Question 1

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

Accepted Answer

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

Question 2

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Accepted Answer

The equilibrium price is $2.50

Question 3

-In the above figure,the shift in the supply curve from S to S? reflects

Accepted Answer

A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  None of the above answers is correct. 
A)  an increase in the quantity of pizza supplied. 
B)  a decrease in the quantity of pizza supplied. 
C)  an increase in the supply of pizza. 
D)  a decrease in the supply of pizza. 
E)  None of the above answers is correct.

Question 4

-In the figure above,what is the equilibrium price and quantity?

Accepted Answer

The equilibrium pric

Question 5

-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 6

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

Accepted Answer

A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  There is neither a surplus nor a shortage, but the market is NOT in equilibrium. 
A)  there is a surplus of gasoline in Tulsa. 
B)  there is a shortage of gasoline in Tulsa. 
C)  the gasoline market in Tulsa is in equilibrium. 
D)  Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. 
E)  There is neither a surplus nor a shortage, but the market is NOT in equilibrium.

Question 7

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

Accepted Answer

Generally,college students' incomes are

Question 8

If the price of carrots is below the equilibrium price,the

Accepted Answer

A)  quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B)  quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C)  quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D)  quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E)  quantity supplied of carrots equals the quantity demanded. 
A)  quantity demanded of carrots exceeds the quantity supplied and a surplus exists. 
B)  quantity supplied of carrots exceeds the quantity demanded and a surplus exists. 
C)  quantity demanded of carrots exceeds the quantity supplied and a shortage exists. 
D)  quantity supplied of carrots exceeds the quantity demanded and a shortage exists. 
E)  quantity supplied of carrots equals the quantity demanded.

Question 9

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

Accepted Answer

A)  rises. 
B)  falls. 
C)  does not change. 
D)  rises or does not change. 
E)  rises or falls. 
A)  rises. 
B)  falls. 
C)  does not change. 
D)  rises or does not change. 
E)  rises or falls.

Question 10

Which of the following lowers the equilibrium price of a canoe?

Accepted Answer

A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct. 
A)  an increase in the supply of canoes 
B)  an increase in the demand for canoes 
C)  an increase in the quantity of canoes supplied 
D)  a decrease in the supply of canoes 
E)  Both answers A and B are correct.

Question 11

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which 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 12

-Which figure above shows the effect of a decrease in the number of pizza sellers?

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 13

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ________,and the equilibrium quantity of cream cheese ________.

Accepted Answer

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

Question 14

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Accepted Answer

A)  The demand for pizzas decreases and the demand for tacos increases. 
B)  The demand for both goods decreases. 
C)  The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D)  The quantity of pizza demanded decreases and the demand for tacos increases. 
E)  The demand for each decreases because both are normal goods. 
A)  The demand for pizzas decreases and the demand for tacos increases. 
B)  The demand for both goods decreases. 
C)  The quantity of tacos demanded increases and the quantity of pizza demanded decreases. 
D)  The quantity of pizza demanded decreases and the demand for tacos increases. 
E)  The demand for each decreases because both are normal goods.

Question 15

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

Accepted Answer

A)  an increase in the supply of home heating oil. 
B)  a decrease in the supply of home heating oil. 
C)  an increase in the quantity of home heating oil supplied. 
D)  a decrease in the quantity of home heating oil supplied. 
E)  an increase in the demand for home heating oil. 
A)  an increase in the supply of home heating oil. 
B)  a decrease in the supply of home heating oil. 
C)  an increase in the quantity of home heating oil supplied. 
D)  a decrease in the quantity of home heating oil supplied. 
E)  an increase in the demand for home heating oil.

Question 16

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

Accepted Answer

A)  the supply curve for leather shoes shifts rightward. 
B)  the supply curve for leather shoes shifts leftward. 
C)  there is a movement along the supply curve for leather shoes. 
D)  the equilibrium price of leather shoes falls. 
E)  the equilibrium quantity of leather shoes increases. 
A)  the supply curve for leather shoes shifts rightward. 
B)  the supply curve for leather shoes shifts leftward. 
C)  there is a movement along the supply curve for leather shoes. 
D)  the equilibrium price of leather shoes falls. 
E)  the equilibrium quantity of leather shoes increases.

Question 17

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

Accepted Answer

Advances in technology increase the supp

Question 18

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits,
i.the quantity of new automobiles supplied decreases.
ii.the supply of new automobiles decreases.
iii.the supply of new automobiles increases.

Accepted Answer

A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct. 
A)  only i 
B)  only ii 
C)  only iii 
D)  both i and ii 
E)  Neither i, ii, nor iii is correct.

Question 19

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result the equilibrium price ________,and the equilibrium quantity ________.

Accepted Answer

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

Question 20

-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 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.

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

-In the above figure,the shift in the supply curve from S to S? reflects

-In the figure above,what is the equilibrium 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

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

If the price of carrots is below the equilibrium price,the

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

Which of the following lowers the equilibrium price of a canoe?

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which point represents the most likely new price and quantity?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ,and the equilibrium quantity of cream cheese .

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i.the quantity of new automobiles supplied decreases. ii.the supply of new automobiles decreases. iii.the supply of new automobiles increases.

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result the equilibrium price ,and the equilibrium quantity .

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

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

-Which figure above shows the effect if research is published claiming that eating pizza is healthy?

-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

-In the above figure,the shift in the supply curve from S to S? reflects

-In the figure above,what is the equilibrium 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

-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then

Suppose Ramen noodles,an inexpensive but a quite tasty dish,are an inferior good.Why do grocery stores in college towns,that is,towns with a large fraction of college students,stock a lot of Ramen noodles?

If the price of carrots is below the equilibrium price,the

Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service

Which of the following lowers the equilibrium price of a canoe?

-The above figure shows the market for pizza.The market is in equilibrium when people's incomes decrease.If pizza is a normal good,then which point represents the most likely new price and quantity?

-Which figure above shows the effect of a decrease in the number of pizza sellers?

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ________,and the equilibrium quantity of cream cheese ________.

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel.If the price of diesel fuel falls,there is

Consider the market for leather shoes.If producers believe the price of leather shoes will increase next month,today

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, i.the quantity of new automobiles supplied decreases. ii.the supply of new automobiles decreases. iii.the supply of new automobiles increases.

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result the equilibrium price ________,and the equilibrium quantity ________.

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

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

Bagels and cream cheese are complementary goods.Suppose that the price for flour,which is used to produce bagels,increases.The equilibrium price of cream cheese ,and the equilibrium quantity of cream cheese .

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result the equilibrium price ,and the equilibrium quantity .