Question 1

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D₂ can be the result of

Accepted Answer

A)  a decrease in the price of soda, a complement to pizza. 
B)  an increase in the price of hamburgers, a substitute for pizza. 
C)  a decrease in income. 
D)  a study that shows that pizza is a very healthy food. 
E)  an increase in the cost of producing pizza. 
A)  a decrease in the price of soda, a complement to pizza. 
B)  an increase in the price of hamburgers, a substitute for pizza. 
C)  a decrease in income. 
D)  a study that shows that pizza is a very healthy food. 
E)  an increase in the cost of producing pizza.

Question 2

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Accepted Answer

A)  a decrease in the price of Zunes, a substitute for iPods 
B)  an increase in the price of iPods 
C)  a requirement that all students at universities have an iPod 
D)  a decrease in the price of iPods 
E)  an increase in people's incomes 
A)  a decrease in the price of Zunes, a substitute for iPods 
B)  an increase in the price of iPods 
C)  a requirement that all students at universities have an iPod 
D)  a decrease in the price of iPods 
E)  an increase in people's incomes

Question 3

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

Accepted Answer

A)  an increase in the demand for gasoline. 
B)  a decrease in the demand for gasoline. 
C)  no change in the quantity of gasoline demanded. 
D)  a decrease in the quantity of gasoline demanded. 
E)  More information is needed to determine if the demand for gasoline increases or decreases. 
A)  an increase in the demand for gasoline. 
B)  a decrease in the demand for gasoline. 
C)  no change in the quantity of gasoline demanded. 
D)  a decrease in the quantity of gasoline demanded. 
E)  More information is needed to determine if the demand for gasoline increases or decreases.

Question 4

Market equilibrium
i.can never occur because there are always people who want a good but cannot afford it.
ii.occurs at the intersection of the supply and demand curves.
iii.is the point where the price equals the quantity.

Accepted Answer

A)  ii only 
B)  iii only 
C)  ii and iii 
D)  i only 
E)  i and ii 
A)  ii only 
B)  iii only 
C)  ii and iii 
D)  i only 
E)  i and ii

Question 5

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

Accepted Answer

A)  both the price and the quantity. 
B)  either the price or the quantity, but not both. 
C)  only the price. 
D)  only the quantity. 
E)  neither the price nor the quantity. 
A)  both the price and the quantity. 
B)  either the price or the quantity, but not both. 
C)  only the price. 
D)  only the quantity. 
E)  neither the price nor the quantity.

Question 6

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the figures represent this change.

Question 7

-In the above figure,the movement from point a to point b reflects

Accepted Answer

A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza. 
A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza.

Question 8

If the price of carrots is below the equilibrium price,the

Accepted Answer

A)  quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B)  quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C)  quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D)  quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E)  quantity supplied of carrots equals the quantity demanded. 
A)  quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B)  quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C)  quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D)  quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E)  quantity supplied of carrots equals the quantity demanded.

Question 9

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Accepted Answer

A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both. 
A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.

Question 10

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure B and Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure B and Figure C

Question 11

If the demand and supply both increase equally,then the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  increases; increases 
B)  increases; does not change 
C)  does not change; increases 
D)  increases; decreases 
E)  decreases; does not change 
A)  increases; increases 
B)  increases; does not change 
C)  does not change; increases 
D)  increases; decreases 
E)  decreases; does not change

Question 12

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks and milk are substitutes for...

Question 13

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

Accepted Answer

A)  The supply increases. 
B)  The supply decreases. 
C)  The quantity supplied increases. 
D)  The quantity supplied decreases. 
E)  Both answers B and D are correct. 
A)  The supply increases. 
B)  The supply decreases. 
C)  The quantity supplied increases. 
D)  The quantity supplied decreases. 
E)  Both answers B and D are correct.

Question 14

A supply curve

Accepted Answer

A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 15

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Accepted Answer

A)  there is a shortage and the price of t-shirts will fall. 
B)  there is a shortage and the price of t-shirts will rise. 
C)  there is a surplus and the price of t-shirts will rise. 
D)  there is a surplus and the price of t-shirts will fall. 
E)  the market is in equilibrium. 
A)  there is a shortage and the price of t-shirts will fall. 
B)  there is a shortage and the price of t-shirts will rise. 
C)  there is a surplus and the price of t-shirts will rise. 
D)  there is a surplus and the price of t-shirts will fall. 
E)  the market is in equilibrium.

