Question 1

​Recent research suggested that there are large health benefits from consuming cooked tomatoes.Holding other things constant,this will cause

Accepted Answer

A) ​The demand curve for tomatoes to shift to the right 
B) The demand curve for tomatoes to shift to the left 
C) The supply curve for tomatoes to shift to the right 
D) ​The supply curve for tomatoes to shift to the left 
A) ​The demand curve for tomatoes to shift to the right 
B) The demand curve for tomatoes to shift to the left 
C) The supply curve for tomatoes to shift to the right 
D) ​The supply curve for tomatoes to shift to the left

Question 2

​The change in any factor other than ________ would shift the demand curve

Accepted Answer

A) ​Weather 
B) interest rate 
C) Price 
D) ​all of the above 
A) ​Weather 
B) interest rate 
C) Price 
D) ​all of the above

Question 3

​In a market where the equilibrium price is $7,any price higher than $7 would cause

Accepted Answer

A) ​a balanced demand and supply 
B) an excess supply 
C) an excess demand 
D) ​none of the above 
A) ​a balanced demand and supply 
B) an excess supply 
C) an excess demand 
D) ​none of the above

Question 4

​A decrease in the price of a substitute shifts the demand curve to the _______

Accepted Answer

A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above 
A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above

Question 5

​Demand and supply analysis is particularly important if

Accepted Answer

A) ​the success of your firm is closely linked to the profitability of your primary industry 
B) the success of your firm is independent of the profitability of your primary industry 
C) the success of your firm is unlikely 
D) ​demand and supply analysis is unimportant 
A) ​the success of your firm is closely linked to the profitability of your primary industry 
B) the success of your firm is independent of the profitability of your primary industry 
C) the success of your firm is unlikely 
D) ​demand and supply analysis is unimportant

Question 6

​A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.What is the equilibrium quantity in the market

Accepted Answer

A) ​5 units 
B) 6 units 
C) 7 units 
D) ​8 units 
A) ​5 units 
B) 6 units 
C) 7 units 
D) ​8 units

Question 7

​"Market making"

Accepted Answer

A) ​is the action of bringing together high value buyers and low value sellers 
B) transfers goods from their low value uses to high value uses,creating wealth 
C) can not occur if the transaction costs are too high to prevent value creating transactions 
D) ​all of the above 
A) ​is the action of bringing together high value buyers and low value sellers 
B) transfers goods from their low value uses to high value uses,creating wealth 
C) can not occur if the transaction costs are too high to prevent value creating transactions 
D) ​all of the above

Question 8

​Suppose there are 11 buyers and 11 sellers,each willing to buy or sell one unit of a good,with values {$14,$13,$12,$11,$10,$9,$8,$7,$6,$5,$4,}.Assume no transaction costs and a competitive market.Now suppose competition among several market makers forces the spread down to $4.How many goods are traded?

Accepted Answer

A) ​Four 
B) Five 
C) Six 
D) ​Seven 
A) ​Four 
B) Five 
C) Six 
D) ​Seven

Question 9

An increase in the price of a substitute shifts the demand curve to the _______​

Accepted Answer

A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above 
A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above

Question 10

​A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.How many transactions must the market maker make if he wants to maximize his profits?

Accepted Answer

A) ​1 
B) 2 
C) 3 
D) ​4 
A) ​1 
B) 2 
C) 3 
D) ​4

Question 11

​To earn profits,the market maker must

Accepted Answer

A) ​bid high,ask low 
B) bid low,ask high 
C) equalize the bid and ask price 
D) ​not create the market 
A) ​bid high,ask low 
B) bid low,ask high 
C) equalize the bid and ask price 
D) ​not create the market

Question 12

​Suppose the demand for pens increases and the supply for pens decreases.What effect will it have on the equilibrium price for pens?

Accepted Answer

A) ​It will rise 
B) It will fall 
C) Uncertain 
D) ​ None 
A) ​It will rise 
B) It will fall 
C) Uncertain 
D) ​ None

Question 13

If a firm can create important complements to its original product,it has​

Accepted Answer

A) ​Created an uncontrollable factor that can change the demand for its product 
B) Created an uncontrollable factor that cannot change the demand for its product 
C) Created a controllable factor that can change the demand for its product 
D) ​Created a controllable factor that cannot change the demand for its product 
A) ​Created an uncontrollable factor that can change the demand for its product 
B) Created an uncontrollable factor that cannot change the demand for its product 
C) Created a controllable factor that can change the demand for its product 
D) ​Created a controllable factor that cannot change the demand for its product

Question 14

After the housing bubble burst,consumer confidence plummeted and housing sales dropped to all-time lows.This caused the demand curve for normal goods to shift

Accepted Answer

A) ​inwards 
B) outwards 
C) stay constant 
D) ​none of the above 
A) ​inwards 
B) outwards 
C) stay constant 
D) ​none of the above

Question 15

​A supply curve describes

Accepted Answer

A) ​the relationship between price and quantity demanded 
B) the relationship between price and quantity supplied 
C) the relationship between a group of buyers and sellers 
D) ​none of the above 
A) ​the relationship between price and quantity demanded 
B) the relationship between price and quantity supplied 
C) the relationship between a group of buyers and sellers 
D) ​none of the above

Question 16

While you were an intern you bought 5 packages of hot dogs a month.After acquiring a full-time job with a considerably higher salary,you stopped purchasing hot dogs.For you,hot dogs are a

Accepted Answer

A) ​Complementary good 
B) Normal good 
C) Inferior good 
D) ​Substitute good 
A) ​Complementary good 
B) Normal good 
C) Inferior good 
D) ​Substitute good

Question 17

​How does an increase in income affect the market for bus rides (inferior good)?

Accepted Answer

A) ​The demand curve for bus rides to shift to the right 
B) The demand curve for bus rides to shift to the left 
C) The supply curve for bus rides to shift to the right 
D) ​The supply curve for bus rides to shift to the left 
A) ​The demand curve for bus rides to shift to the right 
B) The demand curve for bus rides to shift to the left 
C) The supply curve for bus rides to shift to the right 
D) ​The supply curve for bus rides to shift to the left

Question 18

​A decrease in the price of a complement shifts the demand curve to the

Accepted Answer

A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above 
A) ​right 
B) left 
C) it does not change the demand curve 
D) ​none of the above

Question 19

​Holding other factors constant,if bad weather destroys the annual crop for carrots,it causes the supply curve for carrots to

Accepted Answer

A) ​Shift to the left,causing the prices of carrots to rise 
B) Shift to the left,causing the prices of carrots to fall 
C) Stay the same 
D) ​The supply curve does not shift.Only the demand curve shifts. 
A) ​Shift to the left,causing the prices of carrots to rise 
B) Shift to the left,causing the prices of carrots to fall 
C) Stay the same 
D) ​The supply curve does not shift.Only the demand curve shifts.

Question 20

A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.If the market maker makes three transactions,what is his bid-ask spread per unit

Accepted Answer

A) ​$4 
B) $5 
C) $6 
D) ​$7 
A) ​$4 
B) $5 
C) $6 
D) ​$7

Recent research suggested that there are large health benefits from consuming cooked tomatoes.Holding other things constant,this will cause

The change in any factor other than ________ would shift the demand curve

In a market where the equilibrium price is $7,any price higher than $7 would cause

A decrease in the price of a substitute shifts the demand curve to the _______

Demand and supply analysis is particularly important if

A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.What is the equilibrium quantity in the market

"Market making"

An increase in the price of a substitute shifts the demand curve to the _______

To earn profits,the market maker must

Suppose the demand for pens increases and the supply for pens decreases.What effect will it have on the equilibrium price for pens?

If a firm can create important complements to its original product,it has

After the housing bubble burst,consumer confidence plummeted and housing sales dropped to all-time lows.This caused the demand curve for normal goods to shift

A supply curve describes

While you were an intern you bought 5 packages of hot dogs a month.After acquiring a full-time job with a considerably higher salary,you stopped purchasing hot dogs.For you,hot dogs are a

How does an increase in income affect the market for bus rides (inferior good)?

A decrease in the price of a complement shifts the demand curve to the

Holding other factors constant,if bad weather destroys the annual crop for carrots,it causes the supply curve for carrots to

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 7: Understanding Markets and Industry Changes

​Recent research suggested that there are large health benefits from consuming cooked tomatoes.Holding other things constant,this will cause

​The change in any factor other than ________ would shift the demand curve

​In a market where the equilibrium price is $7,any price higher than $7 would cause

​A decrease in the price of a substitute shifts the demand curve to the _______

​Demand and supply analysis is particularly important if

​A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.What is the equilibrium quantity in the market

​"Market making"

An increase in the price of a substitute shifts the demand curve to the _______​

​To earn profits,the market maker must

​Suppose the demand for pens increases and the supply for pens decreases.What effect will it have on the equilibrium price for pens?

If a firm can create important complements to its original product,it has​

After the housing bubble burst,consumer confidence plummeted and housing sales dropped to all-time lows.This caused the demand curve for normal goods to shift

​A supply curve describes

While you were an intern you bought 5 packages of hot dogs a month.After acquiring a full-time job with a considerably higher salary,you stopped purchasing hot dogs.For you,hot dogs are a

​How does an increase in income affect the market for bus rides (inferior good)?

​A decrease in the price of a complement shifts the demand curve to the

​Holding other factors constant,if bad weather destroys the annual crop for carrots,it causes the supply curve for carrots to

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Recent research suggested that there are large health benefits from consuming cooked tomatoes.Holding other things constant,this will cause

The change in any factor other than ________ would shift the demand curve

In a market where the equilibrium price is $7,any price higher than $7 would cause

A decrease in the price of a substitute shifts the demand curve to the _______

Demand and supply analysis is particularly important if

A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.What is the equilibrium quantity in the market

"Market making"

An increase in the price of a substitute shifts the demand curve to the _______

To earn profits,the market maker must

Suppose the demand for pens increases and the supply for pens decreases.What effect will it have on the equilibrium price for pens?

If a firm can create important complements to its original product,it has

A supply curve describes

How does an increase in income affect the market for bus rides (inferior good)?

A decrease in the price of a complement shifts the demand curve to the

Holding other factors constant,if bad weather destroys the annual crop for carrots,it causes the supply curve for carrots to