Question 1

Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.

Accepted Answer

A) True 
 B)False

Question 2

When consumers are willing to buy more than producers are willing to sell,

Accepted Answer

A)  there is excess supply of the product in the market. 
B)  there is excess demand for the product in the market. 
C)  the market is in equilibrium. 
D)  the demand curve will shift until the quantity supplied equals the quantity demanded. 
A)  there is excess supply of the product in the market. 
B)  there is excess demand for the product in the market. 
C)  the market is in equilibrium. 
D)  the demand curve will shift until the quantity supplied equals the quantity demanded.

Question 3

If the U.S.population increases,then

Accepted Answer

A)  the demand for electricity increases. 
B)  the demand for electricity decreases. 
C)  the quantity demanded for electricity decreases. 
D)  the quantity demanded for electricity increases. 
A)  the demand for electricity increases. 
B)  the demand for electricity decreases. 
C)  the quantity demanded for electricity decreases. 
D)  the quantity demanded for electricity increases.

Question 4

The purpose of advertising products to consumers is to

Accepted Answer

A)  reduce costs for producers. 
B)  decrease the demand for the product. 
C)  increase the price of the product. 
D)  change consumers' tastes toward the product. 
A)  reduce costs for producers. 
B)  decrease the demand for the product. 
C)  increase the price of the product. 
D)  change consumers' tastes toward the product.

Question 5

A decrease in demand for coffee can be caused by

Accepted Answer

A)  an increase in demand for substitute products by younger populations. 
B)  a decrease in demand due to changing preferences for healthier products. 
C)  an increase in income if coffee is an inferior good. 
D)  all of the above. 
A)  an increase in demand for substitute products by younger populations. 
B)  a decrease in demand due to changing preferences for healthier products. 
C)  an increase in income if coffee is an inferior good. 
D)  all of the above.

Question 6

If we observe that the price is rising in the sugar market,it could be due to

Accepted Answer

A)  an excess supply of sugar. 
B)  an excess demand for sugar. 
C)  an increase in the supply of sugar. 
D)  a decrease in the demand for sugar. 
A)  an excess supply of sugar. 
B)  an excess demand for sugar. 
C)  an increase in the supply of sugar. 
D)  a decrease in the demand for sugar.

Question 7

If incomes increase and electricity is a normal good,then

Accepted Answer

A)  the demand for electricity increases. 
B)  the demand for electricity decreases. 
C)  the quantity demanded for electricity decreases. 
D)  the quantity demanded for electricity increases. 
A)  the demand for electricity increases. 
B)  the demand for electricity decreases. 
C)  the quantity demanded for electricity decreases. 
D)  the quantity demanded for electricity increases.

Question 8

If a government creates an excess demand for a product by setting a maximum price,it is sometimes called a(n)________.

Accepted Answer

The answer of If a government creates an excess demand...

Question 9

When a consumer's income decreases,the consumer

Accepted Answer

A)  has less to spend. 
B)  buys a smaller quantity of normal goods. 
C)  buys more inferior goods. 
D)  all of the above 
A)  has less to spend. 
B)  buys a smaller quantity of normal goods. 
C)  buys more inferior goods. 
D)  all of the above

Question 10

Figure 4.7
-If demand increases and supply decreases in Figure 4.7,then the equilibrium

Accepted Answer

A)  price rises. 
B)  price falls. 
C)  quantity rises. 
D)  quantity falls. 
A)  price rises. 
B)  price falls. 
C)  quantity rises. 
D)  quantity falls.

Question 11

Figure 4.5
-Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from

Accepted Answer

A)  point B to point C. 
B)  point B to point A. 
C)  S₁ to S₀. 
D)  S₁ to S₂. 
A)  point B to point C. 
B)  point B to point A. 
C)  S₁ to S₀. 
D)  S₁ to S₂.

Question 12

Complementary goods are goods that are normally consumed together.

Accepted Answer

A) True 
 B)False

Question 13

Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.
-According to the Application,which of the following is the result of the falling prices of wool worldwide?

Accepted Answer

A)  lower demand for wool 
B)  higher demand for synthetic fibers 
C)  higher demand for wool 
D)  lower quantity of wool supplied 
A)  lower demand for wool 
B)  higher demand for synthetic fibers 
C)  higher demand for wool 
D)  lower quantity of wool supplied

Question 14

Assume that compact discs and compact disc players are complements.When the price of compact disc players decreases,

Accepted Answer

A)  the demand for compact discs increases. 
B)  the demand for compact discs decreases. 
C)  the supply of compact discs increases. 
D)  the supply of compact discs decreases. 
A)  the demand for compact discs increases. 
B)  the demand for compact discs decreases. 
C)  the supply of compact discs increases. 
D)  the supply of compact discs decreases.

Question 15

Suppose that the quantity of cars supplied exceeds the quantity of cars demanded.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 16

The law of supply states that

Accepted Answer

A)  firms supply more of a product as consumer income rises. 
B)  firms supply more of a product as consumer income falls. 
C)  firms supply more of a product as the price of the product rises. 
D)  firms supply more of a product as the price of the product falls. 
A)  firms supply more of a product as consumer income rises. 
B)  firms supply more of a product as consumer income falls. 
C)  firms supply more of a product as the price of the product rises. 
D)  firms supply more of a product as the price of the product falls.

Question 17

Minimum wage laws are examples of

Accepted Answer

A)  price ceilings. 
B)  equilibrium prices. 
C)  price floors. 
D)  minimum supply prices. 
A)  price ceilings. 
B)  equilibrium prices. 
C)  price floors. 
D)  minimum supply prices.

Question 18

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

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

Question 19

Rent control is an example of the government imposing

Accepted Answer

A)  a price ceiling. 
B)  an equilibrium price. 
C)  a price floor. 
D)  a minimum supply price. 
A)  a price ceiling. 
B)  an equilibrium price. 
C)  a price floor. 
D)  a minimum supply price.

Question 20

When the price of apples goes up,

Accepted Answer

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

Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.

When consumers are willing to buy more than producers are willing to sell,

If the U.S.population increases,then

The purpose of advertising products to consumers is to

A decrease in demand for coffee can be caused by

If we observe that the price is rising in the sugar market,it could be due to

If incomes increase and electricity is a normal good,then

If a government creates an excess demand for a product by setting a maximum price,it is sometimes called a(n)________.

When a consumer's income decreases,the consumer

Figure 4.7 -If demand increases and supply decreases in Figure 4.7,then the equilibrium

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from

Complementary goods are goods that are normally consumed together.

Assume that compact discs and compact disc players are complements.When the price of compact disc players decreases,

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

The law of supply states that

Minimum wage laws are examples of

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

Rent control is an example of the government imposing

When the price of apples goes up,

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

Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.

When consumers are willing to buy more than producers are willing to sell,

If the U.S.population increases,then

The purpose of advertising products to consumers is to

A decrease in demand for coffee can be caused by

If we observe that the price is rising in the sugar market,it could be due to

If incomes increase and electricity is a normal good,then

If a government creates an excess demand for a product by setting a maximum price,it is sometimes called a(n)________.

When a consumer's income decreases,the consumer

Figure 4.7 -If demand increases and supply decreases in Figure 4.7,then the equilibrium

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from

Complementary goods are goods that are normally consumed together.

Assume that compact discs and compact disc players are complements.When the price of compact disc players decreases,

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

The law of supply states that

Minimum wage laws are examples of

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

Rent control is an example of the government imposing

When the price of apples goes up,

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