Question 1

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Accepted Answer

A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves. 
A)  there is a downward movement along the demand curve for turkeys. 
B)  there is an upward movement along the supply curve for turkeys. 
C)  the supply curve of turkeys shifts leftward. 
D)  the demand curve for turkeys shifts leftward. 
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

Question 2

Which of the following shifts the supply curve for oranges?

Accepted Answer

A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers if oranges are a normal good 
E)  an increase in the number of orange consumers 
A)  disastrous weather that destroys about half of this year's orange crop 
B)  a newly discovered increase in the nutritional value of oranges 
C)  an increase in the price of bananas, a substitute in consumption for oranges 
D)  an increase in income for all orange consumers if oranges are a normal good 
E)  an increase in the number of orange consumers

Question 3

The law of demand implies that,other things remaining the same,

Accepted Answer

A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases. 
A)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. 
B)  as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. 
C)  as income increases, the quantity of cheeseburgers demanded increases. 
D)  as the demand for cheeseburgers increases, the price of a cheeseburger falls. 
E)  as more people demand cheeseburgers, the quantity demanded increases.

Question 4

A decrease in the price of a complement in production leads to

Accepted Answer

A)  a decrease in the supply of the good in question. 
B)  an increase in the supply of the good in question. 
C)  no change in the supply of the good in question. 
D)  a decrease in the quantity supplied of the good in question. 
E)  an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question. 
A)  a decrease in the supply of the good in question. 
B)  an increase in the supply of the good in question. 
C)  no change in the supply of the good in question. 
D)  a decrease in the quantity supplied of the good in question. 
E)  an increase in the supply of the good in question and a decrease in the quantity supplied of the good in question.

Question 5

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

Accepted Answer

A)  10,000 and $8. 
B)  90,000 and $8. 
C)  100,000 and $5. 
D)  70,000 and $6. 
E)  60,000 and $5. 
A)  10,000 and $8. 
B)  90,000 and $8. 
C)  100,000 and $5. 
D)  70,000 and $6. 
E)  60,000 and $5.

Question 6

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

Accepted Answer

A)  demand for hot dogs increases. 
B)  demand for hot dogs decreases. 
C)  quantity of hot dogs demanded increases. 
D)  quantity of hot dogs demanded decreases. 
E)  More information is needed to determine if the demand increases or decreases. 
A)  demand for hot dogs increases. 
B)  demand for hot dogs decreases. 
C)  quantity of hot dogs demanded increases. 
D)  quantity of hot dogs demanded decreases. 
E)  More information is needed to determine if the demand increases or decreases.

Question 7

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

Accepted Answer

A)  an increase in income if pizza is a normal good. 
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 the supply of pizza that raises the price of pizza. 
A)  an increase in income if pizza is a normal good. 
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 the supply of pizza that raises the price of pizza.

Question 8

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 9

There are five hundred buyers in the market for cheese.If we know each individual's demand curves,to find the market demand,we must

Accepted Answer

A)  add the prices that each buyer will pay at every quantity. 
B)  add the quantities that each buyer will purchase at every price. 
C)  multiply the price times quantity for each buyer and then add the resulting products together. 
D)  average the price each buyer is willing to pay for each given quantity. 
E)  give up because there is no way to find the market demand. 
A)  add the prices that each buyer will pay at every quantity. 
B)  add the quantities that each buyer will purchase at every price. 
C)  multiply the price times quantity for each buyer and then add the resulting products together. 
D)  average the price each buyer is willing to pay for each given quantity. 
E)  give up because there is no way to find the market demand.

