Question 1

Steel producers offer to sell steel to U.S.auto producers at a much lower price than in the past.As a result one would expect:

Accepted Answer

A) no change in the supply of automobiles. 
B) an increase in the demand for automobiles. 
C) an increase in the supply of automobiles. 
D) a decrease in the supply of automobiles. 
A) no change in the supply of automobiles. 
B) an increase in the demand for automobiles. 
C) an increase in the supply of automobiles. 
D) a decrease in the supply of automobiles.

Question 2

What is the most likely effect of deregulation on the supply curve?

Accepted Answer

A) Supply curve will shift to the left 
B) Quantity supplied will reduce 
C) Supply curve will shift to the right 
D) Supply curve will not be effected 
A) Supply curve will shift to the left 
B) Quantity supplied will reduce 
C) Supply curve will shift to the right 
D) Supply curve will not be effected

Question 3

An increase in costs associated with additional security measures taken by the airlines is most likely to lead to:

Accepted Answer

A) a decrease in equilibrium price and a decrease in equilibrium quantity. 
B) a decrease in equilibrium price and an increase in equilibrium quantity. 
C) an increase in equilibrium price and a decrease in equilibrium quantity. 
D) an increase in equilibrium price and no change equilibrium quantity. 
E) a decrease in equilibrium price and no change equilibrium quantity. 
A) a decrease in equilibrium price and a decrease in equilibrium quantity. 
B) a decrease in equilibrium price and an increase in equilibrium quantity. 
C) an increase in equilibrium price and a decrease in equilibrium quantity. 
D) an increase in equilibrium price and no change equilibrium quantity. 
E) a decrease in equilibrium price and no change equilibrium quantity.

Question 4

Technological progress increases the efficiency of mass producing HDTV-capable television sets.At the same time, more cable and television networks begin broadcasting in HDTV format, increasing the appeal of HDTV-capable television sets.On the basis of this information, what can be said about conditions in the HDTV market?

Accepted Answer

A) The equilibrium quantity and price of HDTV-capable sets will increase. 
B) The equilibrium quantity of HDTV-capable sets will increase and price will decrease. 
C) The equilibrium quantity of HDTV-capable sets will increase and what happens to price is indeterminate. 
D) The equilibrium quantity of HDTV-capable sets will decrease and price will increase. 
E) The equilibrium quantity and price of HDTV-capable sets will decrease. 
A) The equilibrium quantity and price of HDTV-capable sets will increase. 
B) The equilibrium quantity of HDTV-capable sets will increase and price will decrease. 
C) The equilibrium quantity of HDTV-capable sets will increase and what happens to price is indeterminate. 
D) The equilibrium quantity of HDTV-capable sets will decrease and price will increase. 
E) The equilibrium quantity and price of HDTV-capable sets will decrease.

Question 5

Which of the following is not a supply curve determinant?

Accepted Answer

A) Government policies. 
B) Changes in technology. 
C) Consumer population. 
D) Changes in price of inputs. 
A) Government policies. 
B) Changes in technology. 
C) Consumer population. 
D) Changes in price of inputs.

Question 6

Table 3-D
Use the following information about demand and supply schedules to answer the question.
 $$\begin{array} { l c c c } 
\text { Price } & \mathbf { D } _ { 1 } & \mathbf { D } _ { \mathbf { 2 } } & \boldsymbol { I } _ { \mathbf { 1 } } \
\$ 12 & 5 & 9 & 19 \
\$ 10 & 8 & 12 & 17 \
\$ 8 & 11 & 15 & 15 \
\$ 6 & 13 & 18 & 13 \
\$ 4 & 16 & 21 & 11 \
\$ 2 & 18 & 24 & 9
\end{array}$$
-Refer to Table 3-D.Suppose that D1 and S1 are the prevailing demand and supply curves for a product.If the demand schedule changes from D1 to D2, then:

Accepted Answer

A) equilibrium price decreases from $6 to $4. 
B) equilibrium quantity decreases from 15 to 13. 
C) equilibrium quantity increases from 13 to 18. 
D) equilibrium price increases from $6 to $8. 
E) equilibrium quantity remains at 13. 
A) equilibrium price decreases from $6 to $4. 
B) equilibrium quantity decreases from 15 to 13. 
C) equilibrium quantity increases from 13 to 18. 
D) equilibrium price increases from $6 to $8. 
E) equilibrium quantity remains at 13.

