Question 1

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 2

A supply schedule is a table that reports the ________.

Accepted Answer

A)  expected excess supply in the market at different prices 
B)  profits earned by producers at different levels of production 
C)  different quantities of a good that producers are willing to sell at different income levels 
D)  different quantities of a good that producers are willing to sell at different prices 
A)  expected excess supply in the market at different prices 
B)  profits earned by producers at different levels of production 
C)  different quantities of a good that producers are willing to sell at different income levels 
D)  different quantities of a good that producers are willing to sell at different prices

Question 3

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 supply curve of flash drives is S₂ and the demand curve of flash drives is D,what is the surplus in the market when the price is $7?

Accepted Answer

A)  0 units 
B)  10 units 
C)  20 units 
D)  40 units 
A)  0 units 
B)  10 units 
C)  20 units 
D)  40 units

Question 4

If there is excess demand in a perfectly competitive market,does the government need to intervene to restore the equilibrium price and quantity? Why or why not?

Accepted Answer

No.In a perfectly competitive market,no

Question 5

The quantity supplied of a good is ________.

Accepted Answer

A)  inversely related to the price of the good 
B)  determined irrespective of the market price 
C)  always equal to the quantity demanded of the good 
D)  the amount of the good that sellers are ready to supply at a given price 
A)  inversely related to the price of the good 
B)  determined irrespective of the market price 
C)  always equal to the quantity demanded of the good 
D)  the amount of the good that sellers are ready to supply at a given price

Question 6

Using graphs,explain how the equilibrium price and quantity of laptops will change when:
a)the demand curve for laptops shifts right and the supply curve for laptops shifts left.The shift in the demand curve is greater than the shift in the supply curve.
b)both the demand and supply curves for laptops shift right by the same amount.
c)the demand curve for laptops shifts right without any change in the supply curve.

Accepted Answer

a)In the figure below,the initial equili

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

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.If the supply curve for flash drives shifts from S₁ to S₂,with no change in the demand curve,the new competitive equilibrium price is ________.

Accepted Answer

A)  $3 
B)  $4 
C)  $5 
D)  $7 
A)  $3 
B)  $4 
C)  $5 
D)  $7

Question 9

Which of the following was an effect of the price ceiling placed on gasoline in the United States in the 1970s?

Accepted Answer

A)  The inventory of unsold gas increased, and gas stations incurred losses. 
B)  Those who valued gas the most were able to buy gas under the price ceiling. 
C)  Gas stations ran out of gas as the quantity of gas demanded exceeded the quantity supplied. 
D)  Car owners started buying luxury cars that were less fuel efficient as the price of gas was very low. 
A)  The inventory of unsold gas increased, and gas stations incurred losses. 
B)  Those who valued gas the most were able to buy gas under the price ceiling. 
C)  Gas stations ran out of gas as the quantity of gas demanded exceeded the quantity supplied. 
D)  Car owners started buying luxury cars that were less fuel efficient as the price of gas was very low.

Question 10

The Law of Demand states that ________.

Accepted Answer

A)  the demand for a commodity is directly related to consumers' income, all other things remaining constant 
B)  the demand for a commodity always equals the supply of the commodity 
C)  the quantity demanded of a commodity varies inversely with the price of the commodity, all other things remaining constant 
D)  the quantity demanded of a commodity is the same for all consumers in a perfectly competitive market 
A)  the demand for a commodity is directly related to consumers' income, all other things remaining constant 
B)  the demand for a commodity always equals the supply of the commodity 
C)  the quantity demanded of a commodity varies inversely with the price of the commodity, all other things remaining constant 
D)  the quantity demanded of a commodity is the same for all consumers in a perfectly competitive market

Question 11

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 of gas is S,the equilibrium quantity is ________ gallons.

Accepted Answer

A)  20 
B)  40 
C)  50 
D)  70 
A)  20 
B)  40 
C)  50 
D)  70

Question 12

Suppose that,when you arrive at the sale site for $50 Apple laptops (described in the text)at 1:45 A.M.,you find more than 2,000 people already waiting for the site to open.You turn around and go home to get some sleep.Later you buy an Apple laptop,the same model as the $50 one,for $1,070.This indicates that ________.

Accepted Answer

A)  more than fifty people in the crowd were physically stronger than you 
B)  you are willing to pay at most $1,070 for the laptop 
C)  your opportunity cost of waiting at the site (and pushing and shoving) is at most $1,020 
D)  your opportunity cost of waiting at the site (and pushing and shoving) is at least $1,020 
A)  more than fifty people in the crowd were physically stronger than you 
B)  you are willing to pay at most $1,070 for the laptop 
C)  your opportunity cost of waiting at the site (and pushing and shoving) is at most $1,020 
D)  your opportunity cost of waiting at the site (and pushing and shoving) is at least $1,020

Question 13

In a perfectly competitive market,________.

Accepted Answer

A)  all exchanges take place involuntarily 
B)  there is only one seller and many buyers 
C)  all sellers sell an identical good or a service 
D)  there is no provision for the protection of property rights 
A)  all exchanges take place involuntarily 
B)  there is only one seller and many buyers 
C)  all sellers sell an identical good or a service 
D)  there is no provision for the protection of property rights

Question 14

At a price of $1 per table,the quantity supplied of tables is 100 units,whereas the quantity demanded is 70 units.Given this information,which of the following statements is true?

Accepted Answer

A)  The equilibrium price is $1 per table. 
B)  The market clearing price is $1 per table. 
C)  At a price of $1 per table, there is a surplus in the market. 
D)  At a price of $1 per table, there is a shortage in the market. 
A)  The equilibrium price is $1 per table. 
B)  The market clearing price is $1 per table. 
C)  At a price of $1 per table, there is a surplus in the market. 
D)  At a price of $1 per table, there is a shortage in the market.

Question 15

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 $1?

Accepted Answer

A)  50 units 
B)  51 units 
C)  76 units 
D)  80 units 
A)  50 units 
B)  51 units 
C)  76 units 
D)  80 units

Question 16

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.MaxOil can produce gasoline ________.

Accepted Answer

A)  at a lower marginal cost than MagnusPetro up to the 1 millionth liter 
B)  at a higher marginal cost than MagnusPetro beyond the 1 millionth liter 
C)  at the same marginal cost as MagnusPetro up to the 1 millionth liter 
D)  at the same marginal cost as MagnusPetro beyond the 1 millionth liter 
A)  at a lower marginal cost than MagnusPetro up to the 1 millionth liter 
B)  at a higher marginal cost than MagnusPetro beyond the 1 millionth liter 
C)  at the same marginal cost as MagnusPetro up to the 1 millionth liter 
D)  at the same marginal cost as MagnusPetro beyond the 1 millionth liter

Question 17

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 18

If the demand for gem-quality diamonds decreases AND the supply of gem-quality diamonds decreases,what can be said about equilibrium price and quantity in this market?

Accepted Answer

A)  Equilibrium price and quantity will both fall. 
B)  Equilibrium price and quantity will both rise. 
C)  Equilibrium quantity will fall, but the change in equilibrium price is uncertain. 
D)  Equilibrium quantity will rise, but the change in equilibrium price is uncertain. 
A)  Equilibrium price and quantity will both fall. 
B)  Equilibrium price and quantity will both rise. 
C)  Equilibrium quantity will fall, but the change in equilibrium price is uncertain. 
D)  Equilibrium quantity will rise, but the change in equilibrium price is uncertain.

Question 19

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 D₁ and the supply curve for gas is S,the equilibrium price is ________.

Accepted Answer

A)  $3 
B)  $5 
C)  $6 
D)  $8 
A)  $3 
B)  $5 
C)  $6 
D)  $8

Question 20

The willingness to pay for a commodity ________.

Accepted Answer

A)  decreases as consumption of the commodity increases 
B)  increases as consumption of the commodity increases 
C)  is always less than the market price of the commodity 
D)  is always greater than the market price of the commodity 
A)  decreases as consumption of the commodity increases 
B)  increases as consumption of the commodity increases 
C)  is always less than the market price of the commodity 
D)  is always greater than the market price of the commodity

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?

A supply schedule is a table that reports the ________.

If there is excess demand in a perfectly competitive market,does the government need to intervene to restore the equilibrium price and quantity? Why or why not?

The quantity supplied of a good is ________.

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.

Which of the following was an effect of the price ceiling placed on gasoline in the United States in the 1970s?

The Law of Demand states that ________.

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 of gas is S,the equilibrium quantity is ________ gallons.

In a perfectly competitive market,________.

At a price of $1 per table,the quantity supplied of tables is 100 units,whereas the quantity demanded is 70 units.Given this information,which of the following statements is true?

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 $1?

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.MaxOil can produce gasoline ________.

If the demand for gem-quality diamonds decreases AND the supply of gem-quality diamonds decreases,what can be said about equilibrium price and quantity in this market?

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 D₁ and the supply curve for gas is S,the equilibrium price is ________.

The willingness to pay for a commodity ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

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Exam 4: Demand, supply, and Equilibrium

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?

A supply schedule is a table that reports the ________.

If there is excess demand in a perfectly competitive market,does the government need to intervene to restore the equilibrium price and quantity? Why or why not?

The quantity supplied of a good is ________.

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.

Which of the following was an effect of the price ceiling placed on gasoline in the United States in the 1970s?

The Law of Demand states that ________.

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 of gas is S,the equilibrium quantity is ________ gallons.

In a perfectly competitive market,________.

At a price of $1 per table,the quantity supplied of tables is 100 units,whereas the quantity demanded is 70 units.Given this information,which of the following statements is true?

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 $1?

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.MaxOil can produce gasoline ________.

If the demand for gem-quality diamonds decreases AND the supply of gem-quality diamonds decreases,what can be said about equilibrium price and quantity in this market?

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 D₁ and the supply curve for gas is S,the equilibrium price is ________.

The willingness to pay for a commodity ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters