Question 1

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

Accepted Answer

A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease. 
A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease.

Question 2

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good. 
A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good.

Question 3

-The equilibrium quantity in the above figure is

Accepted Answer

A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units. 
A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units.

Question 4

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

Accepted Answer

A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied. 
A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied.

Question 5

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

Accepted Answer

A)  The equilibrium quantity of wooden desks increases and the equilibrium price falls. 
B)  The equilibrium quantity of wooden desks increases and the equilibrium price rises. 
C)  The equilibrium quantity of wooden desks decreases and the equilibrium price falls. 
D)  The equilibrium quantity of wooden desks decreases and the equilibrium price rises. 
A)  The equilibrium quantity of wooden desks increases and the equilibrium price falls. 
B)  The equilibrium quantity of wooden desks increases and the equilibrium price rises. 
C)  The equilibrium quantity of wooden desks decreases and the equilibrium price falls. 
D)  The equilibrium quantity of wooden desks decreases and the equilibrium price rises.

Question 6

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 7

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the income in

Question 8

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

Accepted Answer

A)  the quantity supplied increases because the price falls. 
B)  increases the demand for bananas. 
C)  increases the quantity of bananas demanded. 
D)  creates a shortage of bananas. 
A)  the quantity supplied increases because the price falls. 
B)  increases the demand for bananas. 
C)  increases the quantity of bananas demanded. 
D)  creates a shortage of bananas.

Question 9

The Market for Wapanzo Beans
 
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be

Accepted Answer

A)  2 million pounds. 
B)  4 million pounds. 
C)  6 million pounds. 
D)  8 million pounds. 
A)  2 million pounds. 
B)  4 million pounds. 
C)  6 million pounds. 
D)  8 million pounds.

Question 10

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 11

The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are

Accepted Answer

A)  complements. 
B)  normal goods. 
C)  substitutes. 
D)  inferior goods. 
A)  complements. 
B)  normal goods. 
C)  substitutes. 
D)  inferior goods.

Question 12

Gruel is an inferior good. Hence, a decrease in people's incomes

Accepted Answer

A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward. 
A)  shifts the supply curve of gruel leftward. 
B)  decreases the quantity of gruel supplied. 
C)  shifts the demand curve for gruel rightward. 
D)  shifts the demand curve for gruel leftward.

Question 13

The relative price of a good is greater than the money price of a good.

Accepted Answer

A) True 
 B)False

Question 14

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

Accepted Answer

A) True 
 B)False

Question 15

The "law of demand" is illustrated by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct.

Question 16

If the price of a video download is below its equilibrium price, the quantity supplied is ________ than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is ________ than the quantity demanded.

Accepted Answer

A)  less; greater 
B)  greater; less 
C)  less; less 
D)  greater; greater 
A)  less; greater 
B)  greater; less 
C)  less; less 
D)  greater; greater

Question 17

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Accepted Answer

A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good. 
A)  a substitute. 
B)  a complement. 
C)  an inferior good. 
D)  a normal good.

Question 18

-The diagram above illustrates the market for apartments in Victoria, British Columbia.
a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b) What is the equilibrium rent and quantity of apartments?

Accepted Answer

a) If the rent is $300 per mon

Question 19

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 20

-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________.

Accepted Answer

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

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

-The equilibrium quantity in the above figure is

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

The Market for Wapanzo Beans -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are

Gruel is an inferior good. Hence, a decrease in people's incomes

The relative price of a good is greater than the money price of a good.

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

The "law of demand" is illustrated by a

If the price of a video download is below its equilibrium price, the quantity supplied is than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is than the quantity demanded.

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a and the price of a compact disc will .

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

-The equilibrium quantity in the above figure is

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

The Market for Wapanzo Beans -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are

Gruel is an inferior good. Hence, a decrease in people's incomes

The relative price of a good is greater than the money price of a good.

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

The "law of demand" is illustrated by a

If the price of a video download is below its equilibrium price, the quantity supplied is ________ than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is ________ than the quantity demanded.

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________.

What Is Economics

The Economic Problem

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

If the price of a video download is below its equilibrium price, the quantity supplied is than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is than the quantity demanded.

-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a and the price of a compact disc will .