Question 1

Explain the difference between a change in quantity supplied and a change in supply.

Accepted Answer

A change in quantity supplied of a produ

Question 2

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that

Accepted Answer

A)  demand increased. 
B)  demand decreased. 
C)  supply increased. 
D)  supply decreased. 
A)  demand increased. 
B)  demand decreased. 
C)  supply increased. 
D)  supply decreased.

Question 3

A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a

Accepted Answer

A)  price ceiling. 
B)  price floor. 
C)  tax. 
D)  subsidy. 
A)  price ceiling. 
B)  price floor. 
C)  tax. 
D)  subsidy.

Question 4

A supply curve is defined as the relationship between

Accepted Answer

A)  the price of a good and the quantity that consumers are willing to buy. 
B)  the price of a good and the quantity that producers are willing to sell. 
C)  the income of consumers and the quantity of a product that consumers are willing to buy. 
D)  the income of consumers and the quantity of a product that producers are willing to sell. 
A)  the price of a good and the quantity that consumers are willing to buy. 
B)  the price of a good and the quantity that producers are willing to sell. 
C)  the income of consumers and the quantity of a product that consumers are willing to buy. 
D)  the income of consumers and the quantity of a product that producers are willing to sell.

Question 5

If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.

Accepted Answer

A)  normal 
B)  inferior 
C)  complementary 
D)  substitute 
A)  normal 
B)  inferior 
C)  complementary 
D)  substitute

Question 6

Olives are used to produce olive oil. If the price of olives increases

Accepted Answer

A)  the demand for olive oil increases. 
B)  the demand for olive oil decreases. 
C)  the supply of olive oil increases. 
D)  the supply of olive oil decreases. 
A)  the demand for olive oil increases. 
B)  the demand for olive oil decreases. 
C)  the supply of olive oil increases. 
D)  the supply of olive oil decreases.

Question 7

As the price of a product rises, the quantity supplied decreases.

Accepted Answer

A) True 
 B)False

Question 8

Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium

Accepted Answer

A)  price of technology to increase. 
B)  quantity of technology to decrease. 
C)  quantity of laser eye surgery to increase. 
D)  quantity of laser eye surgery to decrease. 
A)  price of technology to increase. 
B)  quantity of technology to decrease. 
C)  quantity of laser eye surgery to increase. 
D)  quantity of laser eye surgery to decrease.

Question 9

The price of iPhones has fallen dramatically. Which of the following is likely to happen?

Accepted Answer

A)  The quantity of iPhones supplied will decrease. 
B)  The quantity of iPhones supplied will increase. 
C)  The supply of iPhones will decrease. 
D)  The supply of iPhones will increase. 
A)  The quantity of iPhones supplied will decrease. 
B)  The quantity of iPhones supplied will increase. 
C)  The supply of iPhones will decrease. 
D)  The supply of iPhones will increase.

Question 10

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that

Accepted Answer

A)  the price of cars will increase. 
B)  the price of cars will decrease. 
C)  the supply will increase (supply will shift to the right) to meet the demand. 
D)  the demand will decrease (demand will shift to the left) to meet the supply. 
A)  the price of cars will increase. 
B)  the price of cars will decrease. 
C)  the supply will increase (supply will shift to the right) to meet the demand. 
D)  the demand will decrease (demand will shift to the left) to meet the supply.

Question 11

-Figure 4.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from

Accepted Answer

A)  point a to point c. 
B)  point c to point a. 
C)  S2 to S0. 
D)  S0to S2. 
A)  point a to point c. 
B)  point c to point a. 
C)  S2 to S0. 
D)  S0to S2.

Question 12

A change in quantity supplied of a product is the result of a change in

Accepted Answer

A)  consumer income. 
B)  the state of production technology. 
C)  the cost of producing the product. 
D)  the price of the product. 
A)  consumer income. 
B)  the state of production technology. 
C)  the cost of producing the product. 
D)  the price of the product.

Question 13

Describe the changes in the variables that will cause supply for a product to decrease, shifting the supply curve up and to the left.

Accepted Answer

an increase in wages of workers who prod

Question 14

4.4 Market Effects of Changes in Demand
  
-Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Accepted Answer

A)  point a to point b. 
B)  point c to point b. 
C)  D2 to D1. 
D)  D0 to D1. 
A)  point a to point b. 
B)  point c to point b. 
C)  D2 to D1. 
D)  D0 to D1.

