Question 1

Which of the following will not cause a change in demand for crackers?

Accepted Answer

A)  A change in consumers' income. 
B)  A change in the price of crackers. 
C)  A change in the price of cheese. 
D)  A change in the number of cracker-eaters. 
E)  A change in consumers' tastes for crackers. 
A)  A change in consumers' income. 
B)  A change in the price of crackers. 
C)  A change in the price of cheese. 
D)  A change in the number of cracker-eaters. 
E)  A change in consumers' tastes for crackers.

Question 2

Which of the following situations results from a ticket price to a concert set below the equilibrium price? ​

Accepted Answer

A)  ​A long line of people wanting to purchase tickets to the concert. 
B)  ​No line of people wanting to buy tickets to the concert. 
C)  ​Tickets available at the box office, but no line of people wanting to buy them. 
D)  ​None of the above. 
A)  ​A long line of people wanting to purchase tickets to the concert. 
B)  ​No line of people wanting to buy tickets to the concert. 
C)  ​Tickets available at the box office, but no line of people wanting to buy them. 
D)  ​None of the above.

Question 3

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss  
-As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q3, the result is:

Accepted Answer

A)  deadweight loss. 
B)  inefficiency. 
C)  overproduction. 
D)  all of the above are true. 
E)  none of the above are true. 
A)  deadweight loss. 
B)  inefficiency. 
C)  overproduction. 
D)  all of the above are true. 
E)  none of the above are true.

Question 4

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

Accepted Answer

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

Question 5

If two goods are complementary, a(n):

Accepted Answer

A)  decrease in the price of one product will cause a decrease in the demand for the other product. 
B)  decrease in the price of one product will cause an increase in the demand for the other product. 
C)  increase in the price of one product will cause an increase in the supply of the other product. 
D)  increase in the price of one product will cause a decrease in the supply of the other product. 
E)  increase in the price of one product will cause an increase in the demand for the other product. 
A)  decrease in the price of one product will cause a decrease in the demand for the other product. 
B)  decrease in the price of one product will cause an increase in the demand for the other product. 
C)  increase in the price of one product will cause an increase in the supply of the other product. 
D)  increase in the price of one product will cause a decrease in the supply of the other product. 
E)  increase in the price of one product will cause an increase in the demand for the other product.

Question 6

There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

Accepted Answer

A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  the number of buyers. 
E)  expectations. 
A)  tastes. 
B)  income levels. 
C)  the price of other goods. 
D)  the number of buyers. 
E)  expectations.

Question 7

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Accepted Answer

A)  Always. 
B)  When the supply of corn is fixed. 
C)  When nonprice determinants, like income and the number of buyers, are unchanged. 
D)  When there are no shortages or surpluses of corn. 
A)  Always. 
B)  When the supply of corn is fixed. 
C)  When nonprice determinants, like income and the number of buyers, are unchanged. 
D)  When there are no shortages or surpluses of corn.

Question 8

Consumer surplus measures the value between the price consumers are willing to pay for a product and the preference price.

Accepted Answer

A) True 
 B)False

Question 9

In economic terms, to say that there has been an increase in demand for a product means that:

Accepted Answer

A)  the demand curve has shifted to the left. 
B)  the product's price has fallen and as a result consumers are buying a larger quantity of the product. 
C)  the product has become scarce for some reason. 
D)  consumers are now willing to purchase more of the product at each possible price. 
A)  the demand curve has shifted to the left. 
B)  the product's price has fallen and as a result consumers are buying a larger quantity of the product. 
C)  the product has become scarce for some reason. 
D)  consumers are now willing to purchase more of the product at each possible price.

Question 10

There is a technological advance in the production of digital watches. This will cause:

Accepted Answer

A)  demand to increase. 
B)  supply to increase. 
C)  demand to decrease. 
D)  supply to decrease. 
E)  the price to increase. 
A)  demand to increase. 
B)  supply to increase. 
C)  demand to decrease. 
D)  supply to decrease. 
E)  the price to increase.

Question 11

Seller A, has an upward-sloping supply curve, and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):

Accepted Answer

A)  increase in supply. 
B)  decrease in supply. 
C)  increase in quantity supplied. 
D)  decrease in the quantity supplied. 
E)  decrease in demand. 
A)  increase in supply. 
B)  decrease in supply. 
C)  increase in quantity supplied. 
D)  decrease in the quantity supplied. 
E)  decrease in demand.

Question 12

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss  
-As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then area ____ disappears.

Accepted Answer

A)  ABEFD 
B)  ABEC 
C)  CEFD 
D)  BEF 
A)  ABEFD 
B)  ABEC 
C)  CEFD 
D)  BEF

Question 13

​Exhibit 3-8 Demand and supply data for Video games
​ $$\begin{array} { | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { of Video games }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { of Video games }
\end{array} \
\hline \$ 75 & 400 & 900 \
70 & 450 & 850 \
65 & 500 & 800 \
60 & 550 & 750 \
55 & 600 & 700 \
50 & 650 & 650 \
45 & 700 & 600 \
40 & 750 & 550 \
\hline
\end{array}$$ ​
-?In Exhibit 3-8, at any market price of video games below $50, a (an) ____________ would result, causing price to _________.

Accepted Answer

A)  ?excess demand; rise 
B)  ?excess supply; rise 
C)  ?excess demand; fall 
D)  excess supply; fall 
E)  ?surplus; rise 
A)  ?excess demand; rise 
B)  ?excess supply; rise 
C)  ?excess demand; fall 
D)  excess supply; fall 
E)  ?surplus; rise

Question 14

Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?

Accepted Answer

A)  A movement up along the tea demand curve. 
B)  A movement down along the tea demand curve. 
C)  A leftward shift in the tea demand curve. 
D)  A rightward shift in the tea demand curve. 
A)  A movement up along the tea demand curve. 
B)  A movement down along the tea demand curve. 
C)  A leftward shift in the tea demand curve. 
D)  A rightward shift in the tea demand curve.

Question 15

If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?

Accepted Answer

A)  Deadweight loss 
B)  Inefficiency 
C)  Underproduction 
D)  Each of these are true. 
A)  Deadweight loss 
B)  Inefficiency 
C)  Underproduction 
D)  Each of these are true.

Question 16

The fact that price and quantity demanded are related negatively illustrates the:

Accepted Answer

A)  law of supply. 
B)  law of quantity supply. 
C)  law of demand. 
D)  law of quantity demanded. 
E)  point that some facts are unobservable. 
A)  law of supply. 
B)  law of quantity supply. 
C)  law of demand. 
D)  law of quantity demanded. 
E)  point that some facts are unobservable.

Question 17

An advance in technology results in:

Accepted Answer

A)  suppliers offering a larger quantity than before at each given price. 
B)  suppliers offering the same quantity as before at a lower price. 
C)  a rightward shift of the supply curve. 
D)  an increase in supply. 
E)  all of these. 
A)  suppliers offering a larger quantity than before at each given price. 
B)  suppliers offering the same quantity as before at a lower price. 
C)  a rightward shift of the supply curve. 
D)  an increase in supply. 
E)  all of these.

Question 18

Suppose Alice sells a good for $60 on eBay. If the producer surplus from the sale is $25, Alice's cost of the good must have been:

Accepted Answer

A)  $35. 
B)  $25. 
C)  $60. 
D)  $85. 
A)  $35. 
B)  $25. 
C)  $60. 
D)  $85.

Question 19

​Exhibit 3-10 Demand and supply curves
​   ​
​
-​In Exhibit 3-10, which of the following points represents an excess quantity supplied? ​

Accepted Answer

A)  ​Point E. 
B)  ​Point B. 
C)  ​Point C. 
D)  ​Point F. 
E)  ​Point A. 
A)  ​Point E. 
B)  ​Point B. 
C)  ​Point C. 
D)  ​Point F. 
E)  ​Point A.

Question 20

An increase in the supply of the product implies:

Accepted Answer

A)  producers will now charge a higher price for a given quantity of output. 
B)  the supply curve will shift to the left. 
C)  some producers are dropping out of this market. 
D)  producers will now charge a lower price for a given quantity of output. 
E)  the price of this product has increased. 
A)  producers will now charge a higher price for a given quantity of output. 
B)  the supply curve will shift to the left. 
C)  some producers are dropping out of this market. 
D)  producers will now charge a lower price for a given quantity of output. 
E)  the price of this product has increased.

Which of the following will not cause a change in demand for crackers?

Which of the following situations results from a ticket price to a concert set below the equilibrium price?

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q_3, the result is:

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

If two goods are complementary, a(n):

There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Consumer surplus measures the value between the price consumers are willing to pay for a product and the preference price.

In economic terms, to say that there has been an increase in demand for a product means that:

There is a technological advance in the production of digital watches. This will cause:

Seller A, has an upward-sloping supply curve, and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then area ____ disappears.

Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?

If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?

The fact that price and quantity demanded are related negatively illustrates the:

An advance in technology results in:

Suppose Alice sells a good for $60 on eBay. If the producer surplus from the sale is $25, Alice's cost of the good must have been:

Exhibit 3-10 Demand and supply curves -In Exhibit 3-10, which of the following points represents an excess quantity supplied?

An increase in the supply of the product implies:

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

Which of the following will not cause a change in demand for crackers?

Which of the following situations results from a ticket price to a concert set below the equilibrium price? ​

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q3, the result is:

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

If two goods are complementary, a(n):

There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Consumer surplus measures the value between the price consumers are willing to pay for a product and the preference price.

In economic terms, to say that there has been an increase in demand for a product means that:

There is a technological advance in the production of digital watches. This will cause:

Seller A, has an upward-sloping supply curve, and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then area ____ disappears.

Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?

If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?

The fact that price and quantity demanded are related negatively illustrates the:

An advance in technology results in:

Suppose Alice sells a good for $60 on eBay. If the producer surplus from the sale is $25, Alice's cost of the good must have been:

​Exhibit 3-10 Demand and supply curves ​ ​ ​ -​In Exhibit 3-10, which of the following points represents an excess quantity supplied? ​

An increase in the supply of the product implies:

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

Which of the following situations results from a ticket price to a concert set below the equilibrium price?

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q_3, the result is:

Exhibit 3-10 Demand and supply curves -In Exhibit 3-10, which of the following points represents an excess quantity supplied?