Question 1

Which of the following results in a movement upward along the supply curve for movies in theaters?

Accepted Answer

A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters 
A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) a decrease in the price of downloaded movies 
D) a decrease in movie star salaries 
E) an increase in the number of theaters

Question 2

The market demand curve

Accepted Answer

A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping. 
A) cannot show how quantity demanded changes in response to a change in price. 
B) cannot show a change in demand for a good. 
C) is the horizontal sum of individual demand curves. 
D) is the vertical sum of individual demand curves. 
E) is upward sloping.

Question 3

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price ________, and the equilibrium quantity ________.

Accepted Answer

A) rises; increases 
B) rises; does not change 
C) falls; does not change 
D) falls; decreases 
E) falls; increases 
A) rises; increases 
B) rises; does not change 
C) falls; does not change 
D) falls; decreases 
E) falls; increases

Question 4

If the price of carrots is below the equilibrium price, the

Accepted Answer

A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C) quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D) quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E) quantity supplied of carrots equals the quantity demanded. 
A) quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B) quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C) quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D) quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E) quantity supplied of carrots equals the quantity demanded.

Question 5

The phrase "a change in demand" most directly implies a

Accepted Answer

A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve. 
A) movement along a demand curve. 
B) movement along the price curve. 
C) change in the quantity demanded of a good. 
D) shift of the demand curve. 
E) movement along the quantity curve.

Question 6

Which of the following shifts the supply curve for oranges?

Accepted Answer

A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas, a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers 
A) disastrous weather that destroys about half of this year's orange crop 
B) a newly discovered increase in the nutritional value of oranges 
C) an increase in the price of bananas, a substitute in consumption for oranges 
D) an increase in income for all orange consumers if oranges are a normal good 
E) an increase in the number of orange consumers

Question 7

-Scooters are a normal good and buyers' incomes decrease.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 decrease in income 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 decrease in income will affect the supply curve not the demand curve.

Question 8

The law of supply states that, other things remaining the same,

Accepted Answer

A) demand increases when supply increases. 
B) if the price of a good increases, firms buy less of it. 
C) if the price of a good increases, the quantity supplied increases. 
D) as people's income increase, the supply of goods increases. 
E) if the price of a good increases, the supply increases. 
A) demand increases when supply increases. 
B) if the price of a good increases, firms buy less of it. 
C) if the price of a good increases, the quantity supplied increases. 
D) as people's income increase, the supply of goods increases. 
E) if the price of a good increases, the supply increases.

Question 9

In early 2012 the price of computer hard disc drives rose.In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

Accepted Answer

The higher price could have been brought

Question 10

If good weather conditions result in a larger than normal crop of peaches, then the

Accepted Answer

A) equilibrium price of peaches rises and the equilibrium quantity of peaches increases. 
B) equilibrium price of peaches falls and the equilibrium quantity of peaches increases. 
C) demand curve for peaches shifts leftward. 
D) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. 
E) equilibrium price of peaches falls and the equilibrium quantity of peaches decreases. 
A) equilibrium price of peaches rises and the equilibrium quantity of peaches increases. 
B) equilibrium price of peaches falls and the equilibrium quantity of peaches increases. 
C) demand curve for peaches shifts leftward. 
D) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. 
E) equilibrium price of peaches falls and the equilibrium quantity of peaches decreases.

Question 11

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 12

To be part of the supply for a good, a producer must be

Accepted Answer

A) only able to supply the good. 
B) only willing to supply the good. 
C) both able and willing to supply the good. 
D) both able and willing to supply the good, and have already identified a buyer. 
E) both able and willing to supply the good, and have already sold the good. 
A) only able to supply the good. 
B) only willing to supply the good. 
C) both able and willing to supply the good. 
D) both able and willing to supply the good, and have already identified a buyer. 
E) both able and willing to supply the good, and have already sold the good.

Question 13

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

Accepted Answer

A) the price of a substitute good 
B) income 
C) expectations 
D) preferences 
E) the price of a complement good 
A) the price of a substitute good 
B) income 
C) expectations 
D) preferences 
E) the price of a complement good

Question 14

-In the above figure, the shift in the supply curve from S to S₁ reflects

Accepted Answer

A) an increase in the quantity of pizza supplied. 
B) a decrease in the quantity of pizza supplied. 
C) an increase in the supply of pizza. 
D) a decrease in the supply of pizza. 
E) None of the above answers is correct. 
A) an increase in the quantity of pizza supplied. 
B) a decrease in the quantity of pizza supplied. 
C) an increase in the supply of pizza. 
D) a decrease in the supply of pizza. 
E) None of the above answers is correct.

Question 15

-Using the data in the table above, at the price of $80 a phone,

Accepted Answer

A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium. 
A) a shortage of 25,000 cellular telephones occurs. 
B) a surplus of 80,000 cellular telephones occurs. 
C) a surplus of 25,000 cellular telephones occurs. 
D) a shortage of 55,000 cellular telephones occurs. 
E) the market is in equilibrium.

Question 16

Gasoline prices increase by 50 percent and other things remain the same.As a result, there is

Accepted Answer

A) an increase in the demand for gasoline. 
B) a decrease in the demand for gasoline. 
C) no change in the quantity of gasoline demanded. 
D) a decrease in the quantity of gasoline demanded. 
E) More information is needed to determine if the demand for gasoline increases or decreases. 
A) an increase in the demand for gasoline. 
B) a decrease in the demand for gasoline. 
C) no change in the quantity of gasoline demanded. 
D) a decrease in the quantity of gasoline demanded. 
E) More information is needed to determine if the demand for gasoline increases or decreases.

Question 17

Which of the following is true regarding demand?
I∙Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
Ii∙Demand refers to one quantity at one time.
Iii∙"Demand" and " quantity demanded" are the same thing.

Accepted Answer

A) i only 
B) ii only 
C) both i and ii 
D) iii only 
E) both ii and iii 
A) i only 
B) ii only 
C) both i and ii 
D) iii only 
E) both ii and iii

Question 18

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

Accepted Answer

A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change. 
A) today's supply of gasoline increases. 
B) today's demand for gasoline increases. 
C) the price of a gallon of gasoline falls today. 
D) next week's supply of gasoline decreases. 
E) today's demand for gasoline and today's supply of gasoline do not change.

Question 19

An increase in the quantity demanded is shown as a

Accepted Answer

A) movement along the demand curve. 
B) movement toward the demand curve. 
C) rightward shift of the demand curve. 
D) leftward shift of the demand curve. 
E) both a movement along the demand curve and a shift of the demand curve. 
A) movement along the demand curve. 
B) movement toward the demand curve. 
C) rightward shift of the demand curve. 
D) leftward shift of the demand curve. 
E) both a movement along the demand curve and a shift of the demand curve.

Question 20

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

Accepted Answer

The answer of  
-Suppose Katie, Mark, and Bobby are...

Which of the following results in a movement upward along the supply curve for movies in theaters?

The market demand curve

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price , and the equilibrium quantity .

If the price of carrots is below the equilibrium price, the

The phrase "a change in demand" most directly implies a

Which of the following shifts the supply curve for oranges?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

The law of supply states that, other things remaining the same,

In early 2012 the price of computer hard disc drives rose.In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

If good weather conditions result in a larger than normal crop of peaches, then the

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

To be part of the supply for a good, a producer must be

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

-In the above figure, the shift in the supply curve from S to S₁ reflects

-Using the data in the table above, at the price of $80 a phone,

Gasoline prices increase by 50 percent and other things remain the same.As a result, there is

Which of the following is true regarding demand? I∙Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii∙Demand refers to one quantity at one time. Iii∙"Demand" and " quantity demanded" are the same thing.

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

An increase in the quantity demanded is shown as a

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

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

Which of the following results in a movement upward along the supply curve for movies in theaters?

The market demand curve

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price ________, and the equilibrium quantity ________.

If the price of carrots is below the equilibrium price, the

The phrase "a change in demand" most directly implies a

Which of the following shifts the supply curve for oranges?

-Scooters are a normal good and buyers' incomes decrease.Which of the figures above best illustrates how this change affects the demand curve for scooters?

The law of supply states that, other things remaining the same,

In early 2012 the price of computer hard disc drives rose.In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

If good weather conditions result in a larger than normal crop of peaches, then the

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

To be part of the supply for a good, a producer must be

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

-In the above figure, the shift in the supply curve from S to S₁ reflects

-Using the data in the table above, at the price of $80 a phone,

Gasoline prices increase by 50 percent and other things remain the same.As a result, there is

Which of the following is true regarding demand? I∙Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. Ii∙Demand refers to one quantity at one time. Iii∙"Demand" and " quantity demanded" are the same thing.

People come to expect that the price of a gallon of gasoline will rise next week.As a result,

An increase in the quantity demanded is shown as a

-Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream.Using the demand schedules in the table above, what is the market demand curve for ice cream?

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

Assume a competitive market is in equilibrium.There is an increase in demand, but no change in supply.As a result the equilibrium price , and the equilibrium quantity .