Question 1

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service 
A)  a decrease in the costs of production 
B)  an increase in the product's price 
C)  an advance in the technology used to produce the good 
D)  an increase in the price of another product that the suppliers can produce 
E)  an increase in the number of firms producing the good or service

Question 2

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 3

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change ?

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 4

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Accepted Answer

A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  an increase in income if sweaters are a normal good 
A)  a rise in the price of a sweater 
B)  a rise in the wage rate paid to the workers who make sweaters 
C)  a rise in the expected future price of a sweater 
D)  an increase in the number of sellers of sweaters 
E)  an increase in income if sweaters are a normal good

Question 5

Which of the following brings only an increase in the quantity demanded of a good?

Accepted Answer

A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good 
A)  a decrease in income, assuming the good is an inferior good 
B)  a rise in the price of a substitute good 
C)  a fall in the price of the good itself 
D)  an expectation that the good's price will rise in the future 
E)  a decrease in income, assuming the good is a normal good

Question 6

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Accepted Answer

A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward. 
A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward.

Question 7

-In the above figure,the movement from point a to point b reflects

Accepted Answer

A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza. 
A)  a decrease in the price of pizza. 
B)  an increase in the demand for pizza. 
C)  an increase in the number of people who eat pizza. 
D)  an increase in the price of the tomato sauce used to produce pizza. 
E)  a decrease in the number of firms producing pizza.

Question 8

-In the above figure,an increase in productivity

Accepted Answer

A)  shifts the supply curve from S to S₁. 
B)  shifts the supply curve from S to S₂. 
C)  results in a movement from point a to point b. 
D)  results in a movement from point b to point a. 
E)  has no effect. 
A)  shifts the supply curve from S to S₁. 
B)  shifts the supply curve from S to S₂. 
C)  results in a movement from point a to point b. 
D)  results in a movement from point b to point a. 
E)  has no effect.

Question 9

If the costs of producing pizza increase,which will occur?

Accepted Answer

A)  The supply of pizza will decrease. 
B)  The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C)  Pizza will cease to be produced and sold. 
D)  The demand curve for pizza will shift leftward when the price of a pizza increases. 
E)  The demand curve for pizza will shift rightward when the price of a pizza increases. 
A)  The supply of pizza will decrease. 
B)  The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C)  Pizza will cease to be produced and sold. 
D)  The demand curve for pizza will shift leftward when the price of a pizza increases. 
E)  The demand curve for pizza will shift rightward when the price of a pizza increases.

Question 10

Market equilibrium occurs when

Accepted Answer

A)  the quantity demanded equals the quantity supplied. 
B)  the market is changing rapidly. 
C)  other things remain the same. 
D)  buyers get the lowest possible price. 
E)  everyone who wants the good gets the quantity he or she wants. 
A)  the quantity demanded equals the quantity supplied. 
B)  the market is changing rapidly. 
C)  other things remain the same. 
D)  buyers get the lowest possible price. 
E)  everyone who wants the good gets the quantity he or she wants.

Question 11

If a market begins in equilibrium and then the demand curve shifts leftward,a

Accepted Answer

A)  shortage is created, which is eliminated by a fall in price. 
B)  shortage is created, which is eliminated by a rise in price. 
C)  surplus is created, which is eliminated by a fall in price. 
D)  surplus is created, which is eliminated by a rise in price. 
E)  surplus is created, which is eliminated by the supply curve shifting leftward. 
A)  shortage is created, which is eliminated by a fall in price. 
B)  shortage is created, which is eliminated by a rise in price. 
C)  surplus is created, which is eliminated by a fall in price. 
D)  surplus is created, which is eliminated by a rise in price. 
E)  surplus is created, which is eliminated by the supply curve shifting leftward.

Question 12

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Accepted Answer

A)  a decrease in the price of Zunes, a substitute for iPods 
B)  an increase in the price of iPods 
C)  a requirement that all students at universities have an iPod 
D)  a decrease in the price of iPods 
E)  an increase in people's incomes 
A)  a decrease in the price of Zunes, a substitute for iPods 
B)  an increase in the price of iPods 
C)  a requirement that all students at universities have an iPod 
D)  a decrease in the price of iPods 
E)  an increase in people's incomes

Question 13

The equilibrium price of a good occurs if the

Accepted Answer

A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers. 
A)  quantity of the good demanded equals the quantity of the good supplied. 
B)  quantity of the good demanded is greater than the quantity of the good supplied. 
C)  quantity of the good demanded is less than the quantity of the good supplied. 
D)  demand for the good is equal to the supply of the good. 
E)  price of the good seems reasonable to most buyers.

Question 14

-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 15

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Accepted Answer

A)  an increase in the cost of hard drives 
B)  an increase in the productivity of the workers manufacturing laptops 
C)  a decrease in the price of laptops 
D)  an increase in the price of laptops 
E)  a decrease in the number of laptop manufactures and sellers 
A)  an increase in the cost of hard drives 
B)  an increase in the productivity of the workers manufacturing laptops 
C)  a decrease in the price of laptops 
D)  an increase in the price of laptops 
E)  a decrease in the number of laptop manufactures and sellers

Question 16

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

Accepted Answer

At a price of $8 there is a su

Question 17

Which of the following increases the supply of a product?

Accepted Answer

A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity 
A)  lower prices for the resources used to produce the product 
B)  some producers going bankrupt and leaving the industry 
C)  a higher price for the product 
D)  an increase in the expected future price of the product 
E)  a decrease in productivity

Question 18

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants,which figure shows the effect of the earthquake?

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 19

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Accepted Answer

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

Question 20

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks and milk are substitutes for...

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change ?

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Which of the following brings only an increase in the quantity demanded of a good?

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

-In the above figure,the movement from point a to point b reflects

-In the above figure,an increase in productivity

If the costs of producing pizza increase,which will occur?

Market equilibrium occurs when

If a market begins in equilibrium and then the demand curve shifts leftward,a

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

The equilibrium price of a good occurs if the

-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?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

Which of the following increases the supply of a product?

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants,which figure shows the effect of the earthquake?

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

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

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service,which figure shows the effect of this change ?

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Which of the following brings only an increase in the quantity demanded of a good?

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

-In the above figure,the movement from point a to point b reflects

-In the above figure,an increase in productivity

If the costs of producing pizza increase,which will occur?

Market equilibrium occurs when

If a market begins in equilibrium and then the demand curve shifts leftward,a

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

The equilibrium price of a good occurs if the

-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?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

Which of the following increases the supply of a product?

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants,which figure shows the effect of the earthquake?

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

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

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .