Question 1

Assuming that beef and chicken are substitutes, an increase in the price of beef, other things being equal, will:

Accepted Answer

A)  increase the demand for chicken. 
B)  decrease the demand for chicken. 
C)  not change the demand for chicken. 
D)  decrease the demand for beef. 
A)  increase the demand for chicken. 
B)  decrease the demand for chicken. 
C)  not change the demand for chicken. 
D)  decrease the demand for beef.

Question 2

Which of the following statements is correct?

Accepted Answer

A)  Total surplus is the sum of consumer and producer surplus. 
B)  Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. 
C)  Deadweight loss is a measure of market inefficiency. 
D)  All of these. 
A)  Total surplus is the sum of consumer and producer surplus. 
B)  Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. 
C)  Deadweight loss is a measure of market inefficiency. 
D)  All of these.

Question 3

Suppose Tucker Inc. is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25. What is Tucker Inc.'s producer surplus?

Accepted Answer

A)  $10 
B)  $15 
C)  $30 
D)  $50 
A)  $10 
B)  $15 
C)  $30 
D)  $50

Question 4

If two goods are substitutes in consumption, a(n):

Accepted Answer

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

Question 5

Consumer surplus measures the value between the price consumers are willing to pay and the:

Accepted Answer

A)  producer surplus price. 
B)  deadweight gain price. 
C)  actual price paid. 
D)  preference price. 
A)  producer surplus price. 
B)  deadweight gain price. 
C)  actual price paid. 
D)  preference price.

Question 6

​​Exhibit 3-15 Supply and demand curves for good X  
-In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:

Accepted Answer

A)  ​$0.50, 250. 
B)  ​$2.00, 300. 
C)  ​$2.00, 100. 
D)  ​$1.00, 200. 
A)  ​$0.50, 250. 
B)  ​$2.00, 300. 
C)  ​$2.00, 100. 
D)  ​$1.00, 200.

Question 7

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 $5 is ____.

Accepted Answer

A)  3 
B)  25 
C)  17 
D)  8 
E)  26 
A)  3 
B)  25 
C)  17 
D)  8 
E)  26

Question 8

Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:

Accepted Answer

A)  $100. 
B)  $175. 
C)  $25. 
D)  equal to the deadweight loss. 
A)  $100. 
B)  $175. 
C)  $25. 
D)  equal to the deadweight loss.

Question 9

A demand curve for The Steel Porcupines' concert tickets would show the:

Accepted Answer

A)  quality of service that customers demand when they buy a ticket. 
B)  number of people who like to attend the concert. 
C)  number of tickets the promoters are willing to sell at each price. 
D)  number of concert tickets that will be purchased at each price. 
A)  quality of service that customers demand when they buy a ticket. 
B)  number of people who like to attend the concert. 
C)  number of tickets the promoters are willing to sell at each price. 
D)  number of concert tickets that will be purchased at each price.

Question 10

If X is a normal good, a rise in consumer income will shift the:

Accepted Answer

A)  demand curve for X to the right. 
B)  demand curve for X to the left. 
C)  supply curve for X to the right. 
D)  supply curve for X to the left. 
A)  demand curve for X to the right. 
B)  demand curve for X to the left. 
C)  supply curve for X to the right. 
D)  supply curve for X to the left.

Question 11

Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?

Accepted Answer

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

Question 12

According to the law of supply, there is a direct relationship between quantity supplied and:

Accepted Answer

A)  the number of sellers. 
B)  costs of resources. 
C)  technology. 
D)  the price of the good. 
A)  the number of sellers. 
B)  costs of resources. 
C)  technology. 
D)  the price of the good.

Question 13

An increase in the expected future price of a good will cause the current demand for the good to:

Accepted Answer

A)  decrease, which is a shift to the left of the demand curve. 
B)  decrease, which is a shift to the right of the demand curve. 
C)  increase, which is a shift to the left of the demand curve. 
D)  increase, which is a shift to the right of the demand curve. 
A)  decrease, which is a shift to the left of the demand curve. 
B)  decrease, which is a shift to the right of the demand curve. 
C)  increase, which is a shift to the left of the demand curve. 
D)  increase, which is a shift to the right of the demand curve.

Question 14

A technological improvement in producing good A would be a shift in the:

Accepted Answer

A)  supply curve for A to the right. 
B)  supply curve for A to the left. 
C)  demand curve for A to the right. 
D)  demand curve for A to the left. 
A)  supply curve for A to the right. 
B)  supply curve for A to the left. 
C)  demand curve for A to the right. 
D)  demand curve for A to the left.

Question 15

​Exhibit 3-12 Supply and demand data
​ $$\begin{array} { | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 1.00 & 250 & 150 \
1.50 & 200 & 200 \
2.00 & 150 & 250 \
2.50 & 100 & 300 \
\hline
\end{array}$$
-In Exhibit 3-12 the equilibrium price and quantity in the market are:

Accepted Answer

A)  $1.00, 200. 
B)  ?$1.50, 400. 
C)  ? $2.00, 100. 
D)  ?$1.50, 200. 
A)  $1.00, 200. 
B)  ?$1.50, 400. 
C)  ? $2.00, 100. 
D)  ?$1.50, 200.

Question 16

If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve:

Accepted Answer

A)  shifts to the right. 
B)  shifts to the left. 
C)  becomes steeper. 
D)  does not change. 
E)  becomes flatter. 
A)  shifts to the right. 
B)  shifts to the left. 
C)  becomes steeper. 
D)  does not change. 
E)  becomes flatter.

Question 17

Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up.​

Accepted Answer

A) True 
 B)False

Question 18

In economics, the demand for a good refers to the amount of the good people:

Accepted Answer

A)  would like to have if the good were free. 
B)  are willing to buy at various prices. 
C)  need to achieve a minimum standard of living. 
D)  will buy at alternative income levels. 
A)  would like to have if the good were free. 
B)  are willing to buy at various prices. 
C)  need to achieve a minimum standard of living. 
D)  will buy at alternative income levels.

Question 19

Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:

Accepted Answer

A)  demand for peanut butter to increase. 
B)  supply of peanut butter to increase. 
C)  demand for jelly to increase. 
D)  demand for jelly to decrease. 
E)  supply of jelly to decrease. 
A)  demand for peanut butter to increase. 
B)  supply of peanut butter to increase. 
C)  demand for jelly to increase. 
D)  demand for jelly to decrease. 
E)  supply of jelly to decrease.

Question 20

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss  
-As shown in Exhibit 3A-2, if the market price falls from P1 to P2, then:

Accepted Answer

A)  total surplus increases. 
B)  deadweight loss increases. 
C)  overproduction increases. 
D)  underproduction decreases. 
A)  total surplus increases. 
B)  deadweight loss increases. 
C)  overproduction increases. 
D)  underproduction decreases.

Assuming that beef and chicken are substitutes, an increase in the price of beef, other things being equal, will:

Which of the following statements is correct?

Suppose Tucker Inc. is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25. What is Tucker Inc.'s producer surplus?

If two goods are substitutes in consumption, a(n):

Consumer surplus measures the value between the price consumers are willing to pay and the:

Exhibit 3-15 Supply and demand curves for good X -In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:

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 $5 is ____.

Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:

A demand curve for The Steel Porcupines' concert tickets would show the:

If X is a normal good, a rise in consumer income will shift the:

Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?

According to the law of supply, there is a direct relationship between quantity supplied and:

An increase in the expected future price of a good will cause the current demand for the good to:

A technological improvement in producing good A would be a shift in the:

Exhibit 3-12 Supply and demand data Price Quantity Demanded Quantity Supplied \ 1.00 250 150 1.50 200 200 2.00 150 250 2.50 100 300 -In Exhibit 3-12 the equilibrium price and quantity in the market are:

If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve:

Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up.

In economics, the demand for a good refers to the amount of the good people:

Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the market price falls from P₁ to P₂, then:

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

Assuming that beef and chicken are substitutes, an increase in the price of beef, other things being equal, will:

Which of the following statements is correct?

Suppose Tucker Inc. is willing to sell one gizmo for $10, a second gizmo for $15, a third for $20, and the market price is $25. What is Tucker Inc.'s producer surplus?

If two goods are substitutes in consumption, a(n):

Consumer surplus measures the value between the price consumers are willing to pay and the:

​​Exhibit 3-15 Supply and demand curves for good X -In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:

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 $5 is ____.

Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:

A demand curve for The Steel Porcupines' concert tickets would show the:

If X is a normal good, a rise in consumer income will shift the:

Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?

According to the law of supply, there is a direct relationship between quantity supplied and:

An increase in the expected future price of a good will cause the current demand for the good to:

A technological improvement in producing good A would be a shift in the:

​Exhibit 3-12 Supply and demand data ​ Price Quantity Demanded Quantity Supplied \ 1.00 250 150 1.50 200 200 2.00 150 250 2.50 100 300 -In Exhibit 3-12 the equilibrium price and quantity in the market are:

If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve:

Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up.​

In economics, the demand for a good refers to the amount of the good people:

Assume that peanut butter and jelly are complementary goods. A decrease in the number of peanut butter suppliers will cause the:

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the market price falls from P1 to P2, then:

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 3-15 Supply and demand curves for good X -In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:

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 $5 is ____.

Exhibit 3-12 Supply and demand data Price Quantity Demanded Quantity Supplied \ 1.00 250 150 1.50 200 200 2.00 150 250 2.50 100 300 -In Exhibit 3-12 the equilibrium price and quantity in the market are:

Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up.

Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss -As shown in Exhibit 3A-2, if the market price falls from P₁ to P₂, then: