Question 1

A decrease in the number of dry cleaners in an area is represented by a(n):

Accepted Answer

A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve. 
E)  vertical dry cleaning supply curve. 
A)  downward movement along the dry cleaning supply curve. 
B)  upward movement along the dry cleaning supply curve. 
C)  leftward shift in the dry cleaning supply curve. 
D)  rightward shift in the dry cleaning supply curve. 
E)  vertical dry cleaning supply curve.

Question 2

Exhibit 3-1 Market Demand
​  
-Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $4 is ____.

Accepted Answer

A)  3 
B)  25 
C)  17 
D)  8 
E)  36 
A)  3 
B)  25 
C)  17 
D)  8 
E)  36

Question 3

Which of the following will increase the supply of a good?

Accepted Answer

A)  An increase in the price of another good that producers could produce. 
B)  A lower price paid for resources used in the production of the good. 
C)  A decrease in the number of sellers. 
D)  An increase in taxes paid to the government by producers. 
A)  An increase in the price of another good that producers could produce. 
B)  A lower price paid for resources used in the production of the good. 
C)  A decrease in the number of sellers. 
D)  An increase in taxes paid to the government by producers.

Question 4

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

Accepted Answer

A)  Demand will increase. 
B)  Quantity demanded will increase. 
C)  Demand will decrease. 
D)  Quantity demanded will decrease. 
E)  Supply will decrease. 
A)  Demand will increase. 
B)  Quantity demanded will increase. 
C)  Demand will decrease. 
D)  Quantity demanded will decrease. 
E)  Supply will decrease.

Question 5

When there is a shortage of a product in a market the:

Accepted Answer

A)  price will fall. 
B)  price must be below the equilibrium price. 
C)  price must be above the equilibrium price. 
D)  producers will reduce output and sales will fall. 
A)  price will fall. 
B)  price must be below the equilibrium price. 
C)  price must be above the equilibrium price. 
D)  producers will reduce output and sales will fall.

Question 6

Consumer surplus:

Accepted Answer

A)  does not exist in equilibrium. 
B)  is illustrated by the area under the demand curve and above the market price. 
C)  is illustrated by the area under the demand curve and below the market price. 
D)  is illustrated by the area above the supply curve and under the demand curve. 
A)  does not exist in equilibrium. 
B)  is illustrated by the area under the demand curve and above the market price. 
C)  is illustrated by the area under the demand curve and below the market price. 
D)  is illustrated by the area above the supply curve and under the demand curve.

Question 7

Exhibit 3-5 Supply for Tucker's Cola Data $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Quantity supplied per w eek } \
\text { (millions of gallons) }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { gallon }
\end{array} \
\hline 6 & \$ 3.00 \
5 & 2.50 \
4 & 2.00 \
3 & 1.50 \
2 & 1.00 \
1 & .50 \
\hline
\end{array}$$
-As shown in Exhibit 3-5, the price and quantity supplied by sellers of Tucker's Cola have a(n) ____ relationship.

Accepted Answer

A)  direct. 
B)  inverse. 
C)  negative. 
D)  zero. 
A)  direct. 
B)  inverse. 
C)  negative. 
D)  zero.

Question 8

When the market price of a product is below the equilibrium price, shortages will result and sellers can be expected to reduce the supply of that product.

Accepted Answer

A) True 
 B)False

Question 9

Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):

Accepted Answer

A)  upward movement along the demand curve for Coca-Cola. 
B)  downward movement along the demand curve for Coca-Cola. 
C)  leftward shift in the demand curve for Coca-Cola. 
D)  rightward shift in the demand curve for Coca-Cola. 
A)  upward movement along the demand curve for Coca-Cola. 
B)  downward movement along the demand curve for Coca-Cola. 
C)  leftward shift in the demand curve for Coca-Cola. 
D)  rightward shift in the demand curve for Coca-Cola.

Question 10

Which of the following pairs of goods would be considered complementary?

Accepted Answer

A)  Coca-Cola and Pepsi. 
B)  Computers and computer software. 
C)  Radios and televisions. 
D)  Mass transit and private automobiles. 
E)  Compact discs and cassette tapes. 
A)  Coca-Cola and Pepsi. 
B)  Computers and computer software. 
C)  Radios and televisions. 
D)  Mass transit and private automobiles. 
E)  Compact discs and cassette tapes.

Question 11

The horizontal summation of individual demand curves gives:

Accepted Answer

A)  a supply curve. 
B)  a Phillips curve. 
C)  a market demand curve. 
D)  the quantity supplied. 
E)  a production function. 
A)  a supply curve. 
B)  a Phillips curve. 
C)  a market demand curve. 
D)  the quantity supplied. 
E)  a production function.

Question 12

​A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following states the definition of supply?

Accepted Answer

A)  More of a good is supplied at a lower price. 
B)  There is a positive relationship between the price of a good and the quantity that buyers purchase. 
C)  There is a positive relationship between the price of a good and the quantity offered for sale by suppliers. 
D)  There is a negative relationship between the price of a good and the quantity offered for sale by suppliers. 
A)  More of a good is supplied at a lower price. 
B)  There is a positive relationship between the price of a good and the quantity that buyers purchase. 
C)  There is a positive relationship between the price of a good and the quantity offered for sale by suppliers. 
D)  There is a negative relationship between the price of a good and the quantity offered for sale by suppliers.

Question 14

​In economics, the term "surplus" means an excess quantity supplied.

Accepted Answer

A) True 
 B)False

Question 15

A surplus means a(n):

Accepted Answer

A)  excess demand for this product. 
B)  situation where the current market price is too low. 
C)  situation where the quantity demanded exceeds the quantity supplied. 
D)  situation where the quantity supplied is less than the quantity demanded. 
E)  excess supply of the product at the current price. 
A)  excess demand for this product. 
B)  situation where the current market price is too low. 
C)  situation where the quantity demanded exceeds the quantity supplied. 
D)  situation where the quantity supplied is less than the quantity demanded. 
E)  excess supply of the product at the current price.

Question 16

​​Exhibit 3-15 Supply and demand curves for good X  
-​ In Exhibit 3-15, at a price of $.50 the market for good X will experience a:

Accepted Answer

A)  ​shortage of 100 units. 
B)  ​surplus of 100 units. 
C)  shortage of 300 units. 
D)  ​surplus of 200 units. 
A)  ​shortage of 100 units. 
B)  ​surplus of 100 units. 
C)  shortage of 300 units. 
D)  ​surplus of 200 units.

Question 17

If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases.

Accepted Answer

A) True 
 B)False

Question 18

​Exhibit 3-11 Demand and supply curves  
-In Exhibit 3-11, in Panel A the movement from A to B describes a (an):​

Accepted Answer

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

Question 19

Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?

Accepted Answer

A)  An upward movement along the demand curve for tomato juice. 
B)  A downward movement along the demand curve for tomato juice. 
C)  A rightward shift in the demand curve for tomato juice. 
D)  A leftward shift in the demand curve for tomato juice. 
A)  An upward movement along the demand curve for tomato juice. 
B)  A downward movement along the demand curve for tomato juice. 
C)  A rightward shift in the demand curve for tomato juice. 
D)  A leftward shift in the demand curve for tomato juice.

Question 20

If movies are an inferior good, movie attendance will rise when consumer incomes fall.​

Accepted Answer

A) True 
 B)False

A decrease in the number of dry cleaners in an area is represented by a(n):

Exhibit 3-1 Market Demand -Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $4 is ____.

Which of the following will increase the supply of a good?

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

When there is a shortage of a product in a market the:

Consumer surplus:

Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per w eek (millions of gallons) Price per gallon 6 \ 3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 -As shown in Exhibit 3-5, the price and quantity supplied by sellers of Tucker's Cola have a(n) ____ relationship.

When the market price of a product is below the equilibrium price, shortages will result and sellers can be expected to reduce the supply of that product.

Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):

Which of the following pairs of goods would be considered complementary?

The horizontal summation of individual demand curves gives:

A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price.

Which of the following states the definition of supply?

In economics, the term "surplus" means an excess quantity supplied.

A surplus means a(n):

Exhibit 3-15 Supply and demand curves for good X - In Exhibit 3-15, at a price of $.50 the market for good X will experience a:

If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases.

Exhibit 3-11 Demand and supply curves -In Exhibit 3-11, in Panel A the movement from A to B describes a (an):

Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?

If movies are an inferior good, movie attendance will rise when consumer incomes fall.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 3: Market Demand and Supply

A decrease in the number of dry cleaners in an area is represented by a(n):

Exhibit 3-1 Market Demand ​ -Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $4 is ____.

Which of the following will increase the supply of a good?

If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?

When there is a shortage of a product in a market the:

Consumer surplus:

Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per w eek (millions of gallons) Price per gallon 6 \ 3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 -As shown in Exhibit 3-5, the price and quantity supplied by sellers of Tucker's Cola have a(n) ____ relationship.

When the market price of a product is below the equilibrium price, shortages will result and sellers can be expected to reduce the supply of that product.

Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):

Which of the following pairs of goods would be considered complementary?

The horizontal summation of individual demand curves gives:

​A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price.

Which of the following states the definition of supply?

​In economics, the term "surplus" means an excess quantity supplied.

A surplus means a(n):

​​Exhibit 3-15 Supply and demand curves for good X -​ In Exhibit 3-15, at a price of $.50 the market for good X will experience a:

If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases.

​Exhibit 3-11 Demand and supply curves -In Exhibit 3-11, in Panel A the movement from A to B describes a (an):​

Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?

If movies are an inferior good, movie attendance will rise when consumer incomes fall.​

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exhibit 3-1 Market Demand -Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $4 is ____.

A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price.

In economics, the term "surplus" means an excess quantity supplied.

Exhibit 3-15 Supply and demand curves for good X - In Exhibit 3-15, at a price of $.50 the market for good X will experience a:

Exhibit 3-11 Demand and supply curves -In Exhibit 3-11, in Panel A the movement from A to B describes a (an):

If movies are an inferior good, movie attendance will rise when consumer incomes fall.