Question 1

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded

Accepted Answer

A) decreases from 2 cans to 0 cans a day. 
B) increases from 0 cans to 2 cans a day. 
C) remains unchanged. 
D) decreases from 1 can to 0 cans a day. 
E) cannot be determined from the figure because the demand curve will shift to a new curve. 
A) decreases from 2 cans to 0 cans a day. 
B) increases from 0 cans to 2 cans a day. 
C) remains unchanged. 
D) decreases from 1 can to 0 cans a day. 
E) cannot be determined from the figure because the demand curve will shift to a new curve.

Question 2

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8, then

Accepted Answer

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

Question 3

If the price of a DVD falls,
I∙the demand curve for DVDs will shift rightward.
Ii∙the demand curve for DVDs will not shift.
Iii∙there will be a movement along the demand curve for DVDs.

Accepted Answer

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

Question 4

Two brands of water, Natural Water and Mountain Water, are close substitutes.If the price of Mountain Water decreases, the fall in price

Accepted Answer

A) shifts the demand curve for Natural Water rightward. 
B) shifts the demand curve for Natural Water leftward. 
C) increases the price of Natural Water. 
D) increases the demand for Mountain Water. 
E) More information is needed to determine if the demand curve for Natural Water shifts rightward or leftward. 
A) shifts the demand curve for Natural Water rightward. 
B) shifts the demand curve for Natural Water leftward. 
C) increases the price of Natural Water. 
D) increases the demand for Mountain Water. 
E) More information is needed to determine if the demand curve for Natural Water shifts rightward or leftward.

Question 5

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

Accepted Answer

A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops 
A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops

Question 6

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Both Figure B and Figure C 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Both Figure B and Figure C

Question 7

The downward slope of a demand curve

Accepted Answer

A) represents the law of demand. 
B) shows that as the price of a good rises, consumers increase the quantity they demand. 
C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. 
D) indicates how demand changes when incomes rise and the good is a normal good. 
E) indicates how demand changes when the price changes and the good is a normal good. 
A) represents the law of demand. 
B) shows that as the price of a good rises, consumers increase the quantity they demand. 
C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. 
D) indicates how demand changes when incomes rise and the good is a normal good. 
E) indicates how demand changes when the price changes and the good is a normal good.

Question 8

Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs)has decreased.So, the high price of gasoline leads to a

Accepted Answer

A) leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
A) leftward shift of the demand curve for SUVs and the supply curve of SUVs. 
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. 
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. 
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. 
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.

Question 9

Which of the following increases the supply of a good?

Accepted Answer

A) a decrease in the price of a complement in production 
B) producers expect higher prices for the good in the future 
C) productivity improves 
D) prices of inputs used to produce the good rise 
E) The number of producers decreases. 
A) a decrease in the price of a complement in production 
B) producers expect higher prices for the good in the future 
C) productivity improves 
D) prices of inputs used to produce the good rise 
E) The number of producers decreases.

Question 10

If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?

Accepted Answer

A) The supply increases. 
B) The supply decreases. 
C) The quantity supplied increases. 
D) The quantity supplied decreases. 
E) Both answers B and D are correct. 
A) The supply increases. 
B) The supply decreases. 
C) The quantity supplied increases. 
D) The quantity supplied decreases. 
E) Both answers B and D are correct.

Question 11

Which of the following shifts the demand curve for movies rightward?

Accepted Answer

A) an increase in the price of NetFlix, a substitute for movies 
B) an increase in the price of movie tickets 
C) a decrease in the price of move tickets 
D) an increase in movie star salaries 
E) an increase in the price of HDTV sets 
A) an increase in the price of NetFlix, a substitute for movies 
B) an increase in the price of movie tickets 
C) a decrease in the price of move tickets 
D) an increase in movie star salaries 
E) an increase in the price of HDTV sets

Question 12

If both supply and demand decrease by the same amount, the equilibrium price

Accepted Answer

A) does not change. 
B) rises. 
C) falls. 
D) cannot be predicted. 
E) None of the answers is correct because the price depends on what happens to the equilibrium quantity. 
A) does not change. 
B) rises. 
C) falls. 
D) cannot be predicted. 
E) None of the answers is correct because the price depends on what happens to the equilibrium quantity.

Question 13

When there is a surplus of snowboards, the

Accepted Answer

A) demand for snowboards is greater than the supply of snowboards. 
B) supply of snowboards is greater than the demand for snowboards. 
C) quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D) quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E) price rises to restore the equilibrium. 
A) demand for snowboards is greater than the supply of snowboards. 
B) supply of snowboards is greater than the demand for snowboards. 
C) quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D) quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E) price rises to restore the equilibrium.

Question 14

A student at New York University used to take the Redhound bus when she visited her grandmother in Boston.After graduating, although the bus fare and the plane fare were the same as they were when she was a student, with a well paid job on Wall Street she now takes the plane to Boston to visit her grandmother.For this student, travel by Redhound bus is

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complement good. 
E) a good with negative preferences. 
A) a normal good. 
B) an inferior good. 
C) a substitute good. 
D) a complement good. 
E) a good with negative preferences.

Question 15

A change in the demand for apples could result from any of the following EXCEPT

Accepted Answer

A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income. 
A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income.

Question 16

Which of the following shifts the supply curve of popcorn leftward?

Accepted Answer

A) a decrease in the price of popcorn 
B) an increase in the price of popcorn 
C) a technological development in the production of popcorn 
D) a decrease in the number of popcorn suppliers 
E) a decrease in the cost of producing popcorn 
A) a decrease in the price of popcorn 
B) an increase in the price of popcorn 
C) a technological development in the production of popcorn 
D) a decrease in the number of popcorn suppliers 
E) a decrease in the cost of producing popcorn

Question 17

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

The answer of Consumers can use either natural gas or...

Question 18

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Accepted Answer

A) shifts; causes 
B) shifts; does not cause 
C) does not shift; causes 
D) does not shift; does not cause 
E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change. 
A) shifts; causes 
B) shifts; does not cause 
C) does not shift; causes 
D) does not shift; does not cause 
E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

Question 19

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

Accepted Answer

A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) an increase in income, assuming that movies are a normal good 
D) a decrease in income, assuming that movies are a normal good 
E) a decrease in the price of NetFlix, a substitutue for movies 
A) an increase in the price of movie tickets 
B) a decrease in the price of movie tickets 
C) an increase in income, assuming that movies are a normal good 
D) a decrease in income, assuming that movies are a normal good 
E) a decrease in the price of NetFlix, a substitutue for movies

Question 20

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Accepted Answer

A) a decrease in the price of a compact disc 
B) an increase in the price of a compact disc 
C) a decrease in the number of suppliers of compact discs 
D) an increase in the price of the resources used to produce compact discs 
E) new technology that lowers the cost of producing compact discs 
A) a decrease in the price of a compact disc 
B) an increase in the price of a compact disc 
C) a decrease in the number of suppliers of compact discs 
D) an increase in the price of the resources used to produce compact discs 
E) new technology that lowers the cost of producing compact discs

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8, then

If the price of a DVD falls, I∙the demand curve for DVDs will shift rightward. Ii∙the demand curve for DVDs will not shift. Iii∙there will be a movement along the demand curve for DVDs.

Two brands of water, Natural Water and Mountain Water, are close substitutes.If the price of Mountain Water decreases, the fall in price

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

The downward slope of a demand curve

Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs)has decreased.So, the high price of gasoline leads to a

Which of the following increases the supply of a good?

If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?

Which of the following shifts the demand curve for movies rightward?

If both supply and demand decrease by the same amount, the equilibrium price

When there is a surplus of snowboards, the

A change in the demand for apples could result from any of the following EXCEPT

Which of the following shifts the supply curve of popcorn leftward?

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

A change in the price of a good its supply curve and a movement along its supply curve.

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

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

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

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8, then

If the price of a DVD falls, I∙the demand curve for DVDs will shift rightward. Ii∙the demand curve for DVDs will not shift. Iii∙there will be a movement along the demand curve for DVDs.

Two brands of water, Natural Water and Mountain Water, are close substitutes.If the price of Mountain Water decreases, the fall in price

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

The downward slope of a demand curve

Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs)has decreased.So, the high price of gasoline leads to a

Which of the following increases the supply of a good?

If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?

Which of the following shifts the demand curve for movies rightward?

If both supply and demand decrease by the same amount, the equilibrium price

When there is a surplus of snowboards, the

A change in the demand for apples could result from any of the following EXCEPT

Which of the following shifts the supply curve of popcorn leftward?

Consumers can use either natural gas or heating oil to warm their houses.Suppose the price of natural gas increases.Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

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

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

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

A change in the price of a good its supply curve and a movement along its supply curve.