Question 1

-In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

Accepted Answer

A)  supply and demand curves both would have to shift leftward. 
B)  supply curve would have to shift leftward and the demand curve would have to shift rightward. 
C)  supply curve would have to shift rightward and the demand curve would have to shift leftward. 
D)  supply and demand curves both would have to shift rightward. 
A)  supply and demand curves both would have to shift leftward. 
B)  supply curve would have to shift leftward and the demand curve would have to shift rightward. 
C)  supply curve would have to shift rightward and the demand curve would have to shift leftward. 
D)  supply and demand curves both would have to shift rightward.

Question 2

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

Accepted Answer

The higher price could have been brought

Question 3

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

Accepted Answer

The factors that change supply are techn

Question 4

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

Accepted Answer

A)  with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs. 
B)  with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward. 
C)  more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs. 
D)  Both answers A and C are correct. 
A)  with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs. 
B)  with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward. 
C)  more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs. 
D)  Both answers A and C are correct.

Question 5

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

Accepted Answer

A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure. 
A)  a surplus at printed ticket prices. 
B)  a shortage at printed ticket prices. 
C)  the tournament not being televised. 
D)  the tournament getting too much television exposure.

Question 6

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

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 7

If the price of chocolate chip cookies falls, then

Accepted Answer

A)  the supply curve of chocolate chip cookies shifts rightward. 
B)  the supply curve of chocolate chip cookies shifts leftward. 
C)  there is a movement downward along the supply curve of chocolate chip cookies. 
D)  there is a movement upward along the supply curve of chocolate chip cookies. 
A)  the supply curve of chocolate chip cookies shifts rightward. 
B)  the supply curve of chocolate chip cookies shifts leftward. 
C)  there is a movement downward along the supply curve of chocolate chip cookies. 
D)  there is a movement upward along the supply curve of chocolate chip cookies.

Question 8

If the price of chicken falls, then in the market for beef

Accepted Answer

A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef. 
A)  the demand curve for beef shifts rightward. 
B)  the demand curve for beef shifts leftward. 
C)  there is a movement downward along the demand curve for beef. 
D)  there is a movement upward along the demand curve for beef.

Question 9

As the price of a pound of peanuts falls, the

Accepted Answer

A)  demand for peanuts increases. 
B)  demand for peanuts decreases. 
C)  quantity of peanuts demanded increases. 
D)  Both answers A and C are correct. 
A)  demand for peanuts increases. 
B)  demand for peanuts decreases. 
C)  quantity of peanuts demanded increases. 
D)  Both answers A and C are correct.

Question 10

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

Accepted Answer

A)  price of bikes definitely increases. 
B)  price of bikes definitely decreases. 
C)  quantity of bikes definitely increases. 
D)  quantity of bikes definitely decreases. 
A)  price of bikes definitely increases. 
B)  price of bikes definitely decreases. 
C)  quantity of bikes definitely increases. 
D)  quantity of bikes definitely decreases.

Question 11

-In the above figure, if D2 is the original demand curve and the population falls, 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 12

-A market research team has come up with the demand and supply schedules for gasoline in Motorville in the table above. Use these data to analyze the situation in the market for gas in Motorville.
a) Draw a figure showing the demand curve for gasoline and the supply curve of gasoline. What are the equilibrium price and quantity?
b) Suppose the price is $3.30. Describe the situation in the market and explain how the market adjusts. Now suppose the price is $3.00. Describe the situation in the market and explain how the market adjusts.
c) The market research report also predicts that a rise in the price of crude oil will decrease the quantity of gas supplied by 20,000 gallons a week at each price. Suppose the price of crude oil does rise. Use your figure to show how this will affect the market for gas. How will the market adjust? What will be the new equilibrium price and quantity?

Accepted Answer

@#IMG-DLM& a) See the figure above. The equilibriu

Question 13

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

Accepted Answer

At a price of $8 there is a surplus beca

Question 14

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

Accepted Answer

A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct 
A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct

Question 15

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Accepted Answer

A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0. 
A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0.

Question 16

Which of the following shifts the supply curve for good X leftward?

Accepted Answer

A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a technological advance in the production of X 
D)  a decrease in the wages of workers employed to produce X 
A)  a situation in which quantity demanded exceeds quantity supplied 
B)  an increase in the cost of the machinery used to produce X 
C)  a technological advance in the production of X 
D)  a decrease in the wages of workers employed to produce X

Question 17

If macaroni and cheese is an inferior good, then a decrease in income will result in

Accepted Answer

A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese. 
A)  an increase in the demand for macaroni and cheese. 
B)  a decrease in the demand for macaroni and cheese. 
C)  an increase in the supply of macaroni and cheese. 
D)  a decrease in the supply of macaroni and cheese.

Question 18

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

Accepted Answer

A)  price will rise. 
B)  quantity supplied will decrease. 
C)  supply curve will shift leftward. 
D)  supply curve will shift rightward. 
A)  price will rise. 
B)  quantity supplied will decrease. 
C)  supply curve will shift leftward. 
D)  supply curve will shift rightward.

Question 19

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.

Accepted Answer

A)  decrease; not change 
B)  decrease; fall 
C)  remain the same; either rise or fall 
D)  remain the same; rise 
A)  decrease; not change 
B)  decrease; fall 
C)  remain the same; either rise or fall 
D)  remain the same; rise

Question 20

-The diagram above illustrates the market for apartments in Victoria, British Columbia.
a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b) What is the equilibrium rent and quantity of apartments?

Accepted Answer

a) If the rent is $300 per mon

-In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

If the price of chocolate chip cookies falls, then

If the price of chicken falls, then in the market for beef

As the price of a pound of peanuts falls, the

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

-In the above figure, if D₂ is the original demand curve and the population falls, which price and quantity might result?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Which of the following shifts the supply curve for good X leftward?

If macaroni and cheese is an inferior good, then a decrease in income will result in

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will .

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

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

-In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

If the price of chocolate chip cookies falls, then

If the price of chicken falls, then in the market for beef

As the price of a pound of peanuts falls, the

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

-In the above figure, if D2 is the original demand curve and the population falls, which price and quantity might result?

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease lead to a shift from

Which of the following shifts the supply curve for good X leftward?

If macaroni and cheese is an inferior good, then a decrease in income will result in

Producers of DVDs are able to lower the wage rate that they pay to their workers. You predict that the

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

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 the population falls, which price and quantity might result?

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will .