Question 1

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is
$1)25 each,

Accepted Answer

A)  there will be a shortage of soft drinks. 
B)  the demand curve for soft drinks will shift leftward. 
C)  there will be a surplus of soft drinks. 
D)  the supply curve of soft drinks will shift leftward. 
A)  there will be a shortage of soft drinks. 
B)  the demand curve for soft drinks will shift leftward. 
C)  there will be a surplus of soft drinks. 
D)  the supply curve of soft drinks will shift leftward.

Question 2

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Accepted Answer

The equilibrium price unambiguously fall

Question 3

Which of the following statements is correct?

Accepted Answer

A)  When demand increases, both the price and the quantity decrease. 
B)  When supply decreases, both the price and the quantity decrease. 
C)  When supply increases, the quantity increases and the price falls. 
D)  When demand decreases, both the price and the quantity increase. 
A)  When demand increases, both the price and the quantity decrease. 
B)  When supply decreases, both the price and the quantity decrease. 
C)  When supply increases, the quantity increases and the price falls. 
D)  When demand decreases, both the price and the quantity increase.

Question 4

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Accepted Answer

A)  $24 per pizza. 
B)  $12 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco. 
A)  $24 per pizza. 
B)  $12 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco.

Question 5

Bicycles are made out of steel. If the price of steel increases, there is a shift in the supply curve of bicycles that leads to

Accepted Answer

A)  a shift in the demand curve for bicycles. 
B)  an increase in the price of a bicycle. 
C)  a temporary surplus of bicycles. 
D)  a permanent surplus of bicycles. 
A)  a shift in the demand curve for bicycles. 
B)  an increase in the price of a bicycle. 
C)  a temporary surplus of bicycles. 
D)  a permanent surplus of bicycles.

Question 6

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplie

Question 7

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { demanded }
\end{array} & \begin{array} { l } 
\text { Price } \
\text { (dollars per } \
\text { disc) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { supplied }
\end{array} \
\hline 4 & 36,000 & 4 & 4,000 \
\hline 8 & 32,000 & 8 & 8,000 \
\hline 12 & 28,000 & 12 & 12,000 \
\hline 16 & 24,000 & 16 & 16,000 \
\hline 20 & 20,000 & 20 & 20,000 \
\hline 24 & 16,000 & 24 & 24,000 \
\hline 28 & 12,000 & 28 & 28,000 \
\hline 32 & 8,000 & 32 & 32,000 \
\hline 36 & 4,000 & 36 & 36,000 \
\hline
\end{array}$$
-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ___________and the price of a compact disc will____________ .

Accepted Answer

A)  shortage; fall 
B)  surplus; fall 
C)  shortage; rise 
D)  surplus; rise 
A)  shortage; fall 
B)  surplus; fall 
C)  shortage; rise 
D)  surplus; rise

Question 8

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

Accepted Answer

A)  point a to point e 
B)  point a to point d 
C)  point a to point c 
D)  point a to point b 
A)  point a to point e 
B)  point a to point d 
C)  point a to point c 
D)  point a to point b

Question 9

-The above figures show the market for gasoline. Which figures) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C

Question 10

A supply curve shows the relation between the quantity of a good supplied and

Accepted Answer

A)  the price of the good. Usually a supply curve has negative slope. 
B)  income. Usually a supply curve has positive slope. 
C)  income. Usually a supply curve has negative slope. 
D)  the price of the good. Usually a supply curve has positive slope. 
A)  the price of the good. Usually a supply curve has negative slope. 
B)  income. Usually a supply curve has positive slope. 
C)  income. Usually a supply curve has negative slope. 
D)  the price of the good. Usually a supply curve has positive slope.

Question 11

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

Accepted Answer

A)  the demand curve for Nikes to shift rightward. 
B)  the relative price of Nikes to increase. 
C)  people to switch from Adidas shoes and buy more Nikes. 
D)  the demand for Nike shoes to increase. 
A)  the demand curve for Nikes to shift rightward. 
B)  the relative price of Nikes to increase. 
C)  people to switch from Adidas shoes and buy more Nikes. 
D)  the demand for Nike shoes to increase.

Question 12

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

Accepted Answer

A)  does not change. 
B)  rises. 
C)  falls. 
D)  might change but more information is needed. 
A)  does not change. 
B)  rises. 
C)  falls. 
D)  might change but more information is needed.

Question 13

For normal goods which of the following explains why demand curves slope downward?

Accepted Answer

A)  substitution effect and income effect 
B)  substitutes and complements 
C)  resources and technology 
D)  prices and income 
A)  substitution effect and income effect 
B)  substitutes and complements 
C)  resources and technology 
D)  prices and income

Question 14

Which of the following correctly describes how price adjustments eliminate a shortage?

Accepted Answer

A)  As the price rises, the quantity demanded increases while the quantity supplied decreases. 
B)  As the price rises, the quantity demanded decreases while the quantity supplied increases. 
C)  As the price falls, the quantity demanded decreases while the quantity supplied increases. 
D)  As the price falls, the quantity demanded increases while the quantity supplied decreases. 
A)  As the price rises, the quantity demanded increases while the quantity supplied decreases. 
B)  As the price rises, the quantity demanded decreases while the quantity supplied increases. 
C)  As the price falls, the quantity demanded decreases while the quantity supplied increases. 
D)  As the price falls, the quantity demanded increases while the quantity supplied decreases.

Question 15

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ____________and the quantity of memory chips ___________.

Accepted Answer

A)  rises; decreases 
B)  rises; increases 
C)  falls; decreases 
D)  falls; increases 
A)  rises; decreases 
B)  rises; increases 
C)  falls; decreases 
D)  falls; increases

Question 16

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumersʹ incomes decrease?

Accepted Answer

A)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
B)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
C)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease. 
D)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease. 
A)  If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase. 
B)  If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease. 
C)  If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease. 
D)  If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease.

Question 17

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Accepted Answer

A)  6,500. 
B)  76,500. 
C)  70,000. 
D)  126,500. 
A)  6,500. 
B)  76,500. 
C)  70,000. 
D)  126,500.

Question 18

A decrease in the expected future price of cars

Accepted Answer

A)  increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars. 
B)  decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars. 
C)  increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars. 
D)  decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars. 
A)  increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars. 
B)  decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars. 
C)  increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars. 
D)  decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars.

Question 19

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

Accepted Answer

A) True 
 B)False

Question 20

-In the figure above, an increase in the supply of oil would result in a movement from

Accepted Answer

A)  point a to point d. 
B)  point a to point b. 
C)  point a to point e. 
D)  point a to point c. 
A)  point a to point d. 
B)  point a to point b. 
C)  point a to point e. 
D)  point a to point c.

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1)25 each,

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Which of the following statements is correct?

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Bicycles are made out of steel. If the price of steel increases, there is a shift in the supply curve of bicycles that leads to

What leads to a decrease in the quantity supplied of a good or service?

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

-The above figures show the market for gasoline. Which figures) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

A supply curve shows the relation between the quantity of a good supplied and

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

For normal goods which of the following explains why demand curves slope downward?

Which of the following correctly describes how price adjustments eliminate a shortage?

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip __and the quantity of memory chips _.

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumersʹ incomes decrease?

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

A decrease in the expected future price of cars

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

-In the figure above, an increase in the supply of oil would result in a movement from

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 3: Demand and Supply

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1)25 each,

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Which of the following statements is correct?

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Bicycles are made out of steel. If the price of steel increases, there is a shift in the supply curve of bicycles that leads to

What leads to a decrease in the quantity supplied of a good or service?

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

-The above figures show the market for gasoline. Which figures) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

A supply curve shows the relation between the quantity of a good supplied and

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

For normal goods which of the following explains why demand curves slope downward?

Which of the following correctly describes how price adjustments eliminate a shortage?

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ____________and the quantity of memory chips ___________.

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumersʹ incomes decrease?

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

A decrease in the expected future price of cars

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

-In the figure above, an increase in the supply of oil would result in a movement from

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip __and the quantity of memory chips _.