Question 1

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

Accepted Answer

A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct 
A)  a new 8 percent federal excise tax placed on all new car purchases 
B)  an increase in wages for used car salespeople 
C)  a special rebate program on all new cars 
D)  None of the above answers is correct

Question 2

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Accepted Answer

A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease 
A)  raise; increase 
B)  raise; decrease 
C)  lower; increase 
D)  lower; decrease

Question 3

Which of the following would NOT shift the demand curve for turkey?

Accepted Answer

A)  an increase in income 
B)  a decrease in the price of ham 
C)  a change in people's preferences for turkey 
D)  a change in the price of a turkey 
A)  an increase in income 
B)  a decrease in the price of ham 
C)  a change in people's preferences for turkey 
D)  a change in the price of a turkey

Question 4

The law of demand implies that, other things remaining the same

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
C)  as income increases, the quantity of cheeseburgers demanded will increase. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. 
C)  as income increases, the quantity of cheeseburgers demanded will increase. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger will fall.

Question 5

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

Accepted Answer

A)  the supply of saccharin decreased. 
B)  the demand for saccharin decreased. 
C)  the government ordered the price reduction. 
D)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them. 
A)  the supply of saccharin decreased. 
B)  the demand for saccharin decreased. 
C)  the government ordered the price reduction. 
D)  saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them.

Question 6

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

Accepted Answer

A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls 
A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls

Question 7

A changes in which of the following shifts the demand curve for hamburgers?

Accepted Answer

A)  an increase in the price of the meat used to produce hamburgers 
B)  an increase in the price of a hamburger 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an increase in the number of hamburger restaurants 
A)  an increase in the price of the meat used to produce hamburgers 
B)  an increase in the price of a hamburger 
C)  a fall in the price of french fries, a complement for hamburgers 
D)  an increase in the number of hamburger restaurants

Question 8

Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

Accepted Answer

A)  The demand for PCs increased by more then the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs decreased by more than the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased. 
A)  The demand for PCs increased by more then the supply of PCs increased. 
B)  The supply of PCs increased by more than the demand for PCs increased. 
C)  The demand for PCs decreased by more than the supply of PCs increased. 
D)  Both the supply of PCs and the demand for PCs decreased.

Question 9

The "law of demand" is illustrated by a

Accepted Answer

A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct. 
A)  rightward shift of the demand curve. 
B)  leftward shift of the demand curve. 
C)  movement along the demand curve. 
D)  Both answers A and B are correct.

Question 10

In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers. Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Accepted Answer

A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase 
A)  rise; an increase 
B)  rise; a decrease 
C)  fall; a decrease 
D)  fall; an increase

Question 11

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D

Question 12

The "law of demand" states that changes in

Accepted Answer

A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply. 
A)  demand are related directly to changes in supply. 
B)  the quantity demanded of a good are not related to changes in the quantity supplied. 
C)  the quantity demanded of a good are inversely related to changes in its price. 
D)  demand are inversely related to changes in supply.

Question 13

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

Accepted Answer

A)  The price falls and the quantity might increase, decrease, or remain the same. 
B)  The price rises and the quantity might increase, decrease or remain the same. 
C)  The quantity decreases and the price might rise, fall, or remain the same. 
D)  The quantity increases and the price might rise, fall, or remain the same. 
A)  The price falls and the quantity might increase, decrease, or remain the same. 
B)  The price rises and the quantity might increase, decrease or remain the same. 
C)  The quantity decreases and the price might rise, fall, or remain the same. 
D)  The quantity increases and the price might rise, fall, or remain the same.

Question 14

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

Accepted Answer

A)  a decrease in income 
B)  an increase in the relative price of a soft drink 
C)  a decrease in the relative price of a soft drink 
D)  a decrease in the price of bottled water 
A)  a decrease in income 
B)  an increase in the relative price of a soft drink 
C)  a decrease in the relative price of a soft drink 
D)  a decrease in the price of bottled water

Question 15

If the quantity supplied exceeds the quantity demanded, then there is

Accepted Answer

A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price. 
A)  a shortage and the price is below the equilibrium price. 
B)  a shortage and the price is above the equilibrium price. 
C)  a surplus and the price is below the equilibrium price. 
D)  a surplus and the price is above the equilibrium price.

Question 16

A change in which of the following would NOT shift the supply curve for sneakers?

Accepted Answer

A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve 
A)  an increase in technology for making sneakers 
B)  an increase in the price of rubber, used to make sneakers 
C)  an increase in the price of sneakers 
D)  None of the above, that is, each change shifts the supply curve

Question 17

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

Accepted Answer

A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements. 
A)  salsa and tortilla chips are substitutes. 
B)  salsa and potato chips are complements. 
C)  tortilla chips and potato chips are complements. 
D)  salsa and tortilla chips are complements.

Question 18

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Accepted Answer

A)  fall; increase 
B)  fall; decrease 
C)  rise; increase 
D)  rise; decrease 
A)  fall; increase 
B)  fall; decrease 
C)  rise; increase 
D)  rise; decrease

Question 19

Which of the following always raises 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 20

Which of the following shifts the demand curve for hot dogs leftward?

Accepted Answer

A)  an increase in the price of a hot dog bun 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hamburger 
A)  an increase in the price of a hot dog bun 
B)  a decrease in the price of a hot dog bun 
C)  an increase in the price of a hot dog 
D)  an increase in the price of a hamburger

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

Which of the following would NOT shift the demand curve for turkey?

The law of demand implies that, other things remaining the same

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

A changes in which of the following shifts the demand curve for hamburgers?

Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

The "law of demand" is illustrated by a

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

The "law of demand" states that changes in

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

If the quantity supplied exceeds the quantity demanded, then there is

A change in which of the following would NOT shift the supply curve for sneakers?

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will and the equilibrium quantity will .

Which of the following always raises the equilibrium price?

Which of the following shifts the demand curve for hot dogs leftward?

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 raises the price of a used car and increases the equilibrium quantity sold?

A fall in the price of wheat fertilizer ________ the equilibrium price of wheat and ________ the equilibrium quantity of wheat.

Which of the following would NOT shift the demand curve for turkey?

The law of demand implies that, other things remaining the same

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

A changes in which of the following shifts the demand curve for hamburgers?

Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

The "law of demand" is illustrated by a

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?

The "law of demand" states that changes in

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

If the quantity supplied exceeds the quantity demanded, then there is

A change in which of the following would NOT shift the supply curve for sneakers?

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Which of the following always raises the equilibrium price?

Which of the following shifts the demand curve for hot dogs leftward?

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

A fall in the price of wheat fertilizer the equilibrium price of wheat and the equilibrium quantity of wheat.

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will and the equilibrium quantity will .