Question 1

An increase in income will always shift the demand curve to the right.

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer questions:  
-(Table: Supply of Lemonade) Use Table: Supply of Lemonade. When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be _____ cups per day.

Accepted Answer

A)  40 
B)  90 
C)  10 
D)  25 
A)  40 
B)  90 
C)  10 
D)  25

Question 3

If the price of a commodity increases, you can usually expect the:

Accepted Answer

A)  supply to increase. 
B)  quantity supplied to increase. 
C)  quantity supplied to decrease. 
D)  supply curve to shift to the right. 
A)  supply to increase. 
B)  quantity supplied to increase. 
C)  quantity supplied to decrease. 
D)  supply curve to shift to the right.

Question 4

The law of demand implies that:

Accepted Answer

A)  consumers are not responsive to price changes. 
B)  consumers will buy more at lower prices. 
C)  sellers will offer more on the market at higher prices. 
D)  sellers will offer less on the market at lower prices. 
A)  consumers are not responsive to price changes. 
B)  consumers will buy more at lower prices. 
C)  sellers will offer more on the market at higher prices. 
D)  sellers will offer less on the market at lower prices.

Question 5

If the supply and demand curves intersect at a price of $47, then any price above that would result in:

Accepted Answer

A)  a shortage. 
B)  a surplus. 
C)  equilibrium. 
D)  an increase in demand. 
A)  a shortage. 
B)  a surplus. 
C)  equilibrium. 
D)  an increase in demand.

Question 6

Use the following to answer questions:  
-(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts per month when the price of each bag is:

Accepted Answer

A)  $0.90. 
B)  $0.80. 
C)  $0.70. 
D)  $0.60. 
A)  $0.90. 
B)  $0.80. 
C)  $0.70. 
D)  $0.60.

Question 7

If chicken and beef are substitutes, then a fall in the price of chicken will bring about:

Accepted Answer

A)  an increase in the demand for beef. 
B)  a decrease in the demand for beef. 
C)  an increase in the quantity demanded of beef. 
D)  no change in the demand for beef. 
A)  an increase in the demand for beef. 
B)  a decrease in the demand for beef. 
C)  an increase in the quantity demanded of beef. 
D)  no change in the demand for beef.

Question 8

Use the following to answer questions:  
-(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

Accepted Answer

A)  $0.80 
B)  $0.60 
C)  $0.40 
D)  $0.30 
A)  $0.80 
B)  $0.60 
C)  $0.40 
D)  $0.30

Question 9

If supply is upward sloping, a decrease in demand with no change in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.

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

Which two goods are most likely substitutes in consumption?

Accepted Answer

A)  loaves of bread and sticks of butter 
B)  loaves of bread and toasters 
C)  loaves of bread and hamburger buns 
D)  loaves of bread and gasoline 
A)  loaves of bread and sticks of butter 
B)  loaves of bread and toasters 
C)  loaves of bread and hamburger buns 
D)  loaves of bread and gasoline

Question 11

Suppose that supply increases and demand decreases. What is the MOST likely effect on price and quantity?

Accepted Answer

A)  The price will increase, but quantity may increase, decrease, or stay the same. 
B)  The price will decrease, but quantity may increase, decrease, or stay the same. 
C)  The price will decrease and quantity will decrease. 
D)  The price will increase and quantity will increase. 
A)  The price will increase, but quantity may increase, decrease, or stay the same. 
B)  The price will decrease, but quantity may increase, decrease, or stay the same. 
C)  The price will decrease and quantity will decrease. 
D)  The price will increase and quantity will increase.

Question 12

A decrease in the price of a good will result in:

Accepted Answer

A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied. 
A)  an increase in demand. 
B)  an increase in supply. 
C)  an increase in the quantity demanded. 
D)  more being supplied.

Question 13

The law of demand is illustrated by a demand curve that is:

Accepted Answer

A)  horizontal. 
B)  downward sloping. 
C)  vertical. 
D)  upward sloping. 
A)  horizontal. 
B)  downward sloping. 
C)  vertical. 
D)  upward sloping.

Question 14

When the price of gas goes down, the demand for tires goes up. A likely possibility is that tires and gas are:

Accepted Answer

A)  substitutes. 
B)  complements. 
C)  both inferior goods. 
D)  both inexpensive. 
A)  substitutes. 
B)  complements. 
C)  both inferior goods. 
D)  both inexpensive.

