Question 1

Which of the following is NOT one of the factors that influences the supply of a product?

Accepted Answer

A)   technology
B)   income
C)   number of suppliers
D)   expected future prices

Question 2

For "an increase in the quantity demanded" but not "an increase in demand" to occur, there must be a

Accepted Answer

A)   rightward shift of the demand curve.
B)   movement along the demand curve.
C)   rightward shift of the demand curve and a movement along the demand curve.
D)   Both answers B and C are correct.

Question 3

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric...

Question 4

Which of the following increases the supply of a product?

Accepted Answer

A)   a fall in the price of the product
B)   a smaller number of sellers producing the product
C)   an increase in foreign imports of the product
D)   higher taxes imposed upon producers of the product

Question 5

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

Accepted Answer

A) True 
 B)False

Question 6

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

Accepted Answer

A)   Figure A
B)   Figure B
C)   Figure C
D)   Figure D

Question 7

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Accepted Answer

A)   the equilibrium price will decrease below $25 per dozen roses.
B)   we cannot predict what will happen to equilibrium quantity.
C)   the equilibrium quantity will decrease below 10 dozen roses.
D)   both the equilibrium price and quantity will increase.

Question 8

An increase in the number of consumers

Accepted Answer

A)   results only in a movement along the demand curve.
B)   shifts the supply curve leftward
C)   shifts the demand curve rightward.
D)   Both answers B and C are correct.

Question 9

If the equilibrium relative price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

Accepted Answer

Not necessarily. The demand curve might ...

Question 10

2, then A)  the equilibrium price will be P1 and the equilibrium quantity will be Q2. B)  the equilibrium price will be P1 and the equilibrium quantity will be Q1. C)  there will be a shortage equal to Q2 - Q1. D)  an increase in price will shift the demand curve to D3." class="answers-bank-image d-inline" rel="preload" >
-In the above figure, if the demand curve is D2, then

Accepted Answer

A)   the equilibrium price will be P1 and the equilibrium quantity will be Q2.
B)   the equilibrium price will be P1 and the equilibrium quantity will be Q1.
C)   there will be a shortage equal to Q2 - Q1.
D)   an increase in price will shift the demand curve to D3.

Question 11

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Accepted Answer

A)   increases; shifts the demand curve for golf balls rightward.
B)   decreases; shifts the demand curve for golf balls leftward.
C)   decreases; creates a movement up along the demand curve for golf balls.
D)   increases; creates a movement down along the demand curve for golf balls.

Question 12

2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result? A)  point a, with price P2 and quantity Q2 B)  point b, with price P1 and quantity Q1 C)  point c, with price P3 and quantity Q3 D)  point d, with price P1 and quantity Q3" class="answers-bank-image d-inline" rel="preload" >
-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Accepted Answer

A)   point a, with price P2 and quantity Q2
B)   point b, with price P1 and quantity Q1
C)   point c, with price P3 and quantity Q3
D)   point d, with price P1 and quantity Q3

Question 13

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises,

Accepted Answer

A)   the supply curve shifts leftward.
B)   the supply curve shifts rightward.
C)   there is a movement up along the supply curve to a larger quantity supplied.
D)   there is a movement down along the supply curve to a smaller quantity supplied.

Question 14

-In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from

Accepted Answer

A)   point a to point e.
B)   point a to point b.
C)   point a to point c.
D)   point a to point d.

Question 15

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Accepted Answer

A)   the law of supply.
B)   the law of demand.
C)   a change in supply.
D)   the nature of an inferior good.

Question 16

-The equilibrium price in the above figure is

Accepted Answer

A)   $2.
B)   $4.
C)   $6.
D)   $8.

Question 17

Changes in which of the following shifts the supply curve of hamburgers?

Accepted Answer

A)   a rise in the price of soda, a complement for hamburgers
B)   new research that establishes a link between hamburgers and heart problems
C)   an increase in the price of meat used to produce hamburgers
D)   an economy-wide decrease in income because of a long recession

Question 18

The "law of demand" states that changes in

Accepted Answer

A)   demand are related directly to changes in supply.
B)   the quantity demanded of a good are not related to changes in the quantity supplied.
C)   the quantity demanded of a good are inversely related to changes in its price.
D)   demand are inversely related to changes in supply.

Question 19

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

Accepted Answer

A)   both the supply and the demand for automobiles.
B)   the supply but not the demand for automobiles.
C)   the demand but not the supply of automobiles.
D)   neither the supply nor the demand for automobiles.

Question 20

-The above figure shows the market for pizza. Which figure shows the effect of a new report by the U.S. Surgeon General that eating pizza lowers cholesterol levels, an outcome many people want?

Accepted Answer

A)   Figure A
B)   Figure B.
C)   Figure C
D)   Figure D

Exam 3: Demand and Supply

The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________.

Correct AnswerverifiedShow Answer

For "an increase in the quantity demanded" but not "an increase in demand" to occur, there must be a

Correct AnswerverifiedShow Answer

-The equilibrium price in the above figure is

Correct AnswerverifiedShow Answer

An increase in the number of consumers

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the factors that influences the supply of a product?

Correct AnswerverifiedShow Answer

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Correct AnswerverifiedShow Answer

-Using the above figure, suppose there is a decrease in the number of suppliers. Then

Correct AnswerverifiedShow Answer

Which of the following increases the supply of a product?

Correct AnswerverifiedShow Answer

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Correct AnswerverifiedShow Answer

-In the above figure, if the demand curve is D2, then

Correct AnswerverifiedShow Answer

The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises,

Correct AnswerverifiedShow Answer

When does a surplus occur?

Correct AnswerverifiedA surplus occurs when the pric...View AnswerShow Answer

The "law of demand" states that changes in

Correct AnswerverifiedShow Answer

Changes in which of the following shifts the supply curve of hamburgers?

Correct AnswerverifiedShow Answer

If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments.

Correct AnswerverifiedShow Answer

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

Correct AnswerverifiedShow Answer

-The above figure shows the market for pizza. Which figure shows the effect of a new report by the U.S. Surgeon General that eating pizza lowers cholesterol levels, an outcome many people want?

Correct AnswerverifiedShow Answer

If the equilibrium relative price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

Correct AnswerverifiedNot necessarily. The demand curve might ...View AnswerShow Answer

-The above figure shows the market for hamburger. Which panel shows the effect of a drought in "cattle country"?

Correct AnswerverifiedShow Answer

-In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from

Correct AnswerverifiedShow Answer

The law of demand concludes that a rise in the price of a golf ball the quantity demanded and .

Correct Answer
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-In the above figure, if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

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-In the above figure, if the demand curve is D₂, then

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A surplus occurs when the pric...
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Not necessarily. The demand curve might ...
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