Question 1

If the price of iPods decreases,

Accepted Answer

A) there will be a movement down along the supply curve for iPods. 
B) there will be a rightward shift in the iPod supply curve. 
C) there will be a movement up along the supply curve for iPods. 
D) the supply curve for iPods shifts leftward. 
E) there has been a decrease in the price of iTunes songs. 
A) there will be a movement down along the supply curve for iPods. 
B) there will be a rightward shift in the iPod supply curve. 
C) there will be a movement up along the supply curve for iPods. 
D) the supply curve for iPods shifts leftward. 
E) there has been a decrease in the price of iTunes songs.

Question 2

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Accepted Answer

A) increases; rightward 
B) increases; leftward 
C) decreases; rightward 
D) decreases; leftward 
E) does not change; rightward 
A) increases; rightward 
B) increases; leftward 
C) decreases; rightward 
D) decreases; leftward 
E) does not change; rightward

Question 3

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

Accepted Answer

A) a decrease in the price of Zunes, a substitute for iPods 
B) an increase in the price of iPods 
C) a requirement that all students at universities have an iPod 
D) a decrease in the price of iPods 
E) a decrease in people's incomes if iPods are a normal good 
A) a decrease in the price of Zunes, a substitute for iPods 
B) an increase in the price of iPods 
C) a requirement that all students at universities have an iPod 
D) a decrease in the price of iPods 
E) a decrease in people's incomes if iPods are a normal good

Question 4

-Consider the market for feather pillows.If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Accepted Answer

A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward. 
A) the price of feather pillows decreases. 
B) the demand curve for feather pillows shifts leftward. 
C) the supply curve for feather pillows shifts leftward. 
D) there is a downward movement along the demand curve for feather pillows. 
E) the demand curve for feather pillows shifts rightward.

Question 5

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

Accepted Answer

A) It decreases the demand for taco chips. 
B) It increases the demand for taco chips. 
C) It has no effect on the demand for taco chips. 
D) It will decrease the demand for taco chips only if taco chips are a normal good. 
E) It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact. 
A) It decreases the demand for taco chips. 
B) It increases the demand for taco chips. 
C) It has no effect on the demand for taco chips. 
D) It will decrease the demand for taco chips only if taco chips are a normal good. 
E) It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 6

-Using the data in the table above, if the price of a stapler is $5, then there is a ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

Accepted Answer

A) surplus; is greater than 
B) surplus; is less than 
C) shortage; is greater than 
D) shortage; is less than 
E) neither a surplus nor a shortage; equals 
A) surplus; is greater than 
B) surplus; is less than 
C) shortage; is greater than 
D) shortage; is less than 
E) neither a surplus nor a shortage; equals

Question 7

When demand increases,

Accepted Answer

A) consumers are willing to buy more at any price. 
B) consumers buy more of the good only if its price falls. 
C) the price is lower at any level of quantity demanded. 
D) consumers buy more of the good only if its price rises. 
E) the demand curve shifts leftward. 
A) consumers are willing to buy more at any price. 
B) consumers buy more of the good only if its price falls. 
C) the price is lower at any level of quantity demanded. 
D) consumers buy more of the good only if its price rises. 
E) the demand curve shifts leftward.

Question 8

The number of buyers of sport utility vehicles, SUV, decreases sharply.So the

Accepted Answer

A) demand curve for SUVs shifts leftward. 
B) demand curve for SUVs shifts rightward. 
C) demand curve for SUVs does not shift nor is there a movement along then demand curve. 
D) demand curve for SUVs does not shift but there is a movement downward along it. 
E) supply curve for SUVs shifts rightward. 
A) demand curve for SUVs shifts leftward. 
B) demand curve for SUVs shifts rightward. 
C) demand curve for SUVs does not shift nor is there a movement along then demand curve. 
D) demand curve for SUVs does not shift but there is a movement downward along it. 
E) supply curve for SUVs shifts rightward.

Question 9

Which of the following increases the demand for a good?

Accepted Answer

A) a rise in the price of a complement 
B) the expectation that future income will be higher 
C) an increase in income, assuming the good is an inferior good 
D) a decrease in the number of buyers 
E) a fall in the price of a substitute 
A) a rise in the price of a complement 
B) the expectation that future income will be higher 
C) an increase in income, assuming the good is an inferior good 
D) a decrease in the number of buyers 
E) a fall in the price of a substitute

Question 10

-Pizza is a normal good.In the above figure, the shift in the demand curve from D to D₂ can be the result of

Accepted Answer

A) a decrease in the price of soda, a complement to pizza. 
B) an increase in the price of hamburgers, a substitute for pizza. 
C) a decrease in income. 
D) a study that shows that pizza is a very healthy food. 
E) an increase in the cost of producing pizza. 
A) a decrease in the price of soda, a complement to pizza. 
B) an increase in the price of hamburgers, a substitute for pizza. 
C) a decrease in income. 
D) a study that shows that pizza is a very healthy food. 
E) an increase in the cost of producing pizza.

Question 11

-In the above figure, the movement from point a to point b reflects

Accepted Answer

A) an increase in the price of pizza. 
B) an increase in the supply of pizza. 
C) an increase in the number of producers of pizza. 
D) a decrease in the cost of the tomato sauce used to produce pizza. 
E) a decrease in income if pizza is a normal good. 
A) an increase in the price of pizza. 
B) an increase in the supply of pizza. 
C) an increase in the number of producers of pizza. 
D) a decrease in the cost of the tomato sauce used to produce pizza. 
E) a decrease in income if pizza is a normal good.

Question 12

What is the difference between a normal good and an inferior good.Give an example of each.

Accepted Answer

A good is a normal good if an increase i

Question 13

Teenagers drink more soda than other age groups.If the number of teenagers increases, everything else remaining the same,

Accepted Answer

A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all. 
A) market demand for soda increases. 
B) market demand for soda decreases. 
C) market demand for soda does not change. 
D) there is a movement along the market demand curve for soda. 
E) None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all.

Question 14

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

Accepted Answer

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

Question 15

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.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 16

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.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 17

Which of the following statements is true about a competitive market? A competitive market

Accepted Answer

A) must have a physical location. 
B) includes markets for goods and services but not for inputs. 
C) has so many buyers and sellers that no one can influence the price. 
D) has one seller competing to sell his or her product. 
E) has a handful of sellers but always has many buyers. 
A) must have a physical location. 
B) includes markets for goods and services but not for inputs. 
C) has so many buyers and sellers that no one can influence the price. 
D) has one seller competing to sell his or her product. 
E) has a handful of sellers but always has many buyers.

Question 18

For consumers, computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously, suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 19

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 20

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service, 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.

If the price of iPods decreases,

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

-Consider the market for feather pillows.If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-Using the data in the table above, if the price of a stapler is $5, then there is a of staplers and the quantity of staplers demanded the quantity of staplers supplied.

When demand increases,

The number of buyers of sport utility vehicles, SUV, decreases sharply.So the

Which of the following increases the demand for a good?

-Pizza is a normal good.In the above figure, the shift in the demand curve from D to D₂ can be the result of

-In the above figure, the movement from point a to point b reflects

What is the difference between a normal good and an inferior good.Give an example of each.

Teenagers drink more soda than other age groups.If the number of teenagers increases, everything else remaining the same,

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter and the equilibrium quantity of scooters .

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.What point represents the most likely new price and quantity?

Which of the following statements is true about a competitive market? A competitive market

For consumers, computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously, suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service, which figure shows the effect of this 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 price of iPods decreases,

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₂?

-Consider the market for feather pillows.If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then

Consumers eat salsa with taco chips.The price of salsa rises.How does the increase in the price of salsa affect the demand for taco chips?

-Using the data in the table above, if the price of a stapler is $5, then there is a ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.

When demand increases,

The number of buyers of sport utility vehicles, SUV, decreases sharply.So the

Which of the following increases the demand for a good?

-Pizza is a normal good.In the above figure, the shift in the demand curve from D to D₂ can be the result of

-In the above figure, the movement from point a to point b reflects

What is the difference between a normal good and an inferior good.Give an example of each.

Teenagers drink more soda than other age groups.If the number of teenagers increases, everything else remaining the same,

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-The above figure shows the market for pizza.The market is in equilibrium when people learn that eating pizza helps prevent heart disease.What point represents the most likely new price and quantity?

Which of the following statements is true about a competitive market? A competitive market

For consumers, computers are a complement to computer software.Suppose the price of a computer falls.Simultaneously, suppose that the number of companies selling computer software decreases.How do these changes affect the price and quantity of computer software?

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

-The above figures show the market for HD televisions.If cable television providers lower the price of providing HD cable service, which figure shows the effect of this 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

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

-Using the data in the table above, if the price of a stapler is $5, then there is a of staplers and the quantity of staplers demanded the quantity of staplers supplied.

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter and the equilibrium quantity of scooters .