Question 1

A normal good is defined as a good

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls. 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls.

Question 2

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________,and the equilibrium quantity of scooters ________.

Accepted Answer

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

Question 3

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Accepted Answer

A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  increases the demand for corn. 
B)  increases the supply of corn. 
C)  decreases the supply of corn. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 4

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

The answer of Consumers can use either natural gas or...

Question 5

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls,which figure shows the effect of this change in price?

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 6

The market demand curve for mangos is

Accepted Answer

A)  the same as the demand curve of one buyer in a market with many buyers. 
B)  upward sloping because rich people can afford more mangos than poor people can buy. 
C)  the horizontal sum of the individual demand curves of all the buyers. 
D)  the vertical sum of the individual demand curves of all the buyers. 
E)  the horizontal average of the individual demand curves of all the buyers. 
A)  the same as the demand curve of one buyer in a market with many buyers. 
B)  upward sloping because rich people can afford more mangos than poor people can buy. 
C)  the horizontal sum of the individual demand curves of all the buyers. 
D)  the vertical sum of the individual demand curves of all the buyers. 
E)  the horizontal average of the individual demand curves of all the buyers.

Question 7

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits,
i.the quantity of new automobiles supplied decreases.
ii.the supply of new automobiles decreases.
iii.the supply of new automobiles increases.

Accepted Answer

A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct. 
A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct.

Question 8

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

Accepted Answer

A)  does not change. 
B)  rises. 
C)  falls. 
D)  might rise, fall, or not change, but the change can never be predicted. 
E)  might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers. 
A)  does not change. 
B)  rises. 
C)  falls. 
D)  might rise, fall, or not change, but the change can never be predicted. 
E)  might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question 9

The quantity supplied of a good is

Accepted Answer

A)  the same thing as the quantity demanded at each price. 
B)  the amount that the people are willing and able to sell during a given time period at a specified price. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm will sell when it can sell all it wants. 
E)  always larger than the quantity demanded at each price. 
A)  the same thing as the quantity demanded at each price. 
B)  the amount that the people are willing and able to sell during a given time period at a specified price. 
C)  equal to the difference between the quantity available and the quantity desired by all consumers and producers. 
D)  the amount the firm will sell when it can sell all it wants. 
E)  always larger than the quantity demanded at each price.

Question 10

Which of the following does NOT  increase the supply of personal computers,that is,does  NOT  shift the supply curve of personal computers?

Accepted Answer

A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer 
A)  an advance in the technology used to produce personal computers 
B)  an increase in the number of firms producing personal computer 
C)  a fall in the cost of the components used to assemble personal computers 
D)  a rise the price of a personal computer 
E)  a change in the expected future price of a personal computer

Question 11

When moving along a demand curve,which of the following changes?

Accepted Answer

A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences 
A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences

Question 12

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

Accepted Answer

A)  the supply curve for leather shoes shifts rightward. 
B)  the supply curve for leather shoes shifts leftward. 
C)  there is a movement along the supply curve for leather shoes. 
D)  the equilibrium price of leather shoes falls. 
E)  the equilibrium quantity of leather shoes increases. 
A)  the supply curve for leather shoes shifts rightward. 
B)  the supply curve for leather shoes shifts leftward. 
C)  there is a movement along the supply curve for leather shoes. 
D)  the equilibrium price of leather shoes falls. 
E)  the equilibrium quantity of leather shoes increases.

Question 13

When there is a surplus of snowboards,the

Accepted Answer

A)  demand for snowboards is greater than the supply of snowboards. 
B)  supply of snowboards is greater than the demand for snowboards. 
C)  quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D)  quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E)  price rises to restore the equilibrium. 
A)  demand for snowboards is greater than the supply of snowboards. 
B)  supply of snowboards is greater than the demand for snowboards. 
C)  quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D)  quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E)  price rises to restore the equilibrium.

Question 14

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.

Accepted Answer

A)  raises; increases 
B)  probably changes, but more information is needed to determine if it rises or falls; increases 
C)  raises; probably changes, but more information is needed to determine if it increases or decreases 
D)  lowers; probably changes, but more information is needed to determine if it increases or decreases 
E)  lowers; increases 
A)  raises; increases 
B)  probably changes, but more information is needed to determine if it rises or falls; increases 
C)  raises; probably changes, but more information is needed to determine if it increases or decreases 
D)  lowers; probably changes, but more information is needed to determine if it increases or decreases 
E)  lowers; increases

Question 15

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

Accepted Answer

A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve. 
A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve.

Question 16

-In the figure above,what is the equilibrium price and quantity?

Accepted Answer

The equilibrium pric

Question 17

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
E)  E 
A)  A 
B)  B 
C)  C 
D)  D 
E)  E

Question 18

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

Accepted Answer

A)  an increase in income if pizza is a normal good. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in the supply of pizza that raises the price of pizza. 
A)  an increase in income if pizza is a normal good. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in the supply of pizza that raises the price of pizza.

Question 19

If the supply of iPods increases,then
i.the supply curve for iPods has shifted rightward.
ii.the price of iPods has decreased.
iii.there will be a movement upward along the iPod supply curve.

Accepted Answer

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

Question 20

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Accepted Answer

A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
E)  today's demand for gasoline and today's supply of gasoline do not change. 
A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
E)  today's demand for gasoline and today's supply of gasoline do not change.

A normal good is defined as a good

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ,and the equilibrium quantity of scooters .

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls,which figure shows the effect of this change in price?

The market demand curve for mangos is

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i.the quantity of new automobiles supplied decreases. ii.the supply of new automobiles decreases. iii.the supply of new automobiles increases.

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

The quantity supplied of a good is

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

When moving along a demand curve,which of the following changes?

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

When there is a surplus of snowboards,the

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers the equilibrium price of a pound of strawberries and the equilibrium quantity of strawberries.

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

-In the figure above,what is the equilibrium price and quantity?

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

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

A normal good is defined as a good

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________,and the equilibrium quantity of scooters ________.

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls,which figure shows the effect of this change in price?

The market demand curve for mangos is

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i.the quantity of new automobiles supplied decreases. ii.the supply of new automobiles decreases. iii.the supply of new automobiles increases.

If both producers and consumers believe that a product's price will rise in the future,then at the present,the equilibrium price

The quantity supplied of a good is

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

When moving along a demand curve,which of the following changes?

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

When there is a surplus of snowboards,the

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

-In the figure above,what is the equilibrium price and quantity?

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

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

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ,and the equilibrium quantity of scooters .

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers the equilibrium price of a pound of strawberries and the equilibrium quantity of strawberries.