Question 1

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in the supply combined with no change in the demand 
A) an increase in both demand and supply 
B) a decrease in both demand and supply 
C) an increase in demand combined with a decrease in supply 
D) a decrease in demand combined with an increase in supply 
E) an increase in the supply combined with no change in the demand

Question 2

The market supply curve is the ________ of the ________.

Accepted Answer

A) horizontal sum; individual supply curves 
B) vertical sum; individual supply curves 
C) horizontal sum; individual supply curves minus the market demand 
D) vertical sum; individual supply curves minus the market demand 
E) vertical average; of the individual supply curves 
A) horizontal sum; individual supply curves 
B) vertical sum; individual supply curves 
C) horizontal sum; individual supply curves minus the market demand 
D) vertical sum; individual supply curves minus the market demand 
E) vertical average; of the individual supply curves

Question 3

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

Accepted Answer

A) does not change. 
B) rises. 
C) falls. 
D) might rise, fall, or not change, but the change can never be predicted. 
E) might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers. 
A) does not change. 
B) rises. 
C) falls. 
D) might rise, fall, or not change, but the change can never be predicted. 
E) might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question 4

If the price is below the equilibrium price,

Accepted Answer

A) there is a surplus. 
B) there is a shortage. 
C) the supply curve will shift rightward. 
D) the supply curve will shift leftward. 
E) the demand curve will shift leftward. 
A) there is a surplus. 
B) there is a shortage. 
C) the supply curve will shift rightward. 
D) the supply curve will shift leftward. 
E) the demand curve will shift leftward.

Question 5

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances, you predict that the

Accepted Answer

A) equilibrium quantity of computers will increase. 
B) equilibrium quantity of computers will decrease. 
C) equilibrium price of a computer will rise. 
D) equilibrium price of a computer will fall. 
E) equilibrium quantity of computers might increase, decrease, or not change. 
A) equilibrium quantity of computers will increase. 
B) equilibrium quantity of computers will decrease. 
C) equilibrium price of a computer will rise. 
D) equilibrium price of a computer will fall. 
E) equilibrium quantity of computers might increase, decrease, or not change.

Question 6

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Accepted Answer

A) a normal good. 
B) an inferior good. 
C) a substitute for camcorders. 
D) a complement to camcorders. 
E) made using advanced technology. 
A) a normal good. 
B) an inferior good. 
C) a substitute for camcorders. 
D) a complement to camcorders. 
E) made using advanced technology.

Question 7

The law of demand refers to how

Accepted Answer

A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes. 
A) demand changes when people's incomes change. 
B) demand changes when the prices of substitutes and complements change. 
C) the quantity demanded changes when the price of the good changes. 
D) the price of the good changes when people's demand for the good changes. 
E) the quantity demanded changes when the demand for the good changes.

Question 8

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

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) an increase in people's incomes 
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) an increase in people's incomes

Question 9

Which of the following is true?

Accepted Answer

A) For an inferior good, when income increases, the demand curve shifts leftward. 
B) If the price of a substitute rises, the demand curve shifts leftward. 
C) If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D) An increase in population shifts the demand curve leftward. 
E) An increase in the cost of producing a good shifts the demand curve leftward. 
A) For an inferior good, when income increases, the demand curve shifts leftward. 
B) If the price of a substitute rises, the demand curve shifts leftward. 
C) If people expect the price of a good will rise in the future, the demand curve shifts leftward. 
D) An increase in population shifts the demand curve leftward. 
E) An increase in the cost of producing a good shifts the demand curve leftward.

Question 10

-Which figure above shows the effect of a technological advance in the production of pizza?

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 11

Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

Accepted Answer

A) the demand curve for hauling freight has shifted leftward. 
B) the supply curve for hauling freight has shifted leftward. 
C) the demand curve for hauling freight has shifted rightward. 
D) the supply curve for hauling freight has shifted rightward. 
E) neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher. 
A) the demand curve for hauling freight has shifted leftward. 
B) the supply curve for hauling freight has shifted leftward. 
C) the demand curve for hauling freight has shifted rightward. 
D) the supply curve for hauling freight has shifted rightward. 
E) neither the supply curve nor the demand curve for hauling freight has shifted; the only change is that the price is higher.

Question 12

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 13

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

Accepted Answer

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

Question 14

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

Accepted Answer

A) The supply of golf clubs increases. 
B) The supply of golf clubs decreases. 
C) The demand for golf clubs increases. 
D) The demand for golf clubs decreases. 
E) The demand for and the supply of golf clubs decreases. 
A) The supply of golf clubs increases. 
B) The supply of golf clubs decreases. 
C) The demand for golf clubs increases. 
D) The demand for golf clubs decreases. 
E) The demand for and the supply of golf clubs decreases.

Question 15

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

The answer of Soft drinks and milk are substitutes for...

Question 16

-A normal good is defined as a good

Accepted Answer

A) with a downward sloping demand curve. 
B) for which demand increases when the price of a substitute rises. 
C) for which demand increases when income increases. 
D) for which demand increases when the number of demanders increases. 
E) for which demand increases when the price of a complement falls. 
A) with a downward sloping demand curve. 
B) for which demand increases when the price of a substitute rises. 
C) for which demand increases when income increases. 
D) for which demand increases when the number of demanders increases. 
E) for which demand increases when the price of a complement falls.

Question 17

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Accepted Answer

The fall in the price of a complement in

Question 18

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers

Question 19

-Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

Accepted Answer

A) rises. 
B) falls. 
C) does not change. 
D) rises or does not change. 
E) rises or falls. 
A) rises. 
B) falls. 
C) does not change. 
D) rises or does not change. 
E) rises or falls.

Question 20

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.

Accepted Answer

A) less then; fall 
B) greater than; rise 
C) greater than; fall 
D) less than; rise 
E) equal to; fall 
A) less then; fall 
B) greater than; rise 
C) greater than; fall 
D) less than; rise 
E) equal to; fall

Which of the following definitely results in a product's equilibrium price rising?

The market supply curve is the of the .

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

If the price is below the equilibrium price,

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances, you predict that the

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

The law of demand refers to how

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Which of the following is true?

-Which figure above shows the effect of a technological advance in the production of pizza?

Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

When does a surplus occur?

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

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-A normal good is defined as a good

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is the quantity supplied and the price of the good will .

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

Which of the following definitely results in a product's equilibrium price rising?

The market supply curve is the ________ of the ________.

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

If the price is below the equilibrium price,

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances, you predict that the

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

The law of demand refers to how

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D₀ to D₁?

Which of the following is true?

-Which figure above shows the effect of a technological advance in the production of pizza?

Because of the high cost of fuel, railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

When does a surplus occur?

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

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

Soft drinks and milk are substitutes for consumers.Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-A normal good is defined as a good

Computers are a complement to computer software.Suppose the price of a computer falls.How does this fall in price affect the demand for computer software and the demand curve for computer software?

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

-Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is ________ the quantity supplied and the price of the good will ________.

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

The market supply curve is the of the .

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price, the quantity demanded is the quantity supplied and the price of the good will .