Question 1

Other things remaining the same,a leftward shift in the supply curve will lead to a(n)________.

Accepted Answer

A)  decrease in the equilibrium price and the equilibrium quantity 
B)  increase in the equilibrium price and the equilibrium quantity 
C)  decrease in the equilibrium price and an increase in the equilibrium quantity 
D)  increase in the equilibrium price and a decrease in the equilibrium quantity 
A)  decrease in the equilibrium price and the equilibrium quantity 
B)  increase in the equilibrium price and the equilibrium quantity 
C)  decrease in the equilibrium price and an increase in the equilibrium quantity 
D)  increase in the equilibrium price and a decrease in the equilibrium quantity

Question 2

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise:
   
MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte.
-Refer to the scenario above.Attendance at games of the minor league baseball franchise in Charlotte,the Charlotte Knights,leads all of Minor League Baseball and has been growing 8 percent per year for the past 5 years.How will baseball's growing popularity in Charlotte affect demand for MLB game attendance in Charlotte?

Accepted Answer

A)  Cause an increase in demand 
B)  Cause an increase in quantity demanded 
C)  Cause a decrease in quantity demanded 
D)  Case a decrease in demand 
A)  Cause an increase in demand 
B)  Cause an increase in quantity demanded 
C)  Cause a decrease in quantity demanded 
D)  Case a decrease in demand

Question 3

The following table shows the market demand schedule and supply schedule for notebooks.
  
-Refer to the table above.At what price does the market for notebooks clear?

Accepted Answer

A)  $2 
B)  $3 
C)  $4 
D)  $5 
A)  $2 
B)  $3 
C)  $4 
D)  $5

Question 4

The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market.
  
-Refer to the table above.What is the market demand for wine when the price is $3?

Accepted Answer

A)  28 units 
B)  35 units 
C)  66 units 
D)  50 units 
A)  28 units 
B)  35 units 
C)  66 units 
D)  50 units

Question 5

In a market for apples,a consumer purchases 30 pounds when the price of apples is $1 per pound and the consumer's income is $5,000 per month.When the price of apples increases to $2 per pound,without any change in the consumer's income,she decides to purchase only 15 pounds of apples.Suppose,after a given period of time,the consumer's income falls to $3,000 per month.Her consumption of apples also decreases to 10 pounds.Using a graph,illustrate the difference between the change in quantity demanded and the change in demand for apples.

Accepted Answer

Initially the consumer purchases 30 poun

Question 6

Which of the following examples best describes the concept of diminishing marginal benefit?

Accepted Answer

A)  If the weather gets cold, the demand for ice cream will fall. 
B)  With each additional pen Jill buys, her willingness to pay for another pen decreases. 
C)  Each additional unit of ice cream that John consumes gives him more and more satisfaction. 
D)  If a seller of notebooks in a perfectly competitive market charges above the market price, his profit decreases. 
A)  If the weather gets cold, the demand for ice cream will fall. 
B)  With each additional pen Jill buys, her willingness to pay for another pen decreases. 
C)  Each additional unit of ice cream that John consumes gives him more and more satisfaction. 
D)  If a seller of notebooks in a perfectly competitive market charges above the market price, his profit decreases.

Question 7

The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve.
  
-Refer to the figure above.When the demand curve for gas is D₂ and the supply curve for gas is S,the surplus in the market when price is $8 is ________ gallons.

Accepted Answer

A)  20 
B)  25 
C)  50 
D)  55 
A)  20 
B)  25 
C)  50 
D)  55

Question 8

Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by a ________.

Accepted Answer

A)  lower price and quantity 
B)  higher price and quantity 
C)  higher price and a lower quantity 
D)  lower price and a higher quantity 
A)  lower price and quantity 
B)  higher price and quantity 
C)  higher price and a lower quantity 
D)  lower price and a higher quantity

Question 9

The acai berry and products made from it are a popular dietary supplement,believed to reverse diabetes and lead to weight loss.Suppose that a peer-reviewed medical study reveals that there are no health benefits from consuming acai berry products.The likely effect of this medical study will be to ________.

Accepted Answer

A)  not cause a change in demand but to decrease quantity demanded 
B)  not cause a change in demand but to increase quantity demanded 
C)  cause a decrease in demand 
D)  cause an increase in demand 
A)  not cause a change in demand but to decrease quantity demanded 
B)  not cause a change in demand but to increase quantity demanded 
C)  cause a decrease in demand 
D)  cause an increase in demand

Question 10

The concept of diminishing marginal benefit states that ________.

Accepted Answer

A)  lower levels of consumption give lower level of utility 
B)  the demand for a commodity declines as its price increases 
C)  the demand for a commodity is more dependent on income than on price 
D)  the willingness to pay for an additional unit declines as more of a good is consumed 
A)  lower levels of consumption give lower level of utility 
B)  the demand for a commodity declines as its price increases 
C)  the demand for a commodity is more dependent on income than on price 
D)  the willingness to pay for an additional unit declines as more of a good is consumed

Question 11

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.
  
-Refer to the figure above.When the demand curve for flash drives is D and the supply curve of flash drives is S₁,the equilibrium quantity is ________.

Accepted Answer

A)  10 units 
B)  20 units 
C)  40 units 
D)  60 units 
A)  10 units 
B)  20 units 
C)  40 units 
D)  60 units

Question 12

The figure below shows Sue's and Carlos' demand curves for gasoline. It would be useful to find the equation of the demand curves to answer the questions below.
  
-Refer to the figure above.The total demand curve has the vertical intercept at ________ and the horizontal intercept at ________,and its slope ________.

Accepted Answer

A)  15.00 euros; 7,000 liters; changes at 10.00 euros 
B)  15.00 euros; 7,000 liters; changes at 8.12 euros 
C)  18.00 euros; 7,000 liters; is twice as steep as Sue's demand curve 
D)  10.00 euros; 7,000 liters; is half as steep as Carlos's demand curve 
A)  15.00 euros; 7,000 liters; changes at 10.00 euros 
B)  15.00 euros; 7,000 liters; changes at 8.12 euros 
C)  18.00 euros; 7,000 liters; is twice as steep as Sue's demand curve 
D)  10.00 euros; 7,000 liters; is half as steep as Carlos's demand curve

Question 13

Suppose Z is a normal good.The equilibrium price and quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had increased to $35 and the equilibrium quantity had increased to 70 units.Other things remaining the same,which of the following could explain this change?

Accepted Answer

A)  A leftward shift of the supply curve of Z 
B)  A rightward shift of the supply curve of Z 
C)  A leftward shift of the demand curve for Z 
D)  A rightward shift of the demand curve for Z 
A)  A leftward shift of the supply curve of Z 
B)  A rightward shift of the supply curve of Z 
C)  A leftward shift of the demand curve for Z 
D)  A rightward shift of the demand curve for Z

Question 14

The figure below shows the supply curves for gasoline for two oil companies (MaxOil and MagnusPetro). It would be useful to find the equations of the two supply curves to answer the questions below.
  
-Refer to the figure above.Suppose that MaxOil and MagnusPetro merged and became a single company,Empoleum.Then,all else being equal,the ________.

Accepted Answer

A)  total supply curve will not change 
B)  total supply curve will shift rightward 
C)  total supply curve will shift leftward 
D)  quantity supplied will double at each price 
A)  total supply curve will not change 
B)  total supply curve will shift rightward 
C)  total supply curve will shift leftward 
D)  quantity supplied will double at each price

Question 15

The figure below shows the supply curves for gasoline for two oil companies (MaxOil and MagnusPetro). It would be useful to find the equations of the two supply curves to answer the questions below.
  
-Refer to the figure above.Suppose that MaxOil,through a negotiation with the labor union representing its workforce,reduced its contribution to workers' health insurance.Meanwhile,MagnusPetro successfully negotiated to lower the price of ethanol (to be blended with its gasoline)with a supplier.How do these changes affect the supply curves?

Accepted Answer

A)  Both companies supply curves and the total supply curve will shift leftward. 
B)  Both companies supply curves and the total supply curve will shift rightward. 
C)  MaxOil's supply curve will shift leftward, MagnusPetro's supply curve will shift rightward, and the total supply curve will shift leftward. 
D)  MaxOil's supply curve will shift righttward, MagnusPetro's supply curve will shift leftward, and the total supply curve will shift rightward. 
A)  Both companies supply curves and the total supply curve will shift leftward. 
B)  Both companies supply curves and the total supply curve will shift rightward. 
C)  MaxOil's supply curve will shift leftward, MagnusPetro's supply curve will shift rightward, and the total supply curve will shift leftward. 
D)  MaxOil's supply curve will shift righttward, MagnusPetro's supply curve will shift leftward, and the total supply curve will shift rightward.

Question 16

An increase in the price of aviation fuel will cause which of the following for the supply of flights from New York to Los Angeles?

Accepted Answer

A)  No change in supply, but an increase in quantity supplied 
B)  No change in supply, but a decrease in quantity supplied 
C)  An increase in supply 
D)  A decrease in supply 
A)  No change in supply, but an increase in quantity supplied 
B)  No change in supply, but a decrease in quantity supplied 
C)  An increase in supply 
D)  A decrease in supply

Question 17

The buyers of a good will want to purchase it as long as their willingness to pay for the good is ________.

Accepted Answer

A)  equal to zero 
B)  greater than zero 
C)  less than the price 
D)  greater than or equal to the price 
A)  equal to zero 
B)  greater than zero 
C)  less than the price 
D)  greater than or equal to the price

Question 18

The following table shows the market demand schedule and supply schedule for notebooks.
  
-Refer to the table above.Which of the following statements is true?

Accepted Answer

A)  There is a surplus of 4 notebooks in the market when the price of one notebook is $5. 
B)  There is a surplus of 10 notebooks in the market when the price of one notebook is $8. 
C)  There is a shortage of 4 notebooks in the market when the price of one notebook is $6. 
D)  There is a shortage of 12 notebooks in the market when the price of one notebook is $4. 
A)  There is a surplus of 4 notebooks in the market when the price of one notebook is $5. 
B)  There is a surplus of 10 notebooks in the market when the price of one notebook is $8. 
C)  There is a shortage of 4 notebooks in the market when the price of one notebook is $6. 
D)  There is a shortage of 12 notebooks in the market when the price of one notebook is $4.

Question 19

The following table shows the market demand schedule and supply schedule for notebooks.
  
-Refer to the table above.What is the equilibrium price of notebooks?

Accepted Answer

A)  $2 
B)  $4 
C)  $6 
D)  $7 
A)  $2 
B)  $4 
C)  $6 
D)  $7

Question 20

Which of the following is a feature of a perfectly competitive market?

Accepted Answer

A)  There is only one seller of a commodity. 
B)  The government rations commodities. 
C)  The product of each seller differs marginally from its rival products. 
D)  Each seller is too small to influence the market price. 
A)  There is only one seller of a commodity. 
B)  The government rations commodities. 
C)  The product of each seller differs marginally from its rival products. 
D)  Each seller is too small to influence the market price.

Other things remaining the same,a leftward shift in the supply curve will lead to a(n)________.

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.At what price does the market for notebooks clear?

The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market. -Refer to the table above.What is the market demand for wine when the price is $3?

Which of the following examples best describes the concept of diminishing marginal benefit?

The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve. -Refer to the figure above.When the demand curve for gas is D₂ and the supply curve for gas is S,the surplus in the market when price is $8 is ________ gallons.

Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by a ________.

The concept of diminishing marginal benefit states that ________.

The figure below shows Sue's and Carlos' demand curves for gasoline. It would be useful to find the equation of the demand curves to answer the questions below. -Refer to the figure above.The total demand curve has the vertical intercept at and the horizontal intercept at ,and its slope .

An increase in the price of aviation fuel will cause which of the following for the supply of flights from New York to Los Angeles?

The buyers of a good will want to purchase it as long as their willingness to pay for the good is ________.

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.Which of the following statements is true?

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.What is the equilibrium price of notebooks?

Which of the following is a feature of a perfectly competitive market?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

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Exam 4: Demand, Supply, and Equilibrium

Other things remaining the same,a leftward shift in the supply curve will lead to a(n)________.

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.At what price does the market for notebooks clear?

The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market. -Refer to the table above.What is the market demand for wine when the price is $3?

Which of the following examples best describes the concept of diminishing marginal benefit?

The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve. -Refer to the figure above.When the demand curve for gas is D₂ and the supply curve for gas is S,the surplus in the market when price is $8 is ________ gallons.

Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by a ________.

The concept of diminishing marginal benefit states that ________.

An increase in the price of aviation fuel will cause which of the following for the supply of flights from New York to Los Angeles?

The buyers of a good will want to purchase it as long as their willingness to pay for the good is ________.

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.Which of the following statements is true?

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.What is the equilibrium price of notebooks?

Which of the following is a feature of a perfectly competitive market?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters