Question 1

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Accepted Answer

A)  both equilibrium price and quantity will fall. 
B)  both equilibrium price and quantity will increase. 
C)  equilibrium price will increase and quantity will decrease. 
D)  equilibrium price will fall but quantity will increase. 
A)  both equilibrium price and quantity will fall. 
B)  both equilibrium price and quantity will increase. 
C)  equilibrium price will increase and quantity will decrease. 
D)  equilibrium price will fall but quantity will increase.

Question 2

Refer to the information provided in Figure 3.13 below to answer the questions that follow.   Figure 3.13
-Refer to Figure 3.13. A decrease in the number of cattle ranchers will cause a movement from

Accepted Answer

A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S1 to S2. 
A)  Point A to Point B. 
B)  Point G to Point F. 
C)  D2 to D1. 
D)  S1 to S2.

Question 3

If the price of spinach decreases, there will be ________ of spinach enchiladas.

Accepted Answer

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

Question 4

Refer to the information provided in Figure 3.11 below to answer the following questions.   Figure 3.11
-Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S2 to

Accepted Answer

A)  Point A on supply curve S2. 
B)  Point C on supply curve S2. 
C)  supply curve S3. 
D)  supply curve S1. 
A)  Point A on supply curve S2. 
B)  Point C on supply curve S2. 
C)  supply curve S3. 
D)  supply curve S1.

Question 5

For inferior goods, demand will fall when

Accepted Answer

A)  income increases. 
B)  income decreases. 
C)  price increases. 
D)  price decreases. 
A)  income increases. 
B)  income decreases. 
C)  price increases. 
D)  price decreases.

Question 6

Refer to the information provided in Table 3.2 below to answer the questions that follow.
Table 3.2
  
-Refer to Table 3.2. In this market there will be an excess supply of 500 cheeseburgers at a price of

Accepted Answer

A)  $5. 
B)  $6. 
C)  $8. 
D)  $9. 
A)  $5. 
B)  $6. 
C)  $8. 
D)  $9.

Question 7

Refer to the information provided in Figure 3.18 below to answer the questions that follow.   Figure 3.18
-Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00, there will be

Accepted Answer

A)  an excess supply of 200 million pounds of burritos. 
B)  an excess demand of 200 million pounds of burritos. 
C)  an excess supply of 100 million pounds of burritos. 
D)  an excess demand of 100 million pounds of burritos. 
A)  an excess supply of 200 million pounds of burritos. 
B)  an excess demand of 200 million pounds of burritos. 
C)  an excess supply of 100 million pounds of burritos. 
D)  an excess demand of 100 million pounds of burritos.

Question 8

Refer to the information provided in Figure 3.7 below to answer the following questions.   Figure 3.7
-Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D2 to

Accepted Answer

A)  demand curve D1. 
B)  demand curve D3. 
C)  Point A on demand curve D2. 
D)  Point C on demand curve D2. 
A)  demand curve D1. 
B)  demand curve D3. 
C)  Point A on demand curve D2. 
D)  Point C on demand curve D2.

Question 9

Refer to Scenario 3.3 below to answer the questions that follow.
SCENARIO 3.3: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a normal good. During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
-Refer to Scenario 3.3. As a result of the recall, you would expect that

Accepted Answer

A)  the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease. 
B)  the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease. 
C)  the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease. 
D)  the price of mustard would increase and both the quantity of mustard supplied and the quantity of mustard demanded would increase. 
A)  the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease. 
B)  the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease. 
C)  the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease. 
D)  the price of mustard would increase and both the quantity of mustard supplied and the quantity of mustard demanded would increase.

Question 10

Quantity demanded is determined by how much consumers are willing to pay for the good or service.

Accepted Answer

A) True 
 B)False

Question 11

Refer to the information provided in Figure 3.16 below to answer the questions that follow.   Figure 3.16
-Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

Accepted Answer

A)  an increase in supply and a decrease in quantity demanded. 
B)  a decrease in both supply and demand. 
C)  a decrease in demand and a decrease in quantity supplied. 
D)  a decrease in supply and a decrease in quantity demanded. 
A)  an increase in supply and a decrease in quantity demanded. 
B)  a decrease in both supply and demand. 
C)  a decrease in demand and a decrease in quantity supplied. 
D)  a decrease in supply and a decrease in quantity demanded.

Question 12

A change in the price of a good leads to a change in the demand of the good.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the information provided in Figure 3.2 below to answer the questions that follow.   Figure 3.2
-If the demand for sardines increases as income decreases, sardines are a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good. 
A)  normal good. 
B)  inferior good. 
C)  substitute good. 
D)  complementary good.

Question 14

Refer to the information provided in Figure 3.1 below to answer the questions that follow.   Figure 3.1
-Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

Accepted Answer

A)  an increase in income, assuming that Dr. Pepper is a normal good 
B)  a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper 
C)  an increase in the price of Dr. Pepper 
D)  an increase in the price of sugar used to make Dr. Pepper 
A)  an increase in income, assuming that Dr. Pepper is a normal good 
B)  a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper 
C)  an increase in the price of Dr. Pepper 
D)  an increase in the price of sugar used to make Dr. Pepper

Question 15

The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions.

Accepted Answer

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

Question 16

If price is above the equilibrium, there will be excess supply of the product.

Accepted Answer

A) True 
 B)False

Question 17

Refer to the information provided in Figure 3.1 below to answer the questions that follow.   Figure 3.1
-Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

Accepted Answer

A)  a decrease in income, assuming that Dr. Pepper is a normal good 
B)  an increase in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper 
C)  a decrease in the price of Dr. Pepper 
D)  a reduction in the price of sugar used to make Dr. Pepper 
A)  a decrease in income, assuming that Dr. Pepper is a normal good 
B)  an increase in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper 
C)  a decrease in the price of Dr. Pepper 
D)  a reduction in the price of sugar used to make Dr. Pepper

Question 18

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

Accepted Answer

A) True 
 B)False

Question 19

If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will

Accepted Answer

A)  increase, the quantity demanded will fall, and the quantity supplied will rise. 
B)  increase, the quantity demanded will rise, and the quantity supplied will fall. 
C)  decrease, the quantity demanded will rise, and the quantity supplied will fall. 
D)  decrease, the quantity demanded will fall, and the quantity supplied will rise. 
A)  increase, the quantity demanded will fall, and the quantity supplied will rise. 
B)  increase, the quantity demanded will rise, and the quantity supplied will fall. 
C)  decrease, the quantity demanded will rise, and the quantity supplied will fall. 
D)  decrease, the quantity demanded will fall, and the quantity supplied will rise.

Question 20

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

Accepted Answer

A)  will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. 
B)  will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase. 
C)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. 
D)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall. 
A)  will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. 
B)  will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase. 
C)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. 
D)  will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall.

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. A decrease in the number of cattle ranchers will cause a movement from

If the price of spinach decreases, there will be ________ of spinach enchiladas.

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S₂ to

For inferior goods, demand will fall when

Refer to the information provided in Table 3.2 below to answer the questions that follow. Table 3.2 -Refer to Table 3.2. In this market there will be an excess supply of 500 cheeseburgers at a price of

Refer to the information provided in Figure 3.18 below to answer the questions that follow. Figure 3.18 -Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁ and the price of burritos remains constant at $4.00, there will be

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D₂ to

Quantity demanded is determined by how much consumers are willing to pay for the good or service.

Refer to the information provided in Figure 3.16 below to answer the questions that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

A change in the price of a good leads to a change in the demand of the good.

Refer to the information provided in Figure 3.2 below to answer the questions that follow. Figure 3.2 -If the demand for sardines increases as income decreases, sardines are a(n)

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D₀ to D₁?

The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions.

If price is above the equilibrium, there will be excess supply of the product.

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D₀ to D₁?

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 3: Demand, Supply, and Market Equilibrium

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. A decrease in the number of cattle ranchers will cause a movement from

If the price of spinach decreases, there will be ________ of spinach enchiladas.

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S2 to

For inferior goods, demand will fall when

Refer to the information provided in Table 3.2 below to answer the questions that follow. Table 3.2 -Refer to Table 3.2. In this market there will be an excess supply of 500 cheeseburgers at a price of

Refer to the information provided in Figure 3.18 below to answer the questions that follow. Figure 3.18 -Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00, there will be

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D2 to

Quantity demanded is determined by how much consumers are willing to pay for the good or service.

Refer to the information provided in Figure 3.16 below to answer the questions that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

A change in the price of a good leads to a change in the demand of the good.

Refer to the information provided in Figure 3.2 below to answer the questions that follow. Figure 3.2 -If the demand for sardines increases as income decreases, sardines are a(n)

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions.

If price is above the equilibrium, there will be excess supply of the product.

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

A technological advance in the production of MP3 players will cause the equilibrium selling price to increase.

If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will

A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. An increase in the wage rate of gardenburger makers will cause a movement from Point B on supply curve S₂ to

Refer to the information provided in Figure 3.18 below to answer the questions that follow. Figure 3.18 -Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁ and the price of burritos remains constant at $4.00, there will be

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D₂ to

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D₀ to D₁?

Refer to the information provided in Figure 3.1 below to answer the questions that follow. Figure 3.1 -Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D₀ to D₁?