Question 1

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

Accepted Answer

A) a decrease is the price of computer chips 
B) a decrease in buyers' incomes,assuming that computers are a normal good 
C) a technological improvement that reduces manufacturing costs 
D) expectations of a higher future price 
E) an increase in the price of computer software 
A) a decrease is the price of computer chips 
B) a decrease in buyers' incomes,assuming that computers are a normal good 
C) a technological improvement that reduces manufacturing costs 
D) expectations of a higher future price 
E) an increase in the price of computer software

Question 2

Assume the typical shapes of the demand and supply curves.If both demand and supply increase in a competitive market,the equilibrium price will

Accepted Answer

A) always rise 
B) always fall 
C) rise if demand increases more than supply increases 
D) fall if demand increases more than supply increases 
E) remain unchanged 
A) always rise 
B) always fall 
C) rise if demand increases more than supply increases 
D) fall if demand increases more than supply increases 
E) remain unchanged

Question 3

Which of the following would lead to a change in both the quantity of a good buyers wish to purchase and in the quantity sellers wish to sell?

Accepted Answer

A) a change in the price of a substitute good 
B) a change in buyers' incomes 
C) a change in the price of a key input 
D) a technological improvement 
E) a change in the expected future price of the good 
A) a change in the price of a substitute good 
B) a change in buyers' incomes 
C) a change in the price of a key input 
D) a technological improvement 
E) a change in the expected future price of the good

Question 4

According to the law of demand,

Accepted Answer

A) there is a positive relationship between quantity demanded and price 
B) as the price rises,demand will shift to the left 
C) there is a negative relationship between quantity demanded and price 
D) as the price rises,demand will shift to the right 
E) as the price rises,consumers will continue to purchase the same quantity of the good 
A) there is a positive relationship between quantity demanded and price 
B) as the price rises,demand will shift to the left 
C) there is a negative relationship between quantity demanded and price 
D) as the price rises,demand will shift to the right 
E) as the price rises,consumers will continue to purchase the same quantity of the good

Question 5

The law of supply states that the quantity supplied of a good and

Accepted Answer

A) the price of a key input are inversely related 
B) its price are inversely related 
C) the price of a key input are positively related 
D) its price are positively related 
E) the price of an alternate good are positively related 
A) the price of a key input are inversely related 
B) its price are inversely related 
C) the price of a key input are positively related 
D) its price are positively related 
E) the price of an alternate good are positively related

Question 6

The economic model of demand

Accepted Answer

A) explains the consequences of a change in buyers' tastes,but not the causes 
B) explains the causes of a change in buyers' tastes,but not the consequences 
C) explains both the causes and consequences of a change in buyers' tastes 
D) explains neither the causes nor the consequences of a change in buyers' tastes 
E) ignores buyers' tastes because they are too unstable to include in the model 
A) explains the consequences of a change in buyers' tastes,but not the causes 
B) explains the causes of a change in buyers' tastes,but not the consequences 
C) explains both the causes and consequences of a change in buyers' tastes 
D) explains neither the causes nor the consequences of a change in buyers' tastes 
E) ignores buyers' tastes because they are too unstable to include in the model

Question 7

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

Accepted Answer

A) an increase in buyers' incomes 
B) increased prices of other Ford models 
C) an expected future increase in the price 
D) an increase in the U.S.population 
E) a decrease in the price of steel 
A) an increase in buyers' incomes 
B) increased prices of other Ford models 
C) an expected future increase in the price 
D) an increase in the U.S.population 
E) a decrease in the price of steel

Question 8

If a supply curve shifts rightward along a downward sloping demand curve

Accepted Answer

A) the quantity supplied will increase 
B) the quantity supplied will decrease 
C) it makes no sense to talk about a change in quantity supplied 
D) the quantity demanded will decrease 
E) the price will increase 
A) the quantity supplied will increase 
B) the quantity supplied will decrease 
C) it makes no sense to talk about a change in quantity supplied 
D) the quantity demanded will decrease 
E) the price will increase

Question 9

If the supply curve does not shift,an increase in demand results in a(n)

Accepted Answer

A) increase in equilibrium price and a decrease in equilibrium quantity 
B) decrease in equilibrium price and a decrease in equilibrium quantity 
C) increase in equilibrium price and an increase in equilibrium quantity 
D) decrease in equilibrium price and an increase in equilibrium quantity 
E) increase in supply 
A) increase in equilibrium price and a decrease in equilibrium quantity 
B) decrease in equilibrium price and a decrease in equilibrium quantity 
C) increase in equilibrium price and an increase in equilibrium quantity 
D) decrease in equilibrium price and an increase in equilibrium quantity 
E) increase in supply

Question 10

-Consider the market for ground beef represented by Figure 3-12,which is initially in equilibrium at point J.Assume that ground beef is an inferior good.Which of the following could explain a movement to a new equilibrium at point M?

Accepted Answer

A) a change in tastes away from hamburgers combined with an increased price for cattle feed 
B) an increase in buyers' incomes combined with a cost-saving technological improvement 
C) a decrease in the price of hot dogs combined with an increased price for labor 
D) a decrease in buyers' incomes combined with a decrease in the number of acres owned by cattle ranches 
E) a drop in the population combined with a increased price for an alternate form of packaged beef 
A) a change in tastes away from hamburgers combined with an increased price for cattle feed 
B) an increase in buyers' incomes combined with a cost-saving technological improvement 
C) a decrease in the price of hot dogs combined with an increased price for labor 
D) a decrease in buyers' incomes combined with a decrease in the number of acres owned by cattle ranches 
E) a drop in the population combined with a increased price for an alternate form of packaged beef

Question 11

The law of demand states that the quantity demanded of a good and

Accepted Answer

A) the price of a substitute are positively related 
B) its price are inversely related 
C) its price are positively related if it is an inferior good 
D) the wealth of buyers are positively related 
E) its price are inversely related if it is a normal good 
A) the price of a substitute are positively related 
B) its price are inversely related 
C) its price are positively related if it is an inferior good 
D) the wealth of buyers are positively related 
E) its price are inversely related if it is a normal good

Question 12

An increase in buyers' incomes

Accepted Answer

A) increases the quantity demanded of a good 
B) decreases the quantity demanded of a good 
C) increases the demand for a normal good 
D) increases the demand for an inferior good 
E) decreases the quantity demanded of a normal good 
A) increases the quantity demanded of a good 
B) decreases the quantity demanded of a good 
C) increases the demand for a normal good 
D) increases the demand for an inferior good 
E) decreases the quantity demanded of a normal good

Question 13

Defining a market involves deciding how to view

Accepted Answer

A) equilibrium supply and demand 
B) normative economic analysis 
C) the thing being traded,the decision makers,and the trading environment 
D) suppliers,demanders,shortages,and surpluses 
E) excess demand and excess supply 
A) equilibrium supply and demand 
B) normative economic analysis 
C) the thing being traded,the decision makers,and the trading environment 
D) suppliers,demanders,shortages,and surpluses 
E) excess demand and excess supply

Question 14

Which of the following best defines quantity supplied?

Accepted Answer

A) the amount of a good sellers would choose to produce,in a given set of circumstances 
B) the amount of a good sellers will be able to sell,in a given set of circumstances 
C) the various amounts of a good sellers would like to sell over various sets of circumstances 
D) the amount of a good sellers would like to sell if they could choose the price for which it sold 
E) the amount of a good that sellers would be able to sell if they could choose the price for which it sold 
A) the amount of a good sellers would choose to produce,in a given set of circumstances 
B) the amount of a good sellers will be able to sell,in a given set of circumstances 
C) the various amounts of a good sellers would like to sell over various sets of circumstances 
D) the amount of a good sellers would like to sell if they could choose the price for which it sold 
E) the amount of a good that sellers would be able to sell if they could choose the price for which it sold

Question 15

-Figure 3-1 shows the market demand schedule for compact disks.If the price per disk rises from $10 to $12,the

Accepted Answer

A) demand will decrease by 2.2 million disks 
B) quantity demanded will decrease by 2.2 million disks 
C) supply will rise by 2.8 million disks 
D) quantity demanded will decrease by 3.5 million disks 
E) demand curve will shift to the left 
A) demand will decrease by 2.2 million disks 
B) quantity demanded will decrease by 2.2 million disks 
C) supply will rise by 2.8 million disks 
D) quantity demanded will decrease by 3.5 million disks 
E) demand curve will shift to the left

Question 16

An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)

Accepted Answer

A) increase in resource prices 
B) increase in demand 
C) increase in supply 
D) favorable shift in tastes and preferences 
E) improvement in production technology 
A) increase in resource prices 
B) increase in demand 
C) increase in supply 
D) favorable shift in tastes and preferences 
E) improvement in production technology

