Question 1

Which of the following shifts the supply curve of popcorn leftward?

Accepted Answer

A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn 
A)  a decrease in the price of popcorn 
B)  an increase in the price of popcorn 
C)  a technological development in the production of popcorn 
D)  a decrease in the number of popcorn suppliers 
E)  a decrease in the cost of producing popcorn

Question 2

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

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)  a decrease in people's incomes if iPods are a normal good 
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)  a decrease in people's incomes if iPods are a normal good

Question 3

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

Accepted Answer

A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact. 
A)  It decreases the demand for taco chips. 
B)  It increases the demand for taco chips. 
C)  It has no effect on the demand for taco chips. 
D)  It will decrease the demand for taco chips only if taco chips are a normal good. 
E)  It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 4

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Accepted Answer

A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward. 
A)  demand curve for SUVs shifts leftward. 
B)  demand curve for SUVs shifts rightward. 
C)  demand curve for SUVs does not shift nor is there a movement along then demand curve. 
D)  demand curve for SUVs does not shift but there is a movement downward along it. 
E)  supply curve for SUVs shifts rightward.

Question 5

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Accepted Answer

A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward. 
A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward.

Question 6

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Accepted Answer

A)  There is a shortage, so the price falls and quantity demanded increases. 
B)  There is a surplus, so the price falls and quantity demanded increases. 
C)  There is a shortage, so the price rises and quantity demanded decreases. 
D)  There is a shortage, so the price rises and quantity demanded increases. 
E)  There is a shortage, so the price falls and quantity demanded decreases. 
A)  There is a shortage, so the price falls and quantity demanded increases. 
B)  There is a surplus, so the price falls and quantity demanded increases. 
C)  There is a shortage, so the price rises and quantity demanded decreases. 
D)  There is a shortage, so the price rises and quantity demanded increases. 
E)  There is a shortage, so the price falls and quantity demanded decreases.

Question 7

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Accepted Answer

A)  the supply of Web pages increases and the price falls. 
B)  the supply curve of Web pages shifts leftward and the price falls. 
C)  the demand for Web pages increases and the price rises. 
D)  the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward. 
E)  the demand for Web pages increases and the price falls. 
A)  the supply of Web pages increases and the price falls. 
B)  the supply curve of Web pages shifts leftward and the price falls. 
C)  the demand for Web pages increases and the price rises. 
D)  the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward. 
E)  the demand for Web pages increases and the price falls.

Question 8

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Accepted Answer

A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both. 
A)  the supply curve of film shifts rightward. 
B)  the demand curve for film shifts leftward. 
C)  there is a movement up along the demand curve for film. 
D)  there is a movement down along the demand curve for film. 
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.

Question 9

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

Accepted Answer

A)  decrease. 
B)  perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  increase. 
E)  definitely either stay the same or decrease. 
A)  decrease. 
B)  perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  increase. 
E)  definitely either stay the same or decrease.

Question 10

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C depending on how contractors react to the higher price of bricks. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C depending on how contractors react to the higher price of bricks.

Question 11

Which of the following is true regarding demand?
i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii.Demand refers to one quantity at one time.
iii."Demand" and " quantity demanded" are the same thing.

Accepted Answer

A)  i only 
B)  ii only 
C)  both i and ii 
D)  iii only 
E)  both ii and iii 
A)  i only 
B)  ii only 
C)  both i and ii 
D)  iii only 
E)  both ii and iii

Question 12

-In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

Accepted Answer

A)  there has been an increase in supply. 
B)  there has been an increase in demand. 
C)  there has been a change in the quantity supplied and no change in supply. 
D)  Both answers B and C are correct. 
E)  Both answers A and B are correct. 
A)  there has been an increase in supply. 
B)  there has been an increase in demand. 
C)  there has been a change in the quantity supplied and no change in supply. 
D)  Both answers B and C are correct. 
E)  Both answers A and B are correct.

Question 13

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 14

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 15

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Accepted Answer

A)  the demand curve for hauling freight has shifted leftward. 
B)  the supply curve for hauling freight has shifted leftward. 
C)  the demand curve for hauling freight has shifted rightward. 
D)  the supply curve for hauling freight has shifted rightward. 
E)  neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher. 
A)  the demand curve for hauling freight has shifted leftward. 
B)  the supply curve for hauling freight has shifted leftward. 
C)  the demand curve for hauling freight has shifted rightward. 
D)  the supply curve for hauling freight has shifted rightward. 
E)  neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.

Question 16

Consider the market for peanut butter.If there is an increase in the price of peanuts,

Accepted Answer

A)  there is an upward movement along the supply curve for peanut butter. 
B)  the supply curve for peanuts shifts rightward. 
C)  there is a decrease in the supply of peanuts. 
D)  there is a decrease in the supply of peanut butter. 
E)  there is a decrease in the demand for peanut butter. 
A)  there is an upward movement along the supply curve for peanut butter. 
B)  the supply curve for peanuts shifts rightward. 
C)  there is a decrease in the supply of peanuts. 
D)  there is a decrease in the supply of peanut butter. 
E)  there is a decrease in the demand for peanut butter.

Question 17

When a surplus of rice occurs,

Accepted Answer

A)  the price of rice rises. 
B)  the price of rice falls. 
C)  there is a balance between the forces of supply and demand. 
D)  the quantity demanded is greater than quantity supplied at the current price. 
E)  the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus. 
A)  the price of rice rises. 
B)  the price of rice falls. 
C)  there is a balance between the forces of supply and demand. 
D)  the quantity demanded is greater than quantity supplied at the current price. 
E)  the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.

Question 18

An increase in the number of fast-food restaurants

Accepted Answer

A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
E)  increases both the demand and supply of fast-food meals. 
A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
E)  increases both the demand and supply of fast-food meals.

Question 19

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Accepted Answer

A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward 
E)  does not change; rightward 
A)  increases; rightward 
B)  increases; leftward 
C)  decreases; rightward 
D)  decreases; leftward 
E)  does not change; rightward

Question 20

When moving along a demand curve,which of the following changes?

Accepted Answer

A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences 
A)  the consumers' incomes 
B)  the prices of other goods 
C)  the number of buyers 
D)  the price of the good 
E)  the consumers' preferences

Which of the following shifts the supply curve of popcorn leftward?

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and " quantity demanded" are the same thing.

-In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

What is the law of demand?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Consider the market for peanut butter.If there is an increase in the price of peanuts,

When a surplus of rice occurs,

An increase in the number of fast-food restaurants

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

When moving along a demand curve,which of the following changes?

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 shifts the supply curve of popcorn leftward?

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

The number of buyers of sport utility vehicles,SUV,decreases sharply.So the

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and " quantity demanded" are the same thing.

-In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

What is the law of demand?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Consider the market for peanut butter.If there is an increase in the price of peanuts,

When a surplus of rice occurs,

An increase in the number of fast-food restaurants

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

When moving along a demand curve,which of the following changes?

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

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .