Question 1

Use the figure below to answer the following questions.
   
Figure 3.2.2
-Refer to Figure 3.2.2. Which one of the following represents a decrease in quantity demanded?

Accepted Answer

A) a shift from D₁ to D₂ 
B) a shift from D₂ to D₁ 
C) a movement from A to B 
D) a movement from B to A 
E) none of the above 
A) a shift from D₁ to D₂ 
B) a shift from D₂ to D₁ 
C) a movement from A to B 
D) a movement from B to A 
E) none of the above

Question 2

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

Accepted Answer

A) the price of fish will fall. 
B) the quantity of fish sold will increase as fishermen will catch more to make up for the shortage. 
C) the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks. 
D) both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce. 
E) the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity. 
A) the price of fish will fall. 
B) the quantity of fish sold will increase as fishermen will catch more to make up for the shortage. 
C) the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks. 
D) both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce. 
E) the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity.

Question 3

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

Accepted Answer

A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products." 
A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products."

Question 4

Use the table below to answer the following questions.
Table 3.4.1
  
-Refer to Table 3.4.1. The equilibrium quantity is 420 units if

Accepted Answer

A) the price is fixed at $3 a unit. 
B) the price is fixed at $4 a unit. 
C) the price is fixed at $5 a unit. 
D) Both A and C are correct. 
E) none of the above 
A) the price is fixed at $3 a unit. 
B) the price is fixed at $4 a unit. 
C) the price is fixed at $5 a unit. 
D) Both A and C are correct. 
E) none of the above

Question 5

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
  
-Refer to Table 3.5.1. The equilibrium price is $________ and the equilibrium quantity is ________ heaters per month.

Accepted Answer

A) 80; 500 
B) 80; 300 
C) 50; 450 
D) 50; 350 
E) 60; 400 
A) 80; 500 
B) 80; 300 
C) 50; 450 
D) 50; 350 
E) 60; 400

Question 6

Which one of the following events shifts the demand curve for grape jelly to the right?

Accepted Answer

A) an increase in income if grape jelly is a normal good 
B) a decrease in the price of strawberry preserves, a substitute for grape jelly 
C) a decrease in the price of grape jelly 
D) an increase in the price of peanut butter, a complement of grape jelly 
E) a decrease in the population 
A) an increase in income if grape jelly is a normal good 
B) a decrease in the price of strawberry preserves, a substitute for grape jelly 
C) a decrease in the price of grape jelly 
D) an increase in the price of peanut butter, a complement of grape jelly 
E) a decrease in the population

Question 7

Which of the following "other things" are not held constant along a demand curve?

Accepted Answer

A) income 
B) prices of related goods 
C) the price of the good itself 
D) preferences 
E) expected future income and credit 
A) income 
B) prices of related goods 
C) the price of the good itself 
D) preferences 
E) expected future income and credit

Question 8

A shortage will exist if

Accepted Answer

A) the price is above the equilibrium price. 
B) the price is below the equilibrium price. 
C) there are not enough producers. 
D) there are not enough consumers. 
E) demand decreases. 
A) the price is above the equilibrium price. 
B) the price is below the equilibrium price. 
C) there are not enough producers. 
D) there are not enough consumers. 
E) demand decreases.

Question 9

Use the table below to answer the following questions.
Table 3.5.4
Quantities demanded and supplied in equilibrium
before and after a drought strikes potato farms
  
-Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

Accepted Answer

A) substitutes. 
B) complements. 
C) normal goods. 
D) unrelated goods. 
E) inferior goods. 
A) substitutes. 
B) complements. 
C) normal goods. 
D) unrelated goods. 
E) inferior goods.

Question 10

A shortage is the amount by which quantity

Accepted Answer

A) demanded exceeds quantity supplied. 
B) supplied exceeds quantity demanded. 
C) demanded increases when the price rises. 
D) demanded exceeds the equilibrium quantity. 
E) supplied exceeds the equilibrium quantity. 
A) demanded exceeds quantity supplied. 
B) supplied exceeds quantity demanded. 
C) demanded increases when the price rises. 
D) demanded exceeds the equilibrium quantity. 
E) supplied exceeds the equilibrium quantity.

Question 11

Which one of the following will shift the supply curve of good X leftward?

Accepted Answer

A) a decrease in the wages of workers employed to produce X 
B) an increase in the cost of machinery used to produce X 
C) a technological improvement in the production of X 
D) a situation where quantity demanded exceeds quantity supplied 
E) a decrease in the cost of capital used to produce X 
A) a decrease in the wages of workers employed to produce X 
B) an increase in the cost of machinery used to produce X 
C) a technological improvement in the production of X 
D) a situation where quantity demanded exceeds quantity supplied 
E) a decrease in the cost of capital used to produce X

Question 12

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
  
-Refer to Table 3.5.3. A new store opens up on the edge of campus, Great Wild North Sportswear, which has the capacity to do as much business as all the existing businesses. The quantity of t-shirts supplied doubles at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Accepted Answer

A) 8; 400 
B) 3; 300 
C) 0; 400 
D) 16; 200 
E) 4; 400 
A) 8; 400 
B) 3; 300 
C) 0; 400 
D) 16; 200 
E) 4; 400

Question 13

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

Accepted Answer

A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS 
A) P = 70 - 5QS 
B) QS = 70 - 5P 
C) P = 5 + 70QS 
D) QS = 5 + 70P 
E) P = 70 + 5QS

Question 14

Use the figure below to answer the following questions.
   
Figure 3.4.2
-The equilibrium price in the market illustrated by Figure 3.4.2 is

Accepted Answer

A) $2 a unit. 
B) $4 a unit. 
C) $6 a unit. 
D) $8 a unit. 
E) $10 a unit. 
A) $2 a unit. 
B) $4 a unit. 
C) $6 a unit. 
D) $8 a unit. 
E) $10 a unit.

Question 15

Use the figure below to answer the following questions.
   
Figure 3.4.1
-At price P₁ in Figure 3.4.1,

Accepted Answer

A) producers can sell all they plan to sell. 
B) consumers can buy all they want. 
C) producers are unwilling to sell any goods. 
D) a surplus exists. 
E) both sides of the market are able to carry out their desired transactions. 
A) producers can sell all they plan to sell. 
B) consumers can buy all they want. 
C) producers are unwilling to sell any goods. 
D) a surplus exists. 
E) both sides of the market are able to carry out their desired transactions.

Question 16

Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
  
-Refer to Table 3.5.1. If the price is set at $80, there will be a

Accepted Answer

A) shortage of 200 units and price will rise. 
B) shortage of 200 units and demand will fall. 
C) surplus of 200 units and demand will rise. 
D) surplus of 200 units and supply will fall. 
E) surplus of 200 units and price will fall. 
A) shortage of 200 units and price will rise. 
B) shortage of 200 units and demand will fall. 
C) surplus of 200 units and demand will rise. 
D) surplus of 200 units and supply will fall. 
E) surplus of 200 units and price will fall.

Question 17

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS. What is the equilibrium price of a knob?

Accepted Answer

A) $5 
B) $10 
C) $40 
D) $45 
E) $75 
A) $5 
B) $10 
C) $40 
D) $45 
E) $75

Question 18

Some sales managers are talking shop. Which one of the following quotations refers to a leftward shift of the demand curve?

Accepted Answer

A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products." 
A) "Since our competitors raised their prices, our sales have doubled." 
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." 
C) "We decided to cut our prices, and the increase in our sales has been remarkable." 
D) "The Green movement has sparked an increase in our sales of biodegradable products." 
E) "More firms are producing biodegradable products."

Question 19

Use the table below to answer the following questions.
Table 3.4.1
  
-Refer to Table 3.4.1. If the price is $3, then the shortage is

Accepted Answer

A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units. 
A) zero units. 
B) 1,050 units. 
C) 180 units. 
D) 600 units. 
E) 160 units.

Question 20

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

Accepted Answer

A) demand for corn increases. 
B) supply of corn increases. 
C) demand for corn decreases. 
D) supply of corn decreases. 
E) both B and C 
A) demand for corn increases. 
B) supply of corn increases. 
C) demand for corn decreases. 
D) supply of corn decreases. 
E) both B and C

Exam 3: Demand and Supply

Use the figure below to answer the following questions. Figure 3.2.2 -Refer to Figure 3.2.2. Which one of the following represents a decrease in quantity demanded?

There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks. As a result,

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1. The equilibrium quantity is 420 units if

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters -Refer to Table 3.5.1. The equilibrium price is $________ and the equilibrium quantity is ________ heaters per month.

Which one of the following events shifts the demand curve for grape jelly to the right?

Which of the following "other things" are not held constant along a demand curve?

A shortage will exist if

Use the table below to answer the following questions. Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms -Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

A shortage is the amount by which quantity

Which one of the following will shift the supply curve of good X leftward?

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

Use the figure below to answer the following questions. Figure 3.4.2 -The equilibrium price in the market illustrated by Figure 3.4.2 is

Use the figure below to answer the following questions. Figure 3.4.1 -At price P₁ in Figure 3.4.1,

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters -Refer to Table 3.5.1. If the price is set at $80, there will be a

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS. What is the equilibrium price of a knob?

Some sales managers are talking shop. Which one of the following quotations refers to a leftward shift of the demand curve?

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1. If the price is $3, then the shortage is

Farm land can be used to produce either cattle or corn. If the demand for cattle increases, then the

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters -Refer to Table 3.5.1. The equilibrium price is $ and the equilibrium quantity is heaters per month.