Question 1

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

Accepted Answer

A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good. 
A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich, a substitute for pizza. 
C) an increase in the price of soda, a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good.

Question 2

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.

Accepted Answer

A) raises; increases 
B) probably changes, but more information is needed to determine if it rises or falls; increases 
C) raises; probably changes, but more information is needed to determine if it increases or decreases 
D) lowers; probably changes, but more information is needed to determine if it increases or decreases 
E) lowers; increases 
A) raises; increases 
B) probably changes, but more information is needed to determine if it rises or falls; increases 
C) raises; probably changes, but more information is needed to determine if it increases or decreases 
D) lowers; probably changes, but more information is needed to determine if it increases or decreases 
E) lowers; increases

Question 3

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

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 4

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

Accepted Answer

A) the equilibrium price definitely rises. 
B) the equilibrium price definitely falls. 
C) the equilibrium price definitely remains the same. 
D) More information is needed to determine the effect on the equilibrium price. 
E) the equilibrium quantity definitely increases. 
A) the equilibrium price definitely rises. 
B) the equilibrium price definitely falls. 
C) the equilibrium price definitely remains the same. 
D) More information is needed to determine the effect on the equilibrium price. 
E) the equilibrium quantity definitely increases.

Question 5

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

Accepted Answer

The equilibrium price unambiguously fall

Question 6

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

Accepted Answer

A) a decrease in the supply of kayaks. 
B) a decrease in the quantity of kayaks supplied. 
C) an increase in the supply of kayaks. 
D) an increase in the quantity of kayaks supplied. 
E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied. 
A) a decrease in the supply of kayaks. 
B) a decrease in the quantity of kayaks supplied. 
C) an increase in the supply of kayaks. 
D) an increase in the quantity of kayaks supplied. 
E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 7

The law of demand implies that, other things remaining the same,

Accepted Answer

A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C) as income increases, the quantity of cheeseburgers demanded increases. 
D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E) as more people demand cheeseburgers, the quantity demanded increases. 
A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C) as income increases, the quantity of cheeseburgers demanded increases. 
D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E) as more people demand cheeseburgers, the quantity demanded increases.

Question 8

-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 9

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

Accepted Answer

A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes, not the demand. 
A) The quantity of bottled water demanded increases. 
B) The quantity of bottled water demanded decreases. 
C) The demand for bottled water decreases. 
D) The demand for bottled water increases. 
E) None of the above answers is correct because it is the supply that immediately changes, not the demand.

Question 10

-Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A) 50,000 and $100. 
B) 80,000 and $80. 
C) 60,000 and $50. 
D) 40,000 and $20. 
E) 100,000 and $20. 
A) 50,000 and $100. 
B) 80,000 and $80. 
C) 60,000 and $50. 
D) 40,000 and $20. 
E) 100,000 and $20.

Question 11

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

Accepted Answer

A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases but there is no shift in the supply curve. 
D) The quantity supplied decreases but there is no shift in the supply curve. 
E) The quantity supplied decreases and the supply curve shifts leftward. 
A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases but there is no shift in the supply curve. 
D) The quantity supplied decreases but there is no shift in the supply curve. 
E) The quantity supplied decreases and the supply curve shifts leftward.

Question 12

-Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

Accepted Answer

A) 10,000 and $8. 
B) 90,000 and $8. 
C) 100,000 and $5. 
D) 70,000 and $6. 
E) 60,000 and $5. 
A) 10,000 and $8. 
B) 90,000 and $8. 
C) 100,000 and $5. 
D) 70,000 and $6. 
E) 60,000 and $5.

Question 13

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

Accepted Answer

A) the equilibrium quantity definitely increases. 
B) the equilibrium quantity definitely decreases. 
C) the equilibrium quantity definitely remains the same. 
D) More information is needed to determine the effect on the equilibrium quantity. 
E) the equilibrium price definitely falls. 
A) the equilibrium quantity definitely increases. 
B) the equilibrium quantity definitely decreases. 
C) the equilibrium quantity definitely remains the same. 
D) More information is needed to determine the effect on the equilibrium quantity. 
E) the equilibrium price definitely falls.

Question 14

-Market equilibrium occurs when

Accepted Answer

A) all markets become equal. 
B) the quantity demanded equals the quantity supplied. 
C) opposing forces pull demand and supply apart. 
D) demand and supply move in opposite direction. 
E) demand and supply change so that they are equal at all possible prices. 
A) all markets become equal. 
B) the quantity demanded equals the quantity supplied. 
C) opposing forces pull demand and supply apart. 
D) demand and supply move in opposite direction. 
E) demand and supply change so that they are equal at all possible prices.

Question 15

Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above answers is correct because the change in tastes will affect the supply curve not the demand curve. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the above answers is correct because the change in tastes will affect the supply curve not the demand curve.

Question 16

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12, then

Accepted Answer

A) there is a shortage and the price of t-shirts will fall. 
B) there is a shortage and the price of t-shirts will rise. 
C) there is a surplus and the price of t-shirts will rise. 
D) there is a surplus and the price of t-shirts will fall. 
E) the market is in equilibrium. 
A) there is a shortage and the price of t-shirts will fall. 
B) there is a shortage and the price of t-shirts will rise. 
C) there is a surplus and the price of t-shirts will rise. 
D) there is a surplus and the price of t-shirts will fall. 
E) the market is in equilibrium.

Question 17

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in productivity inc

Question 18

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 19

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 20

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

Accepted Answer

A) a movement along the supply curve. 
B) a decrease in the quantity supplied of sweaters. 
C) a shift of the supply curve. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) a movement along the supply curve. 
B) a decrease in the quantity supplied of sweaters. 
C) a shift of the supply curve. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers the equilibrium price of a pound of strawberries and the equilibrium quantity of strawberries.

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

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

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

The law of demand implies that, other things remaining the same,

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

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

-Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

-Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

-Market equilibrium occurs when

Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12, then

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

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

At prices above the equilibrium price, what occurs?

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

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

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

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

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

The law of demand implies that, other things remaining the same,

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

Water bottlers announce that next month the price of bottled water will rise by 25 percent.Which of the following occurs immediately?

-Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is

Plywood is used in the construction of houses.If the price of plywood rises, what happens to the supply of houses?

-Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

-Market equilibrium occurs when

Over the next few years more and more people prefer to ride on scooters.Which of the figures above best illustrates how this change affects the demand curve for scooters?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12, then

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

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

At prices above the equilibrium price, what occurs?

-The graph illustrates the supply of sweaters.A fall in the price of sweaters brings

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

Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers the equilibrium price of a pound of strawberries and the equilibrium quantity of strawberries.