Question 1

-Refer to the above information to answer this question.What is true if price is $52.50?

Accepted Answer

A) Price will soon rise. 
B) There is a surplus of 110. 
C) The quantity supplied is 90. 
D) The quantity demanded is 90. 
E) There is a shortage of 40. 
A) Price will soon rise. 
B) There is a surplus of 110. 
C) The quantity supplied is 90. 
D) The quantity demanded is 90. 
E) There is a shortage of 40.

Question 2

Consider the demand and supply schedules above for a limited number of hotels in the downtown business district area of a particular city.
-Refer to the above information to answer this question.If two of the hotels have been purchased,what are the new equilibrium values of price and quantity?

Accepted Answer

A) $60 million and 4. 
B) $60 million and 6. 
C) $70 million and 6. 
D) $70 million and 4. 
E) $80 million and 6. 
A) $60 million and 4. 
B) $60 million and 6. 
C) $70 million and 6. 
D) $70 million and 4. 
E) $80 million and 6.

Question 3

What effects will the following changes have on the price and quantity traded of computers?
a)General population increases
b)New and better technology for producing computers is introduced
c)Income of the population increases
d)Wage for computer workers increase

Accepted Answer

a)Price and quantity traded in

Question 4

Assuming apple juice is a normal good,which of the following factors will increase the demand for apple juice?
a)An increase in the price of apples.
b)An increase in the price of apple juice.
c)An increase in the price of orange juice.
d)An increase in consumer income.
e)An increase in the number of apple juice suppliers.

Accepted Answer

Assuming apple juice

Question 5

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 6

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 7

-Refer to the information above to answer this question.What is the effect if price is currently $5?

Accepted Answer

A) There is a surplus of 20. 
B) There is a shortage of 20. 
C) The quantity supplied is 80 
D) The quantity traded is 80. 
A) There is a surplus of 20. 
B) There is a shortage of 20. 
C) The quantity supplied is 80 
D) The quantity traded is 80.

Question 8

What is market supply?

Accepted Answer

A) The total supply of a product demanded by all consumers. 
B) The total quantity sold in a market. 
C) The total supply of a product offered by all producers. 
D) The surplus over and above the market demand. 
A) The total supply of a product demanded by all consumers. 
B) The total quantity sold in a market. 
C) The total supply of a product offered by all producers. 
D) The surplus over and above the market demand.

Question 9

-Refer to the graph above to answer this question.All of the following except one could have caused the shift from S1 to S2.Which is the exception?

Accepted Answer

A) A decrease in income. 
B) An increase in the sales tax. 
C) An increase in the price of a substitute in production. 
D) A decrease in the number of suppliers. 
A) A decrease in income. 
B) An increase in the sales tax. 
C) An increase in the price of a substitute in production. 
D) A decrease in the number of suppliers.

Question 10

An increase in the price of a product leads to an increase in the supply.

Accepted Answer

A) True 
 B)False

Question 11

Graphically,what is the effect of a decrease in the price of a product?

Accepted Answer

A) A leftward movement on the supply curve. 
B) A rightward movement on the supply curve. 
C) A leftward shift in the supply curve. 
D) A rightward shift in the supply curve. 
A) A leftward movement on the supply curve. 
B) A rightward movement on the supply curve. 
C) A leftward shift in the supply curve. 
D) A rightward shift in the supply curve.

Question 12

What is the term for those products which tend to be purchased jointly and whose demands therefore are related?

Accepted Answer

A) Normal products. 
B) Complementary products. 
C) Substitute products. 
D) Inferior products. 
A) Normal products. 
B) Complementary products. 
C) Substitute products. 
D) Inferior products.

Question 13

-Refer to the above information to answer this question.If supply increases by 40 units,what will be the new values of equilibrium price and quantity?

Accepted Answer

A) $40 and 140. 
B) $45 and 120. 
C) $50 and 140. 
D) $60 and 120. 
E) $60 and 140. 
A) $40 and 140. 
B) $45 and 120. 
C) $50 and 140. 
D) $60 and 120. 
E) $60 and 140.

Question 14

What is the effect of a decrease in the supply of a product?

Accepted Answer

A) It will cause an increase in both the price and in the quantity traded. 
B) It will cause an increase in the price but a decrease in the quantity traded. 
C) It will cause a decrease in both the price and in the quantity traded. 
D) It will cause a decrease in the price but an increase in the quantity traded. 
A) It will cause an increase in both the price and in the quantity traded. 
B) It will cause an increase in the price but a decrease in the quantity traded. 
C) It will cause a decrease in both the price and in the quantity traded. 
D) It will cause a decrease in the price but an increase in the quantity traded.

Question 15

Assume that the market for jeans is initially in equilibrium.
a)Draw a demand and supply diagram to illustrate the initial equilibrium.
b)Explain the impact on the market for jeans if consumers expect the future price for jeans to increase.
c)Graphically illustrate the impact on the diagram you prepared for part (a).

Accepted Answer

a)
b)An increase in the future

Question 16

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 17

In what way are Pepsi-Cola and Coca-Cola related?

Accepted Answer

A) They are substitute products. 
B) They are complementary products. 
C) They are inferior products. 
D) They are unrelated products. 
A) They are substitute products. 
B) They are complementary products. 
C) They are inferior products. 
D) They are unrelated products.

Question 18

Briefly explain the five determinants of market demand.

Accepted Answer

The first determinant of market demand i

Question 19

What will cause the supply of a product to increase?

Accepted Answer

A) An increase in the price of resources. 
B) A decrease in the number of suppliers. 
C) The expectation of producers that the future price will be higher. 
D) An improvement in the technology of producing the product. 
E) An increase in the price of a productively related product. 
A) An increase in the price of resources. 
B) A decrease in the number of suppliers. 
C) The expectation of producers that the future price will be higher. 
D) An improvement in the technology of producing the product. 
E) An increase in the price of a productively related product.

Question 20

-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.

-Refer to the above information to answer this question.What is true if price is $52.50?

Consider the demand and supply schedules above for a limited number of hotels in the downtown business district area of a particular city. -Refer to the above information to answer this question.If two of the hotels have been purchased,what are the new equilibrium values of price and quantity?

What effects will the following changes have on the price and quantity traded of computers? a)General population increases b)New and better technology for producing computers is introduced c)Income of the population increases d)Wage for computer workers increase

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

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?

-Refer to the information above to answer this question.What is the effect if price is currently $5?

What is market supply?

-Refer to the graph above to answer this question.All of the following except one could have caused the shift from S1 to S2.Which is the exception?

An increase in the price of a product leads to an increase in the supply.

Graphically,what is the effect of a decrease in the price of a product?

What is the term for those products which tend to be purchased jointly and whose demands therefore are related?

-Refer to the above information to answer this question.If supply increases by 40 units,what will be the new values of equilibrium price and quantity?

What is the effect of a decrease in the supply of a product?

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?

In what way are Pepsi-Cola and Coca-Cola related?

Briefly explain the five determinants of market demand.

What will cause the supply of a product to increase?

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

The Economic Problem

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 2: Demand and Supply: an Introduction

-Refer to the above information to answer this question.What is true if price is $52.50?

Consider the demand and supply schedules above for a limited number of hotels in the downtown business district area of a particular city. -Refer to the above information to answer this question.If two of the hotels have been purchased,what are the new equilibrium values of price and quantity?

What effects will the following changes have on the price and quantity traded of computers? a)General population increases b)New and better technology for producing computers is introduced c)Income of the population increases d)Wage for computer workers increase

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

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?

-Refer to the information above to answer this question.What is the effect if price is currently $5?

What is market supply?

-Refer to the graph above to answer this question.All of the following except one could have caused the shift from S1 to S2.Which is the exception?

An increase in the price of a product leads to an increase in the supply.

Graphically,what is the effect of a decrease in the price of a product?

What is the term for those products which tend to be purchased jointly and whose demands therefore are related?

-Refer to the above information to answer this question.If supply increases by 40 units,what will be the new values of equilibrium price and quantity?

What is the effect of a decrease in the supply of a product?

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?

In what way are Pepsi-Cola and Coca-Cola related?

Briefly explain the five determinants of market demand.

What will cause the supply of a product to increase?

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

The Economic Problem

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters