Question 1

Government regulations

Accepted Answer

A) have no impact on supply. 
B) only change the quantity supplied, not the supply curve. 
C) are generally ineffective due to lobbying by suppliers. 
D) can change both quantity supplied as well as the supply curve. 
A) have no impact on supply. 
B) only change the quantity supplied, not the supply curve. 
C) are generally ineffective due to lobbying by suppliers. 
D) can change both quantity supplied as well as the supply curve.

Question 2

An increase in the price of pork will lead to

Accepted Answer

A) a movement up along the demand curve. 
B) a movement down along the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve. 
A) a movement up along the demand curve. 
B) a movement down along the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve.

Question 3

An increase in consumer incomes will lead to

Accepted Answer

A) a rightward shift of the demand curve for plasma TVs. 
B) a movement upward along the demand curve for plasma TVs. 
C) a rightward shift of the supply curve for plasma TVs. 
D) no change of the demand curve for plasma TVs. 
A) a rightward shift of the demand curve for plasma TVs. 
B) a movement upward along the demand curve for plasma TVs. 
C) a rightward shift of the supply curve for plasma TVs. 
D) no change of the demand curve for plasma TVs.

Question 4

When there is a binding price ceiling

Accepted Answer

A) there is no equilibrium. 
B) the quantity demanded does not equal the quantity supplied. 
C) all potential customers are happy because they can buy the good at a lower price. 
D) producers move production to another country. 
A) there is no equilibrium. 
B) the quantity demanded does not equal the quantity supplied. 
C) all potential customers are happy because they can buy the good at a lower price. 
D) producers move production to another country.

Question 5

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

Accepted Answer

A) The supply of plastic will increase. 
B) The supply of plastic will decrease. 
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels. 
D) The supply of plastic will stay the same because of the profit motives of plastic producers. 
A) The supply of plastic will increase. 
B) The supply of plastic will decrease. 
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels. 
D) The supply of plastic will stay the same because of the profit motives of plastic producers.

Question 6

If the demand for CD players decreases and the supply of CD players decreases, then

Accepted Answer

A) it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous. 
B) it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous. 
C) it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous. 
D) it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous. 
A) it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous. 
B) it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous. 
C) it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous. 
D) it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous.

Question 7

If the demand curve is vertical a rightward shift of the supply curve will lead to

Accepted Answer

A) an increase in quantity supplied. 
B) an increase in quantity demanded. 
C) a decrease in quantity demanded. 
D) a decrease in price. 
A) an increase in quantity supplied. 
B) an increase in quantity demanded. 
C) a decrease in quantity demanded. 
D) a decrease in price.

Question 8

A market equilibrium occurs

Accepted Answer

A) only with government regulation. 
B) only because of the profit motive of firms. 
C) only because of the complacency of consumers. 
D) through the interaction of self-interested consumers and producers. 
A) only with government regulation. 
B) only because of the profit motive of firms. 
C) only because of the complacency of consumers. 
D) through the interaction of self-interested consumers and producers.

Question 9

Explain why the equilibrium price is called the market clearing price.

Accepted Answer

At the equilibrium price, sell

Question 10

If a city were to ban the use of automobiles within its city limits, we would expect

Accepted Answer

A) the demand curve for automobiles to shift to the left. 
B) people to move to another city. 
C) the demand curve for bicycles to shift to the left. 
D) the demand curve for automobiles to remain the same. 
A) the demand curve for automobiles to shift to the left. 
B) people to move to another city. 
C) the demand curve for bicycles to shift to the left. 
D) the demand curve for automobiles to remain the same.

Question 11

During a severe winter, the price of home heating oil is expected to be more than it would be during a normal winter.

Accepted Answer

A) True 
 B)False

Question 12

If the government institutes a specific tax for a good

Accepted Answer

A) the producer simply passes the entire tax on to the consumer. 
B) the producer must absorb the entire tax. 
C) the producer can generally only pass part of the tax onto the consumer. 
D) the equilibrium price drops. 
A) the producer simply passes the entire tax on to the consumer. 
B) the producer must absorb the entire tax. 
C) the producer can generally only pass part of the tax onto the consumer. 
D) the equilibrium price drops.

Question 13

-The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than

Accepted Answer

A) $0. 
B) $5. 
C) $12. 
D) $14. 
A) $0. 
B) $5. 
C) $12. 
D) $14.

Question 14

If a good is not produced, then there is no demand for it.

Accepted Answer

A) True 
 B)False

Question 15

If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate

Accepted Answer

A) those who are buying pizza value it at least $50 per pizza. 
B) those who are not buying pizza value it more than $50 per pizza. 
C) only those who are extremely wealthy are buying pizza. 
D) the price of pizza needs to be regulated by the federal government. 
A) those who are buying pizza value it at least $50 per pizza. 
B) those who are not buying pizza value it more than $50 per pizza. 
C) only those who are extremely wealthy are buying pizza. 
D) the price of pizza needs to be regulated by the federal government.

Question 16

A downward sloping demand curve indicates that

Accepted Answer

A) individuals all have the same valuation of the same product. 
B) individuals have different valuations of the same product. 
C) individuals have no valuations of a particular product. 
D) certain individuals are uninformed about certain aspects of the product. 
A) individuals all have the same valuation of the same product. 
B) individuals have different valuations of the same product. 
C) individuals have no valuations of a particular product. 
D) certain individuals are uninformed about certain aspects of the product.

Question 17

If a yet-to-be released video game receives a positive review in a popular gaming magazine, what happens to the demand curve for the video game?

Accepted Answer

A) The demand curve is expected to shift to the right. 
B) The demand curve is expected to shift to the left. 
C) The demand curve is not expected to change. 
D) For those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right. 
A) The demand curve is expected to shift to the right. 
B) The demand curve is expected to shift to the left. 
C) The demand curve is not expected to change. 
D) For those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right.

Question 18

The quantity demanded for a good

Accepted Answer

A) must equal the quantity actually sold. 
B) can be less than the quantity actually sold. 
C) can be greater than the quantity actually sold. 
D) is always greater than the quantity actually sold. 
A) must equal the quantity actually sold. 
B) can be less than the quantity actually sold. 
C) can be greater than the quantity actually sold. 
D) is always greater than the quantity actually sold.

Question 19

The supply curve

Accepted Answer

A) represents the quantity supplied at any given price. 
B) represents the quantity actually sold at any given price. 
C) is the opposite of the demand curve. 
D) always intersects the demand curve. 
A) represents the quantity supplied at any given price. 
B) represents the quantity actually sold at any given price. 
C) is the opposite of the demand curve. 
D) always intersects the demand curve.

Question 20

-The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be

Accepted Answer

A) excess demand. 
B) excess supply. 
C) equilibrium. 
D) zero demand. 
A) excess demand. 
B) excess supply. 
C) equilibrium. 
D) zero demand.

Government regulations

An increase in the price of pork will lead to

An increase in consumer incomes will lead to

When there is a binding price ceiling

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

If the demand for CD players decreases and the supply of CD players decreases, then

If the demand curve is vertical a rightward shift of the supply curve will lead to

A market equilibrium occurs

Explain why the equilibrium price is called the market clearing price.

If a city were to ban the use of automobiles within its city limits, we would expect

During a severe winter, the price of home heating oil is expected to be more than it would be during a normal winter.

If the government institutes a specific tax for a good

-The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than

If a good is not produced, then there is no demand for it.

If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate

A downward sloping demand curve indicates that

If a yet-to-be released video game receives a positive review in a popular gaming magazine, what happens to the demand curve for the video game?

The quantity demanded for a good

The supply curve

-The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 2: Supply and Demand

Government regulations

An increase in the price of pork will lead to

An increase in consumer incomes will lead to

When there is a binding price ceiling

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

If the demand for CD players decreases and the supply of CD players decreases, then

If the demand curve is vertical a rightward shift of the supply curve will lead to

A market equilibrium occurs

Explain why the equilibrium price is called the market clearing price.

If a city were to ban the use of automobiles within its city limits, we would expect

During a severe winter, the price of home heating oil is expected to be more than it would be during a normal winter.

If the government institutes a specific tax for a good

-The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than

If a good is not produced, then there is no demand for it.

If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate

A downward sloping demand curve indicates that

If a yet-to-be released video game receives a positive review in a popular gaming magazine, what happens to the demand curve for the video game?

The quantity demanded for a good

The supply curve

-The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters