Question 1

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

Accepted Answer

A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward. 
A)  sweatshirts will increase that is, the demand curve will shift rightward. 
B)  tee-shirts will increase that is, the demand curve will shift rightward. 
C)  sweatshirts will decrease that is, the demand curve will shift leftward. 
D)  tee-shirts will decrease that is, the demand curve will shift leftward.

Question 2

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Accepted Answer

A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price. 
A)  new supply curve that is to the right of the initial supply curve. 
B)  new supply curve that is to the left of the initial supply curve. 
C)  movement along the supply curve. 
D)  rotation of the initial supply curve around the initial price.

Question 3

An inferior good is a good for which demand

Accepted Answer

A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases. 
A)  decreases when income increases. 
B)  increases when income increases. 
C)  decreases when population increases. 
D)  increases when population increases.

Question 4

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

Accepted Answer

The equilibrium quantity unambiguously i

Question 5

The law of demand states that the quantity of a good demanded varies

Accepted Answer

A)  inversely with its price. 
B)  inversely with the price of substitute goods. 
C)  directly with income. 
D)  directly with population. 
A)  inversely with its price. 
B)  inversely with the price of substitute goods. 
C)  directly with income. 
D)  directly with population.

Question 6

If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium

Accepted Answer

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

Question 7

-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 8

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c)/ (b + d).

Accepted Answer

A) True 
 B)False

Question 9

The relative price of a good is greater than the money price of a good.

Accepted Answer

A) True 
 B)False

Question 10

The interaction of supply and demand explains

Accepted Answer

A)  the prices of goods and services but not their quantities. 
B)  the quantities of goods and services but not their prices. 
C)  both the prices and the quantities of goods and services. 
D)  neither the prices nor the quantities of goods and services. 
A)  the prices of goods and services but not their quantities. 
B)  the quantities of goods and services but not their prices. 
C)  both the prices and the quantities of goods and services. 
D)  neither the prices nor the quantities of goods and services.

Question 11

If a producer can use resources to produce either good A or good B, then A and B are

Accepted Answer

A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption. 
A)  complements in production. 
B)  substitutes in production. 
C)  substitutes in consumption. 
D)  complements in consumption.

Question 12

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 13

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

Accepted Answer

A)  point a, with price P? and quantity Q? 
B)  point b, with price P? and quantity Q? 
C)  point c, with price P? and quantity Q? 
D)  point d, with price P? and quantity Q? 
A)  point a, with price P? and quantity Q? 
B)  point b, with price P? and quantity Q? 
C)  point c, with price P? and quantity Q? 
D)  point d, with price P? and quantity Q?

Question 14

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc)/ (b + d).

Accepted Answer

A) True 
 B)False

Question 15

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

Accepted Answer

A)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
B)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
C)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2. 
A)  demand curve shifts from D2 to D1 and the supply curve does not shift. 
B)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. 
C)  demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. 
D)  demand curve does not shift, and the supply curve shifts from S1 to S2.

Question 16

A movement along the demand curve shows a change in demand.

Accepted Answer

A) True 
 B)False

Question 17

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Accepted Answer

A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise. 
A)  fall. 
B)  perhaps rise, fall, or stay the same, but more information is needed to determine which it does. 
C)  stay the same. 
D)  rise.

Question 18

Students can rent a Blu-ray movie at Campus Video for $4. As the price of Blu-ray players fall, the

Accepted Answer

A)  quantity supplied of Blu-ray movies will decrease. 
B)  demand for Blu-ray movies will increase. 
C)  supply of Blu-ray movies will decrease. 
D)  quantity demanded of Blu-ray movies will increase. 
A)  quantity supplied of Blu-ray movies will decrease. 
B)  demand for Blu-ray movies will increase. 
C)  supply of Blu-ray movies will decrease. 
D)  quantity demanded of Blu-ray movies will increase.

Question 19

Which of the following does NOT shift the demand curve for broccoli?

Accepted Answer

A)  an increase in the cost of fertilizer used to grow broccoli 
B)  a warning by the U.S. Surgeon General that broccoli causes schizophrenia 
C)  an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop 
D)  a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year 
A)  an increase in the cost of fertilizer used to grow broccoli 
B)  a warning by the U.S. Surgeon General that broccoli causes schizophrenia 
C)  an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop 
D)  a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year

Question 20

An increase in technology for producing personal computers leads to

Accepted Answer

A)  an increase in the demand for personal computers. 
B)  a decrease in the demand for personal computers. 
C)  an increase in the supply of personal computers. 
D)  a decrease in the supply of personal computers. 
A)  an increase in the demand for personal computers. 
B)  a decrease in the demand for personal computers. 
C)  an increase in the supply of personal computers. 
D)  a decrease in the supply of personal computers.

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

An inferior good is a good for which demand

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

The law of demand states that the quantity of a good demanded varies

If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium

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

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c)/ (b + d).

The relative price of a good is greater than the money price of a good.

The interaction of supply and demand explains

If a producer can use resources to produce either good A or good B, then A and B are

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

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

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc)/ (b + d).

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

A movement along the demand curve shows a change in demand.

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Students can rent a Blu-ray movie at Campus Video for $4. As the price of Blu-ray players fall, the

Which of the following does NOT shift the demand curve for broccoli?

An increase in technology for producing personal computers leads to

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

Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

An inferior good is a good for which demand

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?

The law of demand states that the quantity of a good demanded varies

If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium

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

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c)/ (b + d).

The relative price of a good is greater than the money price of a good.

The interaction of supply and demand explains

If a producer can use resources to produce either good A or good B, then A and B are

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

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

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc)/ (b + d).

-The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the

A movement along the demand curve shows a change in demand.

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Students can rent a Blu-ray movie at Campus Video for $4. As the price of Blu-ray players fall, the

Which of the following does NOT shift the demand curve for broccoli?

An increase in technology for producing personal computers leads to

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