Question 1

To an economist, an increase in demand means the same thing as an increase in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 2

A surplus will occur in a market when the price of the product is greater than the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true?

Accepted Answer

A) To an economist, demand is different from quantity demanded. 
B) A demand schedule is the numerical tabulation of the law of demand. 
C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. 
D) a and b 
E) a, b, and c 
A) To an economist, demand is different from quantity demanded. 
B) A demand schedule is the numerical tabulation of the law of demand. 
C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. 
D) a and b 
E) a, b, and c

Question 4

Which of the following statements is false?

Accepted Answer

A) At equilibrium in a market, scarcity does not exist. 
B) If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit. 
C) If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2. 
D) If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price. 
A) At equilibrium in a market, scarcity does not exist. 
B) If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit. 
C) If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2. 
D) If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.

Question 5

Exhibit 3-2
   Good X
​
​
-Refer to Exhibit 3-2. Suppose equilibrium is at point B. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point B to C (assuming that good X is a normal good)?

Accepted Answer

A) There was an increase in resource prices and income stayed constant. 
B) There was a decrease in resource prices and income stayed constant. 
C) There was an increase in resource prices and income decreased. 
D) There was an increase in resource prices and income increased. 
A) There was an increase in resource prices and income stayed constant. 
B) There was a decrease in resource prices and income stayed constant. 
C) There was an increase in resource prices and income decreased. 
D) There was an increase in resource prices and income increased.

Question 6

Resource X is necessary to the production of good Y. If the price of resource X falls, the equilibrium price of Y will ______________ and the equilibrium quantity of Y will ________________.

Accepted Answer

A) rise; rise 
B) fall; fall 
C) fall; rise 
D) rise; fall 
A) rise; rise 
B) fall; fall 
C) fall; rise 
D) rise; fall

Question 7

Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

Accepted Answer

A) supply; rightward; decrease; increase. 
B) demand; leftward; decrease; decrease 
C) demand; rightward; increase; increase 
D) supply; leftward; increase; decrease 
E) supply; leftward; increase; increase 
A) supply; rightward; decrease; increase. 
B) demand; leftward; decrease; decrease 
C) demand; rightward; increase; increase 
D) supply; leftward; increase; decrease 
E) supply; leftward; increase; increase

Question 8

Exhibit 3-13
-----------------------------Quantity Demanded-------------------------------------
   Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market.
-Refer to Exhibit 3-13. Fill in blanks (E) and (F) respectively with the market quantity demanded at each given price.

Accepted Answer

A) 6.78; 3.80 
B) 61; 38 
C) 75; 64 
D) 48; 27 
E) none of the above 
A) 6.78; 3.80 
B) 61; 38 
C) 75; 64 
D) 48; 27 
E) none of the above

Question 9

Suppose that the average price of refrigerators has fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping? Explain.

Accepted Answer

The reason that refrigerator prices have

Question 10

If the demand for computer software rises as incomes rise, then computer software is a (an)

Accepted Answer

A) inferior good 
B) substitute (good) for computers 
C) normal good 
D) complement (good) for computers 
E) c and d 
A) inferior good 
B) substitute (good) for computers 
C) normal good 
D) complement (good) for computers 
E) c and d

Question 11

The law of diminishing marginal utility helps to explain the direct relationship between price and quantity supplied.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is false?

Accepted Answer

A) The shift factors for the supply curve are: income, preferences, prices of related goods, the number of buyers, and expectations of future price. 
B) A change in (own) price changes the quantity supplied of a good. 
C) A change in demand is graphically represented by a shift in the demand curve. 
D) A change in quantity demanded is represented by a movement along a given demand curve. 
A) The shift factors for the supply curve are: income, preferences, prices of related goods, the number of buyers, and expectations of future price. 
B) A change in (own) price changes the quantity supplied of a good. 
C) A change in demand is graphically represented by a shift in the demand curve. 
D) A change in quantity demanded is represented by a movement along a given demand curve.

Question 13

Exhibit 3-9
  
-Refer to Exhibit 3-9. The production of X is more profitable than it used to be. A number of producers enter the business of producing X. An economist would expect a movement in the market for X from

Accepted Answer

A) S2 to S1. 
B) D2 to D1. 
C) D1 to D2. 
D) S1 to S2. 
A) S2 to S1. 
B) D2 to D1. 
C) D1 to D2. 
D) S1 to S2.

Question 14

Exhibit 3-9
  
-Refer to Exhibit 3-9. A large number of immigrants who love to consume X enter the country. An economist would expect a movement in the market for X from

Accepted Answer

A) S1 to S2. 
B) D2 to D1. 
C) D1 to D2. 
D) S2 to S1. 
A) S1 to S2. 
B) D2 to D1. 
C) D1 to D2. 
D) S2 to S1.

Question 15

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks. The result would be a(n) ________________ in the equilibrium price of soft drinks and a(n) ______________________in the equilibrium quantity of soft drinks.

Accepted Answer

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

Question 16

Exhibit 3-2
   Good X
​
​
-Refer to Exhibit 3-2. Suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)?

Accepted Answer

A) There was a decrease in the number of buyers and business taxes increased. 
B) There was an increase in the number of buyers and business taxes decreased. 
C) There was an increase in the number of buyers and business taxes increased. 
D) There was a decrease in the number of buyers and business taxes decreased. 
A) There was a decrease in the number of buyers and business taxes increased. 
B) There was an increase in the number of buyers and business taxes decreased. 
C) There was an increase in the number of buyers and business taxes increased. 
D) There was a decrease in the number of buyers and business taxes decreased.

Question 17

Exhibit 3-12
---------------------------------------------------Quantity Supplied --------------------------------------------
   Assume that Aline, Bentley, Calvin, and Daniel are the only sellers in this market.
-Refer to Exhibit 3-12. Fill in blanks (E) and (F) respectively with the market quantity supplied at given each price.

Accepted Answer

A) 10.50; 12.91 
B) 47; 52 
C) 99; 131 
D) 105; 142 
E) none of the above 
A) 10.50; 12.91 
B) 47; 52 
C) 99; 131 
D) 105; 142 
E) none of the above

Question 18

Economists state that the __________ utility a person receives from a unit of a good, the __________ the price he or she is willing to pay for it.

Accepted Answer

A) more; lower 
B) more; higher 
C) less; higher 
D) less; lower 
E) b and d 
A) more; lower 
B) more; higher 
C) less; higher 
D) less; lower 
E) b and d

Question 19

If the demand curve for a good shifts leftward,

Accepted Answer

A) quantity demanded is less at each price. 
B) quantity demanded remains constant at each price. 
C) quantity demanded is greater at each price. 
D) demand is greater at each price. 
A) quantity demanded is less at each price. 
B) quantity demanded remains constant at each price. 
C) quantity demanded is greater at each price. 
D) demand is greater at each price.

Question 20

Exhibit 3-2
   Good X
​
​
-Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?

Accepted Answer

A) There was an increase in resource prices and income stayed constant. 
B) There was a decrease in resource prices and income stayed constant. 
C) There was an increase in resource prices and income decreased. 
D) There was a decrease in resource prices and income increased. 
A) There was an increase in resource prices and income stayed constant. 
B) There was a decrease in resource prices and income stayed constant. 
C) There was an increase in resource prices and income decreased. 
D) There was a decrease in resource prices and income increased.

Exam 3: Supply and Demand Theory

To an economist, an increase in demand means the same thing as an increase in quantity demanded.

A surplus will occur in a market when the price of the product is greater than the equilibrium price.

Which of the following statements is true?

Which of the following statements is false?

Exhibit 3-2 Good X ​ ​ -Refer to Exhibit 3-2. Suppose equilibrium is at point B. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point B to C (assuming that good X is a normal good)?

Resource X is necessary to the production of good Y. If the price of resource X falls, the equilibrium price of Y will ______________ and the equilibrium quantity of Y will ________________.

Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

Exhibit 3-13 -----------------------------Quantity Demanded------------------------------------- Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market. -Refer to Exhibit 3-13. Fill in blanks (E) and (F) respectively with the market quantity demanded at each given price.

Suppose that the average price of refrigerators has fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping? Explain.

If the demand for computer software rises as incomes rise, then computer software is a (an)

The law of diminishing marginal utility helps to explain the direct relationship between price and quantity supplied.

Which of the following statements is false?

Exhibit 3-9 -Refer to Exhibit 3-9. The production of X is more profitable than it used to be. A number of producers enter the business of producing X. An economist would expect a movement in the market for X from

Exhibit 3-9 -Refer to Exhibit 3-9. A large number of immigrants who love to consume X enter the country. An economist would expect a movement in the market for X from

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks. The result would be a(n) ________________ in the equilibrium price of soft drinks and a(n) ______________________in the equilibrium quantity of soft drinks.

Exhibit 3-2 Good X ​ ​ -Refer to Exhibit 3-2. Suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)?

Economists state that the __________ utility a person receives from a unit of a good, the __________ the price he or she is willing to pay for it.

If the demand curve for a good shifts leftward,

Exhibit 3-2 Good X ​ ​ -Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?

What Economics Is About

Production Possibilities Frontier Framework

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Exhibit 3-2 Good X -Refer to Exhibit 3-2. Suppose equilibrium is at point B. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point B to C (assuming that good X is a normal good)?

Resource X is necessary to the production of good Y. If the price of resource X falls, the equilibrium price of Y will and the equilibrium quantity of Y will __.

Resource X is necessary to the production of good Y. If the price of resource X rises, the _______ curve for good Y will shift resulting in a(n) _ in the equilibrium price of Y and a(n) ______ in the equilibrium quantity of Y.

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks. The result would be a(n) in the equilibrium price of soft drinks and a(n) ______in the equilibrium quantity of soft drinks.

Exhibit 3-2 Good X -Refer to Exhibit 3-2. Suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)?

Economists state that the utility a person receives from a unit of a good, the the price he or she is willing to pay for it.

Exhibit 3-2 Good X -Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?