Question 1

Exhibit
The diagram below represents the market for butter.
-Refer to Exhibit. The equilibrium price of butter is:

Accepted Answer

A) $5 
B) $3 
C) $2 
D) none of the above 
A) $5 
B) $3 
C) $2 
D) none of the above B

Question 2

Exhibit
​
  
-Refer to Exhibit. At $0.40 there is a ____ of ____ downloads.

Accepted Answer

A) surplus; 10,500,000 
B) surplus; 7,500,000 
C) shortage; 7,500,000 
D) shortage; 10,500,000 
A) surplus; 10,500,000 
B) surplus; 7,500,000 
C) shortage; 7,500,000 
D) shortage; 10,500,000 C

Question 3

Exhibit 4-1
$\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c} 
\text{Price per lb.} \
\text{of ice cream}
\end{array} & \text{Sven }&\text{ Larry} & \begin{array}{c} 
\text{Rest of} \
\text{Market}
\end{array}&\text{ Market} \
\hline \$ 8 & 5 & 0 & 7 & \
\hline\$ 6 & 8 & 5 & 9 & \
\hline \$ 5  & 11 & 9 & 11 & \
\hline \$ 4 & 14 & 11 & 14 & \
\hline\$ 3  & 17 & 14 & 20 & \
\hline
\end{array}$
-Refer to Exhibit. Shown are the demand schedules for gourmet ice cream of two individuals and the rest of the market. At a price of $8, the quantity demanded in the market would be:

Accepted Answer

A) 12 
B) 22 
C) 31 
D) 39 
A) 12 
B) 22 
C) 31 
D) 39 A

Question 4

A downward-sloping demand curve shows:

Accepted Answer

A) the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases. 
B) the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases. 
C) the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases. 
D) the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases. 
A) the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases. 
B) the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases. 
C) the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases. 
D) the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases.

Question 5

Exhibit
The diagram below represents the market for butter.
-Refer to Exhibit. If the current price of butter equals $2, you would expect to find:

Accepted Answer

A) the market in equilibrium at 3,000 pounds per year. 
B) the market in equilibrium at 8,000 pounds per year. 
C) that the market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded. 
D) that the market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied. 
A) the market in equilibrium at 3,000 pounds per year. 
B) the market in equilibrium at 8,000 pounds per year. 
C) that the market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded. 
D) that the market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied.

Question 6

Exhibit
The diagram below represents the market for butter.
-Refer to Exhibit. If the current price of butter equals $5, you would expect to find:

Accepted Answer

A) the market in equilibrium at 2,000 pounds per year. 
B) the market in equilibrium at 8,000 pounds per year. 
C) that the market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded. 
D) that the market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied. 
A) the market in equilibrium at 2,000 pounds per year. 
B) the market in equilibrium at 8,000 pounds per year. 
C) that the market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded. 
D) that the market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied.

Question 7

Exhibit
​
  
-Refer to Exhibit. What is the equilibrium price in the example?

Accepted Answer

A) $0.80 
B) $1.00 
C) $1.20 
D) $1.40 
A) $0.80 
B) $1.00 
C) $1.20 
D) $1.40

Question 8

Exhibit
  
-Refer to Exhibit. The University Theater faces market demand curve D0 and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have:

Accepted Answer

A) increased their demand for tickets to Q4. 
B) increased their quantity of tickets demanded to Q4. 
C) decreased their demand for tickets to Q1. 
D) decreased their quantity of tickets demanded to Q1. 
A) increased their demand for tickets to Q4. 
B) increased their quantity of tickets demanded to Q4. 
C) decreased their demand for tickets to Q1. 
D) decreased their quantity of tickets demanded to Q1.

Question 9

Exhibit
The diagram below represents the market for butter.
-Refer to Exhibit. At a market price of $1, there exists a:

Accepted Answer

A) shortage equal to 5,000 pounds of butter. 
B) surplus equal to 5,000 pounds of butter. 
C) shortage equal to 11,000 pounds of butter. 
D) surplus equal to 11,000 pounds of butter. 
A) shortage equal to 5,000 pounds of butter. 
B) surplus equal to 5,000 pounds of butter. 
C) shortage equal to 11,000 pounds of butter. 
D) surplus equal to 11,000 pounds of butter.

Question 10

Exhibit
The diagram below represents the market for butter.
-Refer to Exhibit. At a market price of $4, there exists a:

Accepted Answer

A) shortage equal to 4,000 pounds of butter. 
B) surplus equal to 4,000 pounds of butter. 
C) shortage equal to 7,000 pounds of butter. 
D) surplus equal to 7,000 pounds of butter. 
A) shortage equal to 4,000 pounds of butter. 
B) surplus equal to 4,000 pounds of butter. 
C) shortage equal to 7,000 pounds of butter. 
D) surplus equal to 7,000 pounds of butter.

Question 11

Refer to the table below. If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000?? $\begin{array}{|c|c|c|c|c|}
\hline \begin{array}{c} 
\text{Price for} \
\text{Mid-Sized Auto}
\end{array} &\text{ GM} &\text{ Ford} &\text{ Chrysler} & \text{Market} \
\hline \$ 22,000  & 10,000 & 8,000 & 4,000 & \
\hline\$ 24,000 & 12,000 & 10,000 & 5,000 & \
\hline\$ 26,000& 15,000 & 12,000 & 7,000 & \
\hline \$ 28,000  & 19,000 & 14,000 & 10,000 & \
\hline \$ 30,000  & 24,000 & 16,000 & 14,000 & \
\hline
\end{array}$

Accepted Answer

A) 43,000 
B) 54,000 
C) 126,000 
D) 158,000 
A) 43,000 
B) 54,000 
C) 126,000 
D) 158,000

Question 12

​Exhibit
  
-Refer to Exhibit. Assuming that the production possibilities curve extends out farther as indicated above due to technological change, which of the following observations is correct?

Accepted Answer

A) There is a technological advance in food production but not in housing production. 
B) There is a technological advance in housing production but not in food production. 
C) There is a technological advance in both housing and food production. 
D) none of the above 
A) There is a technological advance in food production but not in housing production. 
B) There is a technological advance in housing production but not in food production. 
C) There is a technological advance in both housing and food production. 
D) none of the above

Question 13

Exhibit
​
  
-Refer to Exhibit. At $1.80 there is a ____ of ____ downloads.

Accepted Answer

A) shortage; 3,000,000 
B) shortage; 7,000,000 
C) surplus; 7,000,000 
D) surplus; 3,000,000 
A) shortage; 3,000,000 
B) shortage; 7,000,000 
C) surplus; 7,000,000 
D) surplus; 3,000,000

Question 14

Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result,

Accepted Answer

A) Skippy's demand for peanut butter will increase, but not until the end of the year. 
B) Skippy's demand for peanut butter increases today. 
C) Skippy's demand for peanut butter decreases as he considers buying almond butter. 
D) Skippy's demand for peanut butter shifts left today. 
A) Skippy's demand for peanut butter will increase, but not until the end of the year. 
B) Skippy's demand for peanut butter increases today. 
C) Skippy's demand for peanut butter decreases as he considers buying almond butter. 
D) Skippy's demand for peanut butter shifts left today.

Question 15

The difference between a change in quantity demanded and a change in demand is that a change in:

Accepted Answer

A) quantity demanded is caused by a change in a good's own current price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. 
B) demand is caused by a change in a good's own current price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
C) quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
D) A change in demand and a change in quantity demanded are the same thing. 
A) quantity demanded is caused by a change in a good's own current price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. 
B) demand is caused by a change in a good's own current price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. 
C) quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. 
D) A change in demand and a change in quantity demanded are the same thing.

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. The equilibrium price of butter is:

Exhibit -Refer to Exhibit. At $0.40 there is a of downloads.

A downward-sloping demand curve shows:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. If the current price of butter equals $2, you would expect to find:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. If the current price of butter equals $5, you would expect to find:

Exhibit -Refer to Exhibit. What is the equilibrium price in the example?

Exhibit -Refer to Exhibit. The University Theater faces market demand curve D₀ and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. At a market price of $1, there exists a:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. At a market price of $4, there exists a:

Exhibit -Refer to Exhibit. Assuming that the production possibilities curve extends out farther as indicated above due to technological change, which of the following observations is correct?

Exhibit -Refer to Exhibit. At $1.80 there is a of downloads.

Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result,

The difference between a change in quantity demanded and a change in demand is that a change in:

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Economics Eight Powerful Ideas and the Role and Method of Economics

International Finance

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

The Firm Production and Costs

Consumer Choice Theory

Filters

Exam 4: Demand Supply and Market Equilibrium

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. The equilibrium price of butter is:

Exhibit ​ -Refer to Exhibit. At $0.40 there is a ____ of ____ downloads.

A downward-sloping demand curve shows:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. If the current price of butter equals $2, you would expect to find:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. If the current price of butter equals $5, you would expect to find:

Exhibit ​ -Refer to Exhibit. What is the equilibrium price in the example?

Exhibit -Refer to Exhibit. The University Theater faces market demand curve D0 and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. At a market price of $1, there exists a:

Exhibit The diagram below represents the market for butter. -Refer to Exhibit. At a market price of $4, there exists a:

​Exhibit -Refer to Exhibit. Assuming that the production possibilities curve extends out farther as indicated above due to technological change, which of the following observations is correct?

Exhibit ​ -Refer to Exhibit. At $1.80 there is a ____ of ____ downloads.

Skippy loves peanut butter. Skippy reads on the internet that 75 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to more than double by the end of the year. As a result,

The difference between a change in quantity demanded and a change in demand is that a change in:

Market Failure, Market Efficiency and Welfare

Elasticities

Market in Motion and Price Controls

Economics Eight Powerful Ideas and the Role and Method of Economics

International Finance

International Trade, Income Poverty and Health Care

The Markets for Labor Capital and Land

Oligopoly and Strategic Behavior

Monopolistic Competition, Product Differentiation, Monopoly and Antitrust

Firms in Perfectly Competitive Markets

The Firm Production and Costs

Consumer Choice Theory

Filters

Exhibit -Refer to Exhibit. At $0.40 there is a of downloads.

Exhibit -Refer to Exhibit. What is the equilibrium price in the example?

Exhibit -Refer to Exhibit. The University Theater faces market demand curve D₀ and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have:

Exhibit -Refer to Exhibit. Assuming that the production possibilities curve extends out farther as indicated above due to technological change, which of the following observations is correct?

Exhibit -Refer to Exhibit. At $1.80 there is a of downloads.