Question 1

An increase in supply is shown by

Accepted Answer

A) a leftward shift of the supply curve. 
B) a movement down along the supply curve. 
C) a movement up along the supply curve. 
D) a rightward shift of the supply curve. 
E) a movement from the supply curve toward the origin. 
A) a leftward shift of the supply curve. 
B) a movement down along the supply curve. 
C) a movement up along the supply curve. 
D) a rightward shift of the supply curve. 
E) a movement from the supply curve toward the origin.

Question 2

Since 1980, there has been a dramatic increase in the number of working mothers.Based on this information, the market for child care services has experienced

Accepted Answer

A) a decrease in quantity supplied. 
B) an increase in supply. 
C) a decrease in demand. 
D) an increase in quantity demanded. 
E) an increase in demand. 
A) a decrease in quantity supplied. 
B) an increase in supply. 
C) a decrease in demand. 
D) an increase in quantity demanded. 
E) an increase in demand.

Question 3

Use the table below to answer the following questions.
  
-Refer to Table 3.5.1.If the price is set at $80, there will be a

Accepted Answer

A) surplus of 200 units and demand will rise. 
B) shortage of 200 units and price will rise. 
C) surplus of 200 units and price will fall. 
D) surplus of 200 units and supply will fall. 
E) shortage of 200 units and demand will fall. 
A) surplus of 200 units and demand will rise. 
B) shortage of 200 units and price will rise. 
C) surplus of 200 units and price will fall. 
D) surplus of 200 units and supply will fall. 
E) shortage of 200 units and demand will fall.

Question 4

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result, the equilibrium price of

Accepted Answer

A) rival software packages falls leading to an overall increase in the equilibrium quantity of these packages. 
B) all software packages rises. 
C) Einstein computers rises, leading to a decrease in the equilibrium quantity. 
D) Einstein computers rises, accompanied by an increase in the equilibrium quantity. 
E) all computers rises. 
A) rival software packages falls leading to an overall increase in the equilibrium quantity of these packages. 
B) all software packages rises. 
C) Einstein computers rises, leading to a decrease in the equilibrium quantity. 
D) Einstein computers rises, accompanied by an increase in the equilibrium quantity. 
E) all computers rises.

Question 5

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

Accepted Answer

A) "Since our competitors raised their prices, our sales have doubled." 
B) "The Green movement has sparked an increase in our sales of biodegradable products." 
C) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
D) "More firms are producing biodegradable products." 
E) "We decided to cut our prices, and the increase in our sales has been remarkable." 
A) "Since our competitors raised their prices, our sales have doubled." 
B) "The Green movement has sparked an increase in our sales of biodegradable products." 
C) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
D) "More firms are producing biodegradable products." 
E) "We decided to cut our prices, and the increase in our sales has been remarkable."

Question 6

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium.Pepsi is a substitute for coffee; cream is a complement of coffee.Consider the for coffee.Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1.An increase in the price of Pepsi, a substitute for coffee will

Accepted Answer

A) decrease the price and the quantity demanded of coffee. 
B) increase the supply of coffee. 
C) increase the price and the quantity demanded of coffee. 
D) increase the price and the quantity supplied of coffee. 
E) decrease the price and the quantity supplied of coffee. 
A) decrease the price and the quantity demanded of coffee. 
B) increase the supply of coffee. 
C) increase the price and the quantity demanded of coffee. 
D) increase the price and the quantity supplied of coffee. 
E) decrease the price and the quantity supplied of coffee.

Question 7

The price of good A rises, and the demand curve for good B shifts leftward.We can conclude that

Accepted Answer

A) A and B are complements. 
B) A and B are complements in production. 
C) B is a normal good. 
D) A and B are substitutes. 
E) B is an inferior good. 
A) A and B are complements. 
B) A and B are complements in production. 
C) B is a normal good. 
D) A and B are substitutes. 
E) B is an inferior good.

Question 8

Use the figure below to answer the following questions.
   Figure 3.2.2
-Which one of the following would result in the demand curve shifting from D1 to D2 in Figure 3.2.2?

Accepted Answer

A) an increase in the supply of pizza 
B) a rise in the price of pizza 
C) a rise in the price of spaghetti, a substitute for pizza 
D) a fall in the price of pizza 
E) a rise in the price of Coke, a complement of pizza 
A) an increase in the supply of pizza 
B) a rise in the price of pizza 
C) a rise in the price of spaghetti, a substitute for pizza 
D) a fall in the price of pizza 
E) a rise in the price of Coke, a complement of pizza

Question 9

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

Accepted Answer

A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually harsh winter; our sales of wool scarves are up from last year." 
C) "People are expecting a harsh winter next year, so the sales of our winter coats have increased." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "We decided to cut our prices, and the increase in our sales has been remarkable." 
A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually harsh winter; our sales of wool scarves are up from last year." 
C) "People are expecting a harsh winter next year, so the sales of our winter coats have increased." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "We decided to cut our prices, and the increase in our sales has been remarkable."

Question 10

The money price of a litre of milk is $3.33 and the money price of a litre of gasoline is $1.11.The relative price of a litre of gasoline in terms of milk is

Accepted Answer

A) $2.22. 
B) $1.11. 
C) 3 litres of milk. 
D) 1/3 litre of milk. 
E) $3.33. 
A) $2.22. 
B) $1.11. 
C) 3 litres of milk. 
D) 1/3 litre of milk. 
E) $3.33.

Question 11

The price of a good will rise if

Accepted Answer

A) the good is an inferior good and income increases. 
B) there is a surplus of the good. 
C) the price of a substitute for the good decreases. 
D) demand for the good decreases. 
E) supply of the good decreases. 
A) the good is an inferior good and income increases. 
B) there is a surplus of the good. 
C) the price of a substitute for the good decreases. 
D) demand for the good decreases. 
E) supply of the good decreases.

Question 12

Which one of the following will definitely lower the equilibrium price?

Accepted Answer

A) a decrease in demand combined with an increase in supply 
B) an increase in both demand and supply 
C) a decrease in both demand and supply 
D) an increase in demand combined with a decrease in supply 
E) a decrease in supply combined with an increase in demand 
A) a decrease in demand combined with an increase in supply 
B) an increase in both demand and supply 
C) a decrease in both demand and supply 
D) an increase in demand combined with a decrease in supply 
E) a decrease in supply combined with an increase in demand

Question 13

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Accepted Answer

A) The equilibrium price will rise and the effect on the equilibrium quantity is uncertain. 
B) The equilibrium price will fall and the effect on the equilibrium quantity is uncertain. 
C) The equilibrium quantity will increase and the effect on the equilibrium price is uncertain. 
D) The equilibrium quantity will increase and the equilibrium price will remain unchanged. 
E) The equilibrium quantity will decrease and the equilibrium price will rise. 
A) The equilibrium price will rise and the effect on the equilibrium quantity is uncertain. 
B) The equilibrium price will fall and the effect on the equilibrium quantity is uncertain. 
C) The equilibrium quantity will increase and the effect on the equilibrium price is uncertain. 
D) The equilibrium quantity will increase and the equilibrium price will remain unchanged. 
E) The equilibrium quantity will decrease and the equilibrium price will rise.

Question 14

Use the table below to answer the following questions.
  
-Refer to Table 3.5.1.Suppose a problem develops with car- seat heaters - they malfunction and occasionally cause serious burns.As a result, demand decreases by 100 heaters at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ heaters per month.

Accepted Answer

A) 70; 350 
B) 50; 450 
C) 70; 450 
D) 60; 400 
E) 50; 350 
A) 70; 350 
B) 50; 450 
C) 70; 450 
D) 60; 400 
E) 50; 350

Question 15

The price of a good will tend to fall if

Accepted Answer

A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true. 
A) there is a surplus at the current price. 
B) the current price is below the equilibrium price. 
C) the quantity supplied exceeds the quantity demanded at the current price. 
D) Both A and C are true. 
E) None of the above are true.

Question 16

Use the table below to answer the following questions.
Table 3.1.1  
-Refer to Table 3.1.1.Between 2015 and 2016, the price of coffee relative to the price of tea _______ while the price of coffee relative to the price of cola _______

Accepted Answer

A) rose; did not change 
B) fell; rose 
C) fell; did not change 
D) fell; fell 
E) rose; fell 
A) rose; did not change 
B) fell; rose 
C) fell; did not change 
D) fell; fell 
E) rose; fell

Question 17

Figure 3.4.2
-At a price of $4 a unit in Figure 3.4.2,

Accepted Answer

A) the quantity demanded is 200 units. 
B) the quantity supplied is 400 units. 
C) there is a surplus of 200 units. 
D) there is a shortage of 200 units. 
E) the equilibrium quantity is 400 units. 
A) the quantity demanded is 200 units. 
B) the quantity supplied is 400 units. 
C) there is a surplus of 200 units. 
D) there is a shortage of 200 units. 
E) the equilibrium quantity is 400 units.

Question 18

Use the figure below to answer the following questions.
Table 3.5.2  
-Refer to Table 3.5.2.If the price is set at $0.80 per cup, there is _______ leading to a price _______.

Accepted Answer

A) an equilibrium; rise 
B) a surplus; fall 
C) a shortage; fall 
D) a shortage; rise 
E) a surplus; rise 
A) an equilibrium; rise 
B) a surplus; fall 
C) a shortage; fall 
D) a shortage; rise 
E) a surplus; rise

Question 19

The price of a good will fall if

Accepted Answer

A) there is a shortage of the good. 
B) there is a surplus of the good. 
C) demand for the good increases. 
D) the supply of the good decreases. 
E) demand for the good does not change. 
A) there is a shortage of the good. 
B) there is a surplus of the good. 
C) demand for the good increases. 
D) the supply of the good decreases. 
E) demand for the good does not change.

Question 20

If Hamburger Helper is an inferior good, then, ceteris paribus, a decrease in income will lead to

Accepted Answer

A) a movement up along the demand curve for Hamburger Helper. 
B) a leftward shift of the demand curve for Hamburger Helper. 
C) a movement down along the demand curve for Hamburger Helper. 
D) a rightward shift of the demand curve for Hamburger Helper. 
E) a rightward shift of the supply curve of Hamburger Helper. 
A) a movement up along the demand curve for Hamburger Helper. 
B) a leftward shift of the demand curve for Hamburger Helper. 
C) a movement down along the demand curve for Hamburger Helper. 
D) a rightward shift of the demand curve for Hamburger Helper. 
E) a rightward shift of the supply curve of Hamburger Helper.

An increase in supply is shown by

Since 1980, there has been a dramatic increase in the number of working mothers.Based on this information, the market for child care services has experienced

Use the table below to answer the following questions. -Refer to Table 3.5.1.If the price is set at $80, there will be a

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result, the equilibrium price of

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

The price of good A rises, and the demand curve for good B shifts leftward.We can conclude that

Use the figure below to answer the following questions. Figure 3.2.2 -Which one of the following would result in the demand curve shifting from D₁to D₂in Figure 3.2.2?

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

The money price of a litre of milk is $3.33 and the money price of a litre of gasoline is $1.11.The relative price of a litre of gasoline in terms of milk is

The price of a good will rise if

Which one of the following will definitely lower the equilibrium price?

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

The price of a good will tend to fall if

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.Between 2015 and 2016, the price of coffee relative to the price of tea _ while the price of coffee relative to the price of cola _

Figure 3.4.2 -At a price of $4 a unit in Figure 3.4.2,

Use the figure below to answer the following questions. Table 3.5.2 -Refer to Table 3.5.2.If the price is set at $0.80 per cup, there is _ leading to a price _.

The price of a good will fall if

If Hamburger Helper is an inferior good, then, ceteris paribus, a decrease in income will lead to

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

An increase in supply is shown by

Since 1980, there has been a dramatic increase in the number of working mothers.Based on this information, the market for child care services has experienced

Use the table below to answer the following questions. -Refer to Table 3.5.1.If the price is set at $80, there will be a

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result, the equilibrium price of

Some sales managers are talking shop.Which of the following quotations refers to a movement along the demand curve?

The price of good A rises, and the demand curve for good B shifts leftward.We can conclude that

Use the figure below to answer the following questions. Figure 3.2.2 -Which one of the following would result in the demand curve shifting from D1 to D2 in Figure 3.2.2?

Some sales managers are talking shop.Which one of the following quotations does not refer to a rightward shift of the demand curve?

The money price of a litre of milk is $3.33 and the money price of a litre of gasoline is $1.11.The relative price of a litre of gasoline in terms of milk is

The price of a good will rise if

Which one of the following will definitely lower the equilibrium price?

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

The price of a good will tend to fall if

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.Between 2015 and 2016, the price of coffee relative to the price of tea _______ while the price of coffee relative to the price of cola _______

Figure 3.4.2 -At a price of $4 a unit in Figure 3.4.2,

Use the figure below to answer the following questions. Table 3.5.2 -Refer to Table 3.5.2.If the price is set at $0.80 per cup, there is _______ leading to a price _______.

The price of a good will fall if

If Hamburger Helper is an inferior good, then, ceteris paribus, a decrease in income will lead to

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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Use the figure below to answer the following questions. Figure 3.2.2 -Which one of the following would result in the demand curve shifting from D₁to D₂in Figure 3.2.2?

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.Between 2015 and 2016, the price of coffee relative to the price of tea _ while the price of coffee relative to the price of cola _

Use the figure below to answer the following questions. Table 3.5.2 -Refer to Table 3.5.2.If the price is set at $0.80 per cup, there is _ leading to a price _.