Question 1

Each point on a supply curve represents

Accepted Answer

A)  the highest price buyers will pay for the good. 
B)  the lowest price for which a supplier can profitably sell another unit. 
C)  the lowest price buyers will accept per unit of the good. 
D)  the highest price sellers can get for each unit over time. 
A)  the highest price buyers will pay for the good. 
B)  the lowest price for which a supplier can profitably sell another unit. 
C)  the lowest price buyers will accept per unit of the good. 
D)  the highest price sellers can get for each unit over time.

Question 2

Scarcity guarantees that

Accepted Answer

A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied. 
A)  demands will exceed wants. 
B)  wants will exceed demands. 
C)  demands will be equal to wants. 
D)  most demands will be satisfied.

Question 3

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

Accepted Answer

A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease. 
A)  price will decrease. 
B)  price will increase. 
C)  quantity will increase. 
D)  quantity will decrease.

Question 4

-The equilibrium price in the above figure is

Accepted Answer

A)  $2. 
B)  $4. 
C)  $6. 
D)  $8. 
A)  $2. 
B)  $4. 
C)  $6. 
D)  $8.

Question 5

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Accepted Answer

@#IMG-DLM& The increase in the price of

Question 6

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

Accepted Answer

A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases. 
A)  demand for Packers tickets decreases. 
B)  demand curve for Packers tickets shifts leftward. 
C)  demand curve for Packers tickets shifts rightward. 
D)  the quantity demanded of Packers tickets decreases.

Question 7

A shortage causes the

Accepted Answer

A)  demand curve to shift leftward. 
B)  supply curve to shift rightward. 
C)  price to fall. 
D)  price to rise. 
A)  demand curve to shift leftward. 
B)  supply curve to shift rightward. 
C)  price to fall. 
D)  price to rise.

Question 8

Which of the following always lowers the equilibrium price?

Accepted Answer

A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply 
A)  an increase in both demand and supply 
B)  a decrease in both demand and supply 
C)  an increase in demand combined with a decrease in supply 
D)  a decrease in demand combined with an increase in supply

Question 9

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

Accepted Answer

A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda. 
A)  1/2 can of soda per ice cream cone, the opportunity cost of an ice cream cone. 
B)  $1.50, the opportunity cost of a can of soda. 
C)  2 cans of soda per soda, the opportunity cost of an ice cream cone. 
D)  $0.75, the opportunity cost of a can of soda.

Question 10

When a market is in equilibrium

Accepted Answer

A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve. 
A)  everyone has all they want of the commodity in question. 
B)  there is no shortage and no surplus at the equilibrium price. 
C)  the number of buyers is exactly equal to the number of sellers. 
D)  the supply curve has the same slope as the demand curve.

Question 11

If consumers' incomes increase and the demand for bus rides decreases

Accepted Answer

A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  none of the above. 
A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  none of the above.

Question 12

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

Accepted Answer

A)  The equilibrium price will rise because the supply curve shifts rightward. 
B)  The equilibrium price falls because the supply curve shifts leftward. 
C)  The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known. 
D)  The demand curve shifts rightward and the supply curve does not shift. 
A)  The equilibrium price will rise because the supply curve shifts rightward. 
B)  The equilibrium price falls because the supply curve shifts leftward. 
C)  The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known. 
D)  The demand curve shifts rightward and the supply curve does not shift.

Question 13

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Accepted Answer

A)  price of a rival's tablet. 
B)  price of an iPad. 
C)  the technology used to produce an iPad. 
D)  price of apps. 
A)  price of a rival's tablet. 
B)  price of an iPad. 
C)  the technology used to produce an iPad. 
D)  price of apps.

Question 14

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris ________ and the equilibrium quantity of flights to Paris ________.

Accepted Answer

A)  might rise, fall, or not change; increases 
B)  falls; decreases. 
C)  rises; increases 
D)  rises; might increase, decrease, or not change 
A)  might rise, fall, or not change; increases 
B)  falls; decreases. 
C)  rises; increases 
D)  rises; might increase, decrease, or not change

Question 15

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Accepted Answer

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

Each point on a supply curve represents

Scarcity guarantees that

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

-The equilibrium price in the above figure is

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

A shortage causes the

Which of the following always lowers the equilibrium price?

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

When a market is in equilibrium

If consumers' incomes increase and the demand for bus rides decreases

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

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

Each point on a supply curve represents

Scarcity guarantees that

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

-The equilibrium price in the above figure is

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015. If the Packers raised ticket prices, the

A shortage causes the

Which of the following always lowers the equilibrium price?

An ice cream cone costs $1.50. A can of soda costs $0.75. The relative price of an ice cream cone is

When a market is in equilibrium

If consumers' incomes increase and the demand for bus rides decreases

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

The quantity of iPads that people plan to buy this month depends on all of the following EXCEPT the

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris ________ and the equilibrium quantity of flights to Paris ________.

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

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

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris and the equilibrium quantity of flights to Paris .