Question 1

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing 
A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing C

Question 2

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in productivity increases the supply of computers.Hence increases in productivity shift the supply curve of computers rightward.

Question 3

EBay

Accepted Answer

A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time. 
A)  will be considered a market when the Internet firms are profitable. 
B)  is a market because buyers and sellers are brought together to buy and sell. 
C)  would be a market if there was only one physical location. 
D)  cannot function as a market. 
E)  is not a market because buyers can buy from only one seller at any point in time. B

Question 4

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  increased; did not change 
D)  decreased; did not change 
E)  did not change; increased 
A)  increased; increased 
B)  increased; decreased 
C)  increased; did not change 
D)  decreased; did not change 
E)  did not change; increased

Question 5

-The number of logging firms increases.Which of the figures above best illustrates this change?

Accepted Answer

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

Question 6

If the number of sellers decreases,then the supply curve ________ and the supply ________.

Accepted Answer

A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change but there is a decrease in the quantity supplied 
A)  shifts rightward; increases 
B)  shifts rightward; decreases 
C)  shifts leftward; increases 
D)  shifts leftward; decreases 
E)  does not shift; does not change but there is a decrease in the quantity supplied

Question 7

At prices above the equilibrium price,what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 8

-In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above because a prohibition cannot be illustrated using demand and supply figures. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  None of the above because a prohibition cannot be illustrated using demand and supply figures.

Question 9

A decrease in the price of a complement in production leads to

Accepted Answer

A)  a decrease in the supply of the good in question. 
B)  an increase in the supply of the good in question. 
C)  no change in the supply of the good in question. 
D)  a decrease in the quantity supplied of the good in question. 
E)  an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question. 
A)  a decrease in the supply of the good in question. 
B)  an increase in the supply of the good in question. 
C)  no change in the supply of the good in question. 
D)  a decrease in the quantity supplied of the good in question. 
E)  an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.

Question 10

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

Accepted Answer

A)  increases the demand for peanuts. 
B)  decreases the demand for peanuts. 
C)  decreases the demand for soda. 
D)  increases the demand for soda. 
E)  has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts. 
A)  increases the demand for peanuts. 
B)  decreases the demand for peanuts. 
C)  decreases the demand for soda. 
D)  increases the demand for soda. 
E)  has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.

Question 11

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

Accepted Answer

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

Question 12

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

Accepted Answer

A)  leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B)  leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C)  leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D)  leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E)  rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
A)  leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B)  leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C)  leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D)  leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E)  rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

Question 13

If there is a surplus of tacos,then the

Accepted Answer

A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus. 
A)  quantity of tacos demanded equals the quantity of tacos supplied. 
B)  quantity of tacos demanded is greater than the quantity of tacos supplied. 
C)  quantity of tacos demanded is less than the quantity of tacos supplied. 
D)  market is at equilibrium. 
E)  supply curve of tacos will shift leftward to eliminate the surplus.

Question 14

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters 
A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  a decrease in the price of downloaded movies 
D)  a decrease in movie star salaries 
E)  an increase in the number of theaters

Question 15

The law of demand implies that,other things remaining the same,

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases.

Question 16

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 17

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Accepted Answer

A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct. 
A)  a movement along the supply curve. 
B)  a decrease in the quantity supplied of sweaters. 
C)  a shift of the supply curve. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct.

Question 18

The market demand curve for mousetraps is

Accepted Answer

A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 19

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

Accepted Answer

The quantity demande

Question 20

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls,then which figure shows the effect of this change in the market for HD televisions?

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.

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

EBay

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline and the equilibrium quantity .

-The number of logging firms increases.Which of the figures above best illustrates this change?

If the number of sellers decreases,then the supply curve and the supply .

At prices above the equilibrium price,what occurs?

-In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

A decrease in the price of a complement in production leads to

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline and the equilibrium price of gasoline .

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

If there is a surplus of tacos,then the

Which of the following results in a movement upward along the supply curve for movies in theaters?

The law of demand implies that,other things remaining the same,

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.

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

The market demand curve for mousetraps is

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

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls,then which figure shows the effect of this change in the market for HD televisions?

Getting Started

The Usand 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 technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

EBay

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

-The number of logging firms increases.Which of the figures above best illustrates this change?

If the number of sellers decreases,then the supply curve ________ and the supply ________.

At prices above the equilibrium price,what occurs?

-In an effort to protect endangered species from the effects of logging in America's national forests,the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

A decrease in the price of a complement in production leads to

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

Because of a sharp increase in the price of gasoline,the demand for Sports Utility vehicles (SUVs)has decreased.So,the high price of gasoline leads to a

If there is a surplus of tacos,then the

Which of the following results in a movement upward along the supply curve for movies in theaters?

The law of demand implies that,other things remaining the same,

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.

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

The market demand curve for mousetraps is

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

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls,then which figure shows the effect of this change in the market for HD televisions?

Getting Started

The Usand 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

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline and the equilibrium quantity .

If the number of sellers decreases,then the supply curve and the supply .

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline and the equilibrium price of gasoline .