Question 1

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

Accepted Answer

A) The supply of salsa increases. 
B) The supply of salsa decreases. 
C) There is no change to either the supply of salsa or the quantity of salsa supplied. 
D) There is no change to the supply of salsa,but the quantity of salsa supplied increases. 
E) There is no change to the supply of salsa,but the quantity of salsa supplied decreases. 
A) The supply of salsa increases. 
B) The supply of salsa decreases. 
C) There is no change to either the supply of salsa or the quantity of salsa supplied. 
D) There is no change to the supply of salsa,but the quantity of salsa supplied increases. 
E) There is no change to the supply of salsa,but the quantity of salsa supplied decreases.

Question 2

-The diagram above illustrates the market for apartments in Victoria,British Columbia.
a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b.What is the equilibrium rent and quantity of apartments?

Accepted Answer

a.If the rent is $300 per mont

Question 3

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________,and the equilibrium price of gasoline ________.

Accepted Answer

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

Question 4

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

Accepted Answer

A) decreases from 2 cans to 0 cans a day. 
B) increases from 0 cans to 2 cans a day. 
C) remains unchanged. 
D) decreases from 1 can to 0 cans a day. 
E) cannot be determined from the figure because the demand curve will shift to a new curve. 
A) decreases from 2 cans to 0 cans a day. 
B) increases from 0 cans to 2 cans a day. 
C) remains unchanged. 
D) decreases from 1 can to 0 cans a day. 
E) cannot be determined from the figure because the demand curve will shift to a new curve.

Question 5

An increase in the quantity demanded is shown as

Accepted Answer

A) a movement along the demand curve. 
B) a movement toward the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve. 
E) both a movement along the demand curve and a shift of the demand curve. 
A) a movement along the demand curve. 
B) a movement toward the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve. 
E) both a movement along the demand curve and a shift of the demand curve.

Question 6

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 7

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

Accepted Answer

A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied. 
A) increases from 0 cans to 4,000 cans a day. 
B) decreases from 4,000 cans to 0 cans a day. 
C) remains unchanged because the supply increases not the quantity supplied. 
D) increases from 0 to 6,000 cans a day. 
E) remains unchanged because the supply decreases not the quantity supplied.

Question 8

One reason the demand for laptop computers might increase is a

Accepted Answer

A) fall in the price of a laptop computers. 
B) fall in price of desktop computers. 
C) change in preferences as laptops have become more portable,with faster processors and larger hard drives. 
D) poor quality performance record for laptop computers. 
E) decrease in income if laptops are a normal good. 
A) fall in the price of a laptop computers. 
B) fall in price of desktop computers. 
C) change in preferences as laptops have become more portable,with faster processors and larger hard drives. 
D) poor quality performance record for laptop computers. 
E) decrease in income if laptops are a normal good.

Question 9

A change in the demand for apples could result from any of the following EXCEPT

Accepted Answer

A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income. 
A) a change in the number of buyers. 
B) increased preferences for fresh fruit consumption for health reasons. 
C) a change in the price of an apple. 
D) a change in the price of a banana. 
E) a change in income.

Question 10

EBay

Accepted Answer

A) will be considered a market when the Internet firms are profitable. 
B) is a market because buyers and sellers are brought together to buy and sell. 
C) would be a market if there was only one physical location. 
D) cannot function as a market. 
E) is not a market because buyers can buy from only one seller at any point in time. 
A) will be considered a market when the Internet firms are profitable. 
B) is a market because buyers and sellers are brought together to buy and sell. 
C) would be a market if there was only one physical location. 
D) cannot function as a market. 
E) is not a market because buyers can buy from only one seller at any point in time.

Question 11

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Accepted Answer

A decrease in the number of sellers decr

Question 12

Which of the following statements is true about a competitive market? A competitive market

Accepted Answer

A) must have a physical location. 
B) includes markets for goods and services but not for inputs. 
C) has so many buyers and sellers that no one can influence the price. 
D) has one seller competing to sell his or her product. 
E) has a handful of sellers but always has many buyers. 
A) must have a physical location. 
B) includes markets for goods and services but not for inputs. 
C) has so many buyers and sellers that no one can influence the price. 
D) has one seller competing to sell his or her product. 
E) has a handful of sellers but always has many buyers.

Question 13

The market supply curve is the ________ of the ________.

Accepted Answer

A) horizontal sum;individual supply curves 
B) vertical sum;individual supply curves 
C) horizontal sum;individual supply curves minus the market demand 
D) vertical sum;individual supply curves minus the market demand 
E) vertical average;of the individual supply curves 
A) horizontal sum;individual supply curves 
B) vertical sum;individual supply curves 
C) horizontal sum;individual supply curves minus the market demand 
D) vertical sum;individual supply curves minus the market demand 
E) vertical average;of the individual supply curves

Question 14

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Accepted Answer

A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases,but there is no shift in the supply curve. 
D) The quantity supplied decreases,but there is no shift in the supply curve. 
E) The quantity supplied decreases,and the supply curve shifts leftward. 
A) The supply increases so that the supply curve shifts rightward. 
B) The supply decreases so that the supply curve shifts leftward. 
C) The quantity supplied increases,but there is no shift in the supply curve. 
D) The quantity supplied decreases,but there is no shift in the supply curve. 
E) The quantity supplied decreases,and the supply curve shifts leftward.

Question 15

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

Accepted Answer

One factor that changes demand is a chan

Question 16

If the price of a DVD falls,
I.the demand curve for DVDs will shift rightward.
Ii.the demand curve for DVDs will not shift.
Iii.there will be a movement along the demand curve for DVDs.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) ii and iii 
E) i and iii 
A) i only 
B) ii only 
C) iii only 
D) ii and iii 
E) i and iii

Question 17

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

Accepted Answer

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

Question 18

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Accepted Answer

A) an increase in the number of corn growers 
B) an increase the price of wheat,a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good 
A) an increase in the number of corn growers 
B) an increase the price of wheat,a substitute in production for corn 
C) an increase in the cost of the fertilizer used to grow the corn 
D) a belief among corn farmers that the price of a bushel of corn will be higher next month 
E) an increase in income if corn is a normal good

Question 19

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Accepted Answer

A) increases;rightward 
B) increases;leftward 
C) decreases;rightward 
D) decreases;leftward 
E) does not change;rightward 
A) increases;rightward 
B) increases;leftward 
C) decreases;rightward 
D) decreases;leftward 
E) does not change;rightward

Question 20

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Accepted Answer

The equilibrium price unambiguously fall

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

-The diagram above illustrates the market for apartments in Victoria,British Columbia. a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b.What is the equilibrium rent and quantity of apartments?

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ,and the equilibrium price of gasoline .

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

An increase in the quantity demanded is shown as

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

One reason the demand for laptop computers might increase is a

A change in the demand for apples could result from any of the following EXCEPT

EBay

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Which of the following statements is true about a competitive market? A competitive market

The market supply curve is the of the .

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

If the price of a DVD falls, I.the demand curve for DVDs will shift rightward. Ii.the demand curve for DVDs will not shift. Iii.there will be a movement along the demand curve for DVDs.

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

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

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

-The diagram above illustrates the market for apartments in Victoria,British Columbia. a.If the current rent is $300 per month,is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b.What is the equilibrium rent and quantity of apartments?

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ________,and the equilibrium price of gasoline ________.

-The graph illustrates the demand curve for soda.After a rise in the price of a soda from $1.00 a can to $2.00 a can,the quantity of soda demanded

An increase in the quantity demanded is shown as

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

-The graph illustrates the supply of soda.If the price of soda rises from $0.50 a can to $1.50 a can,the quantity of soda supplied

One reason the demand for laptop computers might increase is a

A change in the demand for apples could result from any of the following EXCEPT

EBay

Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

Which of the following statements is true about a competitive market? A competitive market

The market supply curve is the ________ of the ________.

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

List the factors that change demand and shift the demand curve.Tell what happens to demand and the demand curve when there is an increase in the factor.

If the price of a DVD falls, I.the demand curve for DVDs will shift rightward. Ii.the demand curve for DVDs will not shift. Iii.there will be a movement along the demand curve for DVDs.

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

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

In Great Britain,raising taxes on gasoline has increased the costs of supplying gasoline.As a result,the equilibrium quantity of gasoline ,and the equilibrium price of gasoline .

The market supply curve is the of the .

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .