Question 1

If two goods are substitutes,what happens if there is a decrease in the price of one good?

Accepted Answer

A)  It increases the demand for the other good. 
B)  It reduces the demand for the other good. 
C)  It reduces the quantity demanded of the other good. 
D)  It increases the quantity demanded of the other good. 
A)  It increases the demand for the other good. 
B)  It reduces the demand for the other good. 
C)  It reduces the quantity demanded of the other good. 
D)  It increases the quantity demanded of the other good.

Question 2

What would an early frost in the vineyards of the Okanagan Valley cause?

Accepted Answer

A)  an increase in the demand for wine,increasing price 
B)  an increase in the supply of wine,decreasing price 
C)  a decrease in the demand for wine,decreasing price 
D)  a decrease in the supply of wine,increasing price 
A)  an increase in the demand for wine,increasing price 
B)  an increase in the supply of wine,decreasing price 
C)  a decrease in the demand for wine,decreasing price 
D)  a decrease in the supply of wine,increasing price

Question 3

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

Accepted Answer

A)  Equilibrium price would decrease,but the impact on quantity would be ambiguous. 
B)  Equilibrium price would increase,but the impact on quantity would be ambiguous. 
C)  Both equilibrium price and quantity would increase. 
D)  Both equilibrium price and quantity would decrease. 
A)  Equilibrium price would decrease,but the impact on quantity would be ambiguous. 
B)  Equilibrium price would increase,but the impact on quantity would be ambiguous. 
C)  Both equilibrium price and quantity would increase. 
D)  Both equilibrium price and quantity would decrease.

Question 4

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 5

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 6

What is the unique point at which the supply and demand curves intersect?

Accepted Answer

A)  market unity 
B)  an agreement 
C)  cohesion 
D)  equilibrium 
A)  market unity 
B)  an agreement 
C)  cohesion 
D)  equilibrium

Question 7

Figure 4-2  
-Refer to the Figure 4-2.What would happen at a price of $15?

Accepted Answer

A)  There would be a shortage of 400 units. 
B)  There would be a surplus of 400 units. 
C)  There would be a shortage of 200 units. 
D)  There would be a surplus of 200 units. 
A)  There would be a shortage of 400 units. 
B)  There would be a surplus of 400 units. 
C)  There would be a shortage of 200 units. 
D)  There would be a surplus of 200 units.

Question 8

If two goods are complements,what happens if there is a decrease in the price of one good?

Accepted Answer

A)  It increases the quantity demanded of the other good. 
B)  It reduces the demand for the other good. 
C)  It reduces the quantity demanded of the other good. 
D)  It raises the demand for the other good. 
A)  It increases the quantity demanded of the other good. 
B)  It reduces the demand for the other good. 
C)  It reduces the quantity demanded of the other good. 
D)  It raises the demand for the other good.

Question 9

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Accepted Answer

A)  price will be $20 and quantity will be 60 
B)  price will be $45 and quantity will be 15 
C)  price will be $40 and quantity will be 20 
D)  price will be $15 and quantity will be 45 
A)  price will be $20 and quantity will be 60 
B)  price will be $45 and quantity will be 15 
C)  price will be $40 and quantity will be 20 
D)  price will be $15 and quantity will be 45

If two goods are substitutes,what happens if there is a decrease in the price of one good?

What would an early frost in the vineyards of the Okanagan Valley cause?

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

It is not possible for demand and supply to shift at the same time.

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

What is the unique point at which the supply and demand curves intersect?

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15?

If two goods are complements,what happens if there is a decrease in the price of one good?

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

If two goods are substitutes,what happens if there is a decrease in the price of one good?

What would an early frost in the vineyards of the Okanagan Valley cause?

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

It is not possible for demand and supply to shift at the same time.

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

What is the unique point at which the supply and demand curves intersect?

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15?

If two goods are complements,what happens if there is a decrease in the price of one good?

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters