Question 1

-Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

Accepted Answer

A) there is a downward movement along the demand curve for turkeys. 
B) there is an upward movement along the supply curve for turkeys. 
C) the supply curve of turkeys shifts leftward. 
D) the demand curve for turkeys shifts leftward. 
E) neither the demand curve nor the supply curve shift; instead there is a movement along both curves. 
A) there is a downward movement along the demand curve for turkeys. 
B) there is an upward movement along the supply curve for turkeys. 
C) the supply curve of turkeys shifts leftward. 
D) the demand curve for turkeys shifts leftward. 
E) neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

Question 2

If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ________ and supply ________.

Accepted Answer

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

Question 3

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

Accepted Answer

A) decrease. 
B) perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. 
C) stay the same. 
D) increase. 
E) definitely either stay the same or decrease. 
A) decrease. 
B) perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. 
C) stay the same. 
D) increase. 
E) definitely either stay the same or decrease.

Question 4

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

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 5

Which of the following indicates that the law of supply applies to makers of soda?

Accepted Answer

A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda. 
A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda.

Question 6

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States ________ and wages in Mexico ________.

Accepted Answer

A) fall; rise 
B) rise; rise 
C) rise; do not change 
D) fall; fall 
E) do not change; fall 
A) fall; rise 
B) rise; rise 
C) rise; do not change 
D) fall; fall 
E) do not change; fall

Question 7

As a falling price eliminates a surplus in the jersey market,

Accepted Answer

A) the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward. 
B) consumers increase the quantity of jerseys they demand. 
C) producers increase the quantity of jerseys they supply. 
D) producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand. 
E) the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward. 
A) the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward. 
B) consumers increase the quantity of jerseys they demand. 
C) producers increase the quantity of jerseys they supply. 
D) producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand. 
E) the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward.

Question 8

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

Accepted Answer

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

Question 9

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Accepted Answer

A) The law of demand is being used to increase the quantity demanded. 
B) The store is trying to increase its customers' demand for the product. 
C) The store manager must be trying to drive away customers by selling low quality products. 
D) The store is trying to increase its consumer's incomes by increasing their purchasing power. 
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen. 
A) The law of demand is being used to increase the quantity demanded. 
B) The store is trying to increase its customers' demand for the product. 
C) The store manager must be trying to drive away customers by selling low quality products. 
D) The store is trying to increase its consumer's incomes by increasing their purchasing power. 
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question 10

Changes in which of the following factors do NOT shift the demand curve?

Accepted Answer

A) the price of the good 
B) buyers' incomes 
C) the price of a substitute good 
D) the number of buyers 
E) the price expected in the future 
A) the price of the good 
B) buyers' incomes 
C) the price of a substitute good 
D) the number of buyers 
E) the price expected in the future

Question 11

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Accepted Answer

The equilibrium price is $2.50

Question 12

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Accepted Answer

A) increases the demand for corn. 
B) increases the supply of corn. 
C) decreases the supply of corn. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct. 
A) increases the demand for corn. 
B) increases the supply of corn. 
C) decreases the supply of corn. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct.

Question 13

A decrease in the price of a complement in production leads to

Accepted Answer

A) a decrease in the supply of the good in question. 
B) an increase in the supply of the good in question. 
C) no change in the supply of the good in question. 
D) a decrease in the quantity supplied of the good in question. 
E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question. 
A) a decrease in the supply of the good in question. 
B) an increase in the supply of the good in question. 
C) no change in the supply of the good in question. 
D) a decrease in the quantity supplied of the good in question. 
E) an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.

Question 14

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts __________, the equilibrium price will ______.

Accepted Answer

A) rightward; decrease 
B) leftward; decrease 
C) rightward; increase 
D) leftward; not change 
E) rightward; not change 
A) rightward; decrease 
B) leftward; decrease 
C) rightward; increase 
D) leftward; not change 
E) rightward; not change

Question 15

When a surplus of rice occurs,

Accepted Answer

A) the price of rice rises. 
B) the price of rice falls. 
C) there is a balance between the forces of supply and demand. 
D) the quantity demanded is greater than quantity supplied at the current price. 
E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus. 
A) the price of rice rises. 
B) the price of rice falls. 
C) there is a balance between the forces of supply and demand. 
D) the quantity demanded is greater than quantity supplied at the current price. 
E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.

Question 16

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

Accepted Answer

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

Question 17

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

Accepted Answer

A) a decrease in the price of pizza. 
B) an increase in the demand for pizza. 
C) an increase in the number of people who eat pizza. 
D) an increase in the price of the tomato sauce used to produce pizza. 
E) a decrease in the number of firms producing pizza. 
A) a decrease in the price of pizza. 
B) an increase in the demand for pizza. 
C) an increase in the number of people who eat pizza. 
D) an increase in the price of the tomato sauce used to produce pizza. 
E) a decrease in the number of firms producing pizza.

Question 18

Advances in productivity increase supply because they might

Accepted Answer

A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good. 
A) increase the price expected in the future. 
B) decrease the number of goods available. 
C) decrease the cost of production. 
D) raise the prices of resources used to produce the good. 
E) increase the number of firms producing the good.

Question 19

-The graph illustrates the supply of sweaters.Which of the following events will increase the quantity supplied 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) a decrease in the number of sweater buyers 
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) a decrease in the number of sweater buyers

Question 20

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

Accepted Answer

A) demand curve for peanuts slopes downward. 
B) demand for peanuts increases when income increases. 
C) demand for peanuts increases when the price of one of its substitutes rises. 
D) peanuts have both substitutes and complements. 
E) demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded. 
A) demand curve for peanuts slopes downward. 
B) demand for peanuts increases when income increases. 
C) demand for peanuts increases when the price of one of its substitutes rises. 
D) peanuts have both substitutes and complements. 
E) demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.

-Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

If both producers and consumers believe that a product's price will rise in the future, then at the present, demand and supply .

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

Which of the following indicates that the law of supply applies to makers of soda?

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States and wages in Mexico .

As a falling price eliminates a surplus in the jersey market,

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Changes in which of the following factors do NOT shift the demand curve?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

A decrease in the price of a complement in production leads to

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ____, the equilibrium price will .

When a surplus of rice occurs,

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

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

Advances in productivity increase supply because they might

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

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

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

-Consider the market for turkeys.In the United States, because of Thanksgiving in the month of November,

If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ________ and supply ________.

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-The above figures show the market for HD televisions.Blu-ray players can be used to play HD movies.If the price of blu-ray players falls, then which figure shows the effect of this change in the market for HD televisions?

Which of the following indicates that the law of supply applies to makers of soda?

As a falling price eliminates a surplus in the jersey market,

A scooter uses much less gasoline than does a car.Suppose the price of gasoline rises substantially.Which of the figures above best illustrates how this change affects the demand curve for scooters?

In stores, it is common to find seasonal products marked down when the season ends.What explains this behavior?

Changes in which of the following factors do NOT shift the demand curve?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

A decrease in the price of a complement in production leads to

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts __________, the equilibrium price will ______.

When a surplus of rice occurs,

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

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

Advances in productivity increase supply because they might

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

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

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 both producers and consumers believe that a product's price will rise in the future, then at the present, demand and supply .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ____, the equilibrium price will .