Question 1

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Accepted Answer

A)  The demand for pizzas decreases and the demand for tacos increases. 
B)  The demand for both goods decreases. 
C)  The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D)  The quantity of pizza demanded decreases and the demand for tacos increases. 
E)  The demand for each decreases because both are normal goods. 
A)  The demand for pizzas decreases and the demand for tacos increases. 
B)  The demand for both goods decreases. 
C)  The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D)  The quantity of pizza demanded decreases and the demand for tacos increases. 
E)  The demand for each decreases because both are normal goods.

Question 2

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  rises or does not change. 
E)  rises or falls. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  rises or does not change. 
E)  rises or falls.

Question 3

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

Accepted Answer

A)  an increase in the current supply of wheat. 
B)  a decrease in the current supply of wheat. 
C)  a decrease in the future supply of wheat. 
D)  no change in the current or future supply of wheat. 
E)  an increase in the current quantity supplied of wheat. 
A)  an increase in the current supply of wheat. 
B)  a decrease in the current supply of wheat. 
C)  a decrease in the future supply of wheat. 
D)  no change in the current or future supply of wheat. 
E)  an increase in the current quantity supplied of wheat.

Question 4

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Accepted Answer

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

Question 5

To find the market demand curve for in-line skates,we must

Accepted Answer

A)  add the quantities demanded at every price and every income by every buyer of in-line skates. 
B)  add the quantities demanded at prices that all buyers can afford to pay. 
C)  sum horizontally the individual demand curves of all the buyers. 
D)  take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E)  None of the above answers is correct because we need also to take account of the supply of in-line skates. 
A)  add the quantities demanded at every price and every income by every buyer of in-line skates. 
B)  add the quantities demanded at prices that all buyers can afford to pay. 
C)  sum horizontally the individual demand curves of all the buyers. 
D)  take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E)  None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 6

A student at New York University used to take the Redhound bus when she visited her grandmother in Boston.After graduating,although the bus fare and the plane fare were the same as they were when she was a student,with a well paid job on Wall Street she now takes the plane to Boston to visit her grandmother.For this student,travel by Redhound bus is

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute good. 
D)  a complement good. 
E)  a good with negative preferences. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute good. 
D)  a complement good. 
E)  a good with negative preferences.

Question 7

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 8

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.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 9

Mulch is shredded wood and is a by-product in the production of lumber.Because these two goods are produced together,they are

Accepted Answer

A)  complements in production. 
B)  substitutes in production. 
C)  inputs into the same production process. 
D)  not related. 
E)  normal goods in production. 
A)  complements in production. 
B)  substitutes in production. 
C)  inputs into the same production process. 
D)  not related. 
E)  normal goods in production.

Question 10

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

Accepted Answer

A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease. 
A)  The demand for sushi would decrease. 
B)  The demand for sushi would be unaffected, but the price would increase. 
C)  The demand for sushi could increase or decrease. 
D)  The demand for sushi would increase. 
E)  The demand for sushi would be unaffected, but the price would decrease.

Question 11

An increase in the quantity demanded is shown as a

Accepted Answer

A)  movement along the demand curve. 
B)  movement toward the demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve. 
A)  movement along the demand curve. 
B)  movement toward the demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve.

Question 12

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 13

-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 14

-In the above figure,the shift in the supply curve from S to S₂ reflects

Accepted Answer

A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied. 
A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.

Question 15

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 16

Which of the following increases the supply of a good?

Accepted Answer

A)  a decrease in the price of a complement in production 
B)  producers expect higher prices for the good in the future 
C)  productivity improves 
D)  prices of inputs used to produce the good rise 
E)  The number of producers decreases. 
A)  a decrease in the price of a complement in production 
B)  producers expect higher prices for the good in the future 
C)  productivity improves 
D)  prices of inputs used to produce the good rise 
E)  The number of producers decreases.

Question 17

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

Accepted Answer

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

Question 18

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

Accepted Answer

A)  10,000 and $8. 
B)  90,000 and $8. 
C)  100,000 and $5. 
D)  70,000 and $6. 
E)  60,000 and $5. 
A)  10,000 and $8. 
B)  90,000 and $8. 
C)  100,000 and $5. 
D)  70,000 and $6. 
E)  60,000 and $5.

Question 19

A demand schedule shows

Accepted Answer

A)  the quantities that people plan to buy in all possible circumstances. 
B)  the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C)  the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D)  the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E)  the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity. 
A)  the quantities that people plan to buy in all possible circumstances. 
B)  the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C)  the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D)  the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E)  the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

Question 20

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

Accepted Answer

A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  there is neither a surplus nor a shortage, but the market is NOT in equilibrium. 
A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  there is neither a surplus nor a shortage, but the market is NOT in equilibrium.

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-Which figure above shows the effect of a decrease in the number of pizza sellers?

To find the market demand curve for in-line skates,we must

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity?

Mulch is shredded wood and is a by-product in the production of lumber.Because these two goods are produced together,they are

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

An increase in the quantity demanded is shown as a

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

-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?

-In the above figure,the shift in the supply curve from S to S₂ reflects

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

Which of the following increases the supply of a good?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

A demand schedule shows

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

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

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-Which figure above shows the effect of a decrease in the number of pizza sellers?

To find the market demand curve for in-line skates,we must

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity?

Mulch is shredded wood and is a by-product in the production of lumber.Because these two goods are produced together,they are

A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?

An increase in the quantity demanded is shown as a

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

-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?

-In the above figure,the shift in the supply curve from S to S₂ reflects

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

Which of the following increases the supply of a good?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

A demand schedule shows

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

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

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

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