Question 1

A change in the price of a service leads to a change in quantity demanded of the service.

Accepted Answer

A) True 
 B)False

Question 2

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow.   Figure 3.4
-Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good. 
A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good.

Question 3

The "law of demand" implies that

Accepted Answer

A)  as prices fall, demand increases. 
B)  as prices rise, demand increases. 
C)  as prices fall, quantity demanded increases. 
D)  as prices rise, quantity demanded increases. 
A)  as prices fall, demand increases. 
B)  as prices rise, demand increases. 
C)  as prices fall, quantity demanded increases. 
D)  as prices rise, quantity demanded increases.

Question 4

Refer to the information provided in Figure 3.10 below to answer the following question(s).   Figure 3.10
-Refer to Figure 3.10. A movement from Point C to Point B on supply curve S2 would be caused by a(n)

Accepted Answer

A)  decrease in the price of pizza. 
B)  decrease in the price of pizza dough. 
C)  increase in the demand for pizza. 
D)  increase in the price of hamburgers, assuming hamburgers are a substitute for pizza. 
A)  decrease in the price of pizza. 
B)  decrease in the price of pizza dough. 
C)  increase in the demand for pizza. 
D)  increase in the price of hamburgers, assuming hamburgers are a substitute for pizza.

Question 5

Related to the Economics in Practice on p. 68: Assuming the demand for Baltimore newspapers increases while the supply of Baltimore newspapers decreases, the equilibrium ________ will definitely ________.

Accepted Answer

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

Question 6

Which of the following will not cause a shift in the demand curve for DVDs?

Accepted Answer

A)  a change in income 
B)  a change in wealth 
C)  a change in the price of Blu-ray discs 
D)  a change in the price of DVDs 
A)  a change in income 
B)  a change in wealth 
C)  a change in the price of Blu-ray discs 
D)  a change in the price of DVDs

Question 7

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.   Figure 3.14
-Refer to Figure 3.14. At a price of $90, there is an excess

Accepted Answer

A)  demand of 150 sunglasses. 
B)  supply of 450 sunglasses. 
C)  demand of 600 sunglasses. 
D)  supply of 600 sunglasses. 
A)  demand of 150 sunglasses. 
B)  supply of 450 sunglasses. 
C)  demand of 600 sunglasses. 
D)  supply of 600 sunglasses.

Question 8

Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?

Accepted Answer

A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity 
A)  an increase in equilibrium price 
B)  a decrease in equilibrium price 
C)  an increase in equilibrium quantity 
D)  a decrease in equilibrium quantity

Question 9

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 B. If demand shifts from D2 to D1 and there is an excess supply of 200 million pounds of burritos, the price of burritos would be

Accepted Answer

A)  $1.50. 
B)  $3.00. 
C)  $4.00. 
D)  $6.00. 
A)  $1.50. 
B)  $3.00. 
C)  $4.00. 
D)  $6.00.

Question 10

Quantity supplied is determined by how much producers are willing and able to produce.

Accepted Answer

A) True 
 B)False

Question 11

Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,

Accepted Answer

A)  the price of both pineapples and kumquats will increase. 
B)  the price of both pineapples and kumquats will fall. 
C)  the price of kumquats will increase and the price of pineapples will fall. 
D)  the price of kumquats will fall and the price of pineapples will increase. 
A)  the price of both pineapples and kumquats will increase. 
B)  the price of both pineapples and kumquats will fall. 
C)  the price of kumquats will increase and the price of pineapples will fall. 
D)  the price of kumquats will fall and the price of pineapples will increase.

Question 12

Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1
 $$\begin{array} { | c | c | c | } 
\hline \text { Price per Pizza } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Pizzas per Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Pizzas per Month) }
\end{array} \
\hline \$ 3 & 1,200 & 600 \
\hline 6 & 1,000 & 700 \
\hline 9 & 800 & 800 \
\hline 12 & 600 & 900 \
\hline 15 & 400 & 1,000 \
\hline
\end{array}$$
-Refer to Table 3.1. If the price per pizza is $12, there is an excess

Accepted Answer

A)  demand of 400 pizzas. 
B)  demand of 600 pizzas. 
C)  supply of 300 pizzas. 
D)  supply of 900 pizzas. 
A)  demand of 400 pizzas. 
B)  demand of 600 pizzas. 
C)  supply of 300 pizzas. 
D)  supply of 900 pizzas.

