Question 1

An increase in demand:

Accepted Answer

A) results in a leftward shift of the demand curve. 
B) could be caused by a decrease in the price of the good. 
C) could be caused by an increase in the price of a substitute good. 
D) is shown as movement down along a demand curve. 
A) results in a leftward shift of the demand curve. 
B) could be caused by a decrease in the price of the good. 
C) could be caused by an increase in the price of a substitute good. 
D) is shown as movement down along a demand curve.

Question 2

Other things being equal, a fall in the price of orange juice will decrease the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) number of tickets the box office is willing to sell at various prices. 
B) number of people who need tickets. 
C) quality of people who want to buy these concert tickets. 
D) number of tickets that will be purchased at various prices. 
A) number of tickets the box office is willing to sell at various prices. 
B) number of people who need tickets. 
C) quality of people who want to buy these concert tickets. 
D) number of tickets that will be purchased at various prices.

Question 4

The market demand is the:

Accepted Answer

A) sum of all individual demand curves in a market. 
B) sum of all individual prices in a market. 
C) sum of all individual demand curves and supplies in a market. 
D) vertical sum of all individual demand curves. 
A) sum of all individual demand curves in a market. 
B) sum of all individual prices in a market. 
C) sum of all individual demand curves and supplies in a market. 
D) vertical sum of all individual demand curves.

Question 5

Exhibit 3-4 Supply curves   In Exhibit 3-4, which of the following could have caused the shift in the supply curve from S1 to S2?

Accepted Answer

A) Increase in demand. 
B) Decrease in demand. 
C) Decrease in the number of suppliers in the market. 
D) Decrease in wage rates. 
E) Increase in materials cost. 
A) Increase in demand. 
B) Decrease in demand. 
C) Decrease in the number of suppliers in the market. 
D) Decrease in wage rates. 
E) Increase in materials cost.

Question 6

When quantity supplied equals quantity demanded, there is:

Accepted Answer

A) disequilibrium. 
B) excess quantity supplied. 
C) a market-clearing price (equilibrium price). 
D) excess quantity demanded. 
E) a shortage. 
A) disequilibrium. 
B) excess quantity supplied. 
C) a market-clearing price (equilibrium price). 
D) excess quantity demanded. 
E) a shortage.

Question 7

Exhibit 3-8 Demand and supply data for Video games   In Exhibit 3-8, the equilibrium market price in this video game market would be:

Accepted Answer

A) $65 
B) $60 
C) $55 
D) $50 
E) $45 
A) $65 
B) $60 
C) $55 
D) $50 
E) $45

Question 8

A demand curve shows the relationship between:

Accepted Answer

A) price and quantity demanded. 
B) the demand and supply schedules. 
C) demand and supply equilibrium. 
D) leakages and injections. 
E) price and technology. 
A) price and quantity demanded. 
B) the demand and supply schedules. 
C) demand and supply equilibrium. 
D) leakages and injections. 
E) price and technology.

Question 9

In a market, competitive forces guarantee that any price other than the equilibrium price is:

Accepted Answer

A) market-clearing. 
B) stable. 
C) temporary. 
D) unaffordable. 
A) market-clearing. 
B) stable. 
C) temporary. 
D) unaffordable.

Question 10

The negative slope of the demand curve reflects the:

Accepted Answer

A) positive relationship between price and quantity. 
B) proportional relationship between price and quantity. 
C) inverse relationship between price and quantity. 
D) positive relationship between income and quantity. 
E) inverse relationship between income and price. 
A) positive relationship between price and quantity. 
B) proportional relationship between price and quantity. 
C) inverse relationship between price and quantity. 
D) positive relationship between income and quantity. 
E) inverse relationship between income and price.

Question 11

"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:

Accepted Answer

A) price of peaches will fall. 
B) quantity of peaches that will be available at any given price has decreased. 
C) demand for peaches will shift to the left. 
D) quantity of peaches that will be available at any given price have increased. 
A) price of peaches will fall. 
B) quantity of peaches that will be available at any given price has decreased. 
C) demand for peaches will shift to the left. 
D) quantity of peaches that will be available at any given price have increased.

Question 12

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

Accepted Answer

A) demand for good X to increase. 
B) quantity demanded of good Y to decrease. 
C) quantity demanded of good Y to increase. 
D) demand for good Y to decrease. 
E) demand for good Y to increase. 
A) demand for good X to increase. 
B) quantity demanded of good Y to decrease. 
C) quantity demanded of good Y to increase. 
D) demand for good Y to decrease. 
E) demand for good Y to increase.

Question 13

The law of demand states that, ceteris paribus , price and quantity demanded are:

Accepted Answer

A) directly related. 
B) inversely related. 
C) uniformly related. 
D) horizontally related. 
A) directly related. 
B) inversely related. 
C) uniformly related. 
D) horizontally related.

Question 14

Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):

Accepted Answer

A) upward movement along the demand curve for Coca-Cola. 
B) downward movement along the demand curve for Coca-Cola. 
C) leftward shift in the demand curve for Coca-Cola. 
D) rightward shift in the demand curve for Coca-Cola. 
A) upward movement along the demand curve for Coca-Cola. 
B) downward movement along the demand curve for Coca-Cola. 
C) leftward shift in the demand curve for Coca-Cola. 
D) rightward shift in the demand curve for Coca-Cola.

Question 15

When the market price of a product is below the equilibrium price, shortages will result and sellers can be expected to reduce the supply of that product.

Accepted Answer

A) True 
 B)False

Question 16

Exhibit 3-8 Demand and supply data for Video games   Exhibit 3-8 presents supply and demand data for the video game market. If the price of video games was currently $70, there would be an ____ of ____ video games in this market.

Accepted Answer

A) excess demand; 450 
B) excess demand; 500 
C) excess supply; 400 
D) excess supply; 850 
E) excess demand; 400 
A) excess demand; 450 
B) excess demand; 500 
C) excess supply; 400 
D) excess supply; 850 
E) excess demand; 400

Question 17

When economists say the quantity supplied of a product has increased, they mean the:

Accepted Answer

A) supply curve has shifted to the left. 
B) supply curve has shifted to the right. 
C) price of the product has risen, and consequently, suppliers are producing more of it. 
D) price of the product has fallen, and consequently, suppliers are producing less of it. 
A) supply curve has shifted to the left. 
B) supply curve has shifted to the right. 
C) price of the product has risen, and consequently, suppliers are producing more of it. 
D) price of the product has fallen, and consequently, suppliers are producing less of it.

Question 18

Exhibit 3-10 Demand and supply curves   In Exhibit 3-10, what do you expect to happen in this market at point C?

Accepted Answer

A) Competition among demanders will drive the price down. 
B) Competition among demanders will drive the price up. 
C) Competition among suppliers will drive the price up. 
D) Competition among suppliers will drive the price down. 
E) The equilibrium price A is not attainable. 
A) Competition among demanders will drive the price down. 
B) Competition among demanders will drive the price up. 
C) Competition among suppliers will drive the price up. 
D) Competition among suppliers will drive the price down. 
E) The equilibrium price A is not attainable.

Question 19

Which of the following pairs of goods would be considered substitutes?

Accepted Answer

A) Milk and cookies. 
B) Tires and automobiles. 
C) Ink and pens. 
D) Coca-Cola and Pepsi. 
E) Computers and computer software. 
A) Milk and cookies. 
B) Tires and automobiles. 
C) Ink and pens. 
D) Coca-Cola and Pepsi. 
E) Computers and computer software.

Question 20

Exhibit 3-5 Supply for Tucker's Cola Data   In reference to Exhibit 3-5, assume the price of Tucker's Cola is $1.00 per gallon. If the price were to rise to $3.00 per gallon, and all other factors, such as taxes, etc. remained constant, the result would be a(n):

Accepted Answer

A) decrease in supply. 
B) increase in supply. 
C) decrease in quantity supplied. 
D) increase in quantity supplied. 
A) decrease in supply. 
B) increase in supply. 
C) decrease in quantity supplied. 
D) increase in quantity supplied.

Exam 3: Market Demand and Supply

An increase in demand:

Other things being equal, a fall in the price of orange juice will decrease the quantity supplied.

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

The market demand is the:

Exhibit 3-4 Supply curves In Exhibit 3-4, which of the following could have caused the shift in the supply curve from S1 to S2?

When quantity supplied equals quantity demanded, there is:

Exhibit 3-8 Demand and supply data for Video games In Exhibit 3-8, the equilibrium market price in this video game market would be:

A demand curve shows the relationship between:

In a market, competitive forces guarantee that any price other than the equilibrium price is:

The negative slope of the demand curve reflects the:

"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

The law of demand states that, ceteris paribus , price and quantity demanded are:

Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):

When the market price of a product is below the equilibrium price, shortages will result and sellers can be expected to reduce the supply of that product.

Exhibit 3-8 Demand and supply data for Video games Exhibit 3-8 presents supply and demand data for the video game market. If the price of video games was currently $70, there would be an ____ of ____ video games in this market.

When economists say the quantity supplied of a product has increased, they mean the:

Exhibit 3-10 Demand and supply curves In Exhibit 3-10, what do you expect to happen in this market at point C?

Which of the following pairs of goods would be considered substitutes?

Exhibit 3-5 Supply for Tucker's Cola Data In reference to Exhibit 3-5, assume the price of Tucker's Cola is $1.00 per gallon. If the price were to rise to $3.00 per gallon, and all other factors, such as taxes, etc. remained constant, the result would be a(n):

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exhibit 3-4 Supply curves In Exhibit 3-4, which of the following could have caused the shift in the supply curve from S₁ to S₂?

Exhibit 3-8 Demand and supply data for Video games Exhibit 3-8 presents supply and demand data for the video game market. If the price of video games was currently $70, there would be an of video games in this market.