Question 1

-Refer to the above information to answer this question.What is true if price is $45?

Accepted Answer

A) Price will soon fall. 
B) There is a surplus of 40. 
C) The quantity supplied is 200. 
D) The quantity demanded is 80. 
E) There is a shortage of 40. 
A) Price will soon fall. 
B) There is a surplus of 40. 
C) The quantity supplied is 200. 
D) The quantity demanded is 80. 
E) There is a shortage of 40.

Question 2

What is true of substitute products?

Accepted Answer

A) When the price of one increases,the quantity purchased of the other decreases. 
B) When the price of one increases,the quantity purchased of the other increases. 
C) When the price of one decreases,the quantity purchased of the other increases. 
D) They are products which are always purchased together. 
A) When the price of one increases,the quantity purchased of the other decreases. 
B) When the price of one increases,the quantity purchased of the other increases. 
C) When the price of one decreases,the quantity purchased of the other increases. 
D) They are products which are always purchased together.

Question 3

What is the term for a table that shows the various quantities demanded per period of time at different prices?

Accepted Answer

A) Production possibilities table. 
B) Demand schedule. 
C) Supply schedule. 
D) Market schedule. 
E) Schedule of equilibrium points. 
A) Production possibilities table. 
B) Demand schedule. 
C) Supply schedule. 
D) Market schedule. 
E) Schedule of equilibrium points.

Question 4

-Refer to the above graph to answer this question.What are the implications if the price of this product is $14?

Accepted Answer

A) The price would be below equilibrium. 
B) There would be a shortage of 600 units. 
C) There would be a shortage of 1,200 units. 
D) There would be a surplus of 600 units. 
E) There would be a surplus of 1,200 units. 
A) The price would be below equilibrium. 
B) There would be a shortage of 600 units. 
C) There would be a shortage of 1,200 units. 
D) There would be a surplus of 600 units. 
E) There would be a surplus of 1,200 units.

Question 5

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if demand increased by 60?

Accepted Answer

A) $1,600 and 120. 
B) $1,400 and 140. 
C) $1,200 and 160. 
D) $1,000 and 140. 
E) $1,000 and 180. 
A) $1,600 and 120. 
B) $1,400 and 140. 
C) $1,200 and 160. 
D) $1,000 and 140. 
E) $1,000 and 180.

Question 6

What is supply?

Accepted Answer

A) The total quantity of goods produced but not sold. 
B) The maximum possible quantity that producers could make available. 
C) The quantity made available by a typical producer. 
D) The quantities that producers are willing and able to sell per period of time at various prices. 
A) The total quantity of goods produced but not sold. 
B) The maximum possible quantity that producers could make available. 
C) The quantity made available by a typical producer. 
D) The quantities that producers are willing and able to sell per period of time at various prices.

Question 7

Table 2.11 depicts the market for mushrooms (in thousands of kilograms per month).
  
-Refer to Table 2.11 to answer this question.What are the values of equilibrium price and quantity traded?

Accepted Answer

A) $3 and 52. 
B) $3 and 62. 
C) $4 and 58. 
D) $4.50 and 56. 
E) They cannot be determined from the data. 
A) $3 and 52. 
B) $3 and 62. 
C) $4 and 58. 
D) $4.50 and 56. 
E) They cannot be determined from the data.

Question 8

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

Accepted Answer

A) It will decrease the demand. 
B) It will increase the demand. 
C) It will decrease the quantity demanded. 
D) It will increase the quantity demanded. 
A) It will decrease the demand. 
B) It will increase the demand. 
C) It will decrease the quantity demanded. 
D) It will increase the quantity demanded.

Question 9

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 10

Which of the following factors will change the supply of 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

(a)An increase in the price of

Question 11

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

Accepted Answer

A) An increase in supply which leads to a decrease in the equilibrium price and an increase in demand. 
B) An increase in demand which leads to a decrease in the equilibrium price and an increase in supply. 
C) An increase in supply which leads to a decrease in the equilibrium price and an increase in the quantity demanded. 
D) An increase in demand which leads to a decrease in the equilibrium price and a decrease in supply. 
E) An increase in supply which leads to an increase in the equilibrium price and an increase in demand. 
A) An increase in supply which leads to a decrease in the equilibrium price and an increase in demand. 
B) An increase in demand which leads to a decrease in the equilibrium price and an increase in supply. 
C) An increase in supply which leads to a decrease in the equilibrium price and an increase in the quantity demanded. 
D) An increase in demand which leads to a decrease in the equilibrium price and a decrease in supply. 
E) An increase in supply which leads to an increase in the equilibrium price and an increase in demand.

Question 12

Explain the effects of a decrease in demand.

Accepted Answer

A decrease in demand will lead to a surp

Question 13

What is the income effect?

Accepted Answer

A) The effect of a change in income on the demand for a product. 
B) The effect of a change in income on the demand for a substitute product. 
C) The effect of a price change on real income and therefore on the quantity demanded of a product. 
D) The effect of a change in income on the demand for an inferior product. 
A) The effect of a change in income on the demand for a product. 
B) The effect of a change in income on the demand for a substitute product. 
C) The effect of a price change on real income and therefore on the quantity demanded of a product. 
D) The effect of a change in income on the demand for an inferior product.

Question 14

An increase in incomes will lead to a decrease in the demand for an inferior product.

Accepted Answer

A) True 
 B)False

Question 15

What is the effect of an improvement in technology?

Accepted Answer

A) It will cause a increase 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 increase 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 16

What is the effect of an increase in the price of a resource?

Accepted Answer

A) It will cause a decrease in the supply of the product. 
B) It will cause an increase in the supply of the product. 
C) It will cause a decrease in the demand for the product. 
D) It will cause an increase in the demand for the product. 
A) It will cause a decrease in the supply of the product. 
B) It will cause an increase in the supply of the product. 
C) It will cause a decrease in the demand for the product. 
D) It will cause an increase in the demand for the product.

Question 17

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 18

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if supply decreased by 120?

Accepted Answer

A) Supply would be zero. 
B) $1,400 and 80. 
C) $1,000 and 40. 
D) $800 and 80. 
A) Supply would be zero. 
B) $1,400 and 80. 
C) $1,000 and 40. 
D) $800 and 80.

Question 19

Why is the demand curve downward sloping? Explain.

Accepted Answer

The demand curve is downward sloping bec

Question 20

Stuff-Crust Pizza is a new pizza introduced by Pizza Hut.What happens to the equilibrium price and equilibrium quantity in each of the following situations?
a.Due to weather conditions,crop yields (including wheat)decreased.
b.The price of beer decreased
c.Domino's Pizza introduced a similar type of pizza that sold for $1 less than the one by Pizza Hut.
d.A recession reduced households' income.
e.A new oven technology reduced the time it takes to bake a pizza.

Accepted Answer

a.A reduction in the supply of wheat rai

-Refer to the above information to answer this question.What is true if price is $45?

What is true of substitute products?

What is the term for a table that shows the various quantities demanded per period of time at different prices?

-Refer to the above graph to answer this question.What are the implications if the price of this product is $14?

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if demand increased by 60?

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 are the values of equilibrium price and quantity traded?

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

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

Which of the following factors will change the supply of 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.

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

Explain the effects of a decrease in demand.

What is the income effect?

An increase in incomes will lead to a decrease in the demand for an inferior product.

What is the effect of an improvement in technology?

What is the effect of an increase in the price of a resource?

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if supply decreased by 120?

Why is the demand curve downward sloping? Explain.

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 $45?

What is true of substitute products?

What is the term for a table that shows the various quantities demanded per period of time at different prices?

-Refer to the above graph to answer this question.What are the implications if the price of this product is $14?

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if demand increased by 60?

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 are the values of equilibrium price and quantity traded?

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

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

Which of the following factors will change the supply of 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.

-Refer to the above graph to answer this question.How could you describe the movement from point B to point C?

Explain the effects of a decrease in demand.

What is the income effect?

An increase in incomes will lead to a decrease in the demand for an inferior product.

What is the effect of an improvement in technology?

What is the effect of an increase in the price of a resource?

-Refer to the graph above to answer this question.What would be the new equilibrium price and quantity if supply decreased by 120?

Why is the demand curve downward sloping? Explain.

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