Question 1

-Using the data in the above table, at the price of $80 a phone, a

Accepted Answer

A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs. 
A)  shortage of 25 thousand cellular telephones occurs. 
B)  surplus of 80 thousand cellular telephones occurs. 
C)  surplus of 25 thousand cellular telephones occurs. 
D)  shortage of 55 thousand cellular telephones occurs.

Question 2

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 were about 70,000 people on the waiting list to buy season tickets in 2010. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the

Accepted Answer

A)  demand for Packers tickets decreased. 
B)  demand curve for Packers tickets shifted rightward. 
C)  quantity demanded of Packers tickets decreased. 
D)  substitution effect changed the quantity demanded. 
A)  demand for Packers tickets decreased. 
B)  demand curve for Packers tickets shifted rightward. 
C)  quantity demanded of Packers tickets decreased. 
D)  substitution effect changed the quantity demanded.

Question 3

-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 4

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

Accepted Answer

A)  technological advances in digital camera production 
B)  consumers' preferences changed in favor of digital cameras 
C)  the price of film cameras fell 
D)  workers who make digital cameras received a pay raise 
A)  technological advances in digital camera production 
B)  consumers' preferences changed in favor of digital cameras 
C)  the price of film cameras fell 
D)  workers who make digital cameras received a pay raise

Question 5

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

Accepted Answer

A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16. 
A)  28,000 and $12. 
B)  20,000 and $20. 
C)  16,000 and $24. 
D)  16,000 and $16.

Question 6

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.

Accepted Answer

Margarine is an inferior good.

Question 7

When the demand for blue jeans increases, what happens next?

Accepted Answer

If the demand for blue jeans increases,

Question 8

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

Accepted Answer

A)  a rise in the price of spinach 
B)  a newly discovered health benefit from eating spinach 
C)  an increase in the price of broccoli, a substitute for spinach 
D)  an increase in income for all spinach lovers 
A)  a rise in the price of spinach 
B)  a newly discovered health benefit from eating spinach 
C)  an increase in the price of broccoli, a substitute for spinach 
D)  an increase in income for all spinach lovers

Question 9

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

Accepted Answer

A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease. 
A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease.

Question 10

-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 11

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good. 
A)  the law of supply. 
B)  the law of demand. 
C)  a change in supply. 
D)  the nature of an inferior good.

Question 12

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 13

When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

Accepted Answer

A)  an increase; an increase 
B)  an increase; a decrease 
C)  a decrease; an increase 
D)  a decrease; a decrease 
A)  an increase; an increase 
B)  an increase; a decrease 
C)  a decrease; an increase 
D)  a decrease; a decrease

Question 14

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

Accepted Answer

A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate. 
A)  increase, so that equilibrium price and equilibrium quantity will increase. 
B)  decrease, so that equilibrium price and equilibrium quantity will increase. 
C)  increase, so that equilibrium price will decrease and equilibrium quantity will increase. 
D)  increase, but the new equilibrium price and quantity are indeterminate.

Question 15

Which of the following increases the demand for a normal good?

Accepted Answer

A)  a decrease in income 
B)  an decrease in the price of a substitute 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future 
A)  a decrease in income 
B)  an decrease in the price of a substitute 
C)  an increase in the price of a complement 
D)  the price of the good is expected to increase in the future

Question 16

Which of the following lists has variables that all shift a good's demand curve?

Accepted Answer

A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct. 
A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct.

Question 17

A change in which of the following shifts the demand curve?

Accepted Answer

A)  the number of sellers in the market 
B)  the price of the resources used to produce the product 
C)  the technology with which the product is produced 
D)  the tastes and preferences of consumers 
A)  the number of sellers in the market 
B)  the price of the resources used to produce the product 
C)  the technology with which the product is produced 
D)  the tastes and preferences of consumers

Question 18

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

Accepted Answer

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

Question 19

Which of the following shifts the demand curve for movie downloads rightward?

Accepted Answer

A)  a decrease in the price of downloading a movie 
B)  a 10 percent increase in people's income if movie downloads are a normal good 
C)  a decrease in the price of cable television service 
D)  an increase in the quantity and quality of programming included in the basic cable television service package 
A)  a decrease in the price of downloading a movie 
B)  a 10 percent increase in people's income if movie downloads are a normal good 
C)  a decrease in the price of cable television service 
D)  an increase in the quantity and quality of programming included in the basic cable television service package

Question 20

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

Accepted Answer

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

-Using the data in the above table, at the price of $80 a phone, a

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

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.

When the demand for blue jeans increases, what happens next?

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

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

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

When the price of a good is

When the price of an inferior good falls, the substitution effect leads to in the quantity purchased and the income effect leads to in the quantity purchased.

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

Which of the following increases the demand for a normal good?

Which of the following lists has variables that all shift a good's demand curve?

A change in which of the following shifts the demand curve?

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

Which of the following shifts the demand curve for movie downloads rightward?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

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

-Using the data in the above table, at the price of $80 a phone, a

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

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

-The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.

When the demand for blue jeans increases, what happens next?

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

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

A rise in the price of a good causes producers to supply more of the good. This statement illustrates

When the price of a good is

When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

Which of the following increases the demand for a normal good?

Which of the following lists has variables that all shift a good's demand curve?

A change in which of the following shifts the demand curve?

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

Which of the following shifts the demand curve for movie downloads rightward?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

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

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

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

When the price of an inferior good falls, the substitution effect leads to in the quantity purchased and the income effect leads to in the quantity purchased.