Question 7

Sellers who were originally willing to supply 800 units of a good at $4 per unit are now willing to supply 800 units at $3 per unit.That change would be described as:

Accepted Answer

A) an increase in supply. 
B) a decrease in supply. 
C) an increase in quantity supplied. 
D) a decrease in quantity supplied. 
A) an increase in supply. 
B) a decrease in supply. 
C) an increase in quantity supplied. 
D) a decrease in quantity supplied.

Question 8

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:

Accepted Answer

A) increase the demand for coffee. 
B) decrease the demand for coffee. 
C) increase the demand for tea. 
D) decrease the demand for tea. 
E) increase the supply of tea. 
A) increase the demand for coffee. 
B) decrease the demand for coffee. 
C) increase the demand for tea. 
D) decrease the demand for tea. 
E) increase the supply of tea.

Question 9

The graph below most likely depicts a(n):

Accepted Answer

A) supply increase. 
B) supply decrease. 
C) decrease in demand. 
D) increase in demand. 
A) supply increase. 
B) supply decrease. 
C) decrease in demand. 
D) increase in demand.

Question 10

Which of the following would reduce the supply of computers?

Accepted Answer

A) higher wage rates for the workers that assemble the computers 
B) a technological improvement that lowers the cost of producing the computers 
C) a reduction in the price of computer chips used to produce the computers 
D) All of the above would reduce the supply of computers. 
A) higher wage rates for the workers that assemble the computers 
B) a technological improvement that lowers the cost of producing the computers 
C) a reduction in the price of computer chips used to produce the computers 
D) All of the above would reduce the supply of computers.

Question 11

Figure 3-G
The diagram below represents the market for butter.  
-Refer to Figure 3-G.The equilibrium price of butter is:

Accepted Answer

A) $5. 
B) $3. 
C) $2. 
D) $1. 
E) 50 cents. 
A) $5. 
B) $3. 
C) $2. 
D) $1. 
E) 50 cents.

Question 12

If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change?

Accepted Answer

A) An increase in supply. 
B) A decrease in supply. 
C) An increase in demand. 
D) A decrease in demand. 
E) None of the above could have caused the indicated changes. 
A) An increase in supply. 
B) A decrease in supply. 
C) An increase in demand. 
D) A decrease in demand. 
E) None of the above could have caused the indicated changes.

Steel producers offer to sell steel to U.S.auto producers at a much lower price than in the past.As a result one would expect:

What is the most likely effect of deregulation on the supply curve?

An increase in costs associated with additional security measures taken by the airlines is most likely to lead to:

Which of the following is not a supply curve determinant?

Sellers who were originally willing to supply 800 units of a good at $4 per unit are now willing to supply 800 units at $3 per unit.That change would be described as:

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:

The graph below most likely depicts a(n):

Which of the following would reduce the supply of computers?

Figure 3-G The diagram below represents the market for butter. -Refer to Figure 3-G.The equilibrium price of butter is:

If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change?

The Role and Method of Economics

The Economic Way of Thinking

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

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Exam 3: Supply and Demand

Steel producers offer to sell steel to U.S.auto producers at a much lower price than in the past.As a result one would expect:

What is the most likely effect of deregulation on the supply curve?

An increase in costs associated with additional security measures taken by the airlines is most likely to lead to:

Which of the following is not a supply curve determinant?

Sellers who were originally willing to supply 800 units of a good at $4 per unit are now willing to supply 800 units at $3 per unit.That change would be described as:

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:

The graph below most likely depicts a(n):

Which of the following would reduce the supply of computers?

Figure 3-G The diagram below represents the market for butter. -Refer to Figure 3-G.The equilibrium price of butter is:

If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change?

The Role and Method of Economics

The Economic Way of Thinking

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters