Question 1

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Accepted Answer

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

Question 2

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

Accepted Answer

A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases. 
A)  today's supply of gasoline increases. 
B)  today's demand for gasoline increases. 
C)  the price of a gallon of gasoline falls today. 
D)  next week's supply of gasoline decreases.

Question 3

Which of the following shifts the supply curve rightward?

Accepted Answer

A)  an increase in the population 
B)  a positive change in preferences for the good 
C)  a decrease in the price of the good 
D)  a decrease in the price of a factor of production used to produce the good 
A)  an increase in the population 
B)  a positive change in preferences for the good 
C)  a decrease in the price of the good 
D)  a decrease in the price of a factor of production used to produce the good

Question 4

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

Accepted Answer

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

Question 5

As the relative price of a good falls, the substitution effect implies that people buy

Accepted Answer

A)  less of that good and more of its substitutes. 
B)  more of that good and less of its substitutes. 
C)  less of that good and less of its substitutes. 
D)  more of that good and more of its substitutes. 
A)  less of that good and more of its substitutes. 
B)  more of that good and less of its substitutes. 
C)  less of that good and less of its substitutes. 
D)  more of that good and more of its substitutes.

Question 6

-In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from

Accepted Answer

A)  point a to point e. 
B)  point a to point b. 
C)  point a to point c. 
D)  None of the above represent a change in the quantity demanded with an unchanged demand. 
A)  point a to point e. 
B)  point a to point b. 
C)  point a to point c. 
D)  None of the above represent a change in the quantity demanded with an unchanged demand.

Question 7

-The above figures show the market for gasoline. Which figure(s)shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

Accepted Answer

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

Question 8

-In the above figure, if the demand curve is D2, then

Accepted Answer

A)  the equilibrium price will be P1 and the equilibrium quantity will be Q2. 
B)  the equilibrium price will be P1 and the equilibrium quantity will be Q1. 
C)  there will be a shortage equal to Q2 - Q1. 
D)  an increase in price will shift the demand curve to D3. 
A)  the equilibrium price will be P1 and the equilibrium quantity will be Q2. 
B)  the equilibrium price will be P1 and the equilibrium quantity will be Q1. 
C)  there will be a shortage equal to Q2 - Q1. 
D)  an increase in price will shift the demand curve to D3.

Question 9

If the price of chocolate chip cookies rises, then

Accepted Answer

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

Question 10

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 11

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

Accepted Answer

A)  leftward; both the equilibrium price and equilibrium quantity fall 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; the equilibrium price falls while the equilibrium quantity increases 
D)  rightward; both the equilibrium price and equilibrium quantity rise 
A)  leftward; both the equilibrium price and equilibrium quantity fall 
B)  rightward; both the equilibrium price and equilibrium quantity fall 
C)  rightward; the equilibrium price falls while the equilibrium quantity increases 
D)  rightward; both the equilibrium price and equilibrium quantity rise

Question 12

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 13

A change in the price of a good

Accepted Answer

A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it. 
A)  shifts the good's demand curve and also causes a movement along it. 
B)  shifts the good's demand curve but does not cause a movement along it. 
C)  does not shift the good's demand curve but does cause a movement along it. 
D)  neither shifts the good's demand curve nor causes a movement along it.

Question 14

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 15

-In the figure above, an increase in the supply of oil would result in a movement from

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 16

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 17

If income increases or the price of a complement falls, the

Accepted Answer

A)  demand curve for a normal good shifts leftward. 
B)  demand curve for a normal good shifts rightward. 
C)  supply curve of a normal good shifts leftward. 
D)  supply curve of a normal good shifts rightward. 
A)  demand curve for a normal good shifts leftward. 
B)  demand curve for a normal good shifts rightward. 
C)  supply curve of a normal good shifts leftward. 
D)  supply curve of a normal good shifts rightward.

Question 18

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 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

Which of the following lists has variables that all shift a good's demand curve?

Accepted Answer

A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct. 
A)  price of the good, preferences, prices of substitution goods, income 
B)  income, preferences, number of buyers, price of complementary good 
C)  expectation of future price, price of the good, number of buyers, income 
D)  Both answers A and B are correct.

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

Which of the following shifts the supply curve rightward?

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

As the relative price of a good falls, the substitution effect implies that people buy

-In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from

-The above figures show the market for gasoline. Which figure(s)shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

-In the above figure, if the demand curve is D2, then

If the price of chocolate chip cookies rises, then

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

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

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

A change in the price of a good

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

-In the figure above, an increase in the supply of oil would result in a movement from

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

If income increases or the price of a complement falls, the

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

-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?

Which of the following lists has variables that all shift a good's demand curve?

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

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

Which of the following shifts the supply curve rightward?

Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

As the relative price of a good falls, the substitution effect implies that people buy

-In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from

-The above figures show the market for gasoline. Which figure(s)shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

-In the above figure, if the demand curve is D2, then

If the price of chocolate chip cookies rises, then

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

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

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

A change in the price of a good

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

-In the figure above, an increase in the supply of oil would result in a movement from

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

If income increases or the price of a complement falls, the

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

-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?

Which of the following lists has variables that all shift a good's demand curve?

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

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

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