curves) The highest price per unit that buyers would be willing to pay for 250 units is:

Accepted Answer

A)  $0. 
B)  $5. 
C)  $10. 
D)  $15. 
A)  $0. 
B)  $5. 
C)  $10. 
D)  $15.

Question 4

When the market price is established where demand and supply curves intersect:

Accepted Answer

A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result. 
A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result.

Question 5

A decrease in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

Accepted Answer

A)  decrease; indeterminate change 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change 
A)  decrease; indeterminate change 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change

Question 6

The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts) If George, Barbara, and Dan are the only three buyers in the market, and the price of a bag of chocolate-covered peanuts is 50 cents, the total market demand is ________ bags per month.

Accepted Answer

A)  80 
B)  105 
C)  210 
D)  280 
A)  80 
B)  105 
C)  210 
D)  280

Question 7

If the price in the market for a commodity is below the equilibrium price, the:

Accepted Answer

A)  price will remain unchanged. 
B)  price will decline to clear the market. 
C)  quantity supplied exceeds the quantity demanded. 
D)  quantity demanded exceeds the quantity supplied. 
A)  price will remain unchanged. 
B)  price will decline to clear the market. 
C)  quantity supplied exceeds the quantity demanded. 
D)  quantity demanded exceeds the quantity supplied.

Question 8

-(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S2 back to the initial supply curve S1?

Accepted Answer

A)  The Organization of Petroleum Exporting Countries (OPE
C)  restricts the production of crude oil. 
B)  The Organization of Petroleum Exporting Countries (OPE
C)  increases the production of crude oil. 
C)  Americans want to buy more gas. 
D)  Technology in the refinement of gasoline greatly improves. 
A)  The Organization of Petroleum Exporting Countries (OPE
C)  restricts the production of crude oil. 
B)  The Organization of Petroleum Exporting Countries (OPE
C)  increases the production of crude oil. 
C)  Americans want to buy more gas. 
D)  Technology in the refinement of gasoline greatly improves.

Question 9

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

Accepted Answer

A)  too high. 
B)  too low. 
C)  about right. 
D)  unconscionable. 
A)  too high. 
B)  too low. 
C)  about right. 
D)  unconscionable.

Question 10

-(Exhibit: Demand and Supply of Wheat) What are the equilibrium price and quantity in this wheat market?

Accepted Answer

A)  $6 and 6,000 bushels 
B)  $4 and 2,000 bushels 
C)  $4 and 10,000 bushels 
D)  $8 and 12,000 bushels 
A)  $6 and 6,000 bushels 
B)  $4 and 2,000 bushels 
C)  $4 and 10,000 bushels 
D)  $8 and 12,000 bushels

Question 11

If demand and supply both shift to the right, then:

Accepted Answer

A)  both price and quantity will go up. 
B)  price will go down and quantity will go up. 
C)  quantity will go down and price will go up. 
D)  quantity will go up, but price could go up, down, or stay the same 
A)  both price and quantity will go up. 
B)  price will go down and quantity will go up. 
C)  quantity will go down and price will go up. 
D)  quantity will go up, but price could go up, down, or stay the same

Question 12

A market shortage occurs if the quantity:

Accepted Answer

A)  demanded is greater than the quantity supplied. 
B)  demanded is less than the quantity supplied. 
C)  demanded is equal to the quantity supplied. 
D)  supplied is greater than the quantity demanded. 
A)  demanded is greater than the quantity supplied. 
B)  demanded is less than the quantity supplied. 
C)  demanded is equal to the quantity supplied. 
D)  supplied is greater than the quantity demanded.

Question 13

In the Case in Point on "The Monks of St. Benedict's," the Monks got out of the egg business largely because:

Accepted Answer

A)  there was a large increase in the supply of eggs from other producers. 
B)  of the increase in the price of chicken feed. 
C)  the Pope forbade them from working on Sunday. 
D)  a huge increase in the demand for eggs caused the price of eggs to increase, and their operation was too small to meet the demand. 
A)  there was a large increase in the supply of eggs from other producers. 
B)  of the increase in the price of chicken feed. 
C)  the Pope forbade them from working on Sunday. 
D)  a huge increase in the demand for eggs caused the price of eggs to increase, and their operation was too small to meet the demand.

Question 14

-(Exhibit: The Determinants of Demand and Supply) 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 orange crop. Which panel best describes how this will affect the market for oranges?

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 the quantity supplied in a market exceeds the quantity demanded in a market, we would expect price to:

Accepted Answer

A)  stay the same. 
B)  increase. 
C)  decrease. 
D)  rise in order to clear the market. 
A)  stay the same. 
B)  increase. 
C)  decrease. 
D)  rise in order to clear the market.

Question 16

An increase in supply of a good is caused by:

Accepted Answer

A)  resource prices rising. 
B)  a fall in the price of the good. 
C)  an increase in the number of sellers. 
D)  expectations of future price increases. 
A)  resource prices rising. 
B)  a fall in the price of the good. 
C)  an increase in the number of sellers. 
D)  expectations of future price increases.

Question 17

-(Exhibit: Demand and Supply of Gasoline) The initial price and quantity (at intersection of S1 and D) in equilibrium are:

Accepted Answer

A)  $2.00 and 450 gallons. 
B)  $1.50 and 400 gallons. 
C)  $2.00 and 200 gallons. 
D)  $2.50 and 300 gallons. 
A)  $2.00 and 450 gallons. 
B)  $1.50 and 400 gallons. 
C)  $2.00 and 200 gallons. 
D)  $2.50 and 300 gallons.

Question 18

The demand curve for on-demand videos has shifted to the right. What could have caused it?

Accepted Answer

A)  A fall in the price of on-demand videos. 
B)  An increase in the price of on-demand videos. 
C)  An increase in the supply of on-demand videos. 
D)  An increase in the income of buyers. 
A)  A fall in the price of on-demand videos. 
B)  An increase in the price of on-demand videos. 
C)  An increase in the supply of on-demand videos. 
D)  An increase in the income of buyers.

Question 19

-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

Accepted Answer

A)  $25; 50 
B)  $25; 250 
C)  $15; 150 
D)  $10; 50 
A)  $25; 50 
B)  $25; 250 
C)  $15; 150 
D)  $10; 50

Question 20

Which of the following would result in a movement along the demand curve?

Accepted Answer

A)  a change in preferences 
B)  an increase in the number of buyers 
C)  an increase in the number of suppliers 
D)  a decrease in income 
A)  a change in preferences 
B)  an increase in the number of buyers 
C)  an increase in the number of suppliers 
D)  a decrease in income

If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.

The price of apples falls. What happens in the market for apple pies?

-(Exhibit: Demand and Supply Curves) The highest price per unit that buyers would be willing to pay for 250 units is:

When the market price is established where demand and supply curves intersect:

A decrease in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

If the price in the market for a commodity is below the equilibrium price, the:

-(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

-(Exhibit: Demand and Supply of Wheat) What are the equilibrium price and quantity in this wheat market?

If demand and supply both shift to the right, then:

A market shortage occurs if the quantity:

In the Case in Point on "The Monks of St. Benedict's," the Monks got out of the egg business largely because:

-(Exhibit: The Determinants of Demand and Supply) 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 orange crop. Which panel best describes how this will affect the market for oranges?

If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect price to:

An increase in supply of a good is caused by:

-(Exhibit: Demand and Supply of Gasoline) The initial price and quantity (at intersection of S₁ and D) in equilibrium are:

The demand curve for on-demand videos has shifted to the right. What could have caused it?

-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.

Which of the following would result in a movement along the demand curve?

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

If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.

The price of apples falls. What happens in the market for apple pies?

-(Exhibit: Demand and Supply Curves) The highest price per unit that buyers would be willing to pay for 250 units is:

When the market price is established where demand and supply curves intersect:

A decrease in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

If the price in the market for a commodity is below the equilibrium price, the:

-(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S2 back to the initial supply curve S1?

In the Case in Point on campus parking, the implication was that existing prices for parking spaces on university campuses are generally:

-(Exhibit: Demand and Supply of Wheat) What are the equilibrium price and quantity in this wheat market?

If demand and supply both shift to the right, then:

A market shortage occurs if the quantity:

In the Case in Point on "The Monks of St. Benedict's," the Monks got out of the egg business largely because:

-(Exhibit: The Determinants of Demand and Supply) 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 orange crop. Which panel best describes how this will affect the market for oranges?

If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect price to:

An increase in supply of a good is caused by:

-(Exhibit: Demand and Supply of Gasoline) The initial price and quantity (at intersection of S1 and D) in equilibrium are:

The demand curve for on-demand videos has shifted to the right. What could have caused it?

-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

Which of the following would result in a movement along the demand curve?

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

A decrease in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

-(Exhibit: Demand and Supply of Gasoline) What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

-(Exhibit: Demand and Supply of Gasoline) The initial price and quantity (at intersection of S₁ and D) in equilibrium are:

-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward and units, respectively.