Question 1

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

Accepted Answer

A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  a decrease in the number of sweater buyers 
A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  a decrease in the number of sweater buyers

Question 2

A demand schedule

Accepted Answer

A)  shows the quantity demanded at one price. 
B)  is a graph showing a relationship between the quantity demanded and the price of a good. 
C)  is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D)  shows that demand is on schedule. 
E)  shows how the demand changes when the supply changes. 
A)  shows the quantity demanded at one price. 
B)  is a graph showing a relationship between the quantity demanded and the price of a good. 
C)  is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. 
D)  shows that demand is on schedule. 
E)  shows how the demand changes when the supply changes.

Question 3

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Accepted Answer

A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease 
E)  not change; increase 
A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease 
E)  not change; increase

Question 4

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplied of a goo

Question 5

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

Accepted Answer

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

Question 6

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Accepted Answer

A)  a decrease in the number of corn growers 
B)  a decrease the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the seed used to grow the corn 
D)  an decrease in buyers' incomes if corn is an inferior good 
E)  an increased belief among buyers that corn is healthy 
A)  a decrease in the number of corn growers 
B)  a decrease the price of wheat, a substitute in production for corn 
C)  an increase in the cost of the seed used to grow the corn 
D)  an decrease in buyers' incomes if corn is an inferior good 
E)  an increased belief among buyers that corn is healthy

Question 7

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States ________ and wages in Mexico ________.

Accepted Answer

A)  fall; rise 
B)  rise; rise 
C)  rise; do not change 
D)  fall; fall 
E)  do not change; fall 
A)  fall; rise 
B)  rise; rise 
C)  rise; do not change 
D)  fall; fall 
E)  do not change; fall

Question 8

-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 mont

Question 9

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars } \
\text { per stapler) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of staplers } \
\text { per week) }
\end{array} \
\hline 8 & 10 & 90 \
7 & 40 & 80 \
6 & 70 & 70 \
5 & 100 & 60 \
\hline
\end{array}$$
-Using the data in the table above,if the price of a stapler is $8,then there is ________ of staplers,and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals 
A)  a surplus; is greater than 
B)  a surplus; is less than 
C)  a shortage; is greater than 
D)  a shortage; is less than 
E)  neither a surplus nor a shortage; equals

Question 10

Which of the following shifts the supply curve of popcorn leftward?

Accepted Answer

A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn 
A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn

Question 11

The market demand curve

Accepted Answer

A)  cannot show how quantity demanded changes in response to a change in price. 
B)  cannot show a change in demand for a good. 
C)  is the horizontal sum of individual demand curves. 
D)  is the vertical sum of individual demand curves. 
E)  is upward sloping. 
A)  cannot show how quantity demanded changes in response to a change in price. 
B)  cannot show a change in demand for a good. 
C)  is the horizontal sum of individual demand curves. 
D)  is the vertical sum of individual demand curves. 
E)  is upward sloping.

Question 12

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Accepted Answer

A)  Both the supply and the demand for new houses increased, and the supply increased by more than the demand. 
B)  The demand for new houses increased, and the supply did not change. 
C)  Both the supply and demand for new houses decreased. 
D)  The supply of new houses decreased, and the demand for new houses did not change. 
E)  The supply of new houses increased, and the demand for new houses did not change. 
A)  Both the supply and the demand for new houses increased, and the supply increased by more than the demand. 
B)  The demand for new houses increased, and the supply did not change. 
C)  Both the supply and demand for new houses decreased. 
D)  The supply of new houses decreased, and the demand for new houses did not change. 
E)  The supply of new houses increased, and the demand for new houses did not change.

Question 13

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________,and the equilibrium quantity ________.

Accepted Answer

A)  does not change; increases 
B)  rises; decreases 
C)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same 
D)  rises; perhaps changes but we can't say if it increases, decreases, or stays the same 
E)  falls; increases 
A)  does not change; increases 
B)  rises; decreases 
C)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same 
D)  rises; perhaps changes but we can't say if it increases, decreases, or stays the same 
E)  falls; increases

Question 14

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

Accepted Answer

A)  inferior goods. 
B)  substitute goods. 
C)  complementary goods. 
D)  normal goods. 
E)  The questions errs because it is the quantity of used cars,  NOT  the demand for used cars, that will change when the price of a new car falls. 
A)  inferior goods. 
B)  substitute goods. 
C)  complementary goods. 
D)  normal goods. 
E)  The questions errs because it is the quantity of used cars,  NOT  the demand for used cars, that will change when the price of a new car falls.

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

A demand schedule

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .

What leads to a decrease in the quantity supplied of a good or service?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States and wages in Mexico .

-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?

Which of the following shifts the supply curve of popcorn leftward?

The market demand curve

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ,and the equilibrium quantity .

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

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

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied of sweaters?

A demand schedule

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

What leads to a decrease in the quantity supplied of a good or service?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

-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?

Which of the following shifts the supply curve of popcorn leftward?

The market demand curve

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________,and the equilibrium quantity ________.

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

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 consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will and the equilibrium quantity of electricity will .

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ,and the equilibrium quantity .