Question 1

Which of the following shifts the demand curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a decrease in the price of a pound of bananas, a substitute in consumption for oranges 
C)  an increase in the price of the fuel used to transport oranges to supermarkets 
D)  great weather that produces a bumper orange crop this year

Question 2

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Accepted Answer

A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls. 
A)  price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase. 
B)  price of long-distance travel by bus will fall. 
C)  demand for long-distance travel by bus will decrease and the price will rise. 
D)  demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.

Question 3

An increase in technology will shift the good's supply curve rightward.

Accepted Answer

A) True 
 B)False

Question 4

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

Accepted Answer

A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d. 
A)  none of the points illustrated. 
B)  b. 
C)  c. 
D)  d.

Question 5

When there is a surplus in the market, the quantity sold is

Accepted Answer

A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought. 
A)  equal to the quantity supplied. 
B)  equal to the quantity demanded. 
C)  less than the quantity demanded. 
D)  greater than the quantity bought.

Question 6

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza. But then he fears that the higher price will cause demand to decline, which will cause the price to drop. Is Tony right in his analysis of the situation? Explain.

Accepted Answer

Tony is confusing a change in demand (a

Question 7

A supply curve is also a maximum-supply-price curve.

Accepted Answer

A) True 
 B)False

Question 8

A consumer might consider in-line skates and elbow-pads to be

Accepted Answer

A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes. 
A)  products with upward sloping demand curves. 
B)  unrelated goods. 
C)  complements. 
D)  substitutes.

Question 9

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

Accepted Answer

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

Question 10

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr

Question 11

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

Accepted Answer

A)  A college expects enrollment to increase, despite no change in the tuition. 
B)  Skiing becomes a fashionable winter sports activity. 
C)  The price of hair stylings falls. 
D)  Consumers expect lower prices next month for computers. 
A)  A college expects enrollment to increase, despite no change in the tuition. 
B)  Skiing becomes a fashionable winter sports activity. 
C)  The price of hair stylings falls. 
D)  Consumers expect lower prices next month for computers.

Question 12

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20. 
A)  50 thousand and $100. 
B)  80 thousand and $80. 
C)  60 thousand and $50. 
D)  40 thousand and $20.

Question 13

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown 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)  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 14

Changes in which of the following shifts the supply curve of hamburgers?

Accepted Answer

A)  a rise in the price of soda, a complement for hamburgers 
B)  new research that establishes a link between hamburgers and heart problems 
C)  an increase in the price of meat used to produce hamburgers 
D)  an economy-wide decrease in income because of a long recession 
A)  a rise in the price of soda, a complement for hamburgers 
B)  new research that establishes a link between hamburgers and heart problems 
C)  an increase in the price of meat used to produce hamburgers 
D)  an economy-wide decrease in income because of a long recession

Question 15

-The above table gives the demand and supply schedules for cat food. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

Accepted Answer

At a price of $3.00 per pound

Question 16

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Accepted Answer

A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers 
A)  a fall in the price of shredded wheat 
B)  an increase in the cost of machinery used to shred wheat 
C)  perfect weather conditions that resulted in a large wheat crop 
D)  a decrease in the number of shredded wheat producers

Question 17

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the income in

Question 18

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

Accepted Answer

A)  income effect means people buy less pizza. 
B)  substitution effect means people buy more pizza. 
C)  quantity demanded of pizza will not change. 
D)  None of the above answers is correct. 
A)  income effect means people buy less pizza. 
B)  substitution effect means people buy more pizza. 
C)  quantity demanded of pizza will not change. 
D)  None of the above answers is correct.

Question 19

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Accepted Answer

@#IMG-DLM& Natural gas and home heating oil are su

Question 20

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

Accepted Answer

A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d 
A)  from point a to point e 
B)  from point a to point b 
C)  from point a to point c 
D)  from point a to point d

Which of the following shifts the demand curve for oranges?

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

An increase in technology will shift the good's supply curve rightward.

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

When there is a surplus in the market, the quantity sold is

A supply curve is also a maximum-supply-price curve.

A consumer might consider in-line skates and elbow-pads to be

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

Changes in which of the following shifts the supply curve of hamburgers?

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

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

Which of the following shifts the demand curve for oranges?

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

An increase in technology will shift the good's supply curve rightward.

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. An increase in the price of a soda results in a movement to a point such as

When there is a surplus in the market, the quantity sold is

A supply curve is also a maximum-supply-price curve.

A consumer might consider in-line skates and elbow-pads to be

-Using the above figure, suppose that roses are a normal good. If there is an increase in income

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is

-In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from

Changes in which of the following shifts the supply curve of hamburgers?

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

-The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

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