Question 1

Which of the following would shift the demand curve for new textbooks to the right?

Accepted Answer

A)  A decrease in the price of paper. 
B)  A fall in the price of used textbooks. 
C)  An increase in college enrollments. 
D)  A fall in the price of new textbooks. 
A)  A decrease in the price of paper. 
B)  A fall in the price of used textbooks. 
C)  An increase in college enrollments. 
D)  A fall in the price of new textbooks.

Question 2

The same factors that lead to a change in quantity demanded also cause a change in demand.

Accepted Answer

A) True 
 B)False

Question 3

A decrease in supply is caused by:

Accepted Answer

A)  a decrease in resource prices. 
B)  an increase in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good. 
A)  a decrease in resource prices. 
B)  an increase in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good.

Question 4

An increase in supply is caused by:

Accepted Answer

A)  an increase in resource prices. 
B)  a decrease in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good. 
A)  an increase in resource prices. 
B)  a decrease in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good.

Question 5

A shift to the left of a supply curve is caused by:

Accepted Answer

A)  an increase in the number of sellers. 
B)  a technological improvement. 
C)  an increase in the returns from other supply possibilities. 
D)  an increase in the number of buyers. 
A)  an increase in the number of sellers. 
B)  a technological improvement. 
C)  an increase in the returns from other supply possibilities. 
D)  an increase in the number of buyers.

Question 6

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

Accepted Answer

A)  demand shifters. 
B)  supply prices. 
C)  market realities. 
D)  supply shifters. 
A)  demand shifters. 
B)  supply prices. 
C)  market realities. 
D)  supply shifters.

Question 7

A decrease in the price of eggs, all other things unchanged, will result in a(n):

Accepted Answer

A)  increase in the demand for eggs. 
B)  increase in the supply of eggs. 
C)  greater quantity of eggs supplied. 
D)  greater quantity of eggs demanded. 
A)  increase in the demand for eggs. 
B)  increase in the supply of eggs. 
C)  greater quantity of eggs supplied. 
D)  greater quantity of eggs demanded.

Question 8

The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the price will:

Accepted Answer

A)  remain unchanged. 
B)  fall to 30 cents. 
C)  fall to 50 cents. 
D)  rise to 70 cents. 
A)  remain unchanged. 
B)  fall to 30 cents. 
C)  fall to 50 cents. 
D)  rise to 70 cents.

Question 9

In a competitive market, if there should be a surplus of a product at a given price:

Accepted Answer

A)  sellers will drive the price down. 
B)  sellers will drive the price up. 
C)  buyers will drive the price up. 
D)  the price will tend to remain constant. 
A)  sellers will drive the price down. 
B)  sellers will drive the price up. 
C)  buyers will drive the price up. 
D)  the price will tend to remain constant.

Question 10

Differentiate between a change in demand and a change in quantity demanded.

Accepted Answer

A change in demand refers to a shift in

Question 11

The law of demand is illustrated when:

Accepted Answer

A)  an increase in tuition encourages more students to enroll in college because the quality of education has risen. 
B)  an increase in the purchases of personal computers results from lower prices. 
C)  higher oil prices cause oil companies to drill for new sources of oil. 
D)  higher fees for the use of public golf courses force golfers to purchase fewer golf balls. 
A)  an increase in tuition encourages more students to enroll in college because the quality of education has risen. 
B)  an increase in the purchases of personal computers results from lower prices. 
C)  higher oil prices cause oil companies to drill for new sources of oil. 
D)  higher fees for the use of public golf courses force golfers to purchase fewer golf balls.

Question 12

Plastic and steel are substitutes in the production of automobiles. If steel prices go up, all other things unchanged:

Accepted Answer

A)  the equilibrium price of plastic will fall. 
B)  the demand curve for plastic will shift to the left. 
C)  the demand curve for plastic will shift to the right. 
D)  the equilibrium quantity of plastic demanded will increase and the equilibrium price will fall. 
A)  the equilibrium price of plastic will fall. 
B)  the demand curve for plastic will shift to the left. 
C)  the demand curve for plastic will shift to the right. 
D)  the equilibrium quantity of plastic demanded will increase and the equilibrium price will fall.

Question 13

If the price of a commodity increases as the result of increased demand, you would expect the:

Accepted Answer

A)  supply to increase. 
B)  quantity supplied to increase. 
C)  quantity supplied to decrease. 
D)  supply curve to shift to the right. 
A)  supply to increase. 
B)  quantity supplied to increase. 
C)  quantity supplied to decrease. 
D)  supply curve to shift to the right.

Question 14

If two goods are substitutes, a decrease in the price of one will result in an increase in demand for the other.

Accepted Answer

A) True 
 B)False

Question 15

A shortage results from a current price being below the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 16

For most consumers, blu-ray players and blu-ray discs are likely to be:

Accepted Answer

A)  substitute goods. 
B)  complementary goods. 
C)  inferior goods. 
D)  independent goods. 
A)  substitute goods. 
B)  complementary goods. 
C)  inferior goods. 
D)  independent goods.

Question 17

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

Accepted Answer

A)  supply. 
B)  demand. 
C)  scarcity. 
D)  increasing opportunity costs. 
A)  supply. 
B)  demand. 
C)  scarcity. 
D)  increasing opportunity costs.

Question 18

-(Exhibit: Demand and Supply Shifters) 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 dress ties, a normal 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 19

The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 40 cents, the price will:

Accepted Answer

A)  remain unchanged. 
B)  fall to 30 cents. 
C)  rise to 50 cents. 
D)  rise to 60 cents. 
A)  remain unchanged. 
B)  fall to 30 cents. 
C)  rise to 50 cents. 
D)  rise to 60 cents.

Question 20

-(Exhibit: Simultaneous Shifts in Demand and Supply) D1 and S1 are original supply and demand curves, and S2 and D2 are new curves. In this market, following the adjustment shown:

Accepted Answer

A)  both demand and supply increased. 
B)  price fell and quantity increased. 
C)  quantity had to increase, given the changes in supply and demand. 
D)  all of the above are true. 
A)  both demand and supply increased. 
B)  price fell and quantity increased. 
C)  quantity had to increase, given the changes in supply and demand. 
D)  all of the above are true.

Which of the following would shift the demand curve for new textbooks to the right?

The same factors that lead to a change in quantity demanded also cause a change in demand.

A decrease in supply is caused by:

An increase in supply is caused by:

A shift to the left of a supply curve is caused by:

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

A decrease in the price of eggs, all other things unchanged, will result in a(n):

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the price will:

In a competitive market, if there should be a surplus of a product at a given price:

Differentiate between a change in demand and a change in quantity demanded.

The law of demand is illustrated when:

Plastic and steel are substitutes in the production of automobiles. If steel prices go up, all other things unchanged:

If the price of a commodity increases as the result of increased demand, you would expect the:

If two goods are substitutes, a decrease in the price of one will result in an increase in demand for the other.

A shortage results from a current price being below the equilibrium price.

For most consumers, blu-ray players and blu-ray discs are likely to be:

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

-(Exhibit: Demand and Supply Shifters) 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 dress ties, a normal good?

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 40 cents, the price will:

-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market, following the adjustment shown:

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

Which of the following would shift the demand curve for new textbooks to the right?

The same factors that lead to a change in quantity demanded also cause a change in demand.

A decrease in supply is caused by:

An increase in supply is caused by:

A shift to the left of a supply curve is caused by:

In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

A decrease in the price of eggs, all other things unchanged, will result in a(n):

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the price will:

In a competitive market, if there should be a surplus of a product at a given price:

Differentiate between a change in demand and a change in quantity demanded.

The law of demand is illustrated when:

Plastic and steel are substitutes in the production of automobiles. If steel prices go up, all other things unchanged:

If the price of a commodity increases as the result of increased demand, you would expect the:

If two goods are substitutes, a decrease in the price of one will result in an increase in demand for the other.

A shortage results from a current price being below the equilibrium price.

For most consumers, blu-ray players and blu-ray discs are likely to be:

The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:

-(Exhibit: Demand and Supply Shifters) 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 dress ties, a normal good?

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 40 cents, the price will:

-(Exhibit: Simultaneous Shifts in Demand and Supply) D1 and S1 are original supply and demand curves, and S2 and D2 are new curves. In this market, following the adjustment shown:

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: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market, following the adjustment shown: