Question 1

An increase in demand for a product will cause the price of the product to rise and supply of the product to increase.

Accepted Answer

A) True 
 B)False

Question 2

If iPods and iTunes are complements, then a decrease in the price of iPods will result in a decrease in the demand for iTunes.

Accepted Answer

A) True 
 B)False

Question 3

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.   Figure 3.13
-Refer to Figure 3.13. An increase in the number of cattle ranchers will cause a movement from

Accepted Answer

A)  Point B to Point A. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1. 
A)  Point B to Point A. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S2 to S1.

Question 4

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.   Figure 3.18
-Refer to Figure 3.18 The market is initially in equilibrium at Point A. If demand shifts from D1 to D2, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

A)  $4.00 to $3.00; 250 to 350 
B)  $4.00 to $3.00; 350 to 250 
C)  $3.00 to $4.00; 250 to 350 
D)  $3.00 to $4.00; 350 to 250 
A)  $4.00 to $3.00; 250 to 350 
B)  $4.00 to $3.00; 350 to 250 
C)  $3.00 to $4.00; 250 to 350 
D)  $3.00 to $4.00; 350 to 250

Question 5

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow.   Figure 3.15
-Refer to Figure 3.15. The current price of a bag of pretzels is $1.10. You accurately predict that in this market,

Accepted Answer

A)  price tends to remain constant, and quantity supplied increases. 
B)  price, quantity demanded, and quantity supplied decrease. 
C)  price and quantity demanded increase, and quantity supplied decreases. 
D)  price and quantity supplied decrease, and quantity demanded increases. 
A)  price tends to remain constant, and quantity supplied increases. 
B)  price, quantity demanded, and quantity supplied decrease. 
C)  price and quantity demanded increase, and quantity supplied decreases. 
D)  price and quantity supplied decrease, and quantity demanded increases.

Question 6

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.
Table 3.2
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price per } \
\text { Cheeseburger }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} \
\hline \$ 5 & 1,500 & 500 \
\hline 6 & 1,200 & 700 \
\hline 7 & 900 & 900 \
\hline 8 & 600 & 1,100 \
\hline 9 & 300 & 1,300 \
\hline
\end{array}$$
-Refer to Table 3.2. If the price per cheeseburger is $8, there is an excess

Accepted Answer

A)  demand of 600 cheeseburgers. 
B)  supply of 500 cheeseburgers. 
C)  demand of 300 cheeseburgers. 
D)  supply of 1,100 cheeseburgers. 
A)  demand of 600 cheeseburgers. 
B)  supply of 500 cheeseburgers. 
C)  demand of 300 cheeseburgers. 
D)  supply of 1,100 cheeseburgers.

Question 7

If demand is represented as Qd = 24 - P and supply is represented as Qs = 6 + 2P, the equilibrium quantity is

Accepted Answer

A)  3. 
B)  6. 
C)  10. 
D)  18. 
A)  3. 
B)  6. 
C)  10. 
D)  18.

Question 8

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

Accepted Answer

A) True 
 B)False

Question 9

Refer to Scenario 3.3 below to answer the question(s) that follow.
SCENARIO 3.3:
-Mustard and mayonnaise are substitutes.
-Mustard and relish are complements.
-Mustard is a normal good.
-During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
-Refer to Scenario 3.3. The mustard recall would have caused the equilibrium price of mayonnaise to ________ and the equilibrium quantity of mayonnaise to ________.

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 10

According to the law of ________, there is a positive relationship between price and ________.

Accepted Answer

A)  supply; the change in supply 
B)  supply; the quantity supplied 
C)  demand; quantity demanded 
D)  demand; change in demand 
A)  supply; the change in supply 
B)  supply; the quantity supplied 
C)  demand; quantity demanded 
D)  demand; change in demand

Question 11

Assuming demand is a straight line, the equation of the inverse demand curve is represented as

Accepted Answer

A)  P - Qd = a + b. 
B)  P = a - bQd. 
C)  Q = a - bPd. 
D)  Qd = a + bP. 
A)  P - Qd = a + b. 
B)  P = a - bQd. 
C)  Q = a - bPd. 
D)  Qd = a + bP.

Question 12

Mary Kay Ash was one of the first individuals who sold cosmetics directly to customers via independent sales representatives. The company founded by Mary Kay is now one of the largest and most successful cosmetics companies in the world. Mary Kay Ash would be classified as a(n)

Accepted Answer

A)  entrepreneur. 
B)  opportunist. 
C)  monopolist. 
D)  socialist. 
A)  entrepreneur. 
B)  opportunist. 
C)  monopolist. 
D)  socialist.

Question 13

If demand is represented as Qd = 20 - 3P and supply is represented as Qs = 4 + 5P, the equilibrium price is

Accepted Answer

A)  $2. 
B)  $3. 
C)  $7. 
D)  $14. 
A)  $2. 
B)  $3. 
C)  $7. 
D)  $14.

Question 14

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.   Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have

Accepted Answer

A)  moved from $5.00 to $7.00. 
B)  moved from $7.00 to $5.00. 
C)  remained constant at $5.00. 
D)  remained constant at $7.00. 
A)  moved from $5.00 to $7.00. 
B)  moved from $7.00 to $5.00. 
C)  remained constant at $5.00. 
D)  remained constant at $7.00.

Question 15

A factor market is

Accepted Answer

A)  where goods are exchanged. 
B)  where resources are exchanged. 
C)  where goods are made. 
D)  organized by government. 
A)  where goods are exchanged. 
B)  where resources are exchanged. 
C)  where goods are made. 
D)  organized by government.

Question 16

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.
Table 3.2
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price per } \
\text { Cheeseburger }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Cheeseburgers per } \
\text { Month) }
\end{array} \
\hline \$ 5 & 1,500 & 500 \
\hline 6 & 1,200 & 700 \
\hline 7 & 900 & 900 \
\hline 8 & 600 & 1,100 \
\hline 9 & 300 & 1,300 \
\hline
\end{array}$$
-Refer to Table 3.2. If the price per cheeseburger is $9, there is a(n)

Accepted Answer

A)  market equilibrium. 
B)  excess demand of 500 units. 
C)  excess demand of 300 units. 
D)  excess supply of 1,000 units. 
A)  market equilibrium. 
B)  excess demand of 500 units. 
C)  excess demand of 300 units. 
D)  excess supply of 1,000 units.

Question 17

Refer to the information provided in Figure 3.10 below to answer the following question(s).   Figure 3.10
-Refer to Figure 3.10. An increase in quantity supplied is represented by a movement from

Accepted Answer

A)  S2 to S3. 
B)  S2 to S1. 
C)  Point B to Point A along supply curve S2. 
D)  Point B to Point C along supply curve S2. 
A)  S2 to S3. 
B)  S2 to S1. 
C)  Point B to Point A along supply curve S2. 
D)  Point B to Point C along supply curve S2.

Question 18

Refer to the information provided in Figure 3.6 below to answer the question(s) that follow.   Figure 3.6
-Refer to Figure 3.6. The number of DVDs Isabel rents per week decreases from 7 to 4. This is caused by

Accepted Answer

A)  a decrease in income if DVDs are a normal good. 
B)  an increase in the price of popcorn which is a complement to DVDs. 
C)  an increase in the rental price of DVDs. 
D)  a decrease in the streaming price of pay-per-view movies. 
A)  a decrease in income if DVDs are a normal good. 
B)  an increase in the price of popcorn which is a complement to DVDs. 
C)  an increase in the rental price of DVDs. 
D)  a decrease in the streaming price of pay-per-view movies.

Question 19

According to the law of demand there is ________ relationship between price and quantity demanded.

Accepted Answer

A)  a positive 
B)  a negative 
C)  either a positive or negative 
D)  a constantly changing 
A)  a positive 
B)  a negative 
C)  either a positive or negative 
D)  a constantly changing

Question 20

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.   Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S2 to S1, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

A)  $5.00 to $7.00; 10 to 7 
B)  $5.00 to $7.00; 4 to 7 
C)  $7.00 to $5.00; 7 to 4 
D)  $7.00 to $5.00; 7 to 10 
A)  $5.00 to $7.00; 10 to 7 
B)  $5.00 to $7.00; 4 to 7 
C)  $7.00 to $5.00; 7 to 4 
D)  $7.00 to $5.00; 7 to 10

An increase in demand for a product will cause the price of the product to rise and supply of the product to increase.

If iPods and iTunes are complements, then a decrease in the price of iPods will result in a decrease in the demand for iTunes.

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. An increase in the number of cattle ranchers will cause a movement from

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow. Figure 3.15 -Refer to Figure 3.15. The current price of a bag of pretzels is $1.10. You accurately predict that in this market,

If demand is represented as Q_d = 24 - P and supply is represented as Q_s = 6 + 2P, the equilibrium quantity is

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

According to the law of , there is a positive relationship between price and .

Assuming demand is a straight line, the equation of the inverse demand curve is represented as

Mary Kay Ash was one of the first individuals who sold cosmetics directly to customers via independent sales representatives. The company founded by Mary Kay is now one of the largest and most successful cosmetics companies in the world. Mary Kay Ash would be classified as a(n)

If demand is represented as Q_d = 20 - 3P and supply is represented as Q_s = 4 + 5P, the equilibrium price is

A factor market is

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. An increase in quantity supplied is represented by a movement from

Refer to the information provided in Figure 3.6 below to answer the question(s) that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week decreases from 7 to 4. This is caused by

According to the law of demand there is ________ relationship between price and quantity demanded.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 3: Demand, Supply, and Market Equilibrium

An increase in demand for a product will cause the price of the product to rise and supply of the product to increase.

If iPods and iTunes are complements, then a decrease in the price of iPods will result in a decrease in the demand for iTunes.

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. An increase in the number of cattle ranchers will cause a movement from

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow. Figure 3.15 -Refer to Figure 3.15. The current price of a bag of pretzels is $1.10. You accurately predict that in this market,

If demand is represented as Qd = 24 - P and supply is represented as Qs = 6 + 2P, the equilibrium quantity is

A decrease in demand for a product will cause the price of the product to fall and supply of the product to decrease.

According to the law of ________, there is a positive relationship between price and ________.

Assuming demand is a straight line, the equation of the inverse demand curve is represented as

Mary Kay Ash was one of the first individuals who sold cosmetics directly to customers via independent sales representatives. The company founded by Mary Kay is now one of the largest and most successful cosmetics companies in the world. Mary Kay Ash would be classified as a(n)

If demand is represented as Qd = 20 - 3P and supply is represented as Qs = 4 + 5P, the equilibrium price is

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19 -Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have

A factor market is

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. An increase in quantity supplied is represented by a movement from

Refer to the information provided in Figure 3.6 below to answer the question(s) that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week decreases from 7 to 4. This is caused by

According to the law of demand there is ________ relationship between price and quantity demanded.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

If demand is represented as Q_d = 24 - P and supply is represented as Q_s = 6 + 2P, the equilibrium quantity is

According to the law of , there is a positive relationship between price and .

If demand is represented as Q_d = 20 - 3P and supply is represented as Q_s = 4 + 5P, the equilibrium price is