Question 1

Technology is a demand shifter.

Accepted Answer

A) True 
 B)False

Question 2

-(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) 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 3

A market is a set of arrangements where:

Accepted Answer

A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true. 
A)  buyers and sellers can get together and buy and sell. 
B)  buyers compete with sellers. 
C)  sellers compete with buyers. 
D)  A and C are true, but B is not true.

Question 4

If people demand more of product A when the price of B falls, then A and B are:

Accepted Answer

A)  not related. 
B)  substitutes. 
C)  complements. 
D)  inferior. 
A)  not related. 
B)  substitutes. 
C)  complements. 
D)  inferior.

Question 5

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

Accepted Answer

A)  increase; increase in demand 
B)  increase; increase in quantity demanded 
C)  increase; decrease in demand 
D)  decrease; decrease in demand 
A)  increase; increase in demand 
B)  increase; increase in quantity demanded 
C)  increase; decrease in demand 
D)  decrease; decrease in demand

Question 6

The fact that food consumption in the U.S. has increased and the relative price of food has decreased suggests that supply and demand both:

Accepted Answer

A)  decreased with supply shifting by a greater degree. 
B)  decreased with demand shifting by a greater degree. 
C)  increased with supply shifting by a greater degree. 
D)  increased with demand shifting by a greater degree. 
A)  decreased with supply shifting by a greater degree. 
B)  decreased with demand shifting by a greater degree. 
C)  increased with supply shifting by a greater degree. 
D)  increased with demand shifting by a greater degree.

Question 7

-(Exhibit: Demand and Supply) What is the equilibrium price?

Accepted Answer

A)  $2 
B)  $4 
C)  $6 
D)  $8 
A)  $2 
B)  $4 
C)  $6 
D)  $8

Question 8

-(Exhibit: Demand and Supply of Gasoline) Given the initial equilibrium of S1 and D, any price lower than ________ will create pressure for the price to ________ .

Accepted Answer

A)  $2.00; fall 
B)  $2.50; rise 
C)  $3.00; rise 
D)  none of the above are true 
A)  $2.00; fall 
B)  $2.50; rise 
C)  $3.00; rise 
D)  none of the above are true

Question 9

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

Accepted Answer

A)  an increase in price and quantity. 
B)  a decrease in price and an increase in quantity. 
C)  a decrease in both price and quantity. 
D)  an increase in price and a decrease in quantity. 
A)  an increase in price and quantity. 
B)  a decrease in price and an increase in quantity. 
C)  a decrease in both price and quantity. 
D)  an increase in price and a decrease in quantity.

Question 10

A decrease in supply means:

Accepted Answer

A)  a shift to the left of the entire supply curve. 
B)  moving downward (to the left) along the supply curve with lower prices. 
C)  less will be demanded at every price. 
D)  more will be supplied at every price. 
A)  a shift to the left of the entire supply curve. 
B)  moving downward (to the left) along the supply curve with lower prices. 
C)  less will be demanded at every price. 
D)  more will be supplied at every price.

Question 11

Which of the following would not change the demand for automobiles?

Accepted Answer

A)  a change in the price of gasoline 
B)  a change in the cost of steel 
C)  a change in the price of motorcycles 
D)  a change in tastes 
A)  a change in the price of gasoline 
B)  a change in the cost of steel 
C)  a change in the price of motorcycles 
D)  a change in tastes

Question 12

If the price of a commodity increases, all of the things unchanged, you would expect the:

Accepted Answer

A)  demand to decrease. 
B)  quantity demanded to increase. 
C)  quantity demanded to decrease. 
D)  demand curve to shift to the left. 
A)  demand to decrease. 
B)  quantity demanded to increase. 
C)  quantity demanded to decrease. 
D)  demand curve to shift to the left.

Question 13

Which of the following is true?

Accepted Answer

A)  If demand decreases, equilibrium price increases. 
B)  If demand increases, equilibrium price decreases. 
C)  If demand decreases, the demand curve shifts to the left. 
D)  If demand decreases, the demand curve shifts to the right. 
A)  If demand decreases, equilibrium price increases. 
B)  If demand increases, equilibrium price decreases. 
C)  If demand decreases, the demand curve shifts to the left. 
D)  If demand decreases, the demand curve shifts to the right.

Question 14

An increase in consumer income will lead to an increase in supply.