Question 16

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

Accepted Answer

A)  a decrease in the supply of electric cars so that the supply curve shifts leftward. 
B)  a decrease in the supply of electric cars so that the supply curve shifts rightward. 
C)  an increase in the supply of electric cars so that the supply curve shifts leftward. 
D)  an increase in the supply electric cars so that the supply curve shifts rightward. 
E)  no change in the supply of electric cars, only a change in the quantity supplied of electric cars. 
A)  a decrease in the supply of electric cars so that the supply curve shifts leftward. 
B)  a decrease in the supply of electric cars so that the supply curve shifts rightward. 
C)  an increase in the supply of electric cars so that the supply curve shifts leftward. 
D)  an increase in the supply electric cars so that the supply curve shifts rightward. 
E)  no change in the supply of electric cars, only a change in the quantity supplied of electric cars.

Question 17

The phrase "a change in demand" most directly implies a

Accepted Answer

A)  movement along a demand curve. 
B)  movement along the price curve. 
C)  change in the quantity demanded of a good. 
D)  shift of the demand curve. 
E)  movement along the quantity curve. 
A)  movement along a demand curve. 
B)  movement along the price curve. 
C)  change in the quantity demanded of a good. 
D)  shift of the demand curve. 
E)  movement along the quantity curve.

Question 18

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

Accepted Answer

A)  equilibrium quantity of bread increases. 
B)  equilibrium quantity of peanut butter definitely decreases. 
C)  equilibrium quantity of peanut butter might increase or might decrease. 
D)  equilibrium price of peanut butter definitely rises. 
E)  equilibrium price of peanut butter definitely falls. 
A)  equilibrium quantity of bread increases. 
B)  equilibrium quantity of peanut butter definitely decreases. 
C)  equilibrium quantity of peanut butter might increase or might decrease. 
D)  equilibrium price of peanut butter definitely rises. 
E)  equilibrium price of peanut butter definitely falls.

Question 19

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Accepted Answer

A)  The equilibrium price of taco chips falls, and the equilibrium quantity decreases. 
B)  The equilibrium price of taco chips rises, and the equilibrium quantity decreases. 
C)  There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. 
D)  The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. 
E)  The equilibrium price of taco chips rises, and the equilibrium quantity increases. 
A)  The equilibrium price of taco chips falls, and the equilibrium quantity decreases. 
B)  The equilibrium price of taco chips rises, and the equilibrium quantity decreases. 
C)  There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. 
D)  The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. 
E)  The equilibrium price of taco chips rises, and the equilibrium quantity increases.

Question 20

At prices above the equilibrium price,what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D₂ can be the result of

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

Market equilibrium i.can never occur because there are always people who want a good but cannot afford it. ii.occurs at the intersection of the supply and demand curves. iii.is the point where the price equals the quantity.

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

-In the above figure,the movement from point a to point b reflects

If the price of carrots is below the equilibrium price,the

Consider the market for camera film.If more people start using digital cameras,which do not require film,

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

If the demand and supply both increase equally,then the equilibrium price and the equilibrium quantity .

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

A supply curve

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

The phrase "a change in demand" most directly implies a

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

At prices above the equilibrium price,what occurs?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

-Pizza is a normal good.In the above figure,the shift in the demand curve from D to D₂ can be the result of

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Gasoline prices increase by 50 percent and other things remain the same.As a result,there is

Market equilibrium i.can never occur because there are always people who want a good but cannot afford it. ii.occurs at the intersection of the supply and demand curves. iii.is the point where the price equals the quantity.

If both the supply and demand curves shift simultaneously,we can always predict what will happen to

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

-In the above figure,the movement from point a to point b reflects

If the price of carrots is below the equilibrium price,the

Consider the market for camera film.If more people start using digital cameras,which do not require film,

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

If the demand and supply both increase equally,then the equilibrium price ________ and the equilibrium quantity ________.

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?

A supply curve

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Suppose over the next several years the productivity of firms producing electric cars improves dramatically.The advance in productivity leads to

The phrase "a change in demand" most directly implies a

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter)along with a drought in peanut growing areas,the

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

At prices above the equilibrium price,what occurs?

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

If the demand and supply both increase equally,then the equilibrium price and the equilibrium quantity .