Question 1

-The above figures show the market for hamburger meat.Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 2

-In the above figure,if D₂ is the original demand curve and the price of a substitute in consumption rises,which price and quantity might result?

Accepted Answer

A)  point a, with price P₂ and quantity Q₂ 
B)  point b, with price P₁ and quantity Q₁ 
C)  point c, with price P₃ and quantity Q₃ 
D)  point d, with price P₁ and quantity Q₃ 
A)  point a, with price P₂ and quantity Q₂ 
B)  point b, with price P₁ and quantity Q₁ 
C)  point c, with price P₃ and quantity Q₃ 
D)  point d, with price P₁ and quantity Q₃

Question 3

Joe pays $8,000.00 in tuition.The 8,000 dollar tuition Joe pays is an example of what economists call

Accepted Answer

A)  a relative price. 
B)  a money price. 
C)  an indexed price. 
D)  an opportunity price. 
A)  a relative price. 
B)  a money price. 
C)  an indexed price. 
D)  an opportunity price.

Question 4

Each point on a supply curve represents

Accepted Answer

A)  the highest price buyers will pay for the good. 
B)  the lowest price for which a supplier can profitably sell another unit. 
C)  the lowest price buyers will accept per unit of the good. 
D)  the highest price sellers can get for each unit over time. 
A)  the highest price buyers will pay for the good. 
B)  the lowest price for which a supplier can profitably sell another unit. 
C)  the lowest price buyers will accept per unit of the good. 
D)  the highest price sellers can get for each unit over time.

Question 5

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (cents per } \
\text { gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of } \
\text { gallons per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of } \
\text { gallons per week) }
\end{array} \
\hline 290 & 80 & 20 \
\hline 300 & 70 & 30 \
\hline 310 & 60 & 40 \
\hline 320 & 50 & 50 \
\hline 330 & 40 & 60 \
\hline 340 & 30 & 70 \
\hline 350 & 20 & 80 \
\hline
\end{array}$$
-A market research team has come up with the demand and supply schedules for gasoline in Motorville in the table above.Use these data to analyze the situation in the market for gas in Motorville.
a) Draw a figure showing the demand curve for gasoline and the supply curve of gasoline.What are the equilibrium price and quantity?
b) Suppose the price is $3.30.Describe the situation in the market and explain how the market adjusts.Now suppose the price is $3.00.Describe the situation in the market and explain how the market adjusts.
c) The market research report also predicts that a rise in the price of crude oil will decrease the quantity of gas supplied by 20,000 gallons a week at each price.Suppose the price of crude oil does rise.Use your figure to show how this will affect the market for gas.How will the market adjust?
What will be the new equilibrium price and quantity?

Accepted Answer

@#IMG-DLM& 
a)See the figure above.The equilibrium

Question 6

If macaroni and cheese is an inferior good,an increase in income will

Accepted Answer

A)  not affect the demand for macaroni and cheese. 
B)  decrease the demand for macaroni and cheese. 
C)  increase the demand for macaroni and cheese. 
D)  create no income effect. 
A)  not affect the demand for macaroni and cheese. 
B)  decrease the demand for macaroni and cheese. 
C)  increase the demand for macaroni and cheese. 
D)  create no income effect.

Question 7

If the price of a good changes but everything else influencing suppliers' planned sales remains constant,there is a

Accepted Answer

A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price. 
A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price.

Question 8

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the income in

Question 9

A consumer might consider in-line skates and elbow-pads to be

Accepted Answer

A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes. 
A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes.

Question 10

If the price of a video download is below its equilibrium price,the quantity supplied is ________ than the quantity demanded.If the price of a video download is above its equilibrium price,the quantity supplied is ________ than the quantity demanded.

Accepted Answer

A)  less; greater 
B)  greater; less 
C)  less; less 
D)  greater; greater 
A)  less; greater 
B)  greater; less 
C)  less; less 
D)  greater; greater

Question 11

What leads to a decrease in the quantity demanded of a good or service?

Accepted Answer

The quantity demande

Question 12

An increase in the cost of producing video tape shifts the supply curve of video tape ________ and shifts the demand curve for video tape ________.

Accepted Answer

A)  rightward; leftward 
B)  leftward; leftward 
C)  leftward; not at all 
D)  not at all; leftward 
A)  rightward; leftward 
B)  leftward; leftward 
C)  leftward; not at all 
D)  not at all; leftward

Question 13

Personal computers are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of computers.

Accepted Answer

Advances in technology increase the supp

Question 14

What is the difference between a normal good and an inferior good?
Give an example of each.

Accepted Answer

A good is a normal good if an increase i

Question 15

-In the above figure,a price of $15 per dozen roses would result in a ________ so that the price of roses will ________.

Accepted Answer

A)  surplus; rise 
B)  surplus; fall 
C)  shortage; rise 
D)  shortage; fall 
A)  surplus; rise 
B)  surplus; fall 
C)  shortage; rise 
D)  shortage; fall

Question 16

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.What of the following could result in a movement to point b?

