Question 1

A rise in the price of a substitute in production for a good leads to

Accepted Answer

A)  an increase in the supply of that good. 
B)  a decrease in the supply of that good. 
C)  no change in the supply of that good; instead there is a change in the quantity supplied. 
D)  a decrease in the quantity of that good supplied. 
E)  no change in either the supply or the quantity supplied of the good. 
A)  an increase in the supply of that good. 
B)  a decrease in the supply of that good. 
C)  no change in the supply of that good; instead there is a change in the quantity supplied. 
D)  a decrease in the quantity of that good supplied. 
E)  no change in either the supply or the quantity supplied of the good.

Question 2

One reason the demand for laptop computers might increase is a

Accepted Answer

A)  fall in the price of a laptop computers. 
B)  fall in price of desktop computers. 
C)  change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D)  poor quality performance record for laptop computers. 
E)  decrease in income if laptops are a normal good. 
A)  fall in the price of a laptop computers. 
B)  fall in price of desktop computers. 
C)  change in preferences as laptops have become more portable, with faster processors and larger hard drives. 
D)  poor quality performance record for laptop computers. 
E)  decrease in income if laptops are a normal good.

Question 3

If income increases and the demand for bus rides decreases,

Accepted Answer

A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  bus rides are a substitute good. 
E)  bus rides must be a complement good with some other good. 
A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  bus rides are a substitute good. 
E)  bus rides must be a complement good with some other good.

Question 4

-In the figure above,a price of $35 per dozen roses results in

Accepted Answer

A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on the price of roses. 
E)  an eventual rightward shift of the demand curve and/or leftward shift of the supply curve. 
A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on the price of roses. 
E)  an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.

Question 5

-A construction boom occurs and many of the new buildings need plywood for their framing.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 or Figure C 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C

Question 6

What happens to the demand for a good if a complement's price increases?

Accepted Answer

A)  The demand decreases and the demand curve shifts rightward. 
B)  The demand increases and the demand curve shifts rightward. 
C)  The demand decreases and the demand curve shifts leftward. 
D)  The demand increases and the demand curve shifts leftward. 
E)  There is no impact on demand for the good and the demand curve does not shift. 
A)  The demand decreases and the demand curve shifts rightward. 
B)  The demand increases and the demand curve shifts rightward. 
C)  The demand decreases and the demand curve shifts leftward. 
D)  The demand increases and the demand curve shifts leftward. 
E)  There is no impact on demand for the good and the demand curve does not shift.

Question 7

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Accepted Answer

A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied. 
A)  increases from 0 cans to 4,000 cans a day. 
B)  decreases from 4,000 cans to 0 cans a day. 
C)  remains unchanged because the supply increases not the quantity supplied. 
D)  increases from 0 to 6,000 cans a day. 
E)  remains unchanged because the supply decreases not the quantity supplied.

Question 8

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Accepted Answer

A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases but there is no shift in the supply curve. 
D)  The quantity supplied decreases but there is no shift in the supply curve. 
E)  The quantity supplied decreases and the supply curve shifts leftward. 
A)  The supply increases so that the supply curve shifts rightward. 
B)  The supply decreases so that the supply curve shifts leftward. 
C)  The quantity supplied increases but there is no shift in the supply curve. 
D)  The quantity supplied decreases but there is no shift in the supply curve. 
E)  The quantity supplied decreases and the supply curve shifts leftward.

Question 9

-In the above figure,the shift in the demand curve from D to D₁ can be the result of

Accepted Answer

A)  an increase in the price of pizza. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in income if pizza is a normal good. 
A)  an increase in the price of pizza. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in income if pizza is a normal good.

Question 10

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

Accepted Answer

A)  an increase in income if pizza is a normal good. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in the supply of pizza that raises the price of pizza. 
A)  an increase in income if pizza is a normal good. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in the supply of pizza that raises the price of pizza.

Question 11

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

Accepted Answer

Generally,college students' incomes are

Question 12

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Accepted Answer

A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
E)  today's demand for gasoline and today's supply of gasoline do not change. 
A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
E)  today's demand for gasoline and today's supply of gasoline do not change.

Question 13

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

Accepted Answer

A)  demand for hot dogs increases. 
B)  demand for hot dogs decreases. 
C)  quantity of hot dogs demanded increases. 
D)  quantity of hot dogs demanded decreases. 
E)  More information is needed to determine if the demand increases or decreases. 
A)  demand for hot dogs increases. 
B)  demand for hot dogs decreases. 
C)  quantity of hot dogs demanded increases. 
D)  quantity of hot dogs demanded decreases. 
E)  More information is needed to determine if the demand increases or decreases.

Question 14

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

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

Question 15

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Accepted Answer

A)  demand for Dell computers increases. 
B)  demand for Apple computers increases. 
C)  demand for Apple computers decreases. 
D)  supply of Dell computers increases. 
E)  demand for Dell computers decreases. 
A)  demand for Dell computers increases. 
B)  demand for Apple computers increases. 
C)  demand for Apple computers decreases. 
D)  supply of Dell computers increases. 
E)  demand for Dell computers decreases.

Question 16

An increase in the number of pineapple growers results in

Accepted Answer

A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct. 
A)  an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B)  an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C)  an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D)  no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E)  None of the above answers is correct.

Question 17

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Accepted Answer

A)  the demand for classes will decrease at the University of Maine. 
B)  the demand for classes will increase at the University of Maine. 
C)  the quantity of classes demanded will increase at the University of Maine. 
D)  the quantity of classes demanded will decrease at the University of Maine. 
E)  both the demand for and the quantity of classes demanded will decrease at the University of Maine. 
A)  the demand for classes will decrease at the University of Maine. 
B)  the demand for classes will increase at the University of Maine. 
C)  the quantity of classes demanded will increase at the University of Maine. 
D)  the quantity of classes demanded will decrease at the University of Maine. 
E)  both the demand for and the quantity of classes demanded will decrease at the University of Maine.

Question 18

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

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 19

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Accepted Answer

The equilibrium price is $2.50

Question 20

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Accepted Answer

A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves. 
A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

A rise in the price of a substitute in production for a good leads to

One reason the demand for laptop computers might increase is a

If income increases and the demand for bus rides decreases,

-In the figure above,a price of $35 per dozen roses results in

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

What happens to the demand for a good if a complement's price increases?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

-In the above figure,the shift in the demand curve from D to D₁ can be the result of

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

An increase in the number of pineapple growers results in

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

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

A rise in the price of a substitute in production for a good leads to

One reason the demand for laptop computers might increase is a

If income increases and the demand for bus rides decreases,

-In the figure above,a price of $35 per dozen roses results in

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

What happens to the demand for a good if a complement's price increases?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

-In the above figure,the shift in the demand curve from D to D₁ can be the result of

-In the above figure,the shift in the demand curve from D to D₂ can be the result of

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

-A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

An increase in the number of pineapple growers results in

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

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