Question 1

A substitute is a good

Accepted Answer

A)  that can be used in place of another good. 
B)  that is not used in place of another good. 
C)  of lower quality than another good. 
D)  of higher quality than another good. 
A)  that can be used in place of another good. 
B)  that is not used in place of another good. 
C)  of lower quality than another good. 
D)  of higher quality than another good.

Question 2

-The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?

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

-The above table gives the demand and supply schedules for cat food. If the price is $1.00 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 $1.00 per pound

Question 4

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Accepted Answer

A)  7 pounds, $3.00 per pound 
B)  2 pounds, $3.00 per pound 
C)  2 pounds, $6.00 per pound 
D)  4 pounds, $5.00 per pound 
A)  7 pounds, $3.00 per pound 
B)  2 pounds, $3.00 per pound 
C)  2 pounds, $6.00 per pound 
D)  4 pounds, $5.00 per pound

Question 5

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

Accepted Answer

A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat. 
A)  an increase in current supply of wheat. 
B)  a decrease in current supply of wheat. 
C)  a decrease in future supply of wheat. 
D)  no change in current or future supply of wheat.

Question 6

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

Accepted Answer

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

Question 7

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

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

Question 8

All grapefruit juice producers have decided to blend tangerine juice with the grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice. What will happen to the equilibrium price and quantity of the new "blended" grapefruit juice now that it costs more to produce but consumers like it better?

Accepted Answer

A)  The price rises and the quantity increases. 
B)  The price falls and the quantity increases. 
C)  The effect on the price is uncertain but the quantity increases. 
D)  The price rises, but the effect on the quantity is uncertain. 
A)  The price rises and the quantity increases. 
B)  The price falls and the quantity increases. 
C)  The effect on the price is uncertain but the quantity increases. 
D)  The price rises, but the effect on the quantity is uncertain.

Question 9

Which of the following is NOT one of the factors that influences the supply of a product?

Accepted Answer

A)  technology 
B)  income 
C)  number of suppliers 
D)  expected future prices 
A)  technology 
B)  income 
C)  number of suppliers 
D)  expected future prices

Question 10

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ________ and the quantity of memory chips ________.

Accepted Answer

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

Question 11

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

Accepted Answer

A)  a decrease in quantity demanded. 
B)  an increase in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in demand. 
A)  a decrease in quantity demanded. 
B)  an increase in demand. 
C)  an increase in quantity demanded. 
D)  a decrease in demand.

Question 12

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Question 13

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Accepted Answer

A)  X and Y are complements. 
B)  X and Y both normal goods. 
C)  X is an inferior good and Y is a normal good. 
D)  X is a normal good and Y is an inferior good. 
A)  X and Y are complements. 
B)  X and Y both normal goods. 
C)  X is an inferior good and Y is a normal good. 
D)  X is a normal good and Y is an inferior good.

Question 14

Which of the following statements is CORRECT?

Accepted Answer

A)  When demand increases, both the price and the quantity increase. 
B)  When demand decreases, the price rises and the quantity decreases. 
C)  When supply increases, the quantity decreases and the price rises. 
D)  When supply decreases, both the price and the quantity decrease. 
A)  When demand increases, both the price and the quantity increase. 
B)  When demand decreases, the price rises and the quantity decreases. 
C)  When supply increases, the quantity decreases and the price rises. 
D)  When supply decreases, both the price and the quantity decrease.

Question 15

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases. This set of results means that

Accepted Answer

A)  demand increased by more than supply decreased. 
B)  supply decreased by more than demand increased. 
C)  demand increased by more than supply increased. 
D)  supply decreased by more than demand decreased. 
A)  demand increased by more than supply decreased. 
B)  supply decreased by more than demand increased. 
C)  demand increased by more than supply increased. 
D)  supply decreased by more than demand decreased.

Question 16

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of Blu-rays?

Accepted Answer

The initial equilibrium price is $11.50

Question 17

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris ________ and the equilibrium quantity of flights to Paris ________.

Accepted Answer

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

Question 18

-In the above figure, if the price is $8 then there is a

Accepted Answer

A)  surplus of 100. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  shortage of 200. 
A)  surplus of 100. 
B)  surplus of 200. 
C)  shortage of 100. 
D)  shortage of 200.

Question 19

An increase in technology will shift the good's supply curve rightward.

Accepted Answer

A) True 
 B)False

Question 20

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, 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

A substitute is a good

-The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Which of the following is NOT one of the factors that influences the supply of a product?

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip and the quantity of memory chips .

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Which of the following statements is CORRECT?

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases. This set of results means that

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of Blu-rays?

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .

-In the above figure, if the price is $8 then there is a

An increase in technology will shift the good's supply curve rightward.

-In the above figure, if D₂ is the original demand curve for a normal good and income decreases, which price and quantity might result?

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

A substitute is a good

-The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed?

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Which of the following is NOT one of the factors that influences the supply of a product?

The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ________ and the quantity of memory chips ________.

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Which of the following statements is CORRECT?

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price rises and the quantity increases. This set of results means that

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million. What is the new equilibrium price and the new equilibrium quantity of Blu-rays?

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris ________ and the equilibrium quantity of flights to Paris ________.

-In the above figure, if the price is $8 then there is a

An increase in technology will shift the good's supply curve rightward.

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

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 number of firms producing computer memory chips decreases. As a result, the price of a memory chip and the quantity of memory chips .

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .

-In the above figure, if D₂ is the original demand curve for a normal good and income decreases, which price and quantity might result?