Question 15

Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time

Accepted Answer

A)  the equilibrium price of apples rises and the equilibrium quantity of apples falls. 
B)  the equilibrium price of apples rises and the equilibrium quantity of apples rises. 
C)  the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. 
D)  the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall. 
A)  the equilibrium price of apples rises and the equilibrium quantity of apples falls. 
B)  the equilibrium price of apples rises and the equilibrium quantity of apples rises. 
C)  the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. 
D)  the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.

Question 16

The Law of Demand can be explained as

Accepted Answer

A)  a lot of people wanting the same thing. 
B)  the higher the price, the smaller the quantity demanded, ceteris paribus. 
C)  people are willing to make limited sacrifices to acquire products. 
D)  legal reasons people make purchases in the marketplace. 
A)  a lot of people wanting the same thing. 
B)  the higher the price, the smaller the quantity demanded, ceteris paribus. 
C)  people are willing to make limited sacrifices to acquire products. 
D)  legal reasons people make purchases in the marketplace.

Question 17

When consumers are willing to buy more than producers are willing to sell

Accepted Answer

A)  there is excess supply of the product in the market. 
B)  there is excess demand for the product in the market. 
C)  the market is in equilibrium. 
D)  the demand curve will shift until the quantity supplied equals the quantity demanded. 
A)  there is excess supply of the product in the market. 
B)  there is excess demand for the product in the market. 
C)  the market is in equilibrium. 
D)  the demand curve will shift until the quantity supplied equals the quantity demanded.

Question 18

A good for which demand decreases when income decreases is known as a(n)________ good.

Accepted Answer

A)  normal 
B)  inferior 
C)  complementary 
D)  substitute 
A)  normal 
B)  inferior 
C)  complementary 
D)  substitute

Question 19

A demand curve is defined as the relationship between

Accepted Answer

A)  the price of a good and the quantity of that good that consumers are willing to buy. 
B)  the price of a good and the quantity of that good that producers are willing to sell. 
C)  the income of consumers and the quantity of a good that consumers are willing to buy. 
D)  the income of consumers and the quantity of a good that producers are willing to sell. 
A)  the price of a good and the quantity of that good that consumers are willing to buy. 
B)  the price of a good and the quantity of that good that producers are willing to sell. 
C)  the income of consumers and the quantity of a good that consumers are willing to buy. 
D)  the income of consumers and the quantity of a good that producers are willing to sell.

Question 20

A good for which demand decreases when income increases is known as a(n)________ good.

Accepted Answer

A)  normal 
B)  inferior 
C)  complementary 
D)  substitute 
A)  normal 
B)  inferior 
C)  complementary 
D)  substitute

Explain the difference between a change in quantity supplied and a change in supply.

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that

A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a

A supply curve is defined as the relationship between

If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.

Olives are used to produce olive oil. If the price of olives increases

As the price of a product rises, the quantity supplied decreases.

Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium

The price of iPhones has fallen dramatically. Which of the following is likely to happen?

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that

-Figure 4.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from

A change in quantity supplied of a product is the result of a change in

Describe the changes in the variables that will cause supply for a product to decrease, shifting the supply curve up and to the left.

4.4 Market Effects of Changes in Demand -Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time

The Law of Demand can be explained as

When consumers are willing to buy more than producers are willing to sell

A good for which demand decreases when income decreases is known as a(n)________ good.

A demand curve is defined as the relationship between

A good for which demand decreases when income increases is known as a(n)________ good.

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Measuring a Nation's Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow?

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 4: Demand, Supply, and Market Equilibrium

Explain the difference between a change in quantity supplied and a change in supply.

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that

A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a

A supply curve is defined as the relationship between

If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.

Olives are used to produce olive oil. If the price of olives increases

As the price of a product rises, the quantity supplied decreases.

Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium

The price of iPhones has fallen dramatically. Which of the following is likely to happen?

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that

-Figure 4.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from

A change in quantity supplied of a product is the result of a change in

Describe the changes in the variables that will cause supply for a product to decrease, shifting the supply curve up and to the left.

4.4 Market Effects of Changes in Demand -Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time

The Law of Demand can be explained as

When consumers are willing to buy more than producers are willing to sell

A good for which demand decreases when income decreases is known as a(n)________ good.

A demand curve is defined as the relationship between

A good for which demand decreases when income increases is known as a(n)________ good.

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Measuring a Nation's Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow?

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters