Question 1

The supply schedule

Accepted Answer

A) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B) is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C) shows one quantity at one price. 
D) is the schedule that suppliers have to keep or else they will be late. 
E) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change. 
A) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same. 
B) is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change. 
C) shows one quantity at one price. 
D) is the schedule that suppliers have to keep or else they will be late. 
E) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change.

Question 2

When there is a shortage of parking spaces at your college, the

Accepted Answer

A) demand for parking spaces is greater than the supply. 
B) supply of parking spaces is greater than the demand. 
C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E) Both answers A and D are correct. 
A) demand for parking spaces is greater than the supply. 
B) supply of parking spaces is greater than the demand. 
C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. 
D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. 
E) Both answers A and D are correct.

Question 3

What is the law of demand?

Accepted Answer

The law of demand states that other thin

Question 4

If the demand for a good increases when people's incomes increase,

Accepted Answer

A) the good is an inferior good. 
B) the law of demand is violated. 
C) the good's demand curve must be slope upward. 
D) the good is a normal good. 
E) the good is a substitute good for an inferior good. 
A) the good is an inferior good. 
B) the law of demand is violated. 
C) the good's demand curve must be slope upward. 
D) the good is a normal good. 
E) the good is a substitute good for an inferior good.

Question 5

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case, there is a

Accepted Answer

A) shortage, so the price falls and quantity demanded increases. 
B) surplus, so the price falls and quantity demanded increases. 
C) shortage, so the price rises and quantity demanded decreases. 
D) surplus, so the price rises and quantity demanded increases. 
E) surplus, so the price falls and quantity supplied increases. 
A) shortage, so the price falls and quantity demanded increases. 
B) surplus, so the price falls and quantity demanded increases. 
C) shortage, so the price rises and quantity demanded decreases. 
D) surplus, so the price rises and quantity demanded increases. 
E) surplus, so the price falls and quantity supplied increases.

Question 6

For consumers, taco chips and salsa are complements.If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

Accepted Answer

A) The equilibrium price of taco chips falls and the equilibrium quantity decreases. 
B) The equilibrium price of taco chips rises and the equilibrium quantity decreases. 
C) There is no change in the equilibrium price of taco chips and the equilibrium quantity increases. 
D) The equilibrium price of taco chips could rise, fall, or stay the same and the equilibrium quantity increases. 
E) The equilibrium price of taco chips rises and the equilibrium quantity increases. 
A) The equilibrium price of taco chips falls and the equilibrium quantity decreases. 
B) The equilibrium price of taco chips rises and the equilibrium quantity decreases. 
C) There is no change in the equilibrium price of taco chips and the equilibrium quantity increases. 
D) The equilibrium price of taco chips could rise, fall, or stay the same and the equilibrium quantity increases. 
E) The equilibrium price of taco chips rises and the equilibrium quantity increases.

Question 7

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell 
A) the amount people are willing to buy 
B) the amount people are able to buy 
C) the amount people are willing and able to offer 
D) the amount people are willing and able to buy 
E) the amount people are willing to buy because it is the amount sellers are willing to sell

Question 8

-In the above figure, ________ will shift in the demand curve from D to D₁.

Accepted Answer

A) an increase in income if pizza is an inferior good 
B) a decrease in the price of a sub sandwich, a substitute for pizza 
C) buyers' expectation that pizza will be less expensive next week 
D) a scientific article published that demonstrates eating pizza is good for one's health 
E) a fall in the cost of producing pizza 
A) an increase in income if pizza is an inferior good 
B) a decrease in the price of a sub sandwich, a substitute for pizza 
C) buyers' expectation that pizza will be less expensive next week 
D) a scientific article published that demonstrates eating pizza is good for one's health 
E) a fall in the cost of producing pizza

Question 9

-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 the number of corn growers 
B) an increase the price of wheat, a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good 
A) an increase in the number of corn growers 
B) an increase the price of wheat, a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good

Question 10

If a higher price for wheat decreases the quantity of corn being produced, which of the following describes what has occurred?

Accepted Answer

A) The supply of wheat increased and the supply of corn decreased. 
B) The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C) The supply of wheat increased and the quantity of corn supplied decreased 
D) The quantity of wheat supplied increased and the supply of corn decreased. 
E) The supply of wheat decreased and the supply of corn decreased. 
A) The supply of wheat increased and the supply of corn decreased. 
B) The quantity of wheat supplied increased and quantity of corn supplied decreased. 
C) The supply of wheat increased and the quantity of corn supplied decreased 
D) The quantity of wheat supplied increased and the supply of corn decreased. 
E) The supply of wheat decreased and the supply of corn decreased.

Question 11

Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Question 12

The law of supply reflects the fact that

Accepted Answer

A) people buy more of a good when its price falls. 
B) suppliers have an incentive to use their resources in the way that brings the biggest return. 
C) higher prices are more attractive to consumers because they signal a higher quality product. 
D) businesses can sell more goods at lower prices. 
E) the demand curve is downward sloping. 
A) people buy more of a good when its price falls. 
B) suppliers have an incentive to use their resources in the way that brings the biggest return. 
C) higher prices are more attractive to consumers because they signal a higher quality product. 
D) businesses can sell more goods at lower prices. 
E) the demand curve is downward sloping.

Question 13

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________, and the equilibrium quantity ________.

Accepted Answer

A) rises; decreases 
B) perhaps changes but we can't say if it rises, falls, or stays the same; decreases 
C) falls; increases 
D) perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E) rises; increases 
A) rises; decreases 
B) perhaps changes but we can't say if it rises, falls, or stays the same; decreases 
C) falls; increases 
D) perhaps changes but we can't say if it rises, falls, or stays the same; increases 
E) rises; increases

Question 14

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

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 15

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

Accepted Answer

A) inferior goods. 
B) substitute goods. 
C) complementary goods. 
D) normal goods. 
E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls. 
A) inferior goods. 
B) substitute goods. 
C) complementary goods. 
D) normal goods. 
E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.

Question 16

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Accepted Answer

A) the supply of Web pages increases and the price falls. 
B) the supply curve of Web pages shifts leftward and the price falls. 
C) the demand for Web pages increases and the price rises. 
D) the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward. 
E) the demand for Web pages increases and the price falls. 
A) the supply of Web pages increases and the price falls. 
B) the supply curve of Web pages shifts leftward and the price falls. 
C) the demand for Web pages increases and the price rises. 
D) the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward. 
E) the demand for Web pages increases and the price falls.

Question 17

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

Accepted Answer

A) increased; increased 
B) increased; decreased 
C) increased; did not change 
D) decreased; did not change 
E) did not change; increased 
A) increased; increased 
B) increased; decreased 
C) increased; did not change 
D) decreased; did not change 
E) did not change; increased

Question 18

The equilibrium price of a good occurs if the

Accepted Answer

A) quantity of the good demanded equals the quantity of the good supplied. 
B) quantity of the good demanded is greater than the quantity of the good supplied. 
C) quantity of the good demanded is less than the quantity of the good supplied. 
D) demand for the good is equal to the supply of the good. 
E) price of the good seems reasonable to most buyers. 
A) quantity of the good demanded equals the quantity of the good supplied. 
B) quantity of the good demanded is greater than the quantity of the good supplied. 
C) quantity of the good demanded is less than the quantity of the good supplied. 
D) demand for the good is equal to the supply of the good. 
E) price of the good seems reasonable to most buyers.

Question 19

-In the figure above, a price of $35 per dozen roses results in

Accepted Answer

A) a shortage. 
B) equilibrium. 
C) a surplus. 
D) upward pressure on the price of roses. 
E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve. 
A) a shortage. 
B) equilibrium. 
C) a surplus. 
D) upward pressure on the price of roses. 
E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.

Question 20

If income increases and the demand for bus rides decreases,

Accepted Answer

A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good. 
A) bus rides are a normal good. 
B) consumers are behaving irrationally. 
C) bus rides are an inferior good. 
D) bus rides are a substitute good. 
E) bus rides must be a complement good with some other good.

The supply schedule

When there is a shortage of parking spaces at your college, the

What is the law of demand?

If the demand for a good increases when people's incomes increase,

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case, there is a

For consumers, taco chips and salsa are complements.If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-In the above figure, ________ will shift in the demand curve from D to D₁.

-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?

If a higher price for wheat decreases the quantity of corn being produced, which of the following describes what has occurred?

The law of supply reflects the fact that

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price , and the equilibrium quantity .

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline and the equilibrium quantity .

The equilibrium price of a good occurs if the

-In the figure above, a price of $35 per dozen roses results in

If income increases and the demand for bus rides decreases,

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

The supply schedule

When there is a shortage of parking spaces at your college, the

What is the law of demand?

If the demand for a good increases when people's incomes increase,

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case, there is a

For consumers, taco chips and salsa are complements.If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

-In the above figure, ________ will shift in the demand curve from D to D₁.

-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?

If a higher price for wheat decreases the quantity of corn being produced, which of the following describes what has occurred?

The law of supply reflects the fact that

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________, and the equilibrium quantity ________.

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

The equilibrium price of a good occurs if the

-In the figure above, a price of $35 per dozen roses results in

If income increases and the demand for bus rides decreases,

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

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price , and the equilibrium quantity .

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline and the equilibrium quantity .