Question 17

When there is a change in demand,

Accepted Answer

A) there is a rightward movement along the demand curve 
B) there is a leftward movement along the demand curve 
C) there is a shift of the supply curve 
D) changes in price lead to different changes in quantity demanded 
E) there is a shift of the demand curve 
A) there is a rightward movement along the demand curve 
B) there is a leftward movement along the demand curve 
C) there is a shift of the supply curve 
D) changes in price lead to different changes in quantity demanded 
E) there is a shift of the demand curve

Question 18

A decrease in demand,with supply constant,results in a(n)

Accepted Answer

A) increase in equilibrium price and a decrease in equilibrium quantity 
B) decrease in equilibrium price and a decrease in equilibrium quantity 
C) increase in equilibrium price and an increase in equilibrium quantity 
D) increase in equilibrium price and an ambiguous effect on equilibrium quantity 
E) decrease in supply 
A) increase in equilibrium price and a decrease in equilibrium quantity 
B) decrease in equilibrium price and a decrease in equilibrium quantity 
C) increase in equilibrium price and an increase in equilibrium quantity 
D) increase in equilibrium price and an ambiguous effect on equilibrium quantity 
E) decrease in supply

Question 19

In analyzing the market for a particular good,the most appropriate size of the market to consider

Accepted Answer

A) is the global market 
B) is a local market 
C) is a national market 
D) is a state-wide market 
E) depends on the purpose of the analysis 
A) is the global market 
B) is a local market 
C) is a national market 
D) is a state-wide market 
E) depends on the purpose of the analysis

Question 20

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

Accepted Answer

A) The equilibrium price will fall;the equilibrium quantity may rise or fall. 
B) The equilibrium price will rise;the equilibrium quantity may rise or fall. 
C) The equilibrium quantity will fall;the equilibrium price may rise or fall. 
D) The equilibrium quantity will rise;the equilibrium price may rise or fall. 
E) The equilibrium price will fall;the equilibrium quantity will not change. 
A) The equilibrium price will fall;the equilibrium quantity may rise or fall. 
B) The equilibrium price will rise;the equilibrium quantity may rise or fall. 
C) The equilibrium quantity will fall;the equilibrium price may rise or fall. 
D) The equilibrium quantity will rise;the equilibrium price may rise or fall. 
E) The equilibrium price will fall;the equilibrium quantity will not change.

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

Assume the typical shapes of the demand and supply curves.If both demand and supply increase in a competitive market,the equilibrium price will

Which of the following would lead to a change in both the quantity of a good buyers wish to purchase and in the quantity sellers wish to sell?

According to the law of demand,

The law of supply states that the quantity supplied of a good and

The economic model of demand

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

If a supply curve shifts rightward along a downward sloping demand curve

If the supply curve does not shift,an increase in demand results in a(n)

-Consider the market for ground beef represented by Figure 3-12,which is initially in equilibrium at point J.Assume that ground beef is an inferior good.Which of the following could explain a movement to a new equilibrium at point M?

The law of demand states that the quantity demanded of a good and

An increase in buyers' incomes

Defining a market involves deciding how to view

Which of the following best defines quantity supplied?

-Figure 3-1 shows the market demand schedule for compact disks.If the price per disk rises from $10 to $12,the

An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)

When there is a change in demand,

A decrease in demand,with supply constant,results in a(n)

In analyzing the market for a particular good,the most appropriate size of the market to consider

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

What Is Economics

Scarcity, choice, and Economic Systems

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 3: Supply and Demand

Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?

Assume the typical shapes of the demand and supply curves.If both demand and supply increase in a competitive market,the equilibrium price will

Which of the following would lead to a change in both the quantity of a good buyers wish to purchase and in the quantity sellers wish to sell?

According to the law of demand,

The law of supply states that the quantity supplied of a good and

The economic model of demand

All of the following,except one,would increase the demand for a particular model of a Ford automobile.Assume that this model is a normal good.Which is the exception?

If a supply curve shifts rightward along a downward sloping demand curve

If the supply curve does not shift,an increase in demand results in a(n)

-Consider the market for ground beef represented by Figure 3-12,which is initially in equilibrium at point J.Assume that ground beef is an inferior good.Which of the following could explain a movement to a new equilibrium at point M?

The law of demand states that the quantity demanded of a good and

An increase in buyers' incomes

Defining a market involves deciding how to view

Which of the following best defines quantity supplied?

-Figure 3-1 shows the market demand schedule for compact disks.If the price per disk rises from $10 to $12,the

An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)

When there is a change in demand,

A decrease in demand,with supply constant,results in a(n)

In analyzing the market for a particular good,the most appropriate size of the market to consider

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

What Is Economics

Scarcity, choice, and Economic Systems

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters