Question 1

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

Accepted Answer

A)  a decrease in the supply of pizza. 
B)  an increase in the supply of pizza. 
C)  a decrease in the quantity of pizza supplied. 
D)  no change in the supply of pizza. 
A)  a decrease in the supply of pizza. 
B)  an increase in the supply of pizza. 
C)  a decrease in the quantity of pizza supplied. 
D)  no change in the supply of pizza. B

Question 2

Use the following to answer questions:
Figure: Demand for Coconuts  
-(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If coconuts are a normal good and consumers believe that the price of coconuts will rise significantly in the near future, it will be represented in the figure as a movement from:

Accepted Answer

A)  C to A. 
B)  A to B. 
C)  B to E. 
D)  E to B. 
A)  C to A. 
B)  A to B. 
C)  B to E. 
D)  E to B. D

Question 3

A leftward shift of a supply curve is caused by:

Accepted Answer

A)  an increase in the number of sellers. 
B)  a technological improvement in production. 
C)  an increase in the cost of an input. 
D)  an increase in the number of buyers. 
A)  an increase in the number of sellers. 
B)  a technological improvement in production. 
C)  an increase in the cost of an input. 
D)  an increase in the number of buyers. C

Question 4

If Benjamin considers sushi to be a normal good and if his income increases by 20 percent, his purchases of sushi will:

Accepted Answer

A)  decrease by 20 percent. 
B)  increase. 
C)  decrease. 
D)  not change. 
A)  decrease by 20 percent. 
B)  increase. 
C)  decrease. 
D)  not change.

Question 5

A decrease in the price of eggs will result in an increase in the:

Accepted Answer

A)  demand for eggs. 
B)  supply of eggs. 
C)  quantity of eggs supplied. 
D)  quantity of eggs demanded. 
A)  demand for eggs. 
B)  supply of eggs. 
C)  quantity of eggs supplied. 
D)  quantity of eggs demanded.

Question 6

Use the following to answer questions:
Figure: The Demand and Supply of Wheat  
-(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _____ of _____ bushels.

Accepted Answer

A)  surplus; 4,000 
B)  shortage; 2,000 
C)  shortage; 4,000 
D)  surplus; 2,000 
A)  surplus; 4,000 
B)  shortage; 2,000 
C)  shortage; 4,000 
D)  surplus; 2,000

Question 7

The market for milk is initially in equilibrium. Milk producers successfully advertise to encourage milk drinking. At the same time, more milk producers enter the market. Standard demand and supply analysis tells us that:

Accepted Answer

A)  the equilibrium price and quantity of milk will rise. 
B)  the equilibrium price and quantity of milk will fall. 
C)  the equilibrium quantity of milk will rise, but we can't determine how the equilibrium price will be affected. 
D)  the equilibrium price of milk will rise, but we can't determine how the equilibrium quantity will be affected. 
A)  the equilibrium price and quantity of milk will rise. 
B)  the equilibrium price and quantity of milk will fall. 
C)  the equilibrium quantity of milk will rise, but we can't determine how the equilibrium price will be affected. 
D)  the equilibrium price of milk will rise, but we can't determine how the equilibrium quantity will be affected.

Question 8

A negative relationship between the quantity demanded and price is called the law of:

Accepted Answer

A)  demand. 
B)  marginality. 
C)  efficiency. 
D)  supply. 
A)  demand. 
B)  marginality. 
C)  efficiency. 
D)  supply.

Question 9

If consumer tastes for electric cars increase over the next 10 years, we will see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Accepted Answer

A) True 
 B)False

Question 10

Use the following to answer questions:
Figure: Shifts in Demand and Supply  
-(Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating a tomato a day prevents aging. Which panel BEST describes how this will affect the market for tomatoes?

Accepted Answer

A)  panel A 
B)  panel B 
C)  panel C 
D)  panel D 
A)  panel A 
B)  panel B 
C)  panel C 
D)  panel D

Question 11

Which of the following would shift the demand curve for new textbooks to the right?

Accepted Answer

A)  a decrease in the price of paper 
B)  a fall in the price of used textbooks 
C)  an increase in college enrollment 
D)  a fall in the price of new textbooks 
A)  a decrease in the price of paper 
B)  a fall in the price of used textbooks 
C)  an increase in college enrollment 
D)  a fall in the price of new textbooks

Question 12

A small private college increases tuition while a large public university in the same state does not. What will happen to the demand (enrollment) for both schools?

Accepted Answer

The small college is likely to see a dec

Question 13

Use the following to answer questions:  
-(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly:

Accepted Answer

A)  surplus of 140 bags. 
B)  shortage of 140 bags. 
C)  surplus of 70 bags. 
D)  shortage of 70 bags. 
A)  surplus of 140 bags. 
B)  shortage of 140 bags. 
C)  surplus of 70 bags. 
D)  shortage of 70 bags.

Question 14

_____ manifests when the price of a good increases and the quantity demanded decreases

Accepted Answer

A)  Efficiency 
B)  The law of demand 
C)  The supply schedule 
D)  The production possibilities frontier 
A)  Efficiency 
B)  The law of demand 
C)  The supply schedule 
D)  The production possibilities frontier

Question 15

The market for good Y, a perfectly competitive good, is made up of 15 producers who each produce the same amount of good Y. If the price of good Y is $100 and the total quantity supplied is 150, how many units of good Y is each producer supplying?

