Question 1

The typical supply curve illustrates that:

Accepted Answer

A)   other things equal, the quantity supplied for a good is inversely related to the price of a good.
B)   other things equal, the supply of the good creates its own demand for the good.
C)   other things equal, the quantity supplied for a good is positively related to the price of a good.
D)   price and quantity supplied are unrelated.E) A) and D)
F) A) and C)

Question 2

Pizza is a normal good. If students' incomes at your college increase, the effect on pizza will be:

Accepted Answer

A)   an increase in the demand.
B)   an increase in the quantity demanded.
C)   a decrease in the demand.
D)   no change in the demand.E) B) and C)
F) A) and D)

Question 3

When the price of armchairs increases, the:

Accepted Answer

A)   quantity supplied increases.
B)   supply increases.
C)   quantity supplied decreases.
D)   supply decreases.E) B) and D)
F) C) and D)

Question 4

An ambiguous change in price and a decrease in quantity are most likely caused by:

Accepted Answer

A)   no shift in supply and a shift to the left in demand.
B)   a shift to the left in supply and a shift to the left in demand.
C)   a shift to the right in supply and a shift to the left in demand.
D)   a shift to the left in supply and a shift to the right in demand.E) A) and C)
F) None of the above

Question 5

In the market for tacos, each of the following shifts the supply curve to the left EXCEPT:

Accepted Answer

A)   an increase in the price of beef.
B)   an increase in the wages of taco shop workers.
C)   fewer taco shops.
D)   a decrease in the price of tacos.E) A) and B)
F) A) and C)

Question 6

If the demand for tires goes down when the price of gas goes up, then tires and gas are:

Accepted Answer

A)   substitutes.
B)   complements.
C)   both expensive.
D)   both inexpensive.E) B) and D)
F) A) and B)

Question 7

Use the following to answer questions 
Figure: Four Markets for DVDs 1 or S1 is the original curve and D2 or S2 is the new curve and if the cost of producing DVD players increases? A)  A B)  B C)  C D)  D" class="answers-bank-image d-inline" rel="preload" >
-(Figure: Four Markets for DVDs)  Look at the figure Four Markets for DVDs. Which of the graphs shows what may happen in the market for DVDs if D1 or S1 is the original curve and D2 or S2 is the new curve and if the cost of producing DVD players increases?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) B) and C)
F) A) and D)

Question 8

Use the following to answer questions 
Figure: Four Markets for DVDs 1 or S1 is the original curve and D2 or S2 is the new curve and if the cost of producing DVDs falls? A)  A B)  B C)  C D)  D" class="answers-bank-image d-inline" rel="preload" >
-(Figure: Four Markets for DVDs)  Look at the figure Four Markets for DVDs. Which of the graphs illustrates what may happen in the market for DVDs if D1 or S1 is the original curve and D2 or S2 is the new curve and if the cost of producing DVDs falls?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and C)
F) All of the above

Question 9

How would each of the following events affect the supply of compact cars?
I. The price of steel rises.
II. The production technology for car manufacturing improves.
III. The price of sport utility vehicles falls.

Accepted Answer

I. Steel is an important input in car pr...

Question 10

If the price of a commodity increases, you can expect the:

Accepted Answer

A)   supply to increase.
B)   quantity supplied to increase.
C)   quantity supplied to decrease.
D)   supply curve to shift to the right.E) None of the above
F) A) and C)

Question 11

A decrease in supply with no change in demand will lead to _____ in equilibrium quantity and _____ in equilibrium price.

Accepted Answer

A)   an increase; an increase
B)   an increase; a decrease
C)   a decrease; an increase
D)   a decrease; a decreaseE) B) and C)
F) A) and D)

Question 12

The market equilibrium is found at the:

Accepted Answer

A)   price where quantity demanded exceeds quantity supplied.
B)   price where quantity demanded equals quantity supplied.
C)   price where quantity supplied exceeds quantity demanded.
D)   highest price the market will bear.E) A) and C)
F) B) and C)

Question 13

If people demand more of product A when the price of B falls, then A and B are:

Accepted Answer

A)   not related.
B)   substitutes.
C)   complements.
D)   inferior goods.E) B) and C)
F) A) and D)

Question 14

It is certain that the equilibrium quantity will rise when:

Accepted Answer

A)   the supply curve and the demand curve both shift to the right.
B)   the supply curve shifts to the right and the demand curve shifts to the left.
C)   supply and demand both shift to the left.
D)   supply shifts to the left and demand stays the same.E) A) and D)
F) B) and C)

Question 15

Use the following to answer questions
Figure: Shifts in Demand and Supply II 
-(Figure: Shifts in Demand and Supply II)  Look at the figure Shifts in Demand and Supply II. The figure shows how supply and demand might shift in response to specific events. Suppose the birthrate decreases. Which panel BEST describes how this will affect the market for diapers?

Accepted Answer

A)   panel A
B)   panel B
C)   panel C
D)   panel DE) None of the above
F) B) and C)

Question 16

Many public utilities burn oil to generate electricity. If the price of oil increases, we expect a shift to the _____ in the _____ curve for _____ and a _____ price for electricity

Accepted Answer

A)   right; supply; electricity; lower
B)   left; supply; electricity; higher
C)   right; demand; oil; higher
D)   left; demand; oil; lowerE) B) and D)
F) A) and D)

Question 17

Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?

Accepted Answer

A)   The price will increase, but quantity may increase, decrease, or stay the same.
B)   The price will decrease, but quantity may increase, decrease, or stay the same.
C)   The price will decrease and quantity will decrease.
D)   The price will increase and quantity will increase.E) A) and B)
F) A) and C)

Question 18

The demand for meals at a local Applebee's will shift to the left if:

Accepted Answer

A)   the Olive Garden offers a 10 percent discount coupon in the local newspaper.
B)   the price of a meal at Applebee's rises.
C)   local incomes increase and Applebee's is a normal good.
D)   the price of gasoline falls in the area.E) A) and C)
F) A) and B)

Question 19

Use the following to answer questions 
Figure: Supply of Coconuts 
-(Figure: Supply of Coconuts)  Look at the figure Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel)  used to produce and transport coconuts decreased, it would be represented in the figure as a movement from:

Accepted Answer

A)   A to B.
B)   B to A.
C)   C to A.
D)   E to B.E) B) and D)
F) B) and C)

Question 20

Use the following to answer questions 
Figure: The DVD Rental Market 
-(Figure: The DVD Rental Market)  Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _____ and the equilibrium quantity is _____.

Accepted Answer

A)   $5; 50
B)   $3; 30
C)   $9; 90
D)   $6; 40E) B) and D)
F) B) and C)

Exam 3: Supply and Demand

An ambiguous change in price and a decrease in quantity are most likely caused by:

Correct Answer
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Correct Answer
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If the price of a commodity increases, you can expect the:

Correct Answer
verified

Many public utilities burn oil to generate electricity. If the price of oil increases, we expect a shift to the ___ in the _ curve for _ and a ___ price for electricity

Correct Answer
verified

How would each of the following events affect the supply of compact cars? I. The price of steel rises. II. The production technology for car manufacturing improves. III. The price of sport utility vehicles falls.

Correct Answer
verified
I. Steel is an important input in car pr...
View Answer

Correct Answer
verified

The typical supply curve illustrates that:

Correct Answer
verified

It is certain that the equilibrium quantity will rise when:

Correct Answer
verified

In the market for tacos, each of the following shifts the supply curve to the left EXCEPT:

Correct Answer
verified

Pizza is a normal good. If students' incomes at your college increase, the effect on pizza will be:

Correct Answer
verified

Use the following to answer questions Figure: The DVD Rental Market -(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _ and the equilibrium quantity is _.

Correct Answer
verified

Correct Answer
verified

A decrease in supply with no change in demand will lead to _ in equilibrium quantity and _ in equilibrium price.

Correct Answer
verified

The market equilibrium is found at the:

Correct Answer
verified

When the price of armchairs increases, the:

Correct Answer
verified

Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?

Correct Answer
verified

If the demand for tires goes down when the price of gas goes up, then tires and gas are:

Correct Answer
verified

Correct Answer
verified

If people demand more of product A when the price of B falls, then A and B are:

Correct Answer
verified

The demand for meals at a local Applebee's will shift to the left if:

Correct Answer
verified

Exam 3: Supply and Demand

An ambiguous change in price and a decrease in quantity are most likely caused by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the price of a commodity increases, you can expect the:

Correct AnswerverifiedShow Answer

Many public utilities burn oil to generate electricity. If the price of oil increases, we expect a shift to the _____ in the _____ curve for _____ and a _____ price for electricity

Correct AnswerverifiedShow Answer

How would each of the following events affect the supply of compact cars? I. The price of steel rises. II. The production technology for car manufacturing improves. III. The price of sport utility vehicles falls.

Correct AnswerverifiedI. Steel is an important input in car pr...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The typical supply curve illustrates that:

Correct AnswerverifiedShow Answer

It is certain that the equilibrium quantity will rise when:

Correct AnswerverifiedShow Answer

In the market for tacos, each of the following shifts the supply curve to the left EXCEPT:

Correct AnswerverifiedShow Answer

Pizza is a normal good. If students' incomes at your college increase, the effect on pizza will be:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The DVD Rental Market -(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _____ and the equilibrium quantity is _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in supply with no change in demand will lead to _____ in equilibrium quantity and _____ in equilibrium price.

Correct AnswerverifiedShow Answer

The market equilibrium is found at the:

Correct AnswerverifiedShow Answer

When the price of armchairs increases, the:

Correct AnswerverifiedShow Answer

Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?

Correct AnswerverifiedShow Answer

If the demand for tires goes down when the price of gas goes up, then tires and gas are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If people demand more of product A when the price of B falls, then A and B are:

Correct AnswerverifiedShow Answer

The demand for meals at a local Applebee's will shift to the left if:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Many public utilities burn oil to generate electricity. If the price of oil increases, we expect a shift to the ___ in the _ curve for _ and a ___ price for electricity

Correct Answer
verified

Correct Answer
verified
I. Steel is an important input in car pr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the following to answer questions Figure: The DVD Rental Market -(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _ and the equilibrium quantity is _.

Correct Answer
verified

Correct Answer
verified

A decrease in supply with no change in demand will lead to _ in equilibrium quantity and _ in equilibrium price.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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