Question 1

-In the above figure,if the demand curve is D₂,then

Accepted Answer

A)  the equilibrium price will be P₁ and the equilibrium quantity will be Q₂. 
B)  the equilibrium price will be P₁ and the equilibrium quantity will be Q₁. 
C)  there will be a shortage equal to Q₂ - Q₁. 
D)  an increase in price will shift the demand curve to D₃. 
A)  the equilibrium price will be P₁ and the equilibrium quantity will be Q₂. 
B)  the equilibrium price will be P₁ and the equilibrium quantity will be Q₁. 
C)  there will be a shortage equal to Q₂ - Q₁. 
D)  an increase in price will shift the demand curve to D₃.

Question 2

The Market for Wapanzo Beans
Quantity Demanded Price Quantity Supplied
(millions of pounds (dollars per (millions of pounds
per year) pound) per year)
 $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline \text { Case } & \text { Case } & \text { Case } & & \text { Case A}& \text  { Case B } & \text { Case C } \
\hline 1 & 2 & 3 & & & & \
\hline 15 & 10 & 15 & \$ 1 & 1 & 2 & 3 \
\hline 12 & 8 & 4 & \$ 2 & 2 & 4 & 6 \
\hline 9 & 6 & 3 & \$ 3 & 3 & 6 & 9 \
\hline 6 & 3 & 2 & \$ 4 & 4 & 8 & 12 \
\hline 3 & 2 & 1 & \$ 5 & 5 & 10 & 15 \
\hline
\end{array}$$
-Refer to the table above.Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B.If it is discovered that wapanzo beans help prevent cancer,then supply will ________ and demand will ________.

Accepted Answer

A)  become case C; become case 1 
B)  become case C; stay at case 2 
C)  stay at case B; become case 1 
D)  become case A; become case 1 
A)  become case C; become case 1 
B)  become case C; stay at case 2 
C)  stay at case B; become case 1 
D)  become case A; become case 1

Question 3

-In the above figure,what is the minimum supply price for the fourth gallon of ice cream?

Accepted Answer

A)  $2.00 
B)  $3.00 
C)  $4.00 
D)  $5.00 
A)  $2.00 
B)  $3.00 
C)  $4.00 
D)  $5.00

Question 4

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

Accepted Answer

A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls 
A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls

Question 5

If the price of chicken falls,then in the market for beef,

Accepted Answer

A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef. 
A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef.

Question 6

The price of a gallon of milk falls.Which of the following is a possible cause?

Accepted Answer

A)  A decrease in the price of oatmeal, a complement to milk. 
B)  A discovery that milk cause diabetes. 
C)  Milk is a normal good and people's incomes rise. 
D)  A drought that reduces supplies of feed grains fed to cows that produce milk. 
A)  A decrease in the price of oatmeal, a complement to milk. 
B)  A discovery that milk cause diabetes. 
C)  Milk is a normal good and people's incomes rise. 
D)  A drought that reduces supplies of feed grains fed to cows that produce milk.

Question 7

In a supply and demand figure,the equilibrium price and quantity are found at the

Accepted Answer

A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves. 
A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves.

Question 8

If workers who make DVDs get a pay raise,the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________.

Accepted Answer

A)  rises; increases 
B)  rises; decreases 
C)  falls; decreases 
D)  falls; increases 
A)  rises; increases 
B)  rises; decreases 
C)  falls; decreases 
D)  falls; increases

Question 9

A movement along the demand curve shows a change in demand.

Accepted Answer

A) True 
 B)False

Question 10

The Market for Wapanzo Beans
Quantity Demanded Price Quantity Supplied
(millions of pounds (dollars per (millions of pounds
per year) pound) per year)
 $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline \text { Case } & \text { Case } & \text { Case } & & \text { Case A}& \text  { Case B } & \text { Case C } \
\hline 1 & 2 & 3 & & & & \
\hline 15 & 10 & 15 & \$ 1 & 1 & 2 & 3 \
\hline 12 & 8 & 4 & \$ 2 & 2 & 4 & 6 \
\hline 9 & 6 & 3 & \$ 3 & 3 & 6 & 9 \
\hline 6 & 3 & 2 & \$ 4 & 4 & 8 & 12 \
\hline 3 & 2 & 1 & \$ 5 & 5 & 10 & 15 \
\hline
\end{array}$$
-Refer to the table above.Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B.If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

Accepted Answer

A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1 
A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1

Question 11

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009,attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Accepted Answer

A)  76,500. 
B)  70,000. 
C)  6,500. 
D)  126,500. 
A)  76,500. 
B)  70,000. 
C)  6,500. 
D)  126,500.

Question 12

Because of increasing marginal cost,most supply curves

Accepted Answer

A)  are horizontal. 
B)  are vertical. 
C)  have a negative slope. 
D)  have a positive slope. 
A)  are horizontal. 
B)  are vertical. 
C)  have a negative slope. 
D)  have a positive slope.

Question 13

In the market for bananas,the price is $2.00 a bunch.An increase in the supply of bananas decreases the price of bananas and ________.

Accepted Answer

A)  the quantity supplied increases because the price falls 
B)  increases the demand for bananas 
C)  increases the quantity of bananas demanded 
D)  creates a shortage of bananas 
A)  the quantity supplied increases because the price falls 
B)  increases the demand for bananas 
C)  increases the quantity of bananas demanded 
D)  creates a shortage of bananas

Question 14

In 2006,the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,

Accepted Answer

A)  the demand curve for Hummers shifted leftward and Hummer prices decreased. 
B)  the demand curve for Hummers shifted rightward and Hummer prices increased. 
C)  there was a movement down along the Hummer demand curve. 
D)  there was a movement up along the Hummer supply curve. 
A)  the demand curve for Hummers shifted leftward and Hummer prices decreased. 
B)  the demand curve for Hummers shifted rightward and Hummer prices increased. 
C)  there was a movement down along the Hummer demand curve. 
D)  there was a movement up along the Hummer supply curve.

Question 15

At a price of $4 in the above figure,

Accepted Answer

A)  the equilibrium quantity is 400 units. 
B)  there is a surplus of 200 units. 
C)  the quantity supplied is 400 units. 
D)  there is a shortage of 200 units. 
A)  the equilibrium quantity is 400 units. 
B)  there is a surplus of 200 units. 
C)  the quantity supplied is 400 units. 
D)  there is a shortage of 200 units.

Question 16

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { pizza) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (pizzas per week) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (pizzas per week) }
\end{array} \
\hline 5 & 750 & 300 \
\hline 6 & 700 & 400 \
\hline 7 & 650 & 500 \
\hline 8 & 600 & 600 \
\hline 9 & 550 & 700 \
\hline 10 & 500 & 800 \
\hline 11 & 450 & 900 \
\hline 12 & 400 & 1,000 \
\hline
\end{array}$$
-A market research team has come up with the demand and supply schedules for pizza in Cheeseboro.These schedules are given in the table above.Use these data to analyze the situation in the market for pizza.
a) Draw a figure showing the demand curve for pizza and the supply curve of pizza.What are the equilibrium price and quantity?
b) Suppose the price is $10.Describe the situation in the market and explain how the price of pizza adjusts.Now suppose the price is $6.Describe the situation in the market and explain how the price of pizza adjusts.
c) The market research report also includes a prediction about the effect on the market for pizza in Cheeseboro of a recent news published in Cheeseboro Herald.The Herald reported that pizza has been discovered to help prevent heart diseases.Unfortunately,your dog chewed up the report and all you can read about the prediction is "quantity...by 150 at each price." What does the prediction say?
Use your graph to show the predicted effects on the market for pizza.What are the predicted equilibrium price and quantity?
How will the market adjust?

Accepted Answer

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

Question 17

When the price of a good is

Accepted Answer

A)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls. 
D)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises. 
A)  below the equilibrium price, quantity supplied exceeds quantity demanded and price rises. 
B)  below the equilibrium price, quantity demanded exceeds quantity supplied and price falls. 
C)  above the equilibrium price, quantity supplied exceeds quantity demanded and price falls. 
D)  above the equilibrium price, quantity demanded exceeds quantity supplied and price rises.

Question 18

Which of the following influences does NOT shift the supply curve?

Accepted Answer

A)  a rise in the wages paid workers who produce the good 
B)  the development of new technology 
C)  people deciding that they want to buy more of the product 
D)  a decrease in the number of suppliers 
A)  a rise in the wages paid workers who produce the good 
B)  the development of new technology 
C)  people deciding that they want to buy more of the product 
D)  a decrease in the number of suppliers

Question 19

-In the figure above,which movement could be the result of an increase in the wages paid to oil workers?

Accepted Answer

A)  point a to point e 
B)  point a to point b 
C)  point a to point c 
D)  point a to point d 
A)  point a to point e 
B)  point a to point b 
C)  point a to point c 
D)  point a to point d

Question 20

Scarcity guarantees that

Accepted Answer

A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied. 
A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied.

-In the above figure,if the demand curve is D₂,then

-In the above figure,what is the minimum supply price for the fourth gallon of ice cream?

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

If the price of chicken falls,then in the market for beef,

The price of a gallon of milk falls.Which of the following is a possible cause?

In a supply and demand figure,the equilibrium price and quantity are found at the

If workers who make DVDs get a pay raise,the equilibrium price of a DVD and the equilibrium quantity of DVDs .

A movement along the demand curve shows a change in demand.

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009,attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Because of increasing marginal cost,most supply curves

In the market for bananas,the price is $2.00 a bunch.An increase in the supply of bananas decreases the price of bananas and ________.

In 2006,the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,

At a price of $4 in the above figure,

When the price of a good is

Which of the following influences does NOT shift the supply curve?

-In the figure above,which movement could be the result of an increase in the wages paid to oil workers?

Scarcity guarantees that

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

-In the above figure,if the demand curve is D₂,then

-In the above figure,what is the minimum supply price for the fourth gallon of ice cream?

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

If the price of chicken falls,then in the market for beef,

The price of a gallon of milk falls.Which of the following is a possible cause?

In a supply and demand figure,the equilibrium price and quantity are found at the

If workers who make DVDs get a pay raise,the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________.

A movement along the demand curve shows a change in demand.

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009,attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Because of increasing marginal cost,most supply curves

In the market for bananas,the price is $2.00 a bunch.An increase in the supply of bananas decreases the price of bananas and ________.

In 2006,the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,

At a price of $4 in the above figure,

When the price of a good is

Which of the following influences does NOT shift the supply curve?

-In the figure above,which movement could be the result of an increase in the wages paid to oil workers?

Scarcity guarantees that

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

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

If workers who make DVDs get a pay raise,the equilibrium price of a DVD and the equilibrium quantity of DVDs .