Question 10

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,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 11

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Accepted Answer

A)  a decrease in the price of a compact disc 
B)  an increase in the price of a compact disc 
C)  a decrease in the number of suppliers of compact discs 
D)  an increase in the price of the resources used to produce compact discs 
E)  new technology that lowers the cost of producing compact discs 
A)  a decrease in the price of a compact disc 
B)  an increase in the price of a compact disc 
C)  a decrease in the number of suppliers of compact discs 
D)  an increase in the price of the resources used to produce compact discs 
E)  new technology that lowers the cost of producing compact discs

Question 12

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Accepted Answer

A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward. 
A)  an increase in the price of a rutabaga 
B)  an exceptionally cold summer that killed much of the rutabaga crop 
C)  a fall in the price of fertilizer used to grow rutabagas 
D)  Both answers A and C shift the supply curve of rutabagas rightward. 
E)  Both answers A and B shift the supply curve of rutabagas rightward.

Question 13

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C depending on how contractors react to the higher price of bricks. 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Figure A or Figure C depending on how contractors react to the higher price of bricks.

Question 14

If income increases and the demand for bus rides decreases,

Accepted Answer

A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  bus rides are a substitute good. 
E)  bus rides must be a complement good with some other good. 
A)  bus rides are a normal good. 
B)  consumers are behaving irrationally. 
C)  bus rides are an inferior good. 
D)  bus rides are a substitute good. 
E)  bus rides must be a complement good with some other good.

Question 15

-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.

Question 16

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

Accepted Answer

A)  The supply of golf clubs increases. 
B)  The supply of golf clubs decreases. 
C)  The demand for golf clubs increases. 
D)  The demand for golf clubs decreases. 
E)  The demand for and the supply of golf clubs decreases. 
A)  The supply of golf clubs increases. 
B)  The supply of golf clubs decreases. 
C)  The demand for golf clubs increases. 
D)  The demand for golf clubs decreases. 
E)  The demand for and the supply of golf clubs decreases.

Question 17

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing 
A)  rising; increasing 
B)  rising; decreasing 
C)  falling; increasing 
D)  falling; decreasing 
E)  falling; not changing

Question 18

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ________,the equilibrium price will ________.

Accepted Answer

A)  rightward; decrease 
B)  leftward; decrease 
C)  rightward; increase 
D)  leftward; not change 
E)  rightward; not change 
A)  rightward; decrease 
B)  leftward; decrease 
C)  rightward; increase 
D)  leftward; not change 
E)  rightward; not change

Question 19

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Accepted Answer

A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward. 
A)  supply of bottled water decreases. 
B)  quantity demanded of bottled water increases. 
C)  quantity demanded of bottled water does not change. 
D)  price of bottled water rises. 
E)  supply curve shifts leftward.

Question 20

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy ________ and the quantity of candy ________.

Accepted Answer

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

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Which of the following shifts the supply curve for oranges?

The law of demand implies that,other things remaining the same,

A decrease in the price of a complement in production leads to

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

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

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ,and the equilibrium quantity .

There are five hundred buyers in the market for cheese.If we know each individual's demand curves,to find the market demand,we must

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

If income increases and the demand for bus rides decreases,

-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?

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ,the equilibrium price will .

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy and the quantity of candy .

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 4: Demand and Supply

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Which of the following shifts the supply curve for oranges?

The law of demand implies that,other things remaining the same,

A decrease in the price of a complement in production leads to

-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is

Soda and hot dogs are complements for one another.If a shortage of carbonated water leads to an increase in the price of soda,then the

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

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________,and the equilibrium quantity ________.

There are five hundred buyers in the market for cheese.If we know each individual's demand curves,to find the market demand,we must

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ________,and the equilibrium quantity ________.

Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

If income increases and the demand for bus rides decreases,

-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?

A huge 50 percent off sale on golf clubs is advertised for next week.What happens this week in the market for golf clubs?

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ________,the equilibrium price will ________.

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy ________ and the quantity of candy ________.

Getting Started

The U.S.and Global Economies

The Economic Problem

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ,and the equilibrium quantity .

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result,the equilibrium price of frozen orange juice ,and the equilibrium quantity .

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

Suppose the equilibrium price of movie tickets is $10.If the supply curve for movies shifts ,the equilibrium price will .

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy and the quantity of candy .