Question 1

Which of the following does NOT shift the supply curve?

Accepted Answer

A)  a technological advance 
B)  a decrease in the wages of labor used in production of the good 
C)  a fall in the price of a substitute in production 
D)  an increase in the price of the good 
A)  a technological advance 
B)  a decrease in the wages of labor used in production of the good 
C)  a fall in the price of a substitute in production 
D)  an increase in the price of the good

Question 2

Which of the following shifts the supply curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers

Question 3

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20. 
A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20.

Question 4

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

Accepted Answer

A)  granola bars will increase, that is, the demand curve will shift rightward. 
B)  cupcakes will increase, that is, the demand curve will shift rightward. 
C)  granola bars will decrease, that is, the demand curve will shift leftward. 
D)  cupcakes will decrease, that is, the demand curve will shift leftward. 
A)  granola bars will increase, that is, the demand curve will shift rightward. 
B)  cupcakes will increase, that is, the demand curve will shift rightward. 
C)  granola bars will decrease, that is, the demand curve will shift leftward. 
D)  cupcakes will decrease, that is, the demand curve will shift leftward.

Question 5

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________.

Accepted Answer

A)  an inferior good 
B)  a normal good 
C)  a substitute good 
D)  a complement good 
A)  an inferior good 
B)  a normal good 
C)  a substitute good 
D)  a complement good

Question 6

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, 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 7

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

Accepted Answer

A)  leftward and the equilibrium price of leather shoes will fall. 
B)  leftward and the equilibrium price of leather shoes will rise. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  rightward and the equilibrium price of leather shoes will rise. 
A)  leftward and the equilibrium price of leather shoes will fall. 
B)  leftward and the equilibrium price of leather shoes will rise. 
C)  rightward and the equilibrium price of leather shoes will fall. 
D)  rightward and the equilibrium price of leather shoes will rise.

Question 8

A normal good is one

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above

Question 9

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Accepted Answer

A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease 
A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease

Question 10

Changes in which of the following shifts the supply curve of hamburgers?

Accepted Answer

A)  a rise in the price of soda, a complement for hamburgers 
B)  new research that establishes a link between hamburgers and heart problems 
C)  an increase in the price of meat used to produce hamburgers 
D)  an economy-wide decrease in income because of a long recession 
A)  a rise in the price of soda, a complement for hamburgers 
B)  new research that establishes a link between hamburgers and heart problems 
C)  an increase in the price of meat used to produce hamburgers 
D)  an economy-wide decrease in income because of a long recession

Question 11

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market?
Suppose the current price is $12.00. What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

Accepted Answer

The equilibrium price is $11.50. The equ

Question 12

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Accepted Answer

A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco. 
A)  $12 per pizza. 
B)  $24 per pizza. 
C)  6 tacos per pizza. 
D)  1/6 pizza per taco.

Question 13

-The above table gives the demand and supply schedules for cat food. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

Accepted Answer

At a price of $3.00 per pound

Question 14

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

Accepted Answer

A)  "law of supply" does not apply to companies in the "high-tech" sector of the economy. 
B)  "law of demand" does not apply to customers in the "high-tech" sector of the economy. 
C)  supply curve of tablets shifted rightward. 
D)  demand curve for tablets shifted leftward. 
A)  "law of supply" does not apply to companies in the "high-tech" sector of the economy. 
B)  "law of demand" does not apply to customers in the "high-tech" sector of the economy. 
C)  supply curve of tablets shifted rightward. 
D)  demand curve for tablets shifted leftward.

Question 15

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________.

Accepted Answer

A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease 
A)  rise; increase 
B)  rise; decrease 
C)  fall; increase 
D)  fall; decrease

Question 16

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Accepted Answer

A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers 
A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers

Question 17

The "law of demand" states that changes in

Accepted Answer

A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply. 
A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply.

Question 18

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d).

Accepted Answer

A) True 
 B)False

Question 19

The opportunity cost of a hot dog in terms of hamburgers is the

Accepted Answer

A)  ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
B)  ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. 
C)  money price of a hot dog minus the money price of a hamburger. 
D)  ratio of the money price of a hot dog to the money price of a hamburger. 
A)  ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. 
B)  ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. 
C)  money price of a hot dog minus the money price of a hamburger. 
D)  ratio of the money price of a hot dog to the money price of a hamburger.

Question 20

Which of the following shifts the supply curve for gasoline rightward?

Accepted Answer

A)  a situation in which the quantity demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  an increase in the demand for gas-guzzling, sport utility vehicles 
A)  a situation in which the quantity demanded exceeds the quantity supplied 
B)  an increase in the price of gasoline 
C)  a decrease in the price of a resource used to produce gasoline, such as crude oil 
D)  an increase in the demand for gas-guzzling, sport utility vehicles

Which of the following does NOT shift the supply curve?

Which of the following shifts the supply curve for oranges?

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________.

-In the above figure, if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

A normal good is one

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

Changes in which of the following shifts the supply curve of hamburgers?

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will and the equilibrium quantity will .

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

The "law of demand" states that changes in

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d).

The opportunity cost of a hot dog in terms of hamburgers is the

Which of the following shifts the supply curve for gasoline rightward?

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 does NOT shift the supply curve?

Which of the following shifts the supply curve for oranges?

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________.

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

A normal good is one

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Changes in which of the following shifts the supply curve of hamburgers?

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________.

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

The "law of demand" states that changes in

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d).

The opportunity cost of a hot dog in terms of hamburgers is the

Which of the following shifts the supply curve for gasoline rightward?

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, if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will and the equilibrium quantity will .