Question 1

-The equilibrium price in the above figure is

Accepted Answer

A)  $2. 
B)  $4. 
C)  $6. 
D)  $8. 
A)  $2. 
B)  $4. 
C)  $6. 
D)  $8.

Question 2

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

Accepted Answer

A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded. 
A)  price is the lowest possible. 
B)  price is usually affordable to most people. 
C)  supply and demand curves can never shift again. 
D)  quantity supplied equals the quantity demanded.

Question 3

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplie

Question 4

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

Accepted Answer

A) True 
 B)False

Question 5

When a market is in equilibrium

Accepted Answer

A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve. 
A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve.

Question 6

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 7

Which of the following decreases the demand for an inferior good?

Accepted Answer

A)  an increase in income 
B)  a decrease in the price of a complement 
C)  a decrease in income 
D)  an increase in the price of a substitute 
A)  an increase in income 
B)  a decrease in the price of a complement 
C)  a decrease in income 
D)  an increase in the price of a substitute

Question 8

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  might rise, fall, or stay the same; decreases 
B)  might rise, fall, or stay the same; increases 
C)  falls; increases 
D)  rises; might increase, decrease, or stay the same 
A)  might rise, fall, or stay the same; decreases 
B)  might rise, fall, or stay the same; increases 
C)  falls; increases 
D)  rises; might increase, decrease, or stay the same

Question 9

The "law of supply" states that, other things remaining the same, firms produce

Accepted Answer

A)  more of a good the less it costs to produce it. 
B)  less of a good the more it costs to produce it. 
C)  more of a good the higher its price. 
D)  less of a good as the required resources become scarcer. 
A)  more of a good the less it costs to produce it. 
B)  less of a good the more it costs to produce it. 
C)  more of a good the higher its price. 
D)  less of a good as the required resources become scarcer.

Question 10

A supply curve shows the relation between the quantity of a good supplied and

Accepted Answer

A)  income. Usually a supply curve has negative slope. 
B)  income. Usually a supply curve has positive slope. 
C)  the price of the good. Usually a supply curve has negative slope. 
D)  the price of the good. Usually a supply curve has positive slope. 
A)  income. Usually a supply curve has negative slope. 
B)  income. Usually a supply curve has positive slope. 
C)  the price of the good. Usually a supply curve has negative slope. 
D)  the price of the good. Usually a supply curve has positive slope.

Question 11

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

Accepted Answer

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

Question 12

What leads to a decrease in the quantity demanded of a good or service?

Accepted Answer

The quantity demande

Question 13

When the price of a good falls, the income effect for a normal good implies that people buy

Accepted Answer

A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought. 
A)  less of that good because the relative price of the good has fallen. 
B)  more of that good because the relative price of the good has risen. 
C)  less of that good because they cannot afford to buy all the things they previously bought. 
D)  more of that good because they can afford to buy more of all the things they previously bought.

Question 14

-The table shows the demand and supply schedules for jeans.

Accepted Answer

A)  At $60 a pair, there is a shortage of jeans and the price will fall. 
B)  At $60 a pair, there is a surplus of jeans and the price will rise. 
C)  At $40 a pair, there is a shortage of jeans and the price will rise. 
D)  At $40 a pair, there is a shortage of jeans and the price will fall. 
A)  At $60 a pair, there is a shortage of jeans and the price will fall. 
B)  At $60 a pair, there is a surplus of jeans and the price will rise. 
C)  At $40 a pair, there is a shortage of jeans and the price will rise. 
D)  At $40 a pair, there is a shortage of jeans and the price will fall.

Question 15

-In the figure above, an increase in the supply of oil would result in 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.

-The equilibrium price in the above figure is

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

What leads to a decrease in the quantity supplied of a good or service?

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

When a market is in equilibrium

At prices above the equilibrium price, what occurs?

Which of the following decreases the demand for an inferior good?

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .

The "law of supply" states that, other things remaining the same, firms produce

A supply curve shows the relation between the quantity of a good supplied and

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

What leads to a decrease in the quantity demanded of a good or service?

When the price of a good falls, the income effect for a normal good implies that people buy

-The table shows the demand and supply schedules for jeans.

-In the figure above, an increase in the supply of oil would result in a movement from

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

-The equilibrium price in the above figure is

Which of the following is the best way to describe equilibrium in a market? At equilibrium, the

What leads to a decrease in the quantity supplied of a good or service?

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

When a market is in equilibrium

At prices above the equilibrium price, what occurs?

Which of the following decreases the demand for an inferior good?

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

The "law of supply" states that, other things remaining the same, firms produce

A supply curve shows the relation between the quantity of a good supplied and

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

What leads to a decrease in the quantity demanded of a good or service?

When the price of a good falls, the income effect for a normal good implies that people buy

-The table shows the demand and supply schedules for jeans.

-In the figure above, an increase in the supply of oil would result in a movement from

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 supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price and the equilibrium quantity .