Question 1

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Accepted Answer

A)  increases; shifts the demand curve for golf balls rightward 
B)  decreases; shifts the demand curve for golf balls leftward 
C)  decreases; creates a movement up along the demand curve for golf balls 
D)  increases; creates a movement down along the demand curve for golf balls 
A)  increases; shifts the demand curve for golf balls rightward 
B)  decreases; shifts the demand curve for golf balls leftward 
C)  decreases; creates a movement up along the demand curve for golf balls 
D)  increases; creates a movement down along the demand curve for golf balls

Question 2

Which of the following pairs of goods are most likely substitutes?

Accepted Answer

A)  DVDs and DVD players 
B)  cola and lemon lime soda 
C)  lettuce and salad dressing 
D)  peanut butter and gasoline 
A)  DVDs and DVD players 
B)  cola and lemon lime soda 
C)  lettuce and salad dressing 
D)  peanut butter and gasoline

Question 3

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 4

Inferior goods are those for which demand increases as

Accepted Answer

A)  the price of a substitute falls. 
B)  the price of a substitute rises. 
C)  income decreases. 
D)  income increases. 
A)  the price of a substitute falls. 
B)  the price of a substitute rises. 
C)  income decreases. 
D)  income increases.

Question 5

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

Accepted Answer

A)  the price will definitely increase above $25 per dozen roses. 
B)  the quantity will definitely decrease below 10 dozen roses. 
C)  the price will definitely decrease below $25 per dozen roses. 
D)  we cannot tell what will happen to equilibrium quantity. 
A)  the price will definitely increase above $25 per dozen roses. 
B)  the quantity will definitely decrease below 10 dozen roses. 
C)  the price will definitely decrease below $25 per dozen roses. 
D)  we cannot tell what will happen to equilibrium quantity.

Question 6

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ________ shift of the ________ curve for bottled water.

Accepted Answer

A)  rightward; demand 
B)  rightward; supply 
C)  leftward; supply 
D)  leftward; demand 
A)  rightward; demand 
B)  rightward; supply 
C)  leftward; supply 
D)  leftward; demand

Question 7

A normal good is one

Accepted Answer

A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above 
A)  with a downward sloping demand curve. 
B)  for which demand increases when the price of a substitute rises. 
C)  for which demand increases when income increases. 
D)  none of the above

Question 8

A relative price is the product of two money prices.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds 
B)  new federal legislation that raises the legal driving age to twenty-four in all states 
C)  a new fee that used car dealers must pay to the government on all sales of used cars 
D)  all of the above because each is consistent with the "law of demand" 
A)  an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds 
B)  new federal legislation that raises the legal driving age to twenty-four in all states 
C)  a new fee that used car dealers must pay to the government on all sales of used cars 
D)  all of the above because each is consistent with the "law of demand"

Question 10

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.

Accepted Answer

A)  rightward; complement 
B)  leftward; substitute 
C)  leftward; complement 
D)  rightward; substitute 
A)  rightward; complement 
B)  leftward; substitute 
C)  leftward; complement 
D)  rightward; substitute

Question 11

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

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 12

In a supply and demand figure, the equilibrium price and quantity are found at the

Accepted Answer

A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves. 
A)  point where quantity supplied equals quantity demanded. 
B)  horizontal intercept of the demand curve. 
C)  vertical intercept of the supply curve. 
D)  horizontal intercept of the supply and the demand curves.

Question 13

The quantity demanded of a good or service is the amount that

Accepted Answer

A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  consumers plan to buy during a given time period at a given price. 
D)  firms are willing to sell during a given time period at a given price. 
A)  a consumer would like to buy but might not be able to afford. 
B)  is actually bought during a given time period at a given price. 
C)  consumers plan to buy during a given time period at a given price. 
D)  firms are willing to sell during a given time period at a given price.

Question 14

The statement that "demand increases" means that there is a

Accepted Answer

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

Question 15

Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?

Accepted Answer

A)  disastrous weather that destroys half of this year's spinach crop 
B)  a rise in the price of spinach 
C)  an increase in wages for workers in spinach fields 
D)  great weather that produces a bumper spinach crop this year 
A)  disastrous weather that destroys half of this year's spinach crop 
B)  a rise in the price of spinach 
C)  an increase in wages for workers in spinach fields 
D)  great weather that produces a bumper spinach crop this year

Question 16

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

Accepted Answer

A)  money price of corn. 
B)  relative price of corn. 
C)  income effect. 
D)  substitution effect. 
A)  money price of corn. 
B)  relative price of corn. 
C)  income effect. 
D)  substitution effect.

Question 17

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________.

Accepted Answer

A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall 
A)  shortage; rise 
B)  shortage; fall 
C)  surplus; rise 
D)  surplus; fall

Question 18

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 19

If the money price of wheat increases and no other prices change, the

Accepted Answer

A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected. 
A)  relative price of wheat falls. 
B)  opportunity cost of wheat rises. 
C)  demand for wheat increases. 
D)  relative price of wheat is unaffected.

Question 20

-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.

The law of demand concludes that a rise in the price of a golf ball the quantity demanded and .

Which of the following pairs of goods are most likely substitutes?

A substitute is a good

Inferior goods are those for which demand increases as

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the curve for bottled water.

A normal good is one

A relative price is the product of two money prices.

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

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

In a supply and demand figure, the equilibrium price and quantity are found at the

The quantity demanded of a good or service is the amount that

The statement that "demand increases" means that there is a

Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a in the market and the price will .

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.

If the money price of wheat increases and no other prices change, the

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

What Is Economics?

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 3: Demand and Supply

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Which of the following pairs of goods are most likely substitutes?

A substitute is a good

Inferior goods are those for which demand increases as

-Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ________ shift of the ________ curve for bottled water.

A normal good is one

A relative price is the product of two money prices.

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

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

In a supply and demand figure, the equilibrium price and quantity are found at the

The quantity demanded of a good or service is the amount that

The statement that "demand increases" means that there is a

Which of the following results in a movement along the supply curve of spinach but does not shift the supply curve of spinach?

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________.

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.

If the money price of wheat increases and no other prices change, the

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

What Is Economics?

The Economic Problem

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

The law of demand concludes that a rise in the price of a golf ball the quantity demanded and .

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the curve for bottled water.

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a shift in the demand curve for a ticket on Continental because the price of a had risen.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a in the market and the price will .