Question 1

-Refer to Exhibit 3-14.At a price of $15,there is a ____________ of ____________ units of good X.

Accepted Answer

A)  shortage; 40 
B)  surplus; 90 
C)  surplus; 40 
D)  shortage; 20 
E)  surplus; 20

Question 2

Assume that Aline,Bentley,Calvin,and Daniel are the only sellers in this market.
-Refer to Exhibit 3-12.Fill in blanks (C)and (D)respectively with the market quantity supplied at each given price.

Accepted Answer

A)  17.75; 21.00 
B)  9.13; 9.78 
C)  73; 88 
D)  71; 84 
E)  none of the above

Question 3

At a price for which the quantity supplied exceeds the quantity demanded,a __________ is experienced,which pushes the price __________ toward its equilibrium value.

Accepted Answer

A)  surplus; downward 
B)  surplus; upward 
C)  shortage; downward 
D)  shortage; upward

Question 4

-Refer to Exhibit 3-15.In Exhibit 3-15,at fee F1 there is a

Accepted Answer

A)  shortage of (Q3 - Q1)doctors. 
B)  surplus of (Q3 - Q1)doctors. 
C)  surplus of (Q2 - Q1)doctors. 
D)  shortage of (Q2 - Q1)doctors.

Question 5

An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C.This indicates that goods B and C are

Accepted Answer

A)  complements. 
B)  substitutes. 
C)  neither substitutes nor complements. 
D)  normal goods.

Question 6

A rightward shift in the demand curve for tennis balls would most likely be caused by

Accepted Answer

A)  a fall in the price of tennis balls. 
B)  a fall in the price of tennis rackets. 
C)  a rise in the price of tennis lessons. 
D)  a fall in income,assuming tennis balls are a normal good.

Question 7

At a price below the equilibrium price,there is

Accepted Answer

A)  a surplus. 
B)  a shortage. 
C)  excess supply. 
D)  sub-equilibrium. 
E)  none of the above

Question 8

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

Accepted Answer

A)  rise; greater 
B)  fall; less 
C)  fall; greater 
D)  rise; less 
E)  a and b

Question 9

-Refer to Exhibit 3-5.In the market shown,a rightward shift in demand from D1 to D2 could have been caused by

Accepted Answer

A)  an increase in the number of sellers in the market. 
B)  an improvement in technology in the production of this good. 
C)  a decrease in buyers' income (assuming the good is an inferior good). 
D)  a decrease in buyers' income (assuming the good is a normal good). 
E)  a and b

Question 10

According to the law of demand,the higher the price of an assigned textbook,the _______________ the quantity demanded of assigned textbooks will be,ceteris paribus,and the ______________ likely students will seek out an alternative to the assigned textbook.

Accepted Answer

A)  lower; less 
B)  lower; more 
C)  higher; less 
D)  higher; more

Question 11

A change in price will lead to a change in __________ and to a change in __________,while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________.

Accepted Answer

A)  quantity supplied; demand; income; supply 
B)  demand; quantity supplied; supply; quantity demanded 
C)  quantity supplied; supply; quantity supplied; demand 
D)  quantity supplied; quantity demanded; demand; supply 
E)  quantity supplied; quantity demanded; supply; demand

Question 12

One major reason for the law of demand is that

Accepted Answer

A)  one price changing requires at least one other price to change in the opposite direction. 
B)  people substitute relatively lower-priced goods for relatively higher-priced goods. 
C)  a higher price never reduces quantity demanded by enough to lower total revenue. 
D)  people are willing to produce more units at a higher price.

Question 13

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Accepted Answer

The answer of Describe one of the two reasons given...

Question 14

The law of demand states that price and quantity demanded are

Accepted Answer

A)  directly related,ceteris paribus. 
B)  inversely related,ceteris paribus. 
C)  independent. 
D)  positively related,ceteris paribus.

Question 15

-Refer to Exhibit 3-1.At a price of $2 there is a

Accepted Answer

A)  shortage of 100 units. 
B)  shortage of 200 units. 
C)  shortage of 150 units. 
D)  surplus of 200 units.. 
E)  surplus of 150 units.

Question 16

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Accepted Answer

A) True 
 B)False

Question 17

-Refer to Exhibit 3-1.At a price of $6 there is a

Accepted Answer

A)  surplus of 100 units. 
B)  surplus of 150 units. 
C)  surplus of 200 units. 
D)  shortage of 150 units. 
E)  shortage of 200 units.

Question 18

When the price of carrots falls,the quantity demanded of carrots rises,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 19

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-Refer to Exhibit 3-3.A shift in demand from D1 to D2 can NOT occur from a change in the

Accepted Answer

A)  population. 
B)  price of a substitute for good Y. 
C)  average income of good Y buyers. 
D)  price of good Y.

