Question 1

To find the market demand curve for in-line skates,we must

Accepted Answer

A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates. 
A) add the quantities demanded at every price and every income by every buyer of in-line skates. 
B) add the quantities demanded at prices that all buyers can afford to pay. 
C) sum horizontally the individual demand curves of all the buyers. 
D) take account of the skate buying plans of all actual and potential buyers in all possible situations. 
E) None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 2

As a falling price eliminates a surplus in the jersey market,

Accepted Answer

A) the demand curve for jerseys shifts leftward,and the supply curve of jerseys shifts rightward. 
B) consumers increase the quantity of jerseys they demand. 
C) producers increase the quantity of jerseys they supply. 
D) producers decrease the quantity of jerseys they supply,and buyers decrease the quantity of jerseys they demand. 
E) the demand curve for jerseys shifts rightward,and the supply curve of jerseys shifts leftward. 
A) the demand curve for jerseys shifts leftward,and the supply curve of jerseys shifts rightward. 
B) consumers increase the quantity of jerseys they demand. 
C) producers increase the quantity of jerseys they supply. 
D) producers decrease the quantity of jerseys they supply,and buyers decrease the quantity of jerseys they demand. 
E) the demand curve for jerseys shifts rightward,and the supply curve of jerseys shifts leftward.

Question 3

Which of the following indicates that the law of supply applies to makers of soda?

Accepted Answer

A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda. 
A) An increase in the price of a soda leads to an increase in the demand for soda. 
B) An increase in the price of a soda leads to an increase in the supply of soda. 
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied. 
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. 
E) A decrease in the price of a soda leads to an increase in the supply of soda.

Question 4

The number of logging firms increases.Which of the figures above best illustrates this change?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A and Figure D 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A and Figure D

Question 5

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

Accepted Answer

A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops 
A) a decrease in the number of laptop manufactures and sellers 
B) an increase in the productivity of the workers manufacturing laptops 
C) an increase in the cost of hard drives 
D) an increase in the price of laptops 
E) a decrease in the price of laptops

Question 6

In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

Accepted Answer

A) there has been an increase in supply. 
B) there has been an increase in demand. 
C) there has been a change in the quantity supplied and no change in supply. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct. 
A) there has been an increase in supply. 
B) there has been an increase in demand. 
C) there has been a change in the quantity supplied and no change in supply. 
D) Both answers B and C are correct. 
E) Both answers A and B are correct.

Question 7

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

Accepted Answer

A) supply increases. 
B) supply decreases. 
C) quantity supplied increases. 
D) quantity supplied decreases. 
E) price falls to restore the equilibrium. 
A) supply increases. 
B) supply decreases. 
C) quantity supplied increases. 
D) quantity supplied decreases. 
E) price falls to restore the equilibrium.

Question 8

If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.

Accepted Answer

A) less than;rise 
B) less than;fall 
C) greater than;rise 
D) greater than;fall 
E) equal to;fall 
A) less than;rise 
B) less than;fall 
C) greater than;rise 
D) greater than;fall 
E) equal to;fall

Question 9

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

A) rises;decreases 
B) perhaps changes but we can't say if it rises,falls,or stays the same;decreases 
C) falls;increases 
D) perhaps changes but we can't say if it rises,falls,or stays the same;increases 
E) rises;increases 
A) rises;decreases 
B) perhaps changes but we can't say if it rises,falls,or stays the same;decreases 
C) falls;increases 
D) perhaps changes but we can't say if it rises,falls,or stays the same;increases 
E) rises;increases

Question 10

Market equilibrium occurs when

Accepted Answer

A) the quantity demanded equals the quantity supplied. 
B) the market is changing rapidly. 
C) other things remain the same. 
D) buyers get the lowest possible price. 
E) everyone who wants the good gets the quantity he or she wants. 
A) the quantity demanded equals the quantity supplied. 
B) the market is changing rapidly. 
C) other things remain the same. 
D) buyers get the lowest possible price. 
E) everyone who wants the good gets the quantity he or she wants.

Question 11

-In the above figure,the shift in the demand curve from D to D1 can be the result of

Accepted Answer

A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good. 
A) an increase in the price of pizza. 
B) an increase in the price of a sub sandwich,a substitute for pizza. 
C) an increase in the price of soda,a complement to pizza. 
D) a change in quantity demanded. 
E) a decrease in income if pizza is a normal good.

Question 12

In early 2012 the price of computer hard disc drives rose.In a demand and supply model,shifts in what curve or curves could have brought about the higher price?

Accepted Answer

The higher price could have been brought

Question 13

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Accepted Answer

A) increases;rises 
B) increases;falls 
C) decreases;rises 
D) decreases;falls 
E) decreases;does not change 
A) increases;rises 
B) increases;falls 
C) decreases;rises 
D) decreases;falls 
E) decreases;does not change

Question 14

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States ________ and wages in Mexico ________.

Accepted Answer

A) fall;rise 
B) rise;rise 
C) rise;do not change 
D) fall;fall 
E) do not change;fall 
A) fall;rise 
B) rise;rise 
C) rise;do not change 
D) fall;fall 
E) do not change;fall

Question 15

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

Accepted Answer

A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases 
E) does not change;decreases 
A) rises;increases 
B) rises;decreases 
C) falls;increases 
D) falls;decreases 
E) does not change;decreases

Question 16

At prices above the equilibrium price,what occurs?

Accepted Answer

If the price exceeds the equilibrium pri

Question 17

Which of the following shifts the demand curve for movies rightward?

Accepted Answer

A) an increase in the price of NetFlix,a substitute for movies 
B) an increase in the price of movie tickets 
C) a decrease in the price of move tickets 
D) an increase in movie star salaries 
E) an increase in the price of HDTV sets 
A) an increase in the price of NetFlix,a substitute for movies 
B) an increase in the price of movie tickets 
C) a decrease in the price of move tickets 
D) an increase in movie star salaries 
E) an increase in the price of HDTV sets

Question 18

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

Accepted Answer

A) Oil producers have higher costs of production in the summer. 
B) Sellers have to earn profits during the summer to cover losses in the winter. 
C) There is increased driving by families going on vacation. 
D) There is less competition among oil refineries in the summer. 
E) The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs. 
A) Oil producers have higher costs of production in the summer. 
B) Sellers have to earn profits during the summer to cover losses in the winter. 
C) There is increased driving by families going on vacation. 
D) There is less competition among oil refineries in the summer. 
E) The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs.

Question 19

New technology for producing plywood is developed.Which of the figures above best illustrates this change?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A and Figure D 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) Figure A and Figure D

Question 20

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of HD television manufacturing plants,which figure shows the effect of the earthquake?

Accepted Answer

A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the figures represent this change. 
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D 
E) None of the figures represent this change.

To find the market demand curve for in-line skates,we must

As a falling price eliminates a surplus in the jersey market,

Which of the following indicates that the law of supply applies to makers of soda?

The number of logging firms increases.Which of the figures above best illustrates this change?

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

If there is a surplus of a good,the quantity demanded is the quantity supplied,and the price will .

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

Market equilibrium occurs when

-In the above figure,the shift in the demand curve from D to D1 can be the result of

In early 2012 the price of computer hard disc drives rose.In a demand and supply model,shifts in what curve or curves could have brought about the higher price?

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States and wages in Mexico .

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

At prices above the equilibrium price,what occurs?

Which of the following shifts the demand curve for movies rightward?

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

New technology for producing plywood is developed.Which of the figures above best illustrates this change?

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of HD television manufacturing plants,which figure shows the effect of the earthquake?

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 4: Demand and Supply

To find the market demand curve for in-line skates,we must

As a falling price eliminates a surplus in the jersey market,

Which of the following indicates that the law of supply applies to makers of soda?

The number of logging firms increases.Which of the figures above best illustrates this change?

-The above figure shows the market for laptops.Which of the following causes a movement from A to B?

In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

Market equilibrium occurs when

-In the above figure,the shift in the demand curve from D to D1 can be the result of

In early 2012 the price of computer hard disc drives rose.In a demand and supply model,shifts in what curve or curves could have brought about the higher price?

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips ________ so that the price of a computer chip ________.

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

At prices above the equilibrium price,what occurs?

Which of the following shifts the demand curve for movies rightward?

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

New technology for producing plywood is developed.Which of the figures above best illustrates this change?

-The above figures show the market for HD televisions.If there are severe earthquakes that destroy a significant number of HD television manufacturing plants,which figure shows the effect of the earthquake?

Getting Started

The Usand Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

If there is a surplus of a good,the quantity demanded is the quantity supplied,and the price will .

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ,and the equilibrium quantity .

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result,the demand for computer chips so that the price of a computer chip .

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .