Question 1

When the demand for blue jeans increases,what happens next?

Accepted Answer

If the demand for blue jeans increases,t

Question 2

People consume more soup as temperatures falls.So,as cold weather approaches,

Accepted Answer

A)  the quantity of soup demanded increases. 
B)  the demand for soup increases. 
C)  people move closer to their demand curve for soup. 
D)  people move farther beyond their demand curves. 
E)  both the demand and the quantity demanded of soup increase. 
A)  the quantity of soup demanded increases. 
B)  the demand for soup increases. 
C)  people move closer to their demand curve for soup. 
D)  people move farther beyond their demand curves. 
E)  both the demand and the quantity demanded of soup increase.

Question 3

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Question 4

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

Accepted Answer

A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change 
A)  downward; decreases 
B)  downward; increases 
C)  upward; decreases 
D)  upward; increases 
E)  downward; does not change

Question 5

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ 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

Question 6

Consider the market for peanut butter.If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter),the

Accepted Answer

A)  equilibrium price of peanut butter definitely falls. 
B)  equilibrium quantity of peanut definitely decreases. 
C)  equilibrium price of peanut butter might rise or fall. 
D)  equilibrium quantity of peanut butter definitely increases. 
E)  equilibrium price of peanut butter definitely rises. 
A)  equilibrium price of peanut butter definitely falls. 
B)  equilibrium quantity of peanut definitely decreases. 
C)  equilibrium price of peanut butter might rise or fall. 
D)  equilibrium quantity of peanut butter definitely increases. 
E)  equilibrium price of peanut butter definitely rises.

Question 7

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 8

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,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 9

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A)  90 
B)  30 
C)  80 
D)  60 
E)  230 
A)  90 
B)  30 
C)  80 
D)  60 
E)  230

Question 10

Which of the following is true?

Accepted Answer

A)  For an inferior good, when income increases, the demand curve shifts leftward. 
B)  If the price of a substitute rises, the demand curve shifts leftward. 
C)  If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D)  An increase in population shifts the demand curve leftward. 
E)  An increase in the cost of producing a good shifts the demand curve leftward. 
A)  For an inferior good, when income increases, the demand curve shifts leftward. 
B)  If the price of a substitute rises, the demand curve shifts leftward. 
C)  If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D)  An increase in population shifts the demand curve leftward. 
E)  An increase in the cost of producing a good shifts the demand curve leftward.

Question 11

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Accepted Answer

Yes,the information in the tab

Question 12

The quantity supplied of a good or service is the

Accepted Answer

A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price. 
A)  list of all quantities at different prices, as illustrated by a supply schedule and a supply curve. 
B)  list of all quantities at different prices, as illustrated by a demand schedule and a demand curve. 
C)  one quantity produced at a variety of prices. 
D)  quantity produced at one price.

Question 13

-In the above figure,an increase in cost of the cheese used to produce pizza

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 14

-The above table gives the demand and supply schedules for cat food.If the price is $1.00 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 $1.00 per pound

Question 15

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

Accepted Answer

A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases. 
A)  supply of sweaters decreases and the demand for sweaters does not change. 
B)  supply of sweaters increases and the demand for sweaters does not change. 
C)  quantity of sweaters supplied increases. 
D)  quantity of sweaters supplied decreases. 
E)  supply of sweaters increases and the demand for sweaters increases.

Question 16

One reason supply curves have an upward slope is because

Accepted Answer

A)  increased supply will require increased technology. 
B)  people will pay a higher price when less is supplied. 
C)  a higher price brings a greater profit, so firms want to sell more of that good. 
D)  to have more of the good supplied requires more firms to open. 
E)  None of the above answers is correct because supply curves have a downward slope. 
A)  increased supply will require increased technology. 
B)  people will pay a higher price when less is supplied. 
C)  a higher price brings a greater profit, so firms want to sell more of that good. 
D)  to have more of the good supplied requires more firms to open. 
E)  None of the above answers is correct because supply curves have a downward slope.

Question 17

Which of the following results in a movement upward along the demand curve for movies?

Accepted Answer

A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  an increase in income, assuming that movies are a normal good 
D)  a decrease in income, assuming that movies are a normal good 
E)  a decrease in the price of NetFlix, a substitutue for movies 
A)  an increase in the price of movie tickets 
B)  a decrease in the price of movie tickets 
C)  an increase in income, assuming that movies are a normal good 
D)  a decrease in income, assuming that movies are a normal good 
E)  a decrease in the price of NetFlix, a substitutue for movies

Question 18

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

Accepted Answer

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

Question 19

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 20

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then 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.

When the demand for blue jeans increases,what happens next?

People consume more soup as temperatures falls.So,as cold weather approaches,

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

Consider the market for peanut butter.If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter),the

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ,and the equilibrium quantity .

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Which of the following is true?

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

The quantity supplied of a good or service is the

-In the above figure,an increase in cost of the cheese used to produce pizza

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

One reason supply curves have an upward slope is because

Which of the following results in a movement upward along the demand curve for movies?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

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

When the demand for blue jeans increases,what happens next?

People consume more soup as temperatures falls.So,as cold weather approaches,

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

Consider the market for peanut butter.If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter),the

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ________,and the equilibrium quantity ________.

-The above figures show the market for HD televisions.If more firms start to produce HD televisions ,which figure shows the effect of this change?

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Which of the following is true?

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

The quantity supplied of a good or service is the

-In the above figure,an increase in cost of the cheese used to produce pizza

-The graph illustrates the supply of sweaters.As the technology used to produce sweaters improves,the

One reason supply curves have an upward slope is because

Which of the following results in a movement upward along the demand curve for movies?

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₁?

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage,then which figure shows the effect of this change?

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

Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ,and the equilibrium quantity .