Question 1

Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, we would expect that:

Accepted Answer

A)  demand will decrease until quantity demanded equals quantity supplied. 
B)  price will increase until quantity demanded equals quantity supplied. 
C)  supply will increase until quantity demanded equals quantity supplied. 
D)  there will be no change since the market is in equilibrium. 
A)  demand will decrease until quantity demanded equals quantity supplied. 
B)  price will increase until quantity demanded equals quantity supplied. 
C)  supply will increase until quantity demanded equals quantity supplied. 
D)  there will be no change since the market is in equilibrium.

Question 2

Suppose that the population of a country decreases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _______ and the equilibrium price of steak will _______ in that country.

Accepted Answer

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

Question 3

In economics, a change in variables other than the price of the product causes a _______.

Accepted Answer

The answer of In economics, a change in variables other...

Question 4

What does a decrease in population do to the demand for a product?

Accepted Answer

It decreas

Question 5

If the incomes increase and electricity is a normal good, then:

Accepted Answer

A)  the quantity demanded for electricity decreases. 
B)  the demand for electricity increases. 
C)  the quantity demanded for electricity increases. 
D)  the demand for electricity decreases. 
A)  the quantity demanded for electricity decreases. 
B)  the demand for electricity increases. 
C)  the quantity demanded for electricity increases. 
D)  the demand for electricity decreases.

Question 6

Suppose that the population of a country increases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _______ and the equilibrium price of steak will _______ in that country.

Accepted Answer

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

Question 7

Figure 4.4
-Figure 4.4 illustrates the demand for guitars. Assume that guitars and banjos are substitutes. A decrease in the price of banjos would bring about a movement from:

Accepted Answer

A)  point B to point C. 
B)  D1 to D2. 
C)  point B to point A. 
D)  D1 to D0. 
A)  point B to point C. 
B)  D1 to D2. 
C)  point B to point A. 
D)  D1 to D0.

Question 8

Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes. As a result of the study, we could predict that the demand curve for orange juice will _______ and the equilibrium price will _______.

Accepted Answer

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

Question 9

Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is:

Accepted Answer

A)  excess supply of 40 pairs of blue jeans. 
B)  excess demand of 50 pairs of blue jeans. 
C)  excess demand of 40 pairs of blue jeans. 
D)  excess supply of 50 pairs of blue jeans. 
A)  excess supply of 40 pairs of blue jeans. 
B)  excess demand of 50 pairs of blue jeans. 
C)  excess demand of 40 pairs of blue jeans. 
D)  excess supply of 50 pairs of blue jeans.

Question 10

When a consumer's income increases, that consumer tends to buy more _______ .

Accepted Answer

The answer of When a consumer's income increases, that consumer...

Question 11

When consumers are willing to buy more than producers are willing to sell:

Accepted Answer

A)  there is excess supply of the product in the market. 
B)  the demand curve will shift until the quantity supplied equals the quantity demanded. 
C)  the market is in equilibrium. 
D)  there is excess demand for the product in the market. 
A)  there is excess supply of the product in the market. 
B)  the demand curve will shift until the quantity supplied equals the quantity demanded. 
C)  the market is in equilibrium. 
D)  there is excess demand for the product in the market.

Question 12

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

Accepted Answer

Movement along the demand curve (upwards

Question 13

If sellers have an expectation of higher future prices:

Accepted Answer

A)  the current demand for that good will decrease. 
B)  the current supply of that good will decrease. 
C)  the current supply of that good will increase. 
D)  the current demand for that good will increase. 
A)  the current demand for that good will decrease. 
B)  the current supply of that good will decrease. 
C)  the current supply of that good will increase. 
D)  the current demand for that good will increase.

Question 14

Figure 4.2
-Figure 4.2 depicts three market situations. Which of the panels depicts a market in which the price is likely to rise?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  None of the panels depicts a market in which the price is likely to rise. 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  None of the panels depicts a market in which the price is likely to rise.

Question 15

When the price of one product decreases, what does it do to the demand its complementary product?

Accepted Answer

A)  They balance each other. 
B)  It decreases. 
C)  It increases. 
D)  none of the above 
A)  They balance each other. 
B)  It decreases. 
C)  It increases. 
D)  none of the above

Question 16

Suppose that the price of apples decreases and the quantity of apples in the market decreases. Suggest two reasons why this might have happened.

Accepted Answer

The most likely explanation is

Question 17

If the cost of producing a product goes down, this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

Accepted Answer

A) True 
 B)False

Question 18

A supply curve is defined as the relationship between:

Accepted Answer

A)  the price of a good and the quantity that consumers are willing to buy. 
B)  the price of a good and the quantity that producers are willing to sell. 
C)  the income of consumers and the quantity of a product that producers are willing to sell. 
D)  the income of consumers and the quantity of a product that consumers are willing to buy. 
A)  the price of a good and the quantity that consumers are willing to buy. 
B)  the price of a good and the quantity that producers are willing to sell. 
C)  the income of consumers and the quantity of a product that producers are willing to sell. 
D)  the income of consumers and the quantity of a product that consumers are willing to buy.

Question 19

If a government creates an excess demand for a product by setting a maximum price, it is sometimes called a _______.

Accepted Answer

The answer of If a government creates an excess demand...

Question 20

What is the "law of demand"?

Accepted Answer

The "law of demand" states that there is

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, we would expect that:

Suppose that the population of a country decreases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _ and the equilibrium price of steak will _ in that country.

In economics, a change in variables other than the price of the product causes a _______.

What does a decrease in population do to the demand for a product?

If the incomes increase and electricity is a normal good, then:

Suppose that the population of a country increases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _ and the equilibrium price of steak will _ in that country.

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. Assume that guitars and banjos are substitutes. A decrease in the price of banjos would bring about a movement from:

Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes. As a result of the study, we could predict that the demand curve for orange juice will _ and the equilibrium price will _.

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is:

When a consumer's income increases, that consumer tends to buy more _______ .

When consumers are willing to buy more than producers are willing to sell:

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

If sellers have an expectation of higher future prices:

Figure 4.2 -Figure 4.2 depicts three market situations. Which of the panels depicts a market in which the price is likely to rise?

When the price of one product decreases, what does it do to the demand its complementary product?

Suppose that the price of apples decreases and the quantity of apples in the market decreases. Suggest two reasons why this might have happened.

If the cost of producing a product goes down, this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

A supply curve is defined as the relationship between:

If a government creates an excess demand for a product by setting a maximum price, it is sometimes called a _______.

What is the "law of demand"?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 4: Demand, Supply, and Market Equilibrium

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, we would expect that:

Suppose that the population of a country decreases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _______ and the equilibrium price of steak will _______ in that country.

In economics, a change in variables other than the price of the product causes a _______.

What does a decrease in population do to the demand for a product?

If the incomes increase and electricity is a normal good, then:

Suppose that the population of a country increases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _______ and the equilibrium price of steak will _______ in that country.

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. Assume that guitars and banjos are substitutes. A decrease in the price of banjos would bring about a movement from:

Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes. As a result of the study, we could predict that the demand curve for orange juice will _______ and the equilibrium price will _______.

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is:

When a consumer's income increases, that consumer tends to buy more _______ .

When consumers are willing to buy more than producers are willing to sell:

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

If sellers have an expectation of higher future prices:

Figure 4.2 -Figure 4.2 depicts three market situations. Which of the panels depicts a market in which the price is likely to rise?

When the price of one product decreases, what does it do to the demand its complementary product?

Suppose that the price of apples decreases and the quantity of apples in the market decreases. Suggest two reasons why this might have happened.

If the cost of producing a product goes down, this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

A supply curve is defined as the relationship between:

If a government creates an excess demand for a product by setting a maximum price, it is sometimes called a _______.

What is the "law of demand"?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Suppose that the population of a country decreases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _ and the equilibrium price of steak will _ in that country.

Suppose that the population of a country increases. Assuming that people in that country enjoy eating steak, we would predict that the equilibrium quantity of steak will _ and the equilibrium price of steak will _ in that country.

Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes. As a result of the study, we could predict that the demand curve for orange juice will _ and the equilibrium price will _.