Question 20

One point on a market supply curve represents $4 and 100 units quantity supplied.If there are three suppliers,and at a price of $4 one of the suppliers supplies 23 units,then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

Accepted Answer

A)  At $4,quantity supplied could be 40 units for one supplier and 27 for the other. 
B)  At $4,quantity supplied could be 33 units for one supplier and 27 for the other. 
C)  At $4,quantity supplied could be 40 units for one supplier and 37 for the other. 
D)  At $4,quantity supplied could be 77 units for one supplier and 10 for the other. 
E)  There is not enough information to answer this question.

Exam 3: Supply and Demand: Theory

-Refer to Exhibit 3-14.At a price of $15,there is a of units of good X.

Assume that Aline,Bentley,Calvin,and Daniel are the only sellers in this market. -Refer to Exhibit 3-12.Fill in blanks (C) and (D) respectively with the market quantity supplied at each given price.

At a price for which the quantity supplied exceeds the quantity demanded,a is experienced,which pushes the price toward its equilibrium value.

-Refer to Exhibit 3-15.In Exhibit 3-15,at fee F₁ there is a

An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C.This indicates that goods B and C are

A rightward shift in the demand curve for tennis balls would most likely be caused by

At a price below the equilibrium price,there is

If a market is in disequilibrium,economists would predict that the product's price would to reach equilibrium when the quantity demanded is than the quantity supplied.

-Refer to Exhibit 3-5.In the market shown,a rightward shift in demand from D₁ to D₂ could have been caused by

According to the law of demand,the higher the price of an assigned textbook,the _ the quantity demanded of assigned textbooks will be,ceteris paribus,and the likely students will seek out an alternative to the assigned textbook.

A change in price will lead to a change in and to a change in ,while a change in preferences will lead to a change in and a change in the prices of relevant resources will lead to a change in .

One major reason for the law of demand is that

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

The law of demand states that price and quantity demanded are

-Refer to Exhibit 3-1.At a price of $2 there is a

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

-Refer to Exhibit 3-1.At a price of $6 there is a

When the price of carrots falls,the quantity demanded of carrots rises,ceteris paribus.

-Refer to Exhibit 3-3.A shift in demand from D₁ to D₂ can NOT occur from a change in the

One point on a market supply curve represents $4 and 100 units quantity supplied.If there are three suppliers,and at a price of $4 one of the suppliers supplies 23 units,then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

Exam 3: Supply and Demand: Theory

-Refer to Exhibit 3-14.At a price of $15,there is a ____________ of ____________ units of good X.

Assume that Aline,Bentley,Calvin,and Daniel are the only sellers in this market. -Refer to Exhibit 3-12.Fill in blanks (C) and (D) respectively with the market quantity supplied at each given price.

At a price for which the quantity supplied exceeds the quantity demanded,a __________ is experienced,which pushes the price __________ toward its equilibrium value.

-Refer to Exhibit 3-15.In Exhibit 3-15,at fee F1 there is a

An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C.This indicates that goods B and C are

A rightward shift in the demand curve for tennis balls would most likely be caused by

At a price below the equilibrium price,there is

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

-Refer to Exhibit 3-5.In the market shown,a rightward shift in demand from D1 to D2 could have been caused by

According to the law of demand,the higher the price of an assigned textbook,the _______________ the quantity demanded of assigned textbooks will be,ceteris paribus,and the ______________ likely students will seek out an alternative to the assigned textbook.

A change in price will lead to a change in __________ and to a change in __________,while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________.

One major reason for the law of demand is that

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

The law of demand states that price and quantity demanded are

-Refer to Exhibit 3-1.At a price of $2 there is a

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

-Refer to Exhibit 3-1.At a price of $6 there is a

When the price of carrots falls,the quantity demanded of carrots rises,ceteris paribus.

​ ​ -Refer to Exhibit 3-3.A shift in demand from D1 to D2 can NOT occur from a change in the

One point on a market supply curve represents $4 and 100 units quantity supplied.If there are three suppliers,and at a price of $4 one of the suppliers supplies 23 units,then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

-Refer to Exhibit 3-14.At a price of $15,there is a of units of good X.

At a price for which the quantity supplied exceeds the quantity demanded,a is experienced,which pushes the price toward its equilibrium value.

-Refer to Exhibit 3-15.In Exhibit 3-15,at fee F₁ there is a

If a market is in disequilibrium,economists would predict that the product's price would to reach equilibrium when the quantity demanded is than the quantity supplied.

-Refer to Exhibit 3-5.In the market shown,a rightward shift in demand from D₁ to D₂ could have been caused by

According to the law of demand,the higher the price of an assigned textbook,the _ the quantity demanded of assigned textbooks will be,ceteris paribus,and the likely students will seek out an alternative to the assigned textbook.

A change in price will lead to a change in and to a change in ,while a change in preferences will lead to a change in and a change in the prices of relevant resources will lead to a change in .

-Refer to Exhibit 3-3.A shift in demand from D₁ to D₂ can NOT occur from a change in the