Question 1

Exhibit 3-4  
-In Exhibit 3-4, if D1 and S1 are the original supply and demand curves and D2 and S2 are the new curves, respectively, then

Accepted Answer

A) demand has decreased. 
B) the original equilibrium quantity was Q1. 
C) supply has increased. 
D) the new equilibrium quantity is Q4. 
E) supply has decreased. 
A) demand has decreased. 
B) the original equilibrium quantity was Q1. 
C) supply has increased. 
D) the new equilibrium quantity is Q4. 
E) supply has decreased.

Question 2

The typical slope of a demand curve

Accepted Answer

A) is positive. 
B) is negative. 
C) is zero. 
D) is infinity. 
E) depends on factors such as income and consumer expectations. 
A) is positive. 
B) is negative. 
C) is zero. 
D) is infinity. 
E) depends on factors such as income and consumer expectations.

Question 3

When economists say that the demand for a product has decreased, they mean that

Accepted Answer

A) consumers are going to purchase less at any given price. 
B) the price has increased and consumers will purchase less of the product. 
C) the demand curve has shifted to the right. 
D) the product has become more abundant and consumers therefore want it less. 
E) consumers would be willing to pay less to receive the same quantity. 
A) consumers are going to purchase less at any given price. 
B) the price has increased and consumers will purchase less of the product. 
C) the demand curve has shifted to the right. 
D) the product has become more abundant and consumers therefore want it less. 
E) consumers would be willing to pay less to receive the same quantity.

Question 4

Exhibit 3-5
  
-Refer to Exhibit 3-5. Suppose that a war in the Middle East causes the quantity supplied of oil to fall by 140 million barrels per day at every price.

Accepted Answer

The answer of Exhibit 3-5
  
-Refer to Exhibit 3-5....

Question 5

According to the law of supply, if the price of calculators decreased, the supply of calculators would decrease, everything else held equal.

Accepted Answer

A) True 
 B)False

Question 6

If an increase in the price of product A causes an increase in the demand for product B, we can conclude that

Accepted Answer

A) they are inferior goods. 
B) the price of B will decrease. 
C) they are complements. 
D) they are substitutes. 
E) the quantity supplied for B will decrease. 
A) they are inferior goods. 
B) the price of B will decrease. 
C) they are complements. 
D) they are substitutes. 
E) the quantity supplied for B will decrease.

Exhibit 3-4 -In Exhibit 3-4, if D₁ and S₁ are the original supply and demand curves and D₂ and S₂ are the new curves, respectively, then

The typical slope of a demand curve

When economists say that the demand for a product has decreased, they mean that

Exhibit 3-5 -Refer to Exhibit 3-5. Suppose that a war in the Middle East causes the quantity supplied of oil to fall by 140 million barrels per day at every price.

According to the law of supply, if the price of calculators decreased, the supply of calculators would decrease, everything else held equal.

If an increase in the price of product A causes an increase in the demand for product B, we can conclude that

The Central Idea

Observing and Explaining the Economy

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

Filters

Exam 3: The Supply and Demand Model

Exhibit 3-4 -In Exhibit 3-4, if D1 and S1 are the original supply and demand curves and D2 and S2 are the new curves, respectively, then

The typical slope of a demand curve

When economists say that the demand for a product has decreased, they mean that

Exhibit 3-5 -Refer to Exhibit 3-5. Suppose that a war in the Middle East causes the quantity supplied of oil to fall by 140 million barrels per day at every price.

According to the law of supply, if the price of calculators decreased, the supply of calculators would decrease, everything else held equal.

If an increase in the price of product A causes an increase in the demand for product B, we can conclude that

The Central Idea

Observing and Explaining the Economy

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

Filters

Exhibit 3-4 -In Exhibit 3-4, if D₁ and S₁ are the original supply and demand curves and D₂ and S₂ are the new curves, respectively, then