Accepted Answer

A)  an increase in the price of bottled water 
B)  a decrease in the price of bottled water 
C)  an increase in the opportunity cost of soft drinks 
D)  a decrease in the relative price of a soft drink 
A)  an increase in the price of bottled water 
B)  a decrease in the price of bottled water 
C)  an increase in the opportunity cost of soft drinks 
D)  a decrease in the relative price of a soft drink

Question 17

The "law of supply" refers to the fact that,all other things remaining the same,when the price of a good rises

Accepted Answer

A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied. 
A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied.

Question 18

The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are

Accepted Answer

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

Question 19

Which of the following increases the supply of a product?

Accepted Answer

A)  a fall in the price of the product 
B)  a smaller number of sellers producing the product 
C)  an increase in foreign imports of the product 
D)  higher taxes imposed upon producers of the product 
A)  a fall in the price of the product 
B)  a smaller number of sellers producing the product 
C)  an increase in foreign imports of the product 
D)  higher taxes imposed upon producers of the product

Question 20

In March,the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3.In May,the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20.This change in the price and quantity sold could have been the result of

Accepted Answer

A)  the release of a medical study suggesting that consuming orange juice helps prevent cancer. 
B)  a reduction in the number of orange juice coupons provided by local markets. 
C)  the after effects of a cold winter in Florida that killed half of the orange crop. 
D)  the after effects of a warm winter in Florida that increased the orange crop yield by 50 percent. 
A)  the release of a medical study suggesting that consuming orange juice helps prevent cancer. 
B)  a reduction in the number of orange juice coupons provided by local markets. 
C)  the after effects of a cold winter in Florida that killed half of the orange crop. 
D)  the after effects of a warm winter in Florida that increased the orange crop yield by 50 percent.

-The above figures show the market for hamburger meat.Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

-In the above figure,if D₂ is the original demand curve and the price of a substitute in consumption rises,which price and quantity might result?

Joe pays $8,000.00 in tuition.The 8,000 dollar tuition Joe pays is an example of what economists call

Each point on a supply curve represents

If macaroni and cheese is an inferior good,an increase in income will

If the price of a good changes but everything else influencing suppliers' planned sales remains constant,there is a

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

A consumer might consider in-line skates and elbow-pads to be

If the price of a video download is below its equilibrium price,the quantity supplied is than the quantity demanded.If the price of a video download is above its equilibrium price,the quantity supplied is than the quantity demanded.

What leads to a decrease in the quantity demanded of a good or service?

An increase in the cost of producing video tape shifts the supply curve of video tape and shifts the demand curve for video tape .

Personal computers are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of computers.

What is the difference between a normal good and an inferior good? Give an example of each.

-In the above figure,a price of $15 per dozen roses would result in a so that the price of roses will .

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.What of the following could result in a movement to point b?

The "law of supply" refers to the fact that,all other things remaining the same,when the price of a good rises

The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are

Which of the following increases the supply of a product?

In March,the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3.In May,the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20.This change in the price and quantity sold could have been the result of

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 3: Demand and Supply

-The above figures show the market for hamburger meat.Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

-In the above figure,if D₂ is the original demand curve and the price of a substitute in consumption rises,which price and quantity might result?

Joe pays $8,000.00 in tuition.The 8,000 dollar tuition Joe pays is an example of what economists call

Each point on a supply curve represents

If macaroni and cheese is an inferior good,an increase in income will

If the price of a good changes but everything else influencing suppliers' planned sales remains constant,there is a

Soft drinks are a normal good.Draw a graph showing the effect of an increase in income on the demand for soft drinks.

A consumer might consider in-line skates and elbow-pads to be

If the price of a video download is below its equilibrium price,the quantity supplied is ________ than the quantity demanded.If the price of a video download is above its equilibrium price,the quantity supplied is ________ than the quantity demanded.

What leads to a decrease in the quantity demanded of a good or service?

An increase in the cost of producing video tape shifts the supply curve of video tape ________ and shifts the demand curve for video tape ________.

Personal computers are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of computers.

What is the difference between a normal good and an inferior good? Give an example of each.

-In the above figure,a price of $15 per dozen roses would result in a ________ so that the price of roses will ________.

-Consider the demand curves for soft drinks shown in the figure above.Suppose the economy is at point a.What of the following could result in a movement to point b?

The "law of supply" refers to the fact that,all other things remaining the same,when the price of a good rises

The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are

Which of the following increases the supply of a product?

In March,the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3.In May,the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20.This change in the price and quantity sold could have been the result of

What Is Economics

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

If the price of a video download is below its equilibrium price,the quantity supplied is than the quantity demanded.If the price of a video download is above its equilibrium price,the quantity supplied is than the quantity demanded.

An increase in the cost of producing video tape shifts the supply curve of video tape and shifts the demand curve for video tape .

-In the above figure,a price of $15 per dozen roses would result in a so that the price of roses will .