Accepted Answer

A)  10 
B)  150 
C)  100 
D)  15 
A)  10 
B)  150 
C)  100 
D)  15

Question 16

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. If the price of good Y is $12:

Accepted Answer

A)  the quantity demanded will be greater than 150 units. 
B)  the quantity supplied will be less than 150 units. 
C)  there will be an excess demand for good Y. 
D)  there will be an excess supply of good Y. 
A)  the quantity demanded will be greater than 150 units. 
B)  the quantity supplied will be less than 150 units. 
C)  there will be an excess demand for good Y. 
D)  there will be an excess supply of good Y.

Question 17

Use the following to answer questions:
Figure: Supply, Demand, and Equilibrium  
-(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be excess demand for the good at a price of P3.

Accepted Answer

A) True 
 B)False

Question 18

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Accepted Answer

A)  an increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. 
B)  a decrease in quantity supplied and lower prices. 
C)  an increase in demand and higher prices. 
D)  a decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity. 
A)  an increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. 
B)  a decrease in quantity supplied and lower prices. 
C)  an increase in demand and higher prices. 
D)  a decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity.

Question 19

Which of the following factors would result solely in a movement along the demand curve for a particular good?

Accepted Answer

A)  a change in the prices of related goods 
B)  a change in the price of that good 
C)  a change in the size of the population 
D)  both a change in the price of that good and a change in the size of the population 
A)  a change in the prices of related goods 
B)  a change in the price of that good 
C)  a change in the size of the population 
D)  both a change in the price of that good and a change in the size of the population

Question 20

Use the following to answer questions:
Figure: The Supply of DVD Rentals  
-(Figure: The Supply of DVD Rentals) Look at the figure The Supply of DVD Rentals. A decrease in the price of DVD rentals would result in a change illustrated by the move from:

Accepted Answer

A)  n to o in panel A. 
B)  p to q in panel B. 
C)  s to t in panel C. 
D)  u to v in panel D. 
A)  n to o in panel A. 
B)  p to q in panel B. 
C)  s to t in panel C. 
D)  u to v in panel D.

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

A leftward shift of a supply curve is caused by:

If Benjamin considers sushi to be a normal good and if his income increases by 20 percent, his purchases of sushi will:

A decrease in the price of eggs will result in an increase in the:

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _ of _ bushels.

The market for milk is initially in equilibrium. Milk producers successfully advertise to encourage milk drinking. At the same time, more milk producers enter the market. Standard demand and supply analysis tells us that:

A negative relationship between the quantity demanded and price is called the law of:

If consumer tastes for electric cars increase over the next 10 years, we will see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Which of the following would shift the demand curve for new textbooks to the right?

A small private college increases tuition while a large public university in the same state does not. What will happen to the demand (enrollment) for both schools?

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly:

_____ manifests when the price of a good increases and the quantity demanded decreases

The market for good Y, a perfectly competitive good, is made up of 15 producers who each produce the same amount of good Y. If the price of good Y is $100 and the total quantity supplied is 150, how many units of good Y is each producer supplying?

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. If the price of good Y is $12:

Use the following to answer questions: Figure: Supply, Demand, and Equilibrium -(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be excess demand for the good at a price of P₃.

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Which of the following factors would result solely in a movement along the demand curve for a particular good?

Use the following to answer questions: Figure: The Supply of DVD Rentals -(Figure: The Supply of DVD Rentals) Look at the figure The Supply of DVD Rentals. A decrease in the price of DVD rentals would result in a change illustrated by the move from:

First Principles

Economic Models: Trade-Offs and Trade 25

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 3: Supply and Demand

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

A leftward shift of a supply curve is caused by:

If Benjamin considers sushi to be a normal good and if his income increases by 20 percent, his purchases of sushi will:

A decrease in the price of eggs will result in an increase in the:

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _____ of _____ bushels.

The market for milk is initially in equilibrium. Milk producers successfully advertise to encourage milk drinking. At the same time, more milk producers enter the market. Standard demand and supply analysis tells us that:

A negative relationship between the quantity demanded and price is called the law of:

If consumer tastes for electric cars increase over the next 10 years, we will see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

Which of the following would shift the demand curve for new textbooks to the right?

A small private college increases tuition while a large public university in the same state does not. What will happen to the demand (enrollment) for both schools?

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly:

_____ manifests when the price of a good increases and the quantity demanded decreases

The market for good Y, a perfectly competitive good, is made up of 15 producers who each produce the same amount of good Y. If the price of good Y is $100 and the total quantity supplied is 150, how many units of good Y is each producer supplying?

Suppose the equilibrium price of good Y is $5 and the equilibrium quantity is 150 units. If the price of good Y is $12:

Use the following to answer questions: Figure: Supply, Demand, and Equilibrium -(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be excess demand for the good at a price of P3.

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Which of the following factors would result solely in a movement along the demand curve for a particular good?

Use the following to answer questions: Figure: The Supply of DVD Rentals -(Figure: The Supply of DVD Rentals) Look at the figure The Supply of DVD Rentals. A decrease in the price of DVD rentals would result in a change illustrated by the move from:

First Principles

Economic Models: Trade-Offs and Trade 25

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _ of _ bushels.

Use the following to answer questions: Figure: Supply, Demand, and Equilibrium -(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be excess demand for the good at a price of P₃.