Question 1

Which of the following influences does NOT shift the supply curve?

Accepted Answer

A)  a rise in the wages paid workers who produce the good 
B)  the development of new technology 
C)  people deciding that they want to buy more of the product 
D)  a decrease in the number of suppliers 
A)  a rise in the wages paid workers who produce the good 
B)  the development of new technology 
C)  people deciding that they want to buy more of the product 
D)  a decrease in the number of suppliers

Question 2

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

Accepted Answer

The relative price of a car is

Question 3

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

Accepted Answer

A)  The supply of broccoli decreases. 
B)  The supply of broccoli increases. 
C)  There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli. 
D)  There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli. 
A)  The supply of broccoli decreases. 
B)  The supply of broccoli increases. 
C)  There will be no change in the supply of broccoli, but instead there is an increase in the quantity supplied of broccoli. 
D)  There will be no change in the supply of broccoli, but instead there is a decrease in the quantity supplied of broccoli.

Question 4

People buy more of good 1 when the price of good 2 rises. These goods are

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods. 
A)  complements. 
B)  substitutes. 
C)  normal goods. 
D)  inferior goods.

Question 5

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

Accepted Answer

A)  the demand curve shifts rightward. 
B)  the demand curve shifts leftward. 
C)  there is a movement down along the demand curve to a larger quantity demanded. 
D)  there is a movement up along the demand curve to a smaller quantity demanded. 
A)  the demand curve shifts rightward. 
B)  the demand curve shifts leftward. 
C)  there is a movement down along the demand curve to a larger quantity demanded. 
D)  there is a movement up along the demand curve to a smaller quantity demanded.

Question 6

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

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

Question 7

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

Accepted Answer

A) True 
 B)False

Question 8

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

Accepted Answer

A)  relative price; 2 basketballs per football 
B)  relative price; 1/2 basketball per football 
C)  opportunity cost; $20.00 
D)  opportunity cost; $10.00 
A)  relative price; 2 basketballs per football 
B)  relative price; 1/2 basketball per football 
C)  opportunity cost; $20.00 
D)  opportunity cost; $10.00

Question 9

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

Accepted Answer

A)  an increase in the equilibrium quantity of beef. 
B)  an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve. 
C)  an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve. 
D)  no change in the equilibrium quantity of beef. 
A)  an increase in the equilibrium quantity of beef. 
B)  an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve. 
C)  an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve. 
D)  no change in the equilibrium quantity of beef.

Question 10

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

Accepted Answer

A) True 
 B)False

Question 11

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

Accepted Answer

A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied. 
A)  the supply curve shifts leftward. 
B)  the supply curve shifts rightward. 
C)  there is a movement up along the supply curve to a larger quantity supplied. 
D)  there is a movement down along the supply curve to a smaller quantity supplied.

Question 12

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each

Accepted Answer

A)  there will be a surplus of soft drinks. 
B)  there will be a shortage of soft drinks. 
C)  the supply curve of soft drinks will shift leftward. 
D)  the demand curve for soft drinks will shift leftward. 
A)  there will be a surplus of soft drinks. 
B)  there will be a shortage of soft drinks. 
C)  the supply curve of soft drinks will shift leftward. 
D)  the demand curve for soft drinks will shift leftward.

Question 13

If the equilibrium price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

Accepted Answer

Not necessarily. The demand curve might

Question 14

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

Accepted Answer

Advances in technology increase the supp

Question 15

An increase in price results in increase in supply but not an increase in the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 16

-The above figures show the market for hamburger meat. Which figure(s)shows the effect of an increase in the number of people who eat hamburger meat?

Accepted Answer

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

Question 17

Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

@#IMG-DLM& The demand for kerosene heate

Question 18

If shoes rise in price, the demand curve for shoes ________ and the quantity of shoes demanded ________.

Accepted Answer

A)  shifts leftward; decreases 
B)  shifts leftward; does not change 
C)  does not shift; decreases 
D)  does not shift; does not change 
A)  shifts leftward; decreases 
B)  shifts leftward; does not change 
C)  does not shift; decreases 
D)  does not shift; does not change

Question 19

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease led to a shift from

Accepted Answer

A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0. 
A)  D0 to D1. 
B)  D1 to D0. 
C)  S0 to S1. 
D)  S1 to S0.

Question 20

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  might change but more information is needed.

Which of the following influences does NOT shift the supply curve?

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

People buy more of good 1 when the price of good 2 rises. These goods are

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each

If the equilibrium price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

An increase in price results in increase in supply but not an increase in the quantity supplied.

-The above figures show the market for hamburger meat. Which figure(s)shows the effect of an increase in the number of people who eat hamburger meat?

If shoes rise in price, the demand curve for shoes and the quantity of shoes demanded .

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease led to a shift from

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

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 influences does NOT shift the supply curve?

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

Consider the market for broccoli. If the price of a pound of broccoli increases, what happens to the supply of broccoli?

People buy more of good 1 when the price of good 2 rises. These goods are

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

Young drivers often buy used cars. An increase in the legal driving age to twenty-one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each

If the equilibrium price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

An increase in price results in increase in supply but not an increase in the quantity supplied.

-The above figures show the market for hamburger meat. Which figure(s)shows the effect of an increase in the number of people who eat hamburger meat?

If shoes rise in price, the demand curve for shoes ________ and the quantity of shoes demanded ________.

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease led to a shift from

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

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

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The of a football is .

If shoes rise in price, the demand curve for shoes and the quantity of shoes demanded .