Accepted Answer

A) True 
 B)False

Question 15

An example of a demand shifter is:

Accepted Answer

A)  factor prices. 
B)  technology. 
C)  consumer preferences. 
D)  producer expectations. 
A)  factor prices. 
B)  technology. 
C)  consumer preferences. 
D)  producer expectations.

Question 16

A substantial increase in the price of oranges (a normal good) is likely to result from:

Accepted Answer

A)  an increase in the amount of imported oranges. 
B)  a prolonged freeze in Florida. 
C)  a decline in buyers' incomes. 
D)  a decrease in the public's demand for orange juice. 
A)  an increase in the amount of imported oranges. 
B)  a prolonged freeze in Florida. 
C)  a decline in buyers' incomes. 
D)  a decrease in the public's demand for orange juice.

Question 17

The Market for Chocolate-Covered Peanuts
  
-(Exhibit: The Market for Chocolate-Covered Peanuts.) A shortage of 210 bags of chocolate-covered peanuts exists if the price is ________ cents per bag.

Accepted Answer

A)  80 
B)  60 
C)  40 
D)  30 
A)  80 
B)  60 
C)  40 
D)  30

Question 18

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose a spring frost destroys one-third of the nation's artichoke crop. Which panel best describes how this will affect the market for mayonnaise, which is a complement to artichokes?

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 primary difference between a change in demand and a change in the quantity demanded is:

Accepted Answer

A)  a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. 
B)  a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. 
C)  both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. 
D)  both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions. 
A)  a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. 
B)  a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. 
C)  both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. 
D)  both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Question 20

The law of demand implies that:

Accepted Answer

A)  consumers are not responsive to price changes. 
B)  consumers will, all other things unchanged, buy more at lower prices. 
C)  sellers will, all other things unchanged, offer more on the market at higher prices. 
D)  sellers will, all other things unchanged, offer less on the market at lower prices. 
A)  consumers are not responsive to price changes. 
B)  consumers will, all other things unchanged, buy more at lower prices. 
C)  sellers will, all other things unchanged, offer more on the market at higher prices. 
D)  sellers will, all other things unchanged, offer less on the market at lower prices.

Technology is a demand shifter.

-(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) would result in a change illustrated by:

A market is a set of arrangements where:

If people demand more of product A when the price of B falls, then A and B are:

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

The fact that food consumption in the U.S. has increased and the relative price of food has decreased suggests that supply and demand both:

-(Exhibit: Demand and Supply) What is the equilibrium price?

-(Exhibit: Demand and Supply of Gasoline) Given the initial equilibrium of S₁ and D, any price lower than will create pressure for the price to .

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

A decrease in supply means:

Which of the following would not change the demand for automobiles?

If the price of a commodity increases, all of the things unchanged, you would expect the:

Which of the following is true?

An increase in consumer income will lead to an increase in supply.

An example of a demand shifter is:

A substantial increase in the price of oranges (a normal good) is likely to result from:

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts.) A shortage of 210 bags of chocolate-covered peanuts exists if the price is ________ cents per bag.

The primary difference between a change in demand and a change in the quantity demanded is:

The law of demand implies that:

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

Technology is a demand shifter.

-(Exhibit: The Demand for music downloads) A decrease in the price of CDs (a substitute) would result in a change illustrated by:

A market is a set of arrangements where:

If people demand more of product A when the price of B falls, then A and B are:

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

The fact that food consumption in the U.S. has increased and the relative price of food has decreased suggests that supply and demand both:

-(Exhibit: Demand and Supply) What is the equilibrium price?

-(Exhibit: Demand and Supply of Gasoline) Given the initial equilibrium of S1 and D, any price lower than ________ will create pressure for the price to ________ .

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

A decrease in supply means:

Which of the following would not change the demand for automobiles?

If the price of a commodity increases, all of the things unchanged, you would expect the:

Which of the following is true?

An increase in consumer income will lead to an increase in supply.

An example of a demand shifter is:

A substantial increase in the price of oranges (a normal good) is likely to result from:

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts.) A shortage of 210 bags of chocolate-covered peanuts exists if the price is ________ cents per bag.

The primary difference between a change in demand and a change in the quantity demanded is:

The law of demand implies that:

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

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

-(Exhibit: Demand and Supply of Gasoline) Given the initial equilibrium of S₁ and D, any price lower than will create pressure for the price to .