Question 1

If the number of companies producing memory chips increases, then the

Accepted Answer

A) supply of memory chips does not change. 
B) supply of memory chips increases. 
C) supply of memory chips decreases. 
D) quantity of memory chips supplied increases. 
E) demand for memory chips increases. 
A) supply of memory chips does not change. 
B) supply of memory chips increases. 
C) supply of memory chips decreases. 
D) quantity of memory chips supplied increases. 
E) demand for memory chips increases.

Question 2

Which of the following increases the supply of gasoline?

Accepted Answer

A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline, such as crude oil 
D) a decrease in the demand for gas-guzzling, sport utility vehicles 
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good 
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied 
B) an increase in the price of gasoline 
C) a decrease in the price of a resource used to produce gasoline, such as crude oil 
D) a decrease in the demand for gas-guzzling, sport utility vehicles 
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good

Question 3

-In the above figure, the shift in the demand curve from D to D₂ can be the result of

Accepted Answer

A) an increase in income if pizza is a normal good. 
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 the supply of pizza that raises the price of pizza. 
A) an increase in income if pizza is a normal good. 
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 the supply of pizza that raises the price of pizza.

Question 4

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

Accepted Answer

A) will rise. 
B) will fall. 
C) will remain the same. 
D) might rise, fall, or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers. 
A) will rise. 
B) will fall. 
C) will remain the same. 
D) might rise, fall, or remain the same but more information is needed. 
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 5

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?

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 6

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

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

Accepted Answer

A) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
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) there is a shortage and the price of t-shirts will rise. 
B) there is a surplus and the price of t-shirts will rise. 
C) the market is in equilibrium. 
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 8

An increase in the number of fast-food restaurants

Accepted Answer

A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals. 
A) raises the price of fast-food meals. 
B) increases the demand for fast-food meals. 
C) increases the supply of fast-food meals. 
D) increases the demand for substitutes for fast-food meals. 
E) increases both the demand and supply of fast-food meals.

Question 9

If the number of sellers decreases, then the supply curve ________ and the supply ________.

Accepted Answer

A) shifts rightward; increases 
B) shifts rightward; decreases 
C) shifts leftward; increases 
D) shifts leftward; decreases 
E) does not shift; does not change but there is a decrease in the quantity supplied 
A) shifts rightward; increases 
B) shifts rightward; decreases 
C) shifts leftward; increases 
D) shifts leftward; decreases 
E) does not shift; does not change but there is a decrease in the quantity supplied

Question 10

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

Accepted Answer

A) the demand for personal computers decreased. 
B) the initial price was too high and nobody bought personal computers. 
C) there were technological advances in the production of personal computers. 
D) people's incomes increased and personal computers are an inferior good. 
E) None of the above answers is correct. 
A) the demand for personal computers decreased. 
B) the initial price was too high and nobody bought personal computers. 
C) there were technological advances in the production of personal computers. 
D) people's incomes increased and personal computers are an inferior good. 
E) None of the above answers is correct.

Question 11

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A) rising; increasing 
B) rising; decreasing 
C) falling; increasing 
D) falling; decreasing 
E) falling; not changing 
A) rising; increasing 
B) rising; decreasing 
C) falling; increasing 
D) falling; decreasing 
E) falling; not changing

Question 12

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A) 90 
B) 30 
C) 80 
D) 60 
E) 230 
A) 90 
B) 30 
C) 80 
D) 60 
E) 230

Question 13

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

Accepted Answer

A) will rise. 
B) will fall 
C) will remain the same. 
D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E) None of the above answers is correct. 
A) will rise. 
B) will fall 
C) will remain the same. 
D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. 
E) None of the above answers is correct.

Question 14

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Accepted Answer

A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) an increase in income if sweaters are a normal good 
A) a rise in the price of a sweater 
B) a rise in the wage rate paid to the workers who make sweaters 
C) a rise in the expected future price of a sweater 
D) an increase in the number of sellers of sweaters 
E) an increase in income if sweaters are a normal good

Question 15

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Accepted Answer

A) Both the supply and the demand for new houses increased and the supply increased by more than the demand. 
B) The demand for new houses increased and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased and the demand for new houses did not change. 
E) The supply of new houses increased and the demand for new houses did not change. 
A) Both the supply and the demand for new houses increased and the supply increased by more than the demand. 
B) The demand for new houses increased and the supply did not change. 
C) Both the supply and demand for new houses decreased. 
D) The supply of new houses decreased and the demand for new houses did not change. 
E) The supply of new houses increased and the demand for new houses did not change.

Question 16

To find the market demand curve for in-line skates, we must

Accepted Answer

A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates. 
A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 17

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline.As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

Accepted Answer

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

Question 18

If there is a surplus of tacos, then the

Accepted Answer

A) quantity of tacos demanded equals the quantity of tacos supplied. 
B) quantity of tacos demanded is greater than the quantity of tacos supplied. 
C) quantity of tacos demanded is less than the quantity of tacos supplied. 
D) market is at equilibrium. 
E) supply curve of tacos will shift leftward to eliminate the surplus. 
A) quantity of tacos demanded equals the quantity of tacos supplied. 
B) quantity of tacos demanded is greater than the quantity of tacos supplied. 
C) quantity of tacos demanded is less than the quantity of tacos supplied. 
D) market is at equilibrium. 
E) supply curve of tacos will shift leftward to eliminate the surplus.

Question 19

If the costs of producing pizza increase, which will occur?

Accepted Answer

A) The supply of pizza will decrease. 
B) The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C) Pizza will cease to be produced and sold. 
D) The demand curve for pizza will shift leftward when the price of a pizza increases. 
E) The demand curve for pizza will shift rightward when the price of a pizza increases. 
A) The supply of pizza will decrease. 
B) The quantity of pizzas supplied will increase as sellers try to cover their costs. 
C) Pizza will cease to be produced and sold. 
D) The demand curve for pizza will shift leftward when the price of a pizza increases. 
E) The demand curve for pizza will shift rightward when the price of a pizza increases.

Question 20

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

Accepted Answer

A) an increase in consumers' preferences for corn 
B) an increase in consumers' income if corn is a normal good 
C) an increase in labor costs of producing corn 
D) an improvement in the technology of producing corn 
E) an increase in consumers' income if corn is an inferior good 
A) an increase in consumers' preferences for corn 
B) an increase in consumers' income if corn is a normal good 
C) an increase in labor costs of producing corn 
D) an improvement in the technology of producing corn 
E) an increase in consumers' income if corn is an inferior good

If the number of companies producing memory chips increases, then the

Which of the following increases the supply of gasoline?

-In the above figure, the shift in the demand curve from D to D₂ can be the result of

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

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

An increase in the number of fast-food restaurants

If the number of sellers decreases, then the supply curve and the supply .

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

To find the market demand curve for in-line skates, we must

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline.As a result, the equilibrium quantity of gasoline and the equilibrium price of gasoline .

If there is a surplus of tacos, then the

If the costs of producing pizza increase, which will occur?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

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

If the number of companies producing memory chips increases, then the

Which of the following increases the supply of gasoline?

-In the above figure, the shift in the demand curve from D to D₂ can be the result of

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound

-The above figures show the market for HD televisions.If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

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

An increase in the number of fast-food restaurants

If the number of sellers decreases, then the supply curve ________ and the supply ________.

When personal computers were first produced, the price was very high.As time passed, the price of personal computers fell because

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

-The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3, then the quantity of lattes demanded is ________ an hour.

-The graph illustrates the market for British pounds, the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

-The graph illustrates the supply of sweaters.Which of the following events will increase the supply of sweaters?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

To find the market demand curve for in-line skates, we must

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline.As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________.

If there is a surplus of tacos, then the

If the costs of producing pizza increase, which will occur?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

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

If the number of sellers decreases, then the supply curve and the supply .

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline.As a result, the equilibrium quantity of gasoline and the equilibrium price of gasoline .