Question 1

Suppose you have 2 goods,X and Y.If the price of X decreases and you buy more Y,then X and Y are

Accepted Answer

A)  substitutes. 
B)  normal goods. 
C)  complements. 
D)  inferior goods. 
A)  substitutes. 
B)  normal goods. 
C)  complements. 
D)  inferior goods.

Question 2

Suppose that the population of a country decreases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________ in that country.

Accepted Answer

A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease 
A)  increase; increase 
B)  increase; decrease 
C)  decrease; increase 
D)  decrease; decrease

Question 3

When there is a change in the quantity demanded,it means that the

Accepted Answer

A)  hours the customer can buy products each day have increased. 
B)  number of products in inventory have increased. 
C)  quantity a consumer is willing to buy changes when the price changes. 
D)  selling price of the products has not changed. 
A)  hours the customer can buy products each day have increased. 
B)  number of products in inventory have increased. 
C)  quantity a consumer is willing to buy changes when the price changes. 
D)  selling price of the products has not changed.

Question 4

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

Accepted Answer

Movement along the demand curve (upwards

Question 5

When the quantity of a product demanded by buyers equals the quantity supplied,it is called ________.

Accepted Answer

The answer of When the quantity of a product demanded...

Question 6

The market supply curve is

Accepted Answer

A)  downward sloping and is flatter than an individual's supply curve. 
B)  upward sloping and is flatter than an individual's supply curve. 
C)  downward sloping and is steeper than an individual's supply curve. 
D)  upward sloping and is steeper than an individual's supply curve. 
A)  downward sloping and is flatter than an individual's supply curve. 
B)  upward sloping and is flatter than an individual's supply curve. 
C)  downward sloping and is steeper than an individual's supply curve. 
D)  upward sloping and is steeper than an individual's supply curve.

Question 7

If the price of hotdogs is expected to decrease in the future,then

Accepted Answer

A)  the current demand for hotdogs will increase. 
B)  the current demand for hotdogs will decrease. 
C)  the current quantity demanded for hotdogs will decrease. 
D)  the current quantity demanded for hotdogs will increase. 
A)  the current demand for hotdogs will increase. 
B)  the current demand for hotdogs will decrease. 
C)  the current quantity demanded for hotdogs will decrease. 
D)  the current quantity demanded for hotdogs will increase.

Question 8

What is the difference between "an increase in supply" and "an increase in quantity supplied" of a good?

Accepted Answer

An increase in supply is caused by an in

Question 9

Figure 4.7
-If demand falls in Figure 4.7,then the equilibrium

Accepted Answer

A)  price and quantity rise. 
B)  price rises and quantity falls. 
C)  price falls and quantity rises. 
D)  price and quantity fall. 
A)  price and quantity rise. 
B)  price rises and quantity falls. 
C)  price falls and quantity rises. 
D)  price and quantity fall.

Question 10

When consumers find their incomes increasing,they tend to buy more ________.

Accepted Answer

The answer of When consumers find their incomes increasing,they tend...

Question 11

Figure 4.2
-Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to rise?

Accepted Answer

A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  None of the panels depicts a market in which the price is likely to rise. 
A)  Panel A 
B)  Panel B 
C)  Panel C 
D)  None of the panels depicts a market in which the price is likely to rise.

Question 12

Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s).
-According to the Application,why does a lower price for cigarettes increase the quantity demanded for cigarettes?

Accepted Answer

A)  Lower prices make current smokers smoke more cigarettes. 
B)  Lower prices encourage people to start smoking. 
C)  Lower prices encourage people to quit smoking. 
D)  A and B are both correct. 
A)  Lower prices make current smokers smoke more cigarettes. 
B)  Lower prices encourage people to start smoking. 
C)  Lower prices encourage people to quit smoking. 
D)  A and B are both correct.

Question 13

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied.We would expect that

Accepted Answer

A)  the price of cars will increase. 
B)  the price of cars will decrease. 
C)  the supply will increase to meet the demand. 
D)  the demand will decrease to meet the supply. 
A)  the price of cars will increase. 
B)  the price of cars will decrease. 
C)  the supply will increase to meet the demand. 
D)  the demand will decrease to meet the supply.

Question 14

Explain how an excess demand would lead to an increase in prices in an unregulated market.

Accepted Answer

With an excess demand,the quantity avail

Question 15

In economics,a change in preferences for the product causes a(n)________.

Accepted Answer

The answer of In economics,a change in preferences for the...

Question 16

Relative to hotdogs,hotdog buns are considered

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  inputs. 
D)  luxury goods. 
A)  complements. 
B)  substitutes. 
C)  inputs. 
D)  luxury goods.

Question 17

Becky demands more raisins as her income increases.From this,we can conclude that for Becky,

Accepted Answer

A)  raisins are an inferior good. 
B)  raisins are a complementary good. 
C)  raisins are a normal good. 
D)  raisins are a substitute good. 
A)  raisins are an inferior good. 
B)  raisins are a complementary good. 
C)  raisins are a normal good. 
D)  raisins are a substitute good.

Question 18

Recall the Application about the increase in Chinese demand for pecans to answer the following question(s). Between 2006 and 2009, Chinese imports of U.S. pecans increased from 9 million pounds per year to 88 million pounds per year, and as a result of the increase in demand, the equilibrium price increased by about 50 percent. The increase in demand was caused in part by widespread reports in the Chinese media extolling the health benefits of pecans.
-According to the Application,which of the following would we observe in the market for pecans as a result of an increase in the demand for pecans?

Accepted Answer

A)  a higher equilibrium price and a higher equilibrium quantity 
B)  a lower equilibrium price and a lower equilibrium quantity 
C)  a lower equilibrium price and a higher equilibrium quantity 
D)  a higher equilibrium price and a lower equilibrium quantity 
A)  a higher equilibrium price and a higher equilibrium quantity 
B)  a lower equilibrium price and a lower equilibrium quantity 
C)  a lower equilibrium price and a higher equilibrium quantity 
D)  a higher equilibrium price and a lower equilibrium quantity

Question 19

Suppose that the current price in a market for pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.In this market,we would expect that

Accepted Answer

A)  the price of pizzas would increase. 
B)  the price of pizzas would decrease. 
C)  buyers would want to buy more pizza in the future. 
D)  sellers would want to sell fewer pizzas in the future. 
A)  the price of pizzas would increase. 
B)  the price of pizzas would decrease. 
C)  buyers would want to buy more pizza in the future. 
D)  sellers would want to sell fewer pizzas in the future.

Question 20

An increase in supply of a product results when

Accepted Answer

A)  more companies produce the product. 
B)  the companies that produce the product have reduced input costs. 
C)  technological innovations are introduced in the manufacturing. 
D)  all of the above. 
A)  more companies produce the product. 
B)  the companies that produce the product have reduced input costs. 
C)  technological innovations are introduced in the manufacturing. 
D)  all of the above.

Suppose you have 2 goods,X and Y.If the price of X decreases and you buy more Y,then X and Y are

Suppose that the population of a country decreases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will and the equilibrium price of steak will in that country.

When there is a change in the quantity demanded,it means that the

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

When the quantity of a product demanded by buyers equals the quantity supplied,it is called ________.

The market supply curve is

If the price of hotdogs is expected to decrease in the future,then

What is the difference between "an increase in supply" and "an increase in quantity supplied" of a good?

Figure 4.7 -If demand falls in Figure 4.7,then the equilibrium

When consumers find their incomes increasing,they tend to buy more ________.

Figure 4.2 -Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to rise?

Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). -According to the Application,why does a lower price for cigarettes increase the quantity demanded for cigarettes?

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied.We would expect that

Explain how an excess demand would lead to an increase in prices in an unregulated market.

In economics,a change in preferences for the product causes a(n)________.

Relative to hotdogs,hotdog buns are considered

Becky demands more raisins as her income increases.From this,we can conclude that for Becky,

Suppose that the current price in a market for pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.In this market,we would expect that

An increase in supply of a product results when

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 4: Demand,supply,and Market Equilibrium

Suppose you have 2 goods,X and Y.If the price of X decreases and you buy more Y,then X and Y are

Suppose that the population of a country decreases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________ in that country.

When there is a change in the quantity demanded,it means that the

What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?

When the quantity of a product demanded by buyers equals the quantity supplied,it is called ________.

The market supply curve is

If the price of hotdogs is expected to decrease in the future,then

What is the difference between "an increase in supply" and "an increase in quantity supplied" of a good?

Figure 4.7 -If demand falls in Figure 4.7,then the equilibrium

When consumers find their incomes increasing,they tend to buy more ________.

Figure 4.2 -Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to rise?

Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). -According to the Application,why does a lower price for cigarettes increase the quantity demanded for cigarettes?

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied.We would expect that

Explain how an excess demand would lead to an increase in prices in an unregulated market.

In economics,a change in preferences for the product causes a(n)________.

Relative to hotdogs,hotdog buns are considered

Becky demands more raisins as her income increases.From this,we can conclude that for Becky,

Suppose that the current price in a market for pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.In this market,we would expect that

An increase in supply of a product results when

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Suppose that the population of a country decreases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will and the equilibrium price of steak will in that country.