Question 13

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 the price of pizza sauce will cause a movement from Point B on supply curve S2 to

Accepted Answer

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

Question 14

Related to the Economics in Practice on p. 52: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

Accepted Answer

A)  not at all 
B)  heavily 
C)  slightly 
D)  always 
A)  not at all 
B)  heavily 
C)  slightly 
D)  always

Question 15

Refer to the information provided in Table 3.1 below to answer the question(s) that follow.
Table 3.1
 $$\begin{array} { | c | c | c | } 
\hline \text { Price per Pizza } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Pizzas per Month) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Pizzas per Month) }
\end{array} \
\hline \$ 3 & 1,200 & 600 \
\hline 6 & 1,000 & 700 \
\hline 9 & 800 & 800 \
\hline 12 & 600 & 900 \
\hline 15 & 400 & 1,000 \
\hline
\end{array}$$
-Refer to Table 3.1. If the price per pizza is $3, the price will

Accepted Answer

A)  remain constant because the market is in equilibrium. 
B)  increase because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market. 
A)  remain constant because the market is in equilibrium. 
B)  increase because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market.

Question 16

A simultaneous decrease in both the supply of and the demand for silk boxer shorts would cause a decrease in the equilibrium quantity of silk boxer shorts.

Accepted Answer

A) True 
 B)False

Question 17

If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________.

Accepted Answer

A)  $6; $9 
B)  $12; $12 
C)  $21; $15 
D)  $18; $3 
A)  $6; $9 
B)  $12; $12 
C)  $21; $15 
D)  $18; $3

Question 18

Why do firms engage in the activity of production?

Accepted Answer

A)  to help society advance technologically 
B)  to participate in the circular flow 
C)  to acquire profits 
D)  to develop a supply schedule 
A)  to help society advance technologically 
B)  to participate in the circular flow 
C)  to acquire profits 
D)  to develop a supply schedule

Question 19

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

Accepted Answer

A)  an increase in the supply of 
B)  a decrease in the supply of 
C)  an increase in the quantity supplied of 
D)  a decrease in the quantity supplied of 
A)  an increase in the supply of 
B)  a decrease in the supply of 
C)  an increase in the quantity supplied of 
D)  a decrease in the quantity supplied of

Question 20

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 $7, the price will

Accepted Answer

A)  remain constant because the market is in equilibrium. 
B)  increase because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market. 
A)  remain constant because the market is in equilibrium. 
B)  increase because there is an excess demand in the market. 
C)  increase because there is an excess supply in the market. 
D)  decrease because there is an excess supply in the market.

A change in the price of a service leads to a change in quantity demanded of the service.

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

The "law of demand" implies that

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A movement from Point C to Point B on supply curve S₂ would be caused by a(n)

Related to the Economics in Practice on p. 68: Assuming the demand for Baltimore newspapers increases while the supply of Baltimore newspapers decreases, the equilibrium will definitely .

Which of the following will not cause a shift in the demand curve for DVDs?

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow. Figure 3.14 -Refer to Figure 3.14. At a price of $90, there is an excess

Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?

Quantity supplied is determined by how much producers are willing and able to produce.

Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,

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 the price of pizza sauce will cause a movement from Point B on supply curve S₂ to

Related to the Economics in Practice on p. 52: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

A simultaneous decrease in both the supply of and the demand for silk boxer shorts would cause a decrease in the equilibrium quantity of silk boxer shorts.

If demand is represented as Q_d = 18 - 6P and supply is represented as Q_s = 3 + 9P, the demand curve intersects the y axis at a price of and the supply curve intersects the y axis at a price of .

Why do firms engage in the activity of production?

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

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

A change in the price of a service leads to a change in quantity demanded of the service.

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)

The "law of demand" implies that

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A movement from Point C to Point B on supply curve S2 would be caused by a(n)

Related to the Economics in Practice on p. 68: Assuming the demand for Baltimore newspapers increases while the supply of Baltimore newspapers decreases, the equilibrium ________ will definitely ________.

Which of the following will not cause a shift in the demand curve for DVDs?

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow. Figure 3.14 -Refer to Figure 3.14. At a price of $90, there is an excess

Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?

Quantity supplied is determined by how much producers are willing and able to produce.

Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,

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 the price of pizza sauce will cause a movement from Point B on supply curve S2 to

Related to the Economics in Practice on p. 52: Economist Meghan Busse found after examining more than 40 million car transactions that car purchasers are ________ influenced in their choice of cars by temporary weather fluctuations at the time of purchase.

A simultaneous decrease in both the supply of and the demand for silk boxer shorts would cause a decrease in the equilibrium quantity of silk boxer shorts.

If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________.

Why do firms engage in the activity of production?

The price of hard drives used in the manufacturing of laptop computers has risen. This will lead to ________ laptop computers.

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

Refer to the information provided in Figure 3.4 below to answer the question(s) that follow. Figure 3.4 -Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D₀ to D₁. This implies that tuna fish sandwiches are a(n)

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A movement from Point C to Point B on supply curve S₂ would be caused by a(n)

Related to the Economics in Practice on p. 68: Assuming the demand for Baltimore newspapers increases while the supply of Baltimore newspapers decreases, the equilibrium will definitely .

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 the price of pizza sauce will cause a movement from Point B on supply curve S₂ to

If demand is represented as Q_d = 18 - 6P and supply is represented as Q_s = 3 + 9P, the demand curve intersects the y axis at a price of and the supply curve intersects the y axis at a price of .