Question 1

-Refer to the above graph to answer this question.If the price of the product is $14,how many units would be sold?

Accepted Answer

A) 400 units. 
B) 600 units. 
C) 800 units. 
D) 1,000 units. 
E) Cannot be determined. 
A) 400 units. 
B) 600 units. 
C) 800 units. 
D) 1,000 units. 
E) Cannot be determined.

Question 2

If the price of gasoline goes up,then the demand will go down.Evaluate this statement.

Accepted Answer

All else held constant,if the

Question 3

The following table shows the initial weekly demand (D1)and the new demand (D2)for packets of pretzels (a bar snack):
  
-Refer to the information above to answer this question.In order to have produced the change in demand from D1 to D2,what might have happened to the price of a complementary product like beer?

Accepted Answer

A) It has not changed,but people must be buying less. 
B) It has not changed,but people must be buying more. 
C) It has decreased. 
D) It has increased. 
A) It has not changed,but people must be buying less. 
B) It has not changed,but people must be buying more. 
C) It has decreased. 
D) It has increased.

Question 4

The two graphs below show the markets for orange juice and apple juice,which are initially in equilibrium:

Accepted Answer

@#IMG-DLM& Show what will happen to the

Question 5

What is the effect of an increase in the price of resources?

Accepted Answer

A) It will cause a decrease in the quantity supplied. 
B) It will cause an increase in demand. 
C) It will cause a decrease in demand. 
D) It will cause an increase in supply. 
E) It will cause a decrease in supply. 
A) It will cause a decrease in the quantity supplied. 
B) It will cause an increase in demand. 
C) It will cause a decrease in demand. 
D) It will cause an increase in supply. 
E) It will cause a decrease in supply.

Question 6

What is the correct way to label the axis on a graph which illustrates a demand curve?

Accepted Answer

A) Income on the horizontal axis and price on the vertical axis. 
B) Price on the horizontal axis and income on the vertical axis. 
C) Quantity on horizontal axis and price on the vertical axis. 
D) Price on horizontal axis and quantity on the vertical axis. 
A) Income on the horizontal axis and price on the vertical axis. 
B) Price on the horizontal axis and income on the vertical axis. 
C) Quantity on horizontal axis and price on the vertical axis. 
D) Price on horizontal axis and quantity on the vertical axis.

Question 7

If the price of a product does not change immediately,which of the following will cause an initial shortage of a product?

Accepted Answer

A) An increase in the demand or an increase in the supply. 
B) A decrease in the demand or a decrease in the supply. 
C) An increase in the demand or a decrease in the supply. 
D) A decrease in the demand or an increase in the supply. 
E) A change in the quantity supplied. 
A) An increase in the demand or an increase in the supply. 
B) A decrease in the demand or a decrease in the supply. 
C) An increase in the demand or a decrease in the supply. 
D) A decrease in the demand or an increase in the supply. 
E) A change in the quantity supplied.

Question 8

All of the following,except one,is demand.Which is the exception?

Accepted Answer

A) The quantities which consumers are willing and able to buy per period of time at various prices. 
B) The relationship between various prices and quantities demanded for a product. 
C) A hypothetical construct which expresses the desire and ability to purchase,not at a single price,but over a range of prices. 
D) The quantities which consumers want to buy. 
A) The quantities which consumers are willing and able to buy per period of time at various prices. 
B) The relationship between various prices and quantities demanded for a product. 
C) A hypothetical construct which expresses the desire and ability to purchase,not at a single price,but over a range of prices. 
D) The quantities which consumers want to buy.

Question 9

-Refer to the graph above to answer this question.What is the effect if the price is $600.

Accepted Answer

A) The quantity demanded is 120. 
B) Price will fall. 
C) The quantity supplied is 120. 
D) The quantity traded is 40. 
A) The quantity demanded is 120. 
B) Price will fall. 
C) The quantity supplied is 120. 
D) The quantity traded is 40.

Question 10

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area.
-Refer to the above information to answer this question.What are the equilibrium values of price and quantity?

Accepted Answer

A) $1.2 million and 18. 
B) $1.4 million and 18. 
C) $1.6 million and 18. 
D) $1.8 million and 18. 
E) $2.0 million and 18. 
A) $1.2 million and 18. 
B) $1.4 million and 18. 
C) $1.6 million and 18. 
D) $1.8 million and 18. 
E) $2.0 million and 18.

Question 11

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area.
-Refer to the above information to answer this question.If the developer decides to set the price at $1.8 million for each apartment,what is the quantity demanded?

Accepted Answer

A) 14. 
B) 15. 
C) 16. 
D) 17. 
E) 18. 
A) 14. 
B) 15. 
C) 16. 
D) 17. 
E) 18.

Question 12

-Refer to the graph above to answer this question.What does the distance Q1 - Q2 represent?

Accepted Answer

A) A decrease in the quantity supplied. 
B) A shortage at price P1. 
C) A surplus at price P1. 
D) The result of a decrease in the sales tax. 
A) A decrease in the quantity supplied. 
B) A shortage at price P1. 
C) A surplus at price P1. 
D) The result of a decrease in the sales tax.

Question 13

What is supply?

Accepted Answer

A) The quantities which producers are both willing and able to sell per period of time at various prices. 
B) The total demand for a product by all consumers. 
C) The quantity which prevails at the equilibrium price. 
D) The quantity sold at a certain price. 
A) The quantities which producers are both willing and able to sell per period of time at various prices. 
B) The total demand for a product by all consumers. 
C) The quantity which prevails at the equilibrium price. 
D) The quantity sold at a certain price.

Question 14

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month).
  
-Refer to Table 2.11 to answer this question.What will happen if the price of the product is $3?

Accepted Answer

A) There would be a surplus of 18,which would lead to a decrease in price. 
B) There would be a shortage of 18,which would lead to an increase in price. 
C) There would be a shortage of 18,which would lead to a decrease in price. 
D) There would be a surplus of 18,which would lead to an increase in price. 
E) There would be neither a surplus nor a shortage. 
A) There would be a surplus of 18,which would lead to a decrease in price. 
B) There would be a shortage of 18,which would lead to an increase in price. 
C) There would be a shortage of 18,which would lead to a decrease in price. 
D) There would be a surplus of 18,which would lead to an increase in price. 
E) There would be neither a surplus nor a shortage.

Question 15

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month).
  
-In what way are products A and B related if an increase in the price of product A leads to a decrease in the demand for product B?

Accepted Answer

A) Consumer income has increased,and product A is an inferior product. 
B) Consumer income has decreased,and product A is a normal product. 
C) The two products must be complements. 
D) The two products must be substitutes. 
E) The two products must be inferior products. 
A) Consumer income has increased,and product A is an inferior product. 
B) Consumer income has decreased,and product A is a normal product. 
C) The two products must be complements. 
D) The two products must be substitutes. 
E) The two products must be inferior products.

Question 16

-Refer to the graph above to answer this question.What is the effect if the price is $800?

Accepted Answer

A) There is a surplus of 30. 
B) There is a shortage of 30. 
C) 160 will be purchased. 
D) There is a shortage of 60. 
E) The price will increase. 
A) There is a surplus of 30. 
B) There is a shortage of 30. 
C) 160 will be purchased. 
D) There is a shortage of 60. 
E) The price will increase.

Question 17

Demonstrate graphically and explain verbally the concept of a shortage.Is price above or below equilibrium?

Accepted Answer

A shortage refers to situations where th

Question 18

Assume the market for coffee is initially in equilibrium.
a)Draw a demand and supply diagram to illustrate the initial equilibrium.
b)Explain the impact on the coffee market if there is a decrease in business taxes.
c)Graphically illustrate the impact on the diagram you prepared for part (a).

Accepted Answer

a) @#IMG-DLM& 
b)A decrease in business

Question 19

The following table shows the market demand and supply for Gala apples in Red Deer.
   a)What is the equilibrium price and quantity traded?
b)Suppose that the supply increases by 80,what would be the new equilibrium price and quantity traded?
c)After the increase in supply,what would be the surplus/shortage at a price of $3?

Accepted Answer

a)Price:$4;quantity

Question 20

The following figure shows the market for grapefruit (in kilos):
  
-Refer to the diagram above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 kilos,what will be the new equilibrium price and quantity?

Accepted Answer

A) $2.25 and 24 kilos 
B) $2.25 and 48 kilos 
C) $2.75 and 44 kilos 
D) $3.25 and 40 kilos 
A) $2.25 and 24 kilos 
B) $2.25 and 48 kilos 
C) $2.75 and 44 kilos 
D) $3.25 and 40 kilos

-Refer to the above graph to answer this question.If the price of the product is $14,how many units would be sold?

If the price of gasoline goes up,then the demand will go down.Evaluate this statement.

The two graphs below show the markets for orange juice and apple juice,which are initially in equilibrium:

What is the effect of an increase in the price of resources?

What is the correct way to label the axis on a graph which illustrates a demand curve?

If the price of a product does not change immediately,which of the following will cause an initial shortage of a product?

All of the following,except one,is demand.Which is the exception?

-Refer to the graph above to answer this question.What is the effect if the price is $600.

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area. -Refer to the above information to answer this question.What are the equilibrium values of price and quantity?

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area. -Refer to the above information to answer this question.If the developer decides to set the price at $1.8 million for each apartment,what is the quantity demanded?

-Refer to the graph above to answer this question.What does the distance Q1 - Q2 represent?

What is supply?

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month). -Refer to Table 2.11 to answer this question.What will happen if the price of the product is $3?

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month). -In what way are products A and B related if an increase in the price of product A leads to a decrease in the demand for product B?

-Refer to the graph above to answer this question.What is the effect if the price is $800?

Demonstrate graphically and explain verbally the concept of a shortage.Is price above or below equilibrium?

Assume the market for coffee is initially in equilibrium. a)Draw a demand and supply diagram to illustrate the initial equilibrium. b)Explain the impact on the coffee market if there is a decrease in business taxes. c)Graphically illustrate the impact on the diagram you prepared for part (a).

The following figure shows the market for grapefruit (in kilos): -Refer to the diagram above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 kilos,what will be the new equilibrium price and quantity?

The Economic Problem

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 2: Demand and Supply: An Introduction

-Refer to the above graph to answer this question.If the price of the product is $14,how many units would be sold?

If the price of gasoline goes up,then the demand will go down.Evaluate this statement.

The two graphs below show the markets for orange juice and apple juice,which are initially in equilibrium:

What is the effect of an increase in the price of resources?

What is the correct way to label the axis on a graph which illustrates a demand curve?

If the price of a product does not change immediately,which of the following will cause an initial shortage of a product?

All of the following,except one,is demand.Which is the exception?

-Refer to the graph above to answer this question.What is the effect if the price is $600.

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area. -Refer to the above information to answer this question.What are the equilibrium values of price and quantity?

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area. -Refer to the above information to answer this question.If the developer decides to set the price at $1.8 million for each apartment,what is the quantity demanded?

-Refer to the graph above to answer this question.What does the distance Q1 - Q2 represent?

What is supply?

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month). -Refer to Table 2.11 to answer this question.What will happen if the price of the product is $3?

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month). -In what way are products A and B related if an increase in the price of product A leads to a decrease in the demand for product B?

-Refer to the graph above to answer this question.What is the effect if the price is $800?

Demonstrate graphically and explain verbally the concept of a shortage.Is price above or below equilibrium?

Assume the market for coffee is initially in equilibrium. a)Draw a demand and supply diagram to illustrate the initial equilibrium. b)Explain the impact on the coffee market if there is a decrease in business taxes. c)Graphically illustrate the impact on the diagram you prepared for part (a).

The following figure shows the market for grapefruit (in kilos): -Refer to the diagram above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 kilos,what will be the new equilibrium price and quantity?

The Economic Problem

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters