Question 1

Which of the following is NOT held constant while moving along a supply curve?

Accepted Answer

A)  expected future prices 
B)  the number of sellers 
C)  the price of the good itself 
D)  prices of factors of production 
A)  expected future prices 
B)  the number of sellers 
C)  the price of the good itself 
D)  prices of factors of production

Question 2

An increase in the number of suppliers in a market results in a

Accepted Answer

A)  movement up along the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the supply curve. 
D)  Both answers A and C are correct. 
A)  movement up along the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the supply curve. 
D)  Both answers A and C are correct.

Question 3

-In the above figure, a price of $35 per dozen would result in

Accepted Answer

A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices. 
A)  a shortage. 
B)  equilibrium. 
C)  a surplus. 
D)  upward pressure on prices.

Question 4

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric

Question 5

-The equilibrium quantity in the above figure is

Accepted Answer

A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units. 
A)  200 units. 
B)  300 units. 
C)  400 units. 
D)  600 units.

Question 6

A decrease in quantity demanded because of an increase in price is represented by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  movement down and to the right along the demand curve. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement up and to the left along the demand curve. 
D)  movement down and to the right along the demand curve.

Question 7

Young drivers often buy used cars. An increase in the legal driving age to twenty-one would result in a leftward movement along the demand curve for used cars, whereas lowering the age to fifteen would result in a rightward movement along the demand curve.

Accepted Answer

A) True 
 B)False

Question 8

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the price of

Question 9

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

A consumer might consider in-line skates and elbow-pads to be

Accepted Answer

A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes. 
A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes.

Question 12

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded. 
A)  An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. 
B)  An increase in the price of a soda causes a decrease in the quantity of soda demanded. 
C)  A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. 
D)  A decrease in the price of juice causes no change in the quantity of juice demanded.

Question 13

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  rises; decreases 
B)  falls; increases 
C)  rises; probably changes but the direction of the change cannot be determined 
D)  probably changes but the direction of the change cannot be determined; increases 
A)  rises; decreases 
B)  falls; increases 
C)  rises; probably changes but the direction of the change cannot be determined 
D)  probably changes but the direction of the change cannot be determined; increases

Question 14

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda. 
A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda.

Question 15

If the demand for hamburgers decreases, the equilibrium price

Accepted Answer

A)  rises and the equilibrium quantity increases. 
B)  falls and the equilibrium quantity increases. 
C)  rises and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity decreases. 
A)  rises and the equilibrium quantity increases. 
B)  falls and the equilibrium quantity increases. 
C)  rises and the equilibrium quantity decreases. 
D)  falls and the equilibrium quantity decreases.

Question 16

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

Accepted Answer

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

Question 17

Wants, as opposed to demands

Accepted Answer

A)  are the unlimited desires of the consumer. 
B)  are the goods the consumer plans to acquire. 
C)  are the goods the consumer has acquired. 
D)  depend on the price. 
A)  are the unlimited desires of the consumer. 
B)  are the goods the consumer plans to acquire. 
C)  are the goods the consumer has acquired. 
D)  depend on the price.

Question 18

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Accepted Answer

A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d. 
A)  none of the points that are illustrated. 
B)  point b. 
C)  point c. 
D)  point d.

Question 19

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

Accepted Answer

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

Question 20

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

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

Which of the following is NOT held constant while moving along a supply curve?

An increase in the number of suppliers in a market results in a

-In the above figure, a price of $35 per dozen would result in

When does a surplus occur?

-The equilibrium quantity in the above figure is

A decrease in quantity demanded because of an increase in price is represented by a

Young drivers often buy used cars. An increase in the legal driving age to twenty-one would result in a leftward movement along the demand curve for used cars, whereas lowering the age to fifteen would result in a rightward movement along the demand curve.

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

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

A consumer might consider in-line skates and elbow-pads to be

Which of the following is consistent with the law of demand?

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price and the equilibrium quantity .

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

If the demand for hamburgers decreases, the equilibrium price

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will and the equilibrium quantity will .

Wants, as opposed to demands

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

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 is NOT held constant while moving along a supply curve?

An increase in the number of suppliers in a market results in a

-In the above figure, a price of $35 per dozen would result in

When does a surplus occur?

-The equilibrium quantity in the above figure is

A decrease in quantity demanded because of an increase in price is represented by a

Young drivers often buy used cars. An increase in the legal driving age to twenty-one would result in a leftward movement along the demand curve for used cars, whereas lowering the age to fifteen would result in a rightward movement along the demand curve.

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?

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

A consumer might consider in-line skates and elbow-pads to be

Which of the following is consistent with the law of demand?

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price ________ and the equilibrium quantity ________.

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

If the demand for hamburgers decreases, the equilibrium price

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

Wants, as opposed to demands

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

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

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price and the equilibrium quantity .

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will and the equilibrium quantity will .