Question 1

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

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 2

A relative price is the product of two money prices.

Accepted Answer

A) True 
 B)False

Question 3

The "law of demand" is illustrated by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct.

Question 4

Explain why a relative price is an opportunity cost.

Accepted Answer

A relative price is the ratio of the pri

Question 5

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

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 6

If the price of product X falls and this change increases the demand for product Y, then

Accepted Answer

A)  X and Y are complements. 
B)  X and Y are substitutes. 
C)  X is an inferior good. 
D)  Y is an inferior good. 
A)  X and Y are complements. 
B)  X and Y are substitutes. 
C)  X is an inferior good. 
D)  Y is an inferior good.

Question 7

An increase in the number of fast-food restaurants

Accepted Answer

A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals. 
A)  raises the price of fast-food meals. 
B)  increases the demand for fast-food meals. 
C)  increases the supply of fast-food meals. 
D)  increases the demand for substitutes for fast-food meals.

Question 8

If consumers but not producers expect that the price of soda will rise in November, the

Accepted Answer

A)  supply of soda in October will increase. 
B)  demand for soda in October will decrease. 
C)  demand for soda in October will increase. 
D)  supply of soda in October will decrease. 
A)  supply of soda in October will increase. 
B)  demand for soda in October will decrease. 
C)  demand for soda in October will increase. 
D)  supply of soda in October will decrease.

Question 9

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

Accepted Answer

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

Question 10

When demand increases, the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

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

Question 11

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

Accepted Answer

One factor that changes demand is a chan

Question 12

In March, the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3. In May, the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20. This change in the price and quantity sold could have been the result of

Accepted Answer

A)  the release of a medical study suggesting that consuming orange juice helps prevent cancer. 
B)  a reduction in the number of orange juice coupons provided by local markets. 
C)  the after effects of a cold winter in Florida that killed half of the orange crop. 
D)  the after effects of a warm winter in Florida that increased the orange crop yield by 50 percent. 
A)  the release of a medical study suggesting that consuming orange juice helps prevent cancer. 
B)  a reduction in the number of orange juice coupons provided by local markets. 
C)  the after effects of a cold winter in Florida that killed half of the orange crop. 
D)  the after effects of a warm winter in Florida that increased the orange crop yield by 50 percent.

Question 13

The Market for Wapanzo BeansQuantity Demanded Price Quantity Supplied(millions of pounds (dollars per (millions of poundsper year) pound) per year)  
-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

Accepted Answer

A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1 
A)  become case A; become case 1 
B)  become case A; stay at case 2 
C)  stay at case B; become case 3 
D)  stay at case B; become case 1

Question 14

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

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 15

Normal goods are those for which demand decreases as

Accepted Answer

A)  the price of a complement falls. 
B)  the price of a substitute falls. 
C)  income decreases. 
D)  the good's own price rises. 
A)  the price of a complement falls. 
B)  the price of a substitute falls. 
C)  income decreases. 
D)  the good's own price rises.

Question 16

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

Accepted Answer

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

Question 17

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

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

Question 18

Which of the following decreases the supply of restaurant meals?

Accepted Answer

A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls. 
A)  Waiters get a pay raise. 
B)  Consumers' incomes increase and restaurant meals are a normal good. 
C)  Consumers' incomes decrease and restaurant meals are a normal good. 
D)  The price of movies, a complement to restaurant meals, falls.

Question 19

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

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

Question 20

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

Accepted Answer

A)  demand curve shifting rightward. 
B)  demand curve shifting leftward. 
C)  supply curve shifting rightward. 
D)  supply curve shifting leftward. 
A)  demand curve shifting rightward. 
B)  demand curve shifting leftward. 
C)  supply curve shifting rightward. 
D)  supply curve shifting leftward.

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

A relative price is the product of two money prices.

The "law of demand" is illustrated by a

Explain why a relative price is an opportunity cost.

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

If the price of product X falls and this change increases the demand for product Y, then

An increase in the number of fast-food restaurants

If consumers but not producers expect that the price of soda will rise in November, the

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

When demand increases, the equilibrium price and the equilibrium quantity .

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

In March, the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3. In May, the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20. This change in the price and quantity sold could have been the result of

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

Normal goods are those for which demand decreases as

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

Which of the following decreases the supply of restaurant meals?

As a result of an increase in the supply of a good, the equilibrium quantity and the equilibrium price .

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

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 above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

A relative price is the product of two money prices.

The "law of demand" is illustrated by a

Explain why a relative price is an opportunity cost.

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

If the price of product X falls and this change increases the demand for product Y, then

An increase in the number of fast-food restaurants

If consumers but not producers expect that the price of soda will rise in November, the

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

When demand increases, the equilibrium price ________ and the equilibrium quantity ________.

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

In March, the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3. In May, the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20. This change in the price and quantity sold could have been the result of

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

Normal goods are those for which demand decreases as

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

Which of the following decreases the supply of restaurant meals?

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

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 demand for a good increases when the price of a substitute and also increases when the price of a complement .

When demand increases, the equilibrium price and the equilibrium quantity .

As a result of an increase in the supply of a good, the equilibrium quantity and the equilibrium price .