Question 1

An increase in demand, all other things unchanged, will result in a(n) ________ in the equilibrium price and a(n) ________ in the equilibrium quantity.

Accepted Answer

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

Question 2

Use the following to answer questions.
Exhibit: 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 3

The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

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 4

An improvement in technology will lead to a change in demand.

Accepted Answer

A) True 
 B)False

Question 5

A supply curve that is upward sloping means that:

Accepted Answer

A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices. 
A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices.

Question 6

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

Accepted Answer

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

Question 7

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

Question 8

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 9

If demand and supply both decrease:

Accepted Answer

A)  both price and quantity will be less. 
B)  both price and quantity will go up. 
C)  price will fall but quantity will go up. 
D)  quantity will go down but the effect on price is indeterminate. 
A)  both price and quantity will be less. 
B)  both price and quantity will go up. 
C)  price will fall but quantity will go up. 
D)  quantity will go down but the effect on price is indeterminate.

Question 10

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 11

Use the following to answer questions .
Exhibit: Demand and Supply  
-(Exhibit: Demand and Supply) Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Accepted Answer

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

Question 12

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Accepted Answer

A)  a fall in the price of milk 
B)  an increase in income 
C)  an expected increase in milk prices 
D)  a decrease in the price of cookies (a complement) 
A)  a fall in the price of milk 
B)  an increase in income 
C)  an expected increase in milk prices 
D)  a decrease in the price of cookies (a complement)

Question 13

Use the following to answer questions .
Exhibit: Demand and Supply Curves  
-(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

Accepted Answer

A)  a shortage of 50 units. 
B)  a shortage of 200 units. 
C)  a shortage of 250 units. 
D)  quantity supplied exceeding quantity demanded. 
A)  a shortage of 50 units. 
B)  a shortage of 200 units. 
C)  a shortage of 250 units. 
D)  quantity supplied exceeding quantity demanded.

Question 14

Use the following to answer questions .
Exhibit: Demand Shifters and Supply Shifters  
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing automotive gasoline improves. Which panel best describes how this will affect the market for automotive gasoline?

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

Use the following to answer questions .
Exhibit: Demand Shifters and Supply Shifters  
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the birth rate (the number of babies per female in the childbearing age bracket) increases. Which panel best describes how this will affect the market for diapers?

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 16

Use the following to answer questions .
Exhibit: Demand and Supply Shifters  
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego move to Colorado Springs. Which panel best describes how this will affect the market for houses in Colorado Springs?

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 17

It's certain that the equilibrium price will fall when:

Accepted Answer

A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both increase. 
D)  supply decreases and demand stays the same. 
A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both increase. 
D)  supply decreases and demand stays the same.

Question 18

Use the following to answer questions .
Exhibit: Demand and Supply-Determinants  
-(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 19

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 20

Use the following to answer questions .
Exhibit: Demand and Supply Shifters  
-(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)

An increase in demand, all other things unchanged, will result in a(n) in the equilibrium price and a(n) in the equilibrium quantity.

Use the following to answer questions. Exhibit: 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 price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

An improvement in technology will lead to a change in demand.

A supply curve that is upward sloping means that:

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

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

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

If demand and supply both decrease:

An increase in supply is caused by:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

It's certain that the equilibrium price will fall when:

The intersection of the supply and demand curves indicates:

Economics: the Study of Choice

Applications of Supply and Demand

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

Filters

Exam 3: Demand and Supply

An increase in demand, all other things unchanged, will result in a(n) ________ in the equilibrium price and a(n) ________ in the equilibrium quantity.

Use the following to answer questions. Exhibit: 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 price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

An improvement in technology will lead to a change in demand.

A supply curve that is upward sloping means that:

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

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

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

If demand and supply both decrease:

An increase in supply is caused by:

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $10 per unit will result in:

It's certain that the equilibrium price will fall when:

The intersection of the supply and demand curves indicates:

Economics: the Study of Choice

Applications of Supply and Demand

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

Filters

An increase in demand, all other things unchanged, will result in a(n) in the equilibrium price and a(n) in the equilibrium quantity.