Question 1

An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

Accepted Answer

A)  decrease; decrease 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change 
A)  decrease; decrease 
B)  indeterminate change; increase 
C)  indeterminate change; decrease 
D)  increase; indeterminate change B

Question 2

If demand and supply both shift to the right, then:

Accepted Answer

A)  both price and quantity will go up. 
B)  price will go down and quantity will go up. 
C)  quantity will go down and price will go up. 
D)  quantity will go up, but price could go up, down, or stay the same 
A)  both price and quantity will go up. 
B)  price will go down and quantity will go up. 
C)  quantity will go down and price will go up. 
D)  quantity will go up, but price could go up, down, or stay the same D

Question 3

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

Accepted Answer

A)  is above the market equilibrium price. 
B)  will rise to clear the market. 
C)  will either rise or remain unchanged. 
D)  is below the market equilibrium price. 
A)  is above the market equilibrium price. 
B)  will rise to clear the market. 
C)  will either rise or remain unchanged. 
D)  is below the market equilibrium price. A

Question 4

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which demand shifter?

Accepted Answer

A)  income 
B)  consumer expectations 
C)  consumer preferences 
D)  prices of other goods 
A)  income 
B)  consumer expectations 
C)  consumer preferences 
D)  prices of other goods

Question 5

If the price in the market for a commodity is above the market equilibrium price, the:

Accepted Answer

A)  price will remain unchanged. 
B)  price will rise to clear the market. 
C)  quantity supplied exceeds the quantity demanded. 
D)  quantity demanded exceeds the quantity supplied. 
A)  price will remain unchanged. 
B)  price will rise to clear the market. 
C)  quantity supplied exceeds the quantity demanded. 
D)  quantity demanded exceeds the quantity supplied.

Question 6

An increase in the price of a good will lead to an increase in the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

Differentiate between a change in demand and a change in quantity demanded.

Accepted Answer

A change in demand refers to a shift in

Question 8

Use the following to answer question(s): The Demand for Chocolate-Covered Peanuts
Quantity Demanded
(bags per month)
  
-(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

Accepted Answer

A)  10 
B)  15 
C)  20 
D)  25 
A)  10 
B)  15 
C)  20 
D)  25

Question 9

Technology is a demand shifter.

Accepted Answer

A) True 
 B)False

Question 10

The relationship between the price of a good and the quantity people are willing and able to purchase is:

Accepted Answer

A)  supply. 
B)  demand. 
C)  equilibrium. 
D)  disequilibrium. 
A)  supply. 
B)  demand. 
C)  equilibrium. 
D)  disequilibrium.

Question 11

Use the following to answer question(s): Demand and Supply Curves
  
-(Exhibit: Demand and Supply Curves) A price of $25 per unit will result in:

Accepted Answer

A)  a surplus of 50 units. 
B)  a surplus of 200 units. 
C)  a surplus of 250 units. 
D)  quantity demanded exceeding quantity supplied. 
A)  a surplus of 50 units. 
B)  a surplus of 200 units. 
C)  a surplus of 250 units. 
D)  quantity demanded exceeding quantity supplied.

Question 12

Which of the following would result in a movement along the demand curve?

Accepted Answer

A)  a change in preferences 
B)  an increase in the number of buyers 
C)  an increase in the number of suppliers 
D)  a decrease in income 
A)  a change in preferences 
B)  an increase in the number of buyers 
C)  an increase in the number of suppliers 
D)  a decrease in income

Question 13

An increase in income will lead to an increase in demand for inferior goods.

Accepted Answer

A) True 
 B)False

Question 14

A surplus is a result of equilibrium price being below the current price.

Accepted Answer

A) True 
 B)False

Question 15

It's certain that the equilibrium price will fall when:

Accepted Answer

A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both increase. 
D)  supply decreases and demand stays the same. 
A)  the supply curve and the demand curve both shift to the right. 
B)  the supply curve shifts to the right and the demand curve shifts to the left. 
C)  supply and demand both increase. 
D)  supply decreases and demand stays the same.

Question 16

There is an increase in incomes.What happens in the market for steak?

Accepted Answer

A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium price falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall. 
A)  The equilibrium price falls, and the equilibrium quantity rises. 
B)  The equilibrium price rises, and the equilibrium price falls. 
C)  The equilibrium price and quantity rise. 
D)  The equilibrium price and quantity fall.

Question 17

When economists study the behavior of buyers, they are studying:

Accepted Answer

A)  supply. 
B)  the role of government. 
C)  demand. 
D)  psychology. 
A)  supply. 
B)  the role of government. 
C)  demand. 
D)  psychology.

Question 18

A supply curve that is upward sloping means that:

Accepted Answer

A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices. 
A)  demand is being ignored. 
B)  consumers will buy less at lower prices. 
C)  suppliers will want to sell more at higher prices. 
D)  suppliers will want to sell less at higher prices.

Question 19

Use the following to answer question(s): Demand and Supply-Determinants
  
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose the birth rate (the number of babies per female in the childbearing age bracket) decreases.Which panel best describes how this will affect the market for diapers?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 20

There can be no shortages or surpluses at the equilibrium price.

Accepted Answer

A) True 
 B)False

An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

If demand and supply both shift to the right, then:

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which demand shifter?

If the price in the market for a commodity is above the market equilibrium price, the:

An increase in the price of a good will lead to an increase in the quantity supplied.

Differentiate between a change in demand and a change in quantity demanded.

Use the following to answer question(s): The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

Technology is a demand shifter.

The relationship between the price of a good and the quantity people are willing and able to purchase is:

Use the following to answer question(s): Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $25 per unit will result in:

Which of the following would result in a movement along the demand curve?

An increase in income will lead to an increase in demand for inferior goods.

A surplus is a result of equilibrium price being below the current price.

It's certain that the equilibrium price will fall when:

There is an increase in incomes.What happens in the market for steak?

When economists study the behavior of buyers, they are studying:

A supply curve that is upward sloping means that:

There can be no shortages or surpluses at the equilibrium price.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 3: Demand and Supply

An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

If demand and supply both shift to the right, then:

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to which demand shifter?

If the price in the market for a commodity is above the market equilibrium price, the:

An increase in the price of a good will lead to an increase in the quantity supplied.

Differentiate between a change in demand and a change in quantity demanded.

Use the following to answer question(s): The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

Technology is a demand shifter.

The relationship between the price of a good and the quantity people are willing and able to purchase is:

Use the following to answer question(s): Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $25 per unit will result in:

Which of the following would result in a movement along the demand curve?

An increase in income will lead to an increase in demand for inferior goods.

A surplus is a result of equilibrium price being below the current price.

It's certain that the equilibrium price will fall when:

There is an increase in incomes.What happens in the market for steak?

When economists study the behavior of buyers, they are studying:

A supply curve that is upward sloping means that:

There can be no shortages or surpluses at the equilibrium price.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.