Question 1

If an individual's income increases, then the demand for a normal good will:

Accepted Answer

A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  rotate. 
A)  decrease. 
B)  increase. 
C)  remain constant. 
D)  rotate.

Question 2

A decrease in supply means that:

Accepted Answer

A)  demand will increase by the same amount. 
B)  the quantity demanded will increase. 
C)  there is a movement down and to the left along the supply curve. 
D)  the quantity supplied at every price will decrease. 
A)  demand will increase by the same amount. 
B)  the quantity demanded will increase. 
C)  there is a movement down and to the left along the supply curve. 
D)  the quantity supplied at every price will decrease.

Question 3

Which of the following will not shift the demand curve for televisions?

Accepted Answer

A)  An increase in the price of televisions. 
B)  An increase in consumer income. 
C)  An increase in the price of radios (a substitute). 
D)  An increase in the price of cable services (a complement). 
A)  An increase in the price of televisions. 
B)  An increase in consumer income. 
C)  An increase in the price of radios (a substitute). 
D)  An increase in the price of cable services (a complement).

Question 4

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of the supply curve.

Accepted Answer

A) True 
 B)False

Question 5

A shift occurs in the supply curve for salt when:

Accepted Answer

A)  the price of salt increases. 
B)  improvements are made in the production process. 
C)  salt is found to be associated with high blood pressure. 
D)  consumers expect the price of salt to increase in the future. 
A)  the price of salt increases. 
B)  improvements are made in the production process. 
C)  salt is found to be associated with high blood pressure. 
D)  consumers expect the price of salt to increase in the future.

Question 6

A change in supply cannot be caused by a change in:

Accepted Answer

A)  resource prices. 
B)  technology. 
C)  expectations of consumers. 
D)  prices of other goods. 
A)  resource prices. 
B)  technology. 
C)  expectations of consumers. 
D)  prices of other goods.

Question 7

Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:

Accepted Answer

A)  rightward shift in the demand curve for hot dogs. 
B)  leftward shift in the demand curve for hamburgers. 
C)  rightward shift in the demand curve for hamburgers. 
D)  leftward shift in the demand curve for hot dogs. 
A)  rightward shift in the demand curve for hot dogs. 
B)  leftward shift in the demand curve for hamburgers. 
C)  rightward shift in the demand curve for hamburgers. 
D)  leftward shift in the demand curve for hot dogs.

Question 8

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

Accepted Answer

A)  demand for good X to increase. 
B)  quantity demanded of good Y to decrease. 
C)  quantity demanded of good Y to increase. 
D)  demand for good Y to increase. 
A)  demand for good X to increase. 
B)  quantity demanded of good Y to decrease. 
C)  quantity demanded of good Y to increase. 
D)  demand for good Y to increase.

Question 9

Narrbegin Exhibit 3.3 Supply curves
 
-In Exhibit 3.3, which of the following could have caused the shift in the supply curve from S1 to S2?

Accepted Answer

A)  Increase in demand. 
B)  Decrease in demand. 
C)  Decrease in the number of suppliers in the market. 
D)  Increase in the number of sellers. 
E)  Increase in the cost of materials. 
A)  Increase in demand. 
B)  Decrease in demand. 
C)  Decrease in the number of suppliers in the market. 
D)  Increase in the number of sellers. 
E)  Increase in the cost of materials.

Question 10

If people expect the price of packaged coffee to rise next week, coffee demand will:

Accepted Answer

A)  decrease now. 
B)  increase now. 
C)  stay the same now and increase next week. 
D)  stay the same now and decrease next week. 
A)  decrease now. 
B)  increase now. 
C)  stay the same now and increase next week. 
D)  stay the same now and decrease next week.

Question 11

Assuming that new cars are a normal good, a decrease in consumer income, other things being equal, will:

Accepted Answer

A)  decrease the quantity demanded of new cars. 
B)  increase the demand for new cars. 
C)  decrease the demand for new cars. 
D)  increase the quantity of new cars demanded. 
A)  decrease the quantity demanded of new cars. 
B)  increase the demand for new cars. 
C)  decrease the demand for new cars. 
D)  increase the quantity of new cars demanded.

Question 12

An improvement in technology will:

Accepted Answer

A)  increase the demand. 
B)  lower the cost of production. 
C)  decrease the demand. 
D)  increase the cost of production. 
A)  increase the demand. 
B)  lower the cost of production. 
C)  decrease the demand. 
D)  increase the cost of production.

Question 13

Which of the following will not shift the demand curve for motorbikes?

Accepted Answer

A)  An increase in the price of motorbikes. 
B)  An increase in consumer income. 
C)  An increase in the price of bicycles (a substitute). 
D)  An increase in the price of helmets (a complement). 
A)  An increase in the price of motorbikes. 
B)  An increase in consumer income. 
C)  An increase in the price of bicycles (a substitute). 
D)  An increase in the price of helmets (a complement).

Question 14

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 15

The fact that price and quantity demanded are related negatively illustrates the:

Accepted Answer

A)  law of supply. 
B)  law of quantity supplied. 
C)  law of demand. 
D)  law of quantity demanded. 
A)  law of supply. 
B)  law of quantity supplied. 
C)  law of demand. 
D)  law of quantity demanded.

Question 16

If good X is an inferior good, a decrease in consumer income, other things being equal, will shift the:

Accepted Answer

A)  demand curve for good X to the right. 
B)  demand curve for good X to the left. 
C)  supply curve for good X to the right. 
D)  supply curve for good X to the left. 
A)  demand curve for good X to the right. 
B)  demand curve for good X to the left. 
C)  supply curve for good X to the right. 
D)  supply curve for good X to the left.

Question 17

Other things being equal, a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

Accepted Answer

A) True 
 B)False

Question 18

A shift of the demand curve occurs if there is:

Accepted Answer

A)  an increase in price. 
B)  a change due to any factor except price. 
C)  a decrease in price. 
D)  a shift of the supply curve to the left. 
A)  an increase in price. 
B)  a change due to any factor except price. 
C)  a decrease in price. 
D)  a shift of the supply curve to the left.

Question 19

Assume that croutons and soup are complementary goods. The effect on the soup market of a decrease in the price of croutons (other things being equal) would best be described as a/an:

Accepted Answer

A)  decrease in the quantity of soup demanded. 
B)  decrease in the demand for soup. 
C)  increase in the quantity of soup demanded. 
D)  increase in the demand for soup. 
A)  decrease in the quantity of soup demanded. 
B)  decrease in the demand for soup. 
C)  increase in the quantity of soup demanded. 
D)  increase in the demand for soup.

Question 20

Narrbegin Exhibit 3.4 Demand and supply curves  
-In Exhibit 3.4, if price happened to currently be $25 in this market, a _____ would result, causing a/an _____ in price.

Accepted Answer

A)  shortage; increase 
B)  surplus; decrease 
C)  surplus; increase 
D)  shortage; decrease 
A)  shortage; increase 
B)  surplus; decrease 
C)  surplus; increase 
D)  shortage; decrease

If an individual's income increases, then the demand for a normal good will:

A decrease in supply means that:

Which of the following will not shift the demand curve for televisions?

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of the supply curve.

A shift occurs in the supply curve for salt when:

A change in supply cannot be caused by a change in:

Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, which of the following could have caused the shift in the supply curve from S₁ to S₂?

If people expect the price of packaged coffee to rise next week, coffee demand will:

Assuming that new cars are a normal good, a decrease in consumer income, other things being equal, will:

An improvement in technology will:

Which of the following will not shift the demand curve for motorbikes?

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

The fact that price and quantity demanded are related negatively illustrates the:

If good X is an inferior good, a decrease in consumer income, other things being equal, will shift the:

Other things being equal, a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

A shift of the demand curve occurs if there is:

Assume that croutons and soup are complementary goods. The effect on the soup market of a decrease in the price of croutons (other things being equal) would best be described as a/an:

Narrbegin Exhibit 3.4 Demand and supply curves -In Exhibit 3.4, if price happened to currently be $25 in this market, a _ would result, causing a/an _ in price.

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters

Exam 4: Market Demand and Supply

If an individual's income increases, then the demand for a normal good will:

A decrease in supply means that:

Which of the following will not shift the demand curve for televisions?

Anything that changes the amount a firm can produce with a given amount of resources will result in a shift of the supply curve.

A shift occurs in the supply curve for salt when:

A change in supply cannot be caused by a change in:

Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, which of the following could have caused the shift in the supply curve from S1 to S2?

If people expect the price of packaged coffee to rise next week, coffee demand will:

Assuming that new cars are a normal good, a decrease in consumer income, other things being equal, will:

An improvement in technology will:

Which of the following will not shift the demand curve for motorbikes?

A shortage is a market condition existing at any price where the quantity demanded is less than the quantity supplied.

The fact that price and quantity demanded are related negatively illustrates the:

If good X is an inferior good, a decrease in consumer income, other things being equal, will shift the:

Other things being equal, a fall in the price of Coca-Cola will increase the quantity of Coca-Cola produced.

A shift of the demand curve occurs if there is:

Assume that croutons and soup are complementary goods. The effect on the soup market of a decrease in the price of croutons (other things being equal) would best be described as a/an:

Narrbegin Exhibit 3.4 Demand and supply curves -In Exhibit 3.4, if price happened to currently be $25 in this market, a _____ would result, causing a/an _____ in price.

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Policy Issues: Housing Affordability and Climate Change

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, which of the following could have caused the shift in the supply curve from S₁ to S₂?

Narrbegin Exhibit 3.4 Demand and supply curves -In Exhibit 3.4, if price happened to currently be $25 in this market, a _ would result, causing a/an _ in price.