Question 1

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 E to Point B, there has been

Accepted Answer

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

Question 2

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 A. If demand shifts from D1 to D2, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Accepted Answer

A)  $4.00 to $3.00; 250 to 350 
B)  $4.00 to $3.00; 350 to 250 
C)  $3.00 to $4.00; 250 to 350 
D)  $3.00 to $4.00; 350 to 250

Question 3

Which of the following is held constant along the demand curve?

Accepted Answer

A)  price of the good 
B)  quantity 
C)  income 
D)  both A and B

Question 4

For inferior goods, a decrease in income will cause the

Accepted Answer

A)  quantity demanded to fall. 
B)  demand to increase. 
C)  demand to fall. 
D)  quantity demanded to increase.

Question 5

Refer to the information provided in Table 3.1 below to answer the questions that follow.
Table 3.1
 
-Refer to Table 3.1. If the price per pizza is $3, the price will

Accepted Answer

A)  remain constant because the market is in equilibrium. 
B)  increase because there is an excess supply in the market. 
C)  increase because there is an excess demand in the market. 
D)  decrease because there is an excess supply in the market.

Question 6

Refer to the information provided in Figure 3.11 below to answer the following questions.  Figure 3.11
-Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

Accepted Answer

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

Question 7

Related to the Economics in Practice on p. 66: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the ________ Baltimore newspapers to ________.

Accepted Answer

A)  demand for; increase 
B)  quantity demanded of; increase 
C)  demand for; decrease 
D)  quantity demanded of; decrease

Question 8

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.

Accepted Answer

A)  price; increase 
B)  price; decrease 
C)  quantity; increase 
D)  quantity; decrease

Question 9

DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?

Accepted Answer

A)  The equilibrium price and quantity of DVDs would increase. 
B)  The equilibrium price and quantity of DVDs would decrease. 
C)  The equilibrium price of DVDs would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price of DVDs would decrease, and the equilibrium quantity would increase.

Question 10

When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.

Accepted Answer

A)  price; increase 
B)  price; decrease 
C)  quantity; increase 
D)  quantity; decrease

Question 11

As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield

Accepted Answer

A)  successively less satisfaction. 
B)  successively more satisfaction. 
C)  the same amount of satisfaction. 
D)  less satisfaction for a while and then start to add more satisfaction.

Question 12

Refer to the information provided in Table 3.1 below to answer the questions that follow.
Table 3.1
 
-Refer to Table 3.1. In this market there will be an excess demand of 600 pizzas at a price of

Accepted Answer

A)  $3. 
B)  $6. 
C)  $12. 
D)  $15.

Question 13

A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas. An economist would explain this by saying

Accepted Answer

A)  the supply of calzones increased and the supply of pizzas decreased. 
B)  there has been an increase in the quantity supplied of calzones and a decrease in the quantity supplied of pizzas. 
C)  there has been an increase in the quantity supplied of calzones and a decrease in the supply of pizza. 
D)  the supply of calzones increased and the quantity supplied of pizza decreased.

Question 14

Refer to the information provided in Figure 3.14 below to answer the questions that follow.  Figure 3.14
-Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of ________ and a quantity of ________ sunglasses.

Accepted Answer

A)  $30; 300 
B)  $30; 600 
C)  $60; 450 
D)  $90; 300

Question 15

When there is a shortage of a product in an unregulated market, there is a tendency for

Accepted Answer

A)  price to rise. 
B)  price to fall. 
C)  quantity demanded to increase. 
D)  quantity supplied to decrease.

Question 16

Most firms exist to make a profit.

Accepted Answer

A) True 
 B)False

Question 17

Labor is demanded by firms in an output market.

Accepted Answer

A) True 
 B)False

Question 18

In college you could barely afford to dine in restaurants. Now you earn $80,000 a year and dine out at least three times per week. We can safely conclude that you consider restaurant meals to be a(n)

Accepted Answer

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

Question 19

Which of the following will not cause a shift in the demand curve for DVDs?

Accepted Answer

A)  a change in income 
B)  a change in wealth 
C)  a change in the price of Blu-ray discs 
D)  a change in the price of DVDs

Question 20

Refer to the information provided in Figure 3.11 below to answer the following questions.  Figure 3.11
-Refer to Figure 3.11. A movement from Point C to Point B on supply curve S2 would be caused by a(n)

Accepted Answer

A)  decrease in the price of gardenburgers. 
B)  increase in the demand for gardenburgers. 
C)  decrease in the price of mushrooms. 
D)  decrease in the price of hamburgers, assuming hamburgers are a substitute for pizza.

Exam 3: Demand, Supply, and Market Equilibrium

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 E to Point B, there has been

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 A. If demand shifts from D₁ to D₂, the equilibrium price will change from and the equilibrium quantity will change from .

Which of the following is held constant along the demand curve?

For inferior goods, a decrease in income will cause the

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. If the price per pizza is $3, the price will

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

Related to the Economics in Practice on p. 66: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the Baltimore newspapers to .

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium of bubble gum will definitely , ceteris paribus.

DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?

When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium of blueberries will definitely , ceteris paribus.

As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. In this market there will be an excess demand of 600 pizzas at a price of

A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas. An economist would explain this by saying

Refer to the information provided in Figure 3.14 below to answer the questions that follow. Figure 3.14 -Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of and a quantity of sunglasses.

When there is a shortage of a product in an unregulated market, there is a tendency for

Most firms exist to make a profit.

Labor is demanded by firms in an output market.

In college you could barely afford to dine in restaurants. Now you earn $80,000 a year and dine out at least three times per week. We can safely conclude that you consider restaurant meals to be a(n)

Which of the following will not cause a shift in the demand curve for DVDs?

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. A movement from Point C to Point B on supply curve S₂ would be caused by a(n)

Exam 3: Demand, Supply, and Market Equilibrium

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 E to Point B, there has been

Which of the following is held constant along the demand curve?

For inferior goods, a decrease in income will cause the

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. If the price per pizza is $3, the price will

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. A decrease in quantity supplied is represented by a movement from

Related to the Economics in Practice on p. 66: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the ________ Baltimore newspapers to ________.

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.

DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?

When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.

As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 -Refer to Table 3.1. In this market there will be an excess demand of 600 pizzas at a price of

A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas. An economist would explain this by saying

Refer to the information provided in Figure 3.14 below to answer the questions that follow. Figure 3.14 -Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of ________ and a quantity of ________ sunglasses.

When there is a shortage of a product in an unregulated market, there is a tendency for

Most firms exist to make a profit.

Labor is demanded by firms in an output market.

In college you could barely afford to dine in restaurants. Now you earn $80,000 a year and dine out at least three times per week. We can safely conclude that you consider restaurant meals to be a(n)

Which of the following will not cause a shift in the demand curve for DVDs?

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. A movement from Point C to Point B on supply curve S2 would be caused by a(n)

Related to the Economics in Practice on p. 66: One explanation for the increase in the price of the Baltimore newspaper is the new, increased regard the citizens of Baltimore have for newspapers. This would cause the Baltimore newspapers to .

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium of bubble gum will definitely , ceteris paribus.

When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium of blueberries will definitely , ceteris paribus.

Refer to the information provided in Figure 3.14 below to answer the questions that follow. Figure 3.14 -Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of and a quantity of sunglasses.

Refer to the information provided in Figure 3.11 below to answer the following questions. Figure 3.11 -Refer to Figure 3.11. A movement from Point C to Point B on supply curve S₂ would be caused by a(n)