Question 1

You are just about to finish college and are about to start a high paying job.Because of this new job, what is the most likely outcome in the market for cars?

Accepted Answer

A) Your demand for cars will decrease. 
B) The market supply of cars will increase. 
C) Your demand for cars will increase. 
D) The market supply of cars will decrease. 
E) The demand and the supply for cars will decrease. 
A) Your demand for cars will decrease. 
B) The market supply of cars will increase. 
C) Your demand for cars will increase. 
D) The market supply of cars will decrease. 
E) The demand and the supply for cars will decrease.

Question 2

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

Accepted Answer

A) shortage exists and the price falls to restore equilibrium. 
B) shortage exists and the price rises to restore equilibrium. 
C) surplus exists and the price falls to restore equilibrium. 
D) surplus exists and the price rises to restore equilibrium. 
E) surplus exists but nothing happens until either the demand or the supply changes. 
A) shortage exists and the price falls to restore equilibrium. 
B) shortage exists and the price rises to restore equilibrium. 
C) surplus exists and the price falls to restore equilibrium. 
D) surplus exists and the price rises to restore equilibrium. 
E) surplus exists but nothing happens until either the demand or the supply changes.

Question 3

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Accepted Answer

A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied. 
A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied.

Question 4

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 5

-The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

Accepted Answer

A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine. 
A) the demand for classes will decrease at the University of Maine. 
B) the demand for classes will increase at the University of Maine. 
C) the quantity of classes demanded will increase at the University of Maine. 
D) the quantity of classes demanded will decrease at the University of Maine. 
E) both the demand for and the quantity of classes demanded will decrease at the University of Maine.

Question 6

An increase in the number of pineapple growers results in

Accepted Answer

A) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D) no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E) None of the above answers is correct. 
A) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. 
B) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. 
C) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. 
D) no change in the supply of pineapples and a movement along the supply curve of pineapples. 
E) None of the above answers is correct.

Question 7

Pizza and tacos are substitutes, and the price of a pizza increases.Which of the following correctly indicates what happens?

Accepted Answer

A) The demand for pizzas decreases and the demand for tacos increases. 
B) The demand for both goods decreases. 
C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D) The quantity of pizza demanded decreases and the demand for tacos increases. 
E) The demand for each decreases because both are normal goods. 
A) The demand for pizzas decreases and the demand for tacos increases. 
B) The demand for both goods decreases. 
C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D) The quantity of pizza demanded decreases and the demand for tacos increases. 
E) The demand for each decreases because both are normal goods.

Question 8

In the figure above, if point "a" represents the original equilibrium and point "b" the new equilibrium, then

Accepted Answer

A) there has been an increase in supply. 
B) there has been an increase in demand. 
C) there has been a change in the quantity supplied and no change in supply. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct. 
A) there has been an increase in supply. 
B) there has been an increase in demand. 
C) there has been a change in the quantity supplied and no change in supply. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct.

Question 9

If macaroni and cheese is an inferior good, then a decrease in income results in

Accepted Answer

A) an increase in the demand for macaroni and cheese. 
B) a decrease in the demand for macaroni and cheese. 
C) an increase in the supply of macaroni and cheese. 
D) a decrease in the supply of macaroni and cheese. 
E) Both answers A and D are correct. 
A) an increase in the demand for macaroni and cheese. 
B) a decrease in the demand for macaroni and cheese. 
C) an increase in the supply of macaroni and cheese. 
D) a decrease in the supply of macaroni and cheese. 
E) Both answers A and D are correct.

Question 10

Milk can be used to produce cheese or butter.If the price of a pound of butter rises, what happens to the supply of cheese?

Accepted Answer

A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter. 
A) The supply of cheese increases. 
B) The supply of cheese decreases. 
C) The supply of cheese stays the same and there is no change in the quantity supplied of cheese. 
D) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese. 
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter.

Question 11

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

Accepted Answer

A) rise; increase 
B) rise; decrease 
C) fall; increase 
D) fall; decrease 
E) not change; increase 
A) rise; increase 
B) rise; decrease 
C) fall; increase 
D) fall; decrease 
E) not change; increase

Question 12

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

Accepted Answer

A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat. 
A) an increase in the current supply of wheat. 
B) a decrease in the current supply of wheat. 
C) a decrease in the future supply of wheat. 
D) no change in the current or future supply of wheat. 
E) an increase in the current quantity supplied of wheat.

Question 13

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

Accepted Answer

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

Question 14

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

Accepted Answer

A) the amount that people are able to sell 
B) the amount that people are willing to sell 
C) the amount that people are able and willing to sell 
D) the amount that people are willing and able to buy 
E) the amount sold 
A) the amount that people are able to sell 
B) the amount that people are willing to sell 
C) the amount that people are able and willing to sell 
D) the amount that people are willing and able to buy 
E) the amount sold

Question 15

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

Accepted Answer

A) shift of a supply curve. 
B) shift of the price curve. 
C) movement along a supply curve. 
D) movement along the price curve. 
E) movement along the quantity curve. 
A) shift of a supply curve. 
B) shift of the price curve. 
C) movement along a supply curve. 
D) movement along the price curve. 
E) movement along the quantity curve.

Question 16

Suppose that the price of bread rises.This rise could be the result of

Accepted Answer

A) a decrease in the supply of bread. 
B) an increase in the supply of bread. 
C) a decrease in the demand for bread. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) a decrease in the supply of bread. 
B) an increase in the supply of bread. 
C) a decrease in the demand for bread. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 17

Why does an increase in supply lead to lower prices?

Accepted Answer

When the supply of a good, such as compu

Question 18

-In the above figure, the shift in the supply curve from S to S₂ might reflect

Accepted Answer

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

Question 19

The market demand curve for mousetraps is

Accepted Answer

A) found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct. 
A) found by summing the quantities of mousetraps demanded at each income level by each buyer. 
B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. 
C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. 
D) Both answers B and C are correct. 
E) Both answers A and C are correct.

Question 20

A demand schedule shows

Accepted Answer

A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity. 
A) the quantities that people plan to buy in all possible circumstances. 
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. 
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. 
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. 
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

You are just about to finish college and are about to start a high paying job.Because of this new job, what is the most likely outcome in the market for cars?

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

-The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

An increase in the number of pineapple growers results in

Pizza and tacos are substitutes, and the price of a pizza increases.Which of the following correctly indicates what happens?

In the figure above, if point "a" represents the original equilibrium and point "b" the new equilibrium, then

If macaroni and cheese is an inferior good, then a decrease in income results in

Milk can be used to produce cheese or butter.If the price of a pound of butter rises, what happens to the supply of cheese?

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will and the equilibrium quantity of electricity will .

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

Suppose that the price of bread rises.This rise could be the result of

Why does an increase in supply lead to lower prices?

-In the above figure, the shift in the supply curve from S to S₂ might reflect

The market demand curve for mousetraps is

A demand schedule shows

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

You are just about to finish college and are about to start a high paying job.Because of this new job, what is the most likely outcome in the market for cars?

Suppose the equilibrium price of oranges is $2.00 per pound.If the actual price is above the equilibrium price a

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

-The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same,

An increase in the number of pineapple growers results in

Pizza and tacos are substitutes, and the price of a pizza increases.Which of the following correctly indicates what happens?

In the figure above, if point "a" represents the original equilibrium and point "b" the new equilibrium, then

If macaroni and cheese is an inferior good, then a decrease in income results in

Milk can be used to produce cheese or butter.If the price of a pound of butter rises, what happens to the supply of cheese?

If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

It is expected that the price of a bushel of wheat will increase in one month.This belief will result in

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

The quantity supplied of a good, service, or resource is ________ during a specified period and at a specified price.

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

Suppose that the price of bread rises.This rise could be the result of

Why does an increase in supply lead to lower prices?

-In the above figure, the shift in the supply curve from S to S₂ might reflect

The market demand curve for mousetraps is

A demand schedule shows

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 consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will and the equilibrium quantity of electricity will .