Question 15

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. Supply in this market is upward sloping. If the price of good Y is $12:

Accepted Answer

A)  the quantity demanded will be greater than 150 units. 
B)  the quantity supplied will be less than 150 units. 
C)  there will be an excess demand for good Y. 
D)  there will be an excess supply of good Y. 
A)  the quantity demanded will be greater than 150 units. 
B)  the quantity supplied will be less than 150 units. 
C)  there will be an excess demand for good Y. 
D)  there will be an excess supply of good Y.

Question 16

Use the following to answer questions:  
-(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from:

Accepted Answer

A)  f to g in Panel A. 
B)  h to i in Panel B. 
C)  j to k in Panel C. 
D)  l to m in Panel D. 
A)  f to g in Panel A. 
B)  h to i in Panel B. 
C)  j to k in Panel C. 
D)  l to m in Panel D.

Question 17

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to a(n):

Accepted Answer

A)  increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. 
B)  decrease in quantity supplied and lower prices. 
C)  increase in demand and higher prices. 
D)  decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity. 
A)  increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. 
B)  decrease in quantity supplied and lower prices. 
C)  increase in demand and higher prices. 
D)  decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity.

Question 18

A negative relationship between the quantity demanded and price is called the law of:

Accepted Answer

A)  demand. 
B)  marginality. 
C)  efficiency. 
D)  supply. 
A)  demand. 
B)  marginality. 
C)  efficiency. 
D)  supply.

Question 19

Which statement is TRUE of an inferior good?

Accepted Answer

A)  When income increases, demand remains unchanged. 
B)  When income increases, demand decreases. 
C)  When income increases, demand increases. 
D)  Income and demand are unrelated. 
A)  When income increases, demand remains unchanged. 
B)  When income increases, demand decreases. 
C)  When income increases, demand increases. 
D)  Income and demand are unrelated.

Question 20

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _____ for tattoos has _____.

Accepted Answer

A)  quantity demanded; increased 
B)  demand; decreased 
C)  demand; increased 
D)  quantity demanded; decreased 
A)  quantity demanded; increased 
B)  demand; decreased 
C)  demand; increased 
D)  quantity demanded; decreased

An increase in income will always shift the demand curve to the right.

Use the following to answer questions: -(Table: Supply of Lemonade) Use Table: Supply of Lemonade. When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be _____ cups per day.

If the price of a commodity increases, you can usually expect the:

The law of demand implies that:

If the supply and demand curves intersect at a price of $47, then any price above that would result in:

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts per month when the price of each bag is:

If chicken and beef are substitutes, then a fall in the price of chicken will bring about:

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

If supply is upward sloping, a decrease in demand with no change in supply will lead to a(n) _ in equilibrium quantity and a(n) _ in equilibrium price.

Which two goods are most likely substitutes in consumption?

Suppose that supply increases and demand decreases. What is the MOST likely effect on price and quantity?

A decrease in the price of a good will result in:

The law of demand is illustrated by a demand curve that is:

When the price of gas goes down, the demand for tires goes up. A likely possibility is that tires and gas are:

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. Supply in this market is upward sloping. If the price of good Y is $12:

Use the following to answer questions: -(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from:

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to a(n):

A negative relationship between the quantity demanded and price is called the law of:

Which statement is TRUE of an inferior good?

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _ for tattoos has _.

First Principles

Economic Models: Trade-Offs and Trade

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 3: Supply and Demand

An increase in income will always shift the demand curve to the right.

Use the following to answer questions: -(Table: Supply of Lemonade) Use Table: Supply of Lemonade. When the price of lemonade is $1 per cup, the quantity of lemonade supplied by Eli will be _____ cups per day.

If the price of a commodity increases, you can usually expect the:

The law of demand implies that:

If the supply and demand curves intersect at a price of $47, then any price above that would result in:

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts per month when the price of each bag is:

If chicken and beef are substitutes, then a fall in the price of chicken will bring about:

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A shortage of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

If supply is upward sloping, a decrease in demand with no change in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.

Which two goods are most likely substitutes in consumption?

Suppose that supply increases and demand decreases. What is the MOST likely effect on price and quantity?

A decrease in the price of a good will result in:

The law of demand is illustrated by a demand curve that is:

When the price of gas goes down, the demand for tires goes up. A likely possibility is that tires and gas are:

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. Supply in this market is upward sloping. If the price of good Y is $12:

Use the following to answer questions: -(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from:

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to a(n):

A negative relationship between the quantity demanded and price is called the law of:

Which statement is TRUE of an inferior good?

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _____ for tattoos has _____.

First Principles

Economic Models: Trade-Offs and Trade

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

If supply is upward sloping, a decrease in demand with no change in supply will lead to a(n) _ in equilibrium quantity and a(n) _ in equilibrium price.

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _ for tattoos has _.