Question 1

Which of the following lower the equilibrium price of a canoe?

Accepted Answer

A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct. 
A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct.

Question 2

-The above table gives the demand and supply schedules for cat food.If the price is $3.00 per pound of cat food,will there be a shortage,a surplus,or is this price the equilibrium price? If there is a shortage,how much is the shortage? If there is a surplus,how much is the surplus? If $3.00 is the equilibrium price,what is the equilibrium quantity?

Accepted Answer

At a price of $3.00 per pound

Question 3

Which of the following results in an increase in the supply of a good or service?

Accepted Answer

A)  a fall in the price of the good or service 
B)  a smaller number of sellers producing the good or service 
C)  an increase in foreign imports of the good or service 
D)  higher taxes imposed upon producers of the good or service 
E)  a rise in the price of the good or service 
A)  a fall in the price of the good or service 
B)  a smaller number of sellers producing the good or service 
C)  an increase in foreign imports of the good or service 
D)  higher taxes imposed upon producers of the good or service 
E)  a rise in the price of the good or service

Question 4

A normal good is defined as a good

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls. 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  for which demand increases when the number of demanders increases. 
E)  for which demand increases when the price of a complement falls.

Question 5

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand 
A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
E)  an increase in the supply combined with no change in the demand

Question 6

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Accepted Answer

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

Question 7

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

Accepted Answer

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

Question 8

-Using the data in the table above,at the price of $80 a phone,

Accepted Answer

A)  a shortage of 25,000 cellular telephones occurs. 
B)  a surplus of 80,000 cellular telephones occurs. 
C)  a surplus of 25,000 cellular telephones occurs. 
D)  a shortage of 55,000 cellular telephones occurs. 
E)  the market is in equilibrium. 
A)  a shortage of 25,000 cellular telephones occurs. 
B)  a surplus of 80,000 cellular telephones occurs. 
C)  a surplus of 25,000 cellular telephones occurs. 
D)  a shortage of 55,000 cellular telephones occurs. 
E)  the market is in equilibrium.

Question 9

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

Accepted Answer

The quantity supplied of a goo

Question 10

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied 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)  a decrease in the number of sweater buyers 
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)  a decrease in the number of sweater buyers

Question 11

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

Accepted Answer

A)  demand curve for peanuts slopes downward. 
B)  demand for peanuts increases when income increases. 
C)  demand for peanuts increases when the price of one of its substitutes rises. 
D)  peanuts have both substitutes and complements. 
E)  demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded. 
A)  demand curve for peanuts slopes downward. 
B)  demand for peanuts increases when income increases. 
C)  demand for peanuts increases when the price of one of its substitutes rises. 
D)  peanuts have both substitutes and complements. 
E)  demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.

Question 12

If the supply of iPods increases,then
i.the supply curve for iPods has shifted rightward.
ii.the price of iPods has decreased.
iii.there will be a movement upward along the iPod supply curve.

Accepted Answer

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

Question 13

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

Accepted Answer

A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve. 
A)  decreases from 2 cans to 0 cans a day. 
B)  increases from 0 cans to 2 cans a day. 
C)  remains unchanged. 
D)  decreases from 1 can to 0 cans a day. 
E)  cannot be determined from the figure because the demand curve will shift to a new curve.

Question 14

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

Accepted Answer

A)  an increase in the price of pizza. 
B)  an increase in the supply of pizza. 
C)  an increase in the number of producers of pizza. 
D)  a decrease in the cost of the tomato sauce used to produce pizza. 
E)  a decrease in income if pizza is a normal good. 
A)  an increase in the price of pizza. 
B)  an increase in the supply of pizza. 
C)  an increase in the number of producers of pizza. 
D)  a decrease in the cost of the tomato sauce used to produce pizza. 
E)  a decrease in income if pizza is a normal good.

Question 15

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

The answer of Consumers can use either natural gas or...

Question 16

If the price of iPods decreases,

Accepted Answer

A)  there will be a movement down along the supply curve for iPods. 
B)  there will be a rightward shift in the iPod supply curve. 
C)  there will be a movement up along the supply curve for iPods. 
D)  the supply curve for iPods shifts leftward. 
E)  there has been a decrease in the price of iTunes songs. 
A)  there will be a movement down along the supply curve for iPods. 
B)  there will be a rightward shift in the iPod supply curve. 
C)  there will be a movement up along the supply curve for iPods. 
D)  the supply curve for iPods shifts leftward. 
E)  there has been a decrease in the price of iTunes songs.

Question 17

Changes in which of the following factors do NOT shift the demand curve?

Accepted Answer

A)  the price of the good 
B)  buyers' incomes 
C)  the price of a substitute good 
D)  the number of buyers 
E)  the price expected in the future 
A)  the price of the good 
B)  buyers' incomes 
C)  the price of a substitute good 
D)  the number of buyers 
E)  the price expected in the future

Question 18

A supply curve

Accepted Answer

A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  slopes downward. 
B)  slopes upward. 
C)  is a graph of the relationship between quantity supplied of a good and its price. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 19

-In the figure above,a price of $15 per dozen roses results in

Accepted Answer

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

Question 20

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Accepted Answer

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

Which of the following lower the equilibrium price of a canoe?

Which of the following results in an increase in the supply of a good or service?

A normal good is defined as a good

Which of the following definitely results in a product's equilibrium price rising?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

-Using the data in the table above,at the price of $80 a phone,

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

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

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

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

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If the price of iPods decreases,

Changes in which of the following factors do NOT shift the demand curve?

A supply curve

-In the figure above,a price of $15 per dozen roses results in

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

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 lower the equilibrium price of a canoe?

Which of the following results in an increase in the supply of a good or service?

A normal good is defined as a good

Which of the following definitely results in a product's equilibrium price rising?

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $10,then

-Using the data in the table above,at the price of $80 a phone,

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

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

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

If the supply of iPods increases,then i.the supply curve for iPods has shifted rightward. ii.the price of iPods has decreased. iii.there will be a movement upward along the iPod supply curve.

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

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

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

If the price of iPods decreases,

Changes in which of the following factors do NOT shift the demand curve?

A supply curve

-In the figure above,a price of $15 per dozen roses results in

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

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

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .