Question 1

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________, and the equilibrium quantity ________.

Accepted Answer

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

Question 2

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 3

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

Accepted Answer

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

Question 4

An increase in the quantity demanded is shown as a

Accepted Answer

A)  movement along the demand curve. 
B)  movement toward the demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve. 
A)  movement along the demand curve. 
B)  movement toward the demand curve. 
C)  rightward shift of the demand curve. 
D)  leftward shift of the demand curve. 
E)  both a movement along the demand curve and a shift of the demand curve.

Question 5

-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 6

-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 7

When there is a surplus of snowboards, the

Accepted Answer

A)  demand for snowboards is greater than the supply of snowboards. 
B)  supply of snowboards is greater than the demand for snowboards. 
C)  quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D)  quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E)  the price rises to restore the equilibrium. 
A)  demand for snowboards is greater than the supply of snowboards. 
B)  supply of snowboards is greater than the demand for snowboards. 
C)  quantity of snowboards demanded is greater than the quantity of snowboards supplied. 
D)  quantity of snowboards supplied is greater than the quantity of snowboards demanded. 
E)  the price rises to restore the equilibrium.

Question 8

-The diagram above illustrates the market for apartments in Victoria, British Columbia.
a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b. What is the equilibrium rent and quantity of apartments?

Accepted Answer

a. If the rent is $300 per mon

Question 9

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________.

Accepted Answer

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

Question 10

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

Accepted Answer

A)  an increase in the price of pizza. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in income if pizza is a normal good. 
A)  an increase in the price of pizza. 
B)  an increase in the price of a sub sandwich, a substitute for pizza. 
C)  an increase in the price of soda, a complement to pizza. 
D)  a change in quantity demanded. 
E)  a decrease in income if pizza is a normal good.

Question 11

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 12

-Soda and peanuts are complements.Other influences on buying plans remaining the same, a rise in the price of soda

Accepted Answer

A)  increases the demand for peanuts. 
B)  decreases the demand for peanuts. 
C)  decreases the demand for soda. 
D)  increases the demand for soda. 
E)  has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts. 
A)  increases the demand for peanuts. 
B)  decreases the demand for peanuts. 
C)  decreases the demand for soda. 
D)  increases the demand for soda. 
E)  has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.

Question 13

One reason supply curves have an upward slope is because

Accepted Answer

A)  increased supply will require increased technology. 
B)  people will pay a higher price when less is supplied. 
C)  a higher price brings a greater profit, so firms want to sell more of that good. 
D)  to have more of the good supplied requires more firms to open. 
E)  None of the above answers is correct because supply curves have a downward slope. 
A)  increased supply will require increased technology. 
B)  people will pay a higher price when less is supplied. 
C)  a higher price brings a greater profit, so firms want to sell more of that good. 
D)  to have more of the good supplied requires more firms to open. 
E)  None of the above answers is correct because supply curves have a downward slope.

Question 14

Which of the following is correct?
I. A surplus puts downward pressure on the price of a good.
Ii. A shortage puts upward pressure on the price of a good.
Iii. There is no surplus or shortage at equilibrium.

Accepted Answer

A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  i, ii, and iii 
E)  only iii 
A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  i, ii, and iii 
E)  only iii

Question 15

The phrase "a change in demand" most directly implies a

Accepted Answer

A)  movement along a demand curve. 
B)  movement along the price curve. 
C)  change in the quantity demanded of a good. 
D)  shift of the demand curve. 
E)  movement along the quantity curve. 
A)  movement along a demand curve. 
B)  movement along the price curve. 
C)  change in the quantity demanded of a good. 
D)  shift of the demand curve. 
E)  movement along the quantity curve.

Question 16

Which of the following shifts the supply curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers if oranges are a normal good 
E)  an increase in the number of orange consumers 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers if oranges are a normal good 
E)  an increase in the number of orange consumers

Question 17

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Accepted Answer

An advance in productivity inc

The demand for oranges increases while the supply decreases.The equilibrium price of oranges , and the equilibrium quantity .

Which of the following is true?

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter and the equilibrium quantity of scooters .

An increase in the quantity demanded is shown as a

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

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

When there is a surplus of snowboards, the

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b. What is the equilibrium rent and quantity of apartments?

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange and the equilibrium quantity .

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

-Soda and peanuts are complements.Other influences on buying plans remaining the same, a rise in the price of soda

One reason supply curves have an upward slope is because

Which of the following is correct? I. A surplus puts downward pressure on the price of a good. Ii. A shortage puts upward pressure on the price of a good. Iii. There is no surplus or shortage at equilibrium.

The phrase "a change in demand" most directly implies a

Which of the following shifts the supply curve for oranges?

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Getting Started

The Usand Global Economies

The Economic Problem

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 4: Demand and Supply

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________, and the equilibrium quantity ________.

Which of the following is true?

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

An increase in the quantity demanded is shown as a

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

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

When there is a surplus of snowboards, the

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b. What is the equilibrium rent and quantity of apartments?

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________.

-In the above figure, the shift in the demand curve from D to D₁ can be the result of

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

-Soda and peanuts are complements.Other influences on buying plans remaining the same, a rise in the price of soda

One reason supply curves have an upward slope is because

Which of the following is correct? I. A surplus puts downward pressure on the price of a good. Ii. A shortage puts upward pressure on the price of a good. Iii. There is no surplus or shortage at equilibrium.

The phrase "a change in demand" most directly implies a

Which of the following shifts the supply curve for oranges?

Suppose that the productivity used to produce computers advances.How does this change affect the supply of computers and the supply curve of computers?

Getting Started

The Usand Global Economies

The Economic Problem

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

The demand for oranges increases while the supply decreases.The equilibrium price of oranges , and the equilibrium quantity .

Suppose that people decide riding scooters is no longer fun.The equilibrium price of a scooter and the equilibrium quantity of scooters .

If a freeze destroys oranges before they are harvested, the equilibrium price of an orange and the equilibrium quantity .