Question 1

Define demand, supply, and equilibrium price.

Accepted Answer

Demand refers to the quantity of a good

Question 2

Which of the following would shift the demand curve for new textbooks to the right?

Accepted Answer

A)  A decrease in the price of paper. 
B)  A fall in the price of used textbooks. 
C)  An increase in college enrollments. 
D)  A fall in the price of new textbooks. 
A)  A decrease in the price of paper. 
B)  A fall in the price of used textbooks. 
C)  An increase in college enrollments. 
D)  A fall in the price of new textbooks.

Question 3

The Case in Point on obesity suggests that food prices are lower because of:

Accepted Answer

A)  an increase in the in the demand for food only. 
B)  an increase in the supply of food only. 
C)  an increase in the demand for food was less than the increase in the supply of food. 
D)  an increase in the supply of food that was less than the increase in demand for food. 
A)  an increase in the in the demand for food only. 
B)  an increase in the supply of food only. 
C)  an increase in the demand for food was less than the increase in the supply of food. 
D)  an increase in the supply of food that was less than the increase in demand for food.

Question 4

An increase in price will result in an increase in supply.

Accepted Answer

A) True 
 B)False

Question 5

Use the following to answer question(s): Demand and Supply Shifters
  
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the technology for producing handheld calculators improves.Which panel best describes how this will affect the market for handheld calculators?

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 6

A shortage will exert pressures for the price to decrease.

Accepted Answer

A) True 
 B)False

Question 7

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 scientists discover that eating pomegranates causes premature aging.Which panel best describes how this will affect the market for pomegranates?

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 8

If the price of a commodity increases, all other things unchanged, you would expect the:

Accepted Answer

A)  demand to decrease. 
B)  quantity demanded to increase. 
C)  quantity demanded to decrease. 
D)  demand curve to shift to the left. 
A)  demand to decrease. 
B)  quantity demanded to increase. 
C)  quantity demanded to decrease. 
D)  demand curve to shift to the left.

Question 9

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

Accepted Answer

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

Question 10

At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

Accepted Answer

A) True 
 B)False

Question 11

Use the following to answer question(s): Demand Shifters and Supply Shifters
  
-(Exhibit: Demand Shifters and Supply Shifters) 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) increases.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 12

If the demand for housing increases and the supply of housing decreases:

Accepted Answer

A)  price will go up and quantity will go down. 
B)  price and quantity will both go up. 
C)  price will increase, but the quantity change is indeterminate. 
D)  the quantity will be higher, but the change in price is indeterminate. 
A)  price will go up and quantity will go down. 
B)  price and quantity will both go up. 
C)  price will increase, but the quantity change is indeterminate. 
D)  the quantity will be higher, but the change in price is indeterminate.

Question 13

Demand is defined as:

Accepted Answer

A)  an amount that is purchased at a specific price, given supply. 
B)  a schedule that establishes the price of a good. 
C)  a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. 
D)  the amount that will be bought at a specific price. 
A)  an amount that is purchased at a specific price, given supply. 
B)  a schedule that establishes the price of a good. 
C)  a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. 
D)  the amount that will be bought at a specific price.

Question 14

Use the following to answer question(s): Demand and Supply Shifters
  
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose half the people in San Diego move to Colorado Springs.Which panel best describes how this will affect the market for houses in Colorado Springs?

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 15

When the market price is established where demand and supply curves intersect:

Accepted Answer

A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result. 
A)  consumer buying tends to exceed the quantity producers supply. 
B)  the quantity consumers demand generally fall short of the quantity producers supply. 
C)  the quantity demanded and the quantity supplied are equal. 
D)  all of the above will result.

Question 16

An improvement in technology will lead to a change in demand.

Accepted Answer

A) True 
 B)False

Question 17

The primary difference between a change in supply and a change in the quantity supplied is:

Accepted Answer

A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve. 
A)  a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. 
B)  both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. 
C)  a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. 
D)  a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.

Question 18

Use the following to answer question(s): The Demand for Music Downloads
  
-(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

Accepted Answer

A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d). 
A)  the move from f to g in Figure (a). 
B)  the move from h to i in Figure (b). 
C)  the move from j to k in Figure (c). 
D)  the move from l to m in Figure (d).

Question 19

A decrease in supply is caused by:

Accepted Answer

A)  a decrease in resource prices. 
B)  an increase in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good. 
A)  a decrease in resource prices. 
B)  an increase in the number of sellers in the market. 
C)  suppliers' expectations of higher prices in the future. 
D)  an advancement in the technology for producing the good.

Question 20

List and explain the demand shifters.

Accepted Answer

Demand shifters are factors that can cau

Define demand, supply, and equilibrium price.

Which of the following would shift the demand curve for new textbooks to the right?

The Case in Point on obesity suggests that food prices are lower because of:

An increase in price will result in an increase in supply.

A shortage will exert pressures for the price to decrease.

If the price of a commodity increases, all other things unchanged, you would expect the:

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

At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

If the demand for housing increases and the supply of housing decreases:

Demand is defined as:

When the market price is established where demand and supply curves intersect:

An improvement in technology will lead to a change in demand.

The primary difference between a change in supply and a change in the quantity supplied is:

Use the following to answer question(s): The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

A decrease in supply is caused by:

List and explain the demand shifters.

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

Define demand, supply, and equilibrium price.

Which of the following would shift the demand curve for new textbooks to the right?

The Case in Point on obesity suggests that food prices are lower because of:

An increase in price will result in an increase in supply.

A shortage will exert pressures for the price to decrease.

If the price of a commodity increases, all other things unchanged, you would expect the:

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

At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

If the demand for housing increases and the supply of housing decreases:

Demand is defined as:

When the market price is established where demand and supply curves intersect:

An improvement in technology will lead to a change in demand.

The primary difference between a change in supply and a change in the quantity supplied is:

Use the following to answer question(s): The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

A decrease in supply is caused by:

List and explain the demand shifters.

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