Question 1

-In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

Accepted Answer

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

Question 2

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

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 3

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

Accepted Answer

A)  demand for apples decreases. 
B)  quantity of apples demanded decreases. 
C)  quantity of apples supplied decreases. 
D)  Both answers A and B are correct. 
A)  demand for apples decreases. 
B)  quantity of apples demanded decreases. 
C)  quantity of apples supplied decreases. 
D)  Both answers A and B are correct.

Question 4

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

Accepted Answer

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

Question 5

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

Accepted Answer

A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C 
A)  Figure B 
B)  Figure C 
C)  Figure D 
D)  Figures B and C

Question 6

The supply curve slopes upward when graphed against ________, because of ________.

Accepted Answer

A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost 
A)  the price of the good; increasing marginal cost 
B)  the price of the good; decreasing marginal cost 
C)  income; increasing marginal cost 
D)  income; decreasing marginal cost

Question 7

When the price is less than the equilibrium price

Accepted Answer

A)  there will be a shortage. 
B)  some consumers will be willing to pay a price higher than the prevailing price. 
C)  the price will be forced higher. 
D)  All of the above answers are correct. 
A)  there will be a shortage. 
B)  some consumers will be willing to pay a price higher than the prevailing price. 
C)  the price will be forced higher. 
D)  All of the above answers are correct.

Question 8

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Accepted Answer

A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise. 
A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise.

Question 9

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed.

Question 10

The price of a good will fall if

Accepted Answer

A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the quantity demanded exceeds the quantity supplied. 
D)  the price of a complement in consumption falls. 
A)  there is a surplus at the current price. 
B)  the current price is less than the equilibrium price. 
C)  the quantity demanded exceeds the quantity supplied. 
D)  the price of a complement in consumption falls.

Question 11

The Market for Wapanzo BeansQuantity Demanded Price Quantity Supplied(millions of pounds (dollars per (millions of poundsper year) pound) per year)  
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be

Accepted Answer

A)  2 million pounds. 
B)  4 million pounds. 
C)  6 million pounds. 
D)  8 million pounds. 
A)  2 million pounds. 
B)  4 million pounds. 
C)  6 million pounds. 
D)  8 million pounds.

Question 12

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

Accepted Answer

A)  a fall in income if used cars are an inferior good 
B)  an increase in the wage rate paid to used car salespeople 
C)  neither of the above because the question suggests a violation of the "law of demand" 
D)  neither of the above because the question suggests a violation of the "law of supply" 
A)  a fall in income if used cars are an inferior good 
B)  an increase in the wage rate paid to used car salespeople 
C)  neither of the above because the question suggests a violation of the "law of demand" 
D)  neither of the above because the question suggests a violation of the "law of supply"

Question 13

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

Accepted Answer

A)  3 bottles of soda per bag of corn chips 
B)  1/3 bottle of soda per bag of corn chips 
C)  $3 
D)  33¢ 
A)  3 bottles of soda per bag of corn chips 
B)  1/3 bottle of soda per bag of corn chips 
C)  $3 
D)  33¢

Question 14

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

Accepted Answer

A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease 
A)  will rise above; demanded will decrease 
B)  will rise above; supplied will increase 
C)  will fall below; demanded will increase 
D)  will fall below; demanded will decrease

Question 15

As the price of a pound of peanuts falls, the

Accepted Answer

A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases. 
A)  supply of peanuts increases. 
B)  supply of peanuts decreases. 
C)  quantity of peanuts supplied increases. 
D)  quantity of peanuts supplied decreases.

Question 16

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

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 17

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

Accepted Answer

A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases. 
A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases.

Question 18

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

Accepted Answer

A)  The equilibrium price will rise because the supply curve shifts rightward. 
B)  The equilibrium price falls because the supply curve shifts leftward. 
C)  The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known. 
D)  The demand curve shifts rightward and the supply curve does not shift. 
A)  The equilibrium price will rise because the supply curve shifts rightward. 
B)  The equilibrium price falls because the supply curve shifts leftward. 
C)  The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known. 
D)  The demand curve shifts rightward and the supply curve does not shift.

Question 19

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

Accepted Answer

The equilibrium price is $1.50 per pound

Question 20

When there is a surplus in the market, the quantity sold is

Accepted Answer

A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought. 
A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought.

-In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

The demand curve for a normal good shifts leftward if income or the expected future price .

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

The supply curve slopes upward when graphed against , because of .

When the price is less than the equilibrium price

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

The price of a good will fall if

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .

As the price of a pound of peanuts falls, the

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

When there is a surplus in the market, the quantity sold is

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

-In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

-The above figures show the market for gasoline. Which figure(s) shows the effect of a decision by the OPEC countries in the Middle East to export less oil to the rest of the world?

The supply curve slopes upward when graphed against ________, because of ________.

When the price is less than the equilibrium price

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

The price of a good will fall if

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

As the price of a pound of peanuts falls, the

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

When there is a surplus in the market, the quantity sold is

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

The demand curve for a normal good shifts leftward if income or the expected future price .

The supply curve slopes upward when graphed against , because of .

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair $40 and the quantity .