Question 1

Exhibit 3-14
 
-Refer to Exhibit 3-14.At a price of $13,there is a ____________ unit ____________ of good X.

Accepted Answer

A)   140;shortage
B)   160;shortage
C)   140;surplus
D)   20;surplus
E)   100;surplus

Question 2

At a price for which quantity demanded exceeds quantity supplied,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 3

In year 1 the price of good X is $10 and 100 units are bought and sold.In year 2 the price of good X is $13 and 230 units are bought and sold.What can explain this?

Accepted Answer

A)   The supply of good X was higher in year 2 than in year 1 and the demand for good X was the same in year 2 as in year 1.
B)   The demand for good X was higher in year 2 than in year 1 and the supply of good X was the same in year 2 as in year 1.
C)   Both the demand for,and supply of,good X were higher in year 2 than in year 1.
D)   b or c
E)   a,b,or c

Question 4

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 5

An advance in technology causes

Accepted Answer

A)   a rightward shift in the supply curve.
B)   a leftward shift in the supply curve.
C)   the supply curve to go from upward sloping to vertical.
D)   the supply curve to go from vertical to upward sloping.

Question 6

Good Y is an inferior good.If the average income of those who buy good Y rises,the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

Accepted Answer

A)   supply;rightward;decrease;increase.
B)   demand;leftward;decrease;decrease
C)   demand;rightward;increase;increase
D)   supply;leftward;increase;decrease
E)   supply;leftward;increase;increase

Question 7

An economist says,"Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:

Accepted Answer

A)   Technological advances lead to lower demand,which leads to lower prices.
B)   Technological advances lead to greater supply,which leads to lower prices.
C)   Technological advances lead to greater quantity supplied,which leads to lower prices.
D)   Technological advances lead to lower taxes,which lead to greater supply,which leads to lower prices.
E)   Technological advances lead to higher taxes,which lead to fewer subsidies,which lead to greater supply,which leads to lower prices.

Exam 3: Supply and Demand: Theory

An economist says,"Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:

Correct Answer
verified

In year 1 the price of good X is $10 and 100 units are bought and sold.In year 2 the price of good X is $13 and 230 units are bought and sold.What can explain this?

Correct Answer
verified

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

Correct Answer
verified

One major reason for the law of demand is that

Correct Answer
verified

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $13,there is a unit of good X.

Correct Answer
verified

Good Y is an inferior good.If the average income of those who buy good Y rises,the _______ curve for good Y will shift resulting in a(n) _ in the equilibrium price of Y and a(n) ______ in the equilibrium quantity of Y.

Correct Answer
verified

An advance in technology causes

Correct Answer
verified

Exam 3: Supply and Demand: Theory

An economist says,"Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:

Correct AnswerverifiedShow Answer

In year 1 the price of good X is $10 and 100 units are bought and sold.In year 2 the price of good X is $13 and 230 units are bought and sold.What can explain this?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One major reason for the law of demand is that

Correct AnswerverifiedShow Answer

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $13,there is a ____________ unit ____________ of good X.

Correct AnswerverifiedShow Answer

Good Y is an inferior good.If the average income of those who buy good Y rises,the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

Correct AnswerverifiedShow Answer

An advance in technology causes

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $13,there is a unit of good X.

Correct Answer
verified

Good Y is an inferior good.If the average income of those who buy good Y rises,the _______ curve for good Y will shift resulting in a(n) _ in the equilibrium price of Y and a(n) ______ in the equilibrium quantity of Y.

Correct Answer
verified

Correct Answer
verified