Question 1

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 2

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 3

In a market, at the equilibrium price

Accepted Answer

A)  neither buyers nor sellers can do business at a better price. 
B)  buyers are willing to pay a higher price, but sellers do not ask for a higher price. 
C)  buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. 
D)  None of the above is true. 
A)  neither buyers nor sellers can do business at a better price. 
B)  buyers are willing to pay a higher price, but sellers do not ask for a higher price. 
C)  buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. 
D)  None of the above is true.

Question 4

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

Accepted Answer

A)  a normal good. 
B)  an inferior good. 
C)  a substitute good for video cameras. 
D)  a complement to video cameras. 
A)  a normal good. 
B)  an inferior good. 
C)  a substitute good for video cameras. 
D)  a complement to video cameras.

Question 5

If a market is NOT in equilibrium, then which of the following is likely to occur?

Accepted Answer

A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct. 
A)  The demand curve will shift to bring the market to equilibrium. 
B)  The supply curve will shift to bring the market to equilibrium. 
C)  The price will adjust to bring the market to equilibrium. 
D)  Both A and B are correct.

Question 6

-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 7

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

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 8

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 9

If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will

Accepted Answer

A)  rise. 
B)  fall. 
C)  neither rise nor fall. 
D)  at first fall then rise. 
A)  rise. 
B)  fall. 
C)  neither rise nor fall. 
D)  at first fall then rise.

Question 10

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

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 11

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

Accepted Answer

A)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries does not shift. 
B)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries shifts from S2 to S1. 
C)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries shifts from S1 to S2. 
D)  demand curve for french fries does not shift, and the supply curve of french fries shifts from S1 to S2. 
A)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries does not shift. 
B)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries shifts from S2 to S1. 
C)  demand curve for french fries shifts from D2 to D1 and the supply curve of french fries shifts from S1 to S2. 
D)  demand curve for french fries does not shift, and the supply curve of french fries shifts from S1 to S2.

Question 12

A normal good is a good for which demand

Accepted Answer

A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases. 
A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Accepted Answer

A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell 
A)  is willing to sell 
B)  actually sells 
C)  needs to sell 
D)  should sell

Question 15

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________.

Accepted Answer

A)  increases and the price might rise, fall or not change 
B)  increases and the price rises 
C)  doesn't change and the price falls 
D)  doesn't change and the price rises 
A)  increases and the price might rise, fall or not change 
B)  increases and the price rises 
C)  doesn't change and the price falls 
D)  doesn't change and the price rises

Question 16

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

A)  increases; falls 
B)  decreases; might rise, fall, or not change 
C)  decreases; rises 
D)  increases; might rise, fall, or not change 
A)  increases; falls 
B)  decreases; might rise, fall, or not change 
C)  decreases; rises 
D)  increases; might rise, fall, or not change

Question 17

Why does an increase in the supply of computers lead to a lower price for a computer?

Accepted Answer

When the supply of a good, such as compu

Question 18

A decrease in the quantity supplied is represented by a

Accepted Answer

A)  movement down the supply curve. 
B)  movement up the supply curve. 
C)  rightward shift in the supply curve. 
D)  leftward shift in the supply curve. 
A)  movement down the supply curve. 
B)  movement up the supply curve. 
C)  rightward shift in the supply curve. 
D)  leftward shift in the supply curve.

Question 19

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

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 20

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

Accepted Answer

A)  a movement up along the supply curve for wind-generated power. 
B)  a rightward shift in the supply curve for wind-generated power. 
C)  a decrease in the supply of wind-generated power. 
D)  GE increasing the quantity supplied of wind turbines. 
A)  a movement up along the supply curve for wind-generated power. 
B)  a rightward shift in the supply curve for wind-generated power. 
C)  a decrease in the supply of wind-generated power. 
D)  GE increasing the quantity supplied of wind turbines.

Which of the following increases the supply of a product?

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

In a market, at the equilibrium price

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

If a market is NOT in equilibrium, then which of the following is likely to occur?

-At a price of $4 in the above figure

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

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.

If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

A normal good is a good for which demand

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

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________.

If both the demand and supply increase, the equilibrium quantity and the equilibrium price .

Why does an increase in the supply of computers lead to a lower price for a computer?

A decrease in the quantity supplied is represented by a

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 3: Demand and Supply

Which of the following increases the supply of a product?

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

In a market, at the equilibrium price

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

If a market is NOT in equilibrium, then which of the following is likely to occur?

-At a price of $4 in the above figure

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

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.

If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

-The above figure shows the market for french fries at fast food joints. If the price of potatoes rises and simultaneously people become concerned that french fries can cause heart attacks the

A normal good is a good for which demand

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

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________.

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

Why does an increase in the supply of computers lead to a lower price for a computer?

A decrease in the quantity supplied is represented by a

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

What Is Economics

The Economic Problem

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

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.

If both the demand and supply increase, the equilibrium quantity and the equilibrium price .