Question 1

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Accepted Answer

A)   There is a shortage, so the price falls and quantity demanded increases.
B)   There is a surplus, so the price falls and quantity demanded increases.
C)   There is a shortage, so the price rises and quantity demanded decreases.
D)   There is a shortage, so the price rises and quantity demanded increases.
E)   There is a shortage, so the price falls and quantity demanded decreases.F) A) and B)
G) A) and C)

Question 2

Market equilibrium occurs when

Accepted Answer

A)   the quantity demanded equals the quantity supplied.
B)   the market is changing rapidly.
C)   other things remain the same.
D)   buyers get the lowest possible price.
E)   everyone who wants the good gets the quantity he or she wants.F) A) and C)
G) A) and E)

Question 3

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Accepted Answer

A)   The supply increases so that the supply curve shifts rightward.
B)   The supply decreases so that the supply curve shifts leftward.
C)   The quantity supplied increases, but there is no shift in the supply curve.
D)   The quantity supplied decreases, but there is no shift in the supply curve.
E)   The quantity supplied decreases, and the supply curve shifts leftward.F) D) and E)
G) B) and C)

Question 4

What is the difference between a normal good and an inferior good.Give an example of each.

Accepted Answer

A good is a normal good if an increase i...

Question 5

Which of the following shifts the demand curve for movies rightward?

Accepted Answer

A)   an increase in the price of NetFlix, a substitute for movies
B)   an increase in the price of movie tickets
C)   a decrease in the price of move tickets
D)   an increase in movie star salaries
E)   an increase in the price of HDTV setsF) B) and E)
G) A) and D)

Question 6

A rise in the price of a substitute in production for a good leads to

Accepted Answer

A)   an increase in the supply of that good.
B)   a decrease in the supply of that good.
C)   no change in the supply of that good; instead there is a change in the quantity supplied.
D)   a decrease in the quantity of that good supplied.
E)   no change in either the supply or the quantity supplied of the good.F) A) and E)
G) B) and D)

Question 7

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Accepted Answer

A)   the demand for classes will decrease at the University of Maine.
B)   the demand for classes will increase at the University of Maine.
C)   the quantity of classes demanded will increase at the University of Maine.
D)   the quantity of classes demanded will decrease at the University of Maine.
E)   both the demand for and the quantity of classes demanded will decrease at the University of Maine.F) B) and E)
G) D) and E)

Question 8

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

Accepted Answer

A)   The law of demand is being used to increase the quantity demanded.
B)   The store is trying to increase its customers' demand for the product.
C)   The store manager must be trying to drive away customers by selling low quality products.
D)   The store is trying to increase its customers' incomes by increasing their purchasing power.
E)   The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.F) A) and E)
G) All of the above

Question 9

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

Accepted Answer

A)   an increase in the cost of hard drives
B)   an increase in the productivity of the workers manufacturing laptops
C)   a decrease in the price of laptops
D)   an increase in the price of laptops
E)   an increase in the number of laptop manufactures and sellersF) None of the above
G) A) and C)

Question 10

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A)   the amount people are willing to buy
B)   the amount people are able to buy
C)   the amount people are willing and able to offer
D)   the amount people are willing and able to buy
E)   the amount people are willing to buy because it is the amount sellers are willing to sellF) A) and D)
G) A) and B)

Question 11

Which of the following is true regarding demand?
i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same.
ii.Demand refers to one quantity at one time.
iii."Demand" and "quantity demanded" are the same thing.

Accepted Answer

A)   i only
B)   ii only
C)   both i and ii
D)   iii only
E)   both ii and iiiF) C) and D)
G) B) and E)

Question 12

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Accepted Answer

A)   studies showing using cellular phones can cause brain cancer
B)   a decrease in the price of cellular phones
C)   a decrease in the quantity demanded of cellular phones
D)   an increase in the services provided by cellular phones, such as text messaging
E)   an increase in the price of cellular phonesF) D) and E)
G) C) and E)

Question 13

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

Accepted Answer

A)   Figure A
B)   Figure B
C)   Figure C
D)   Figure D
E)   None of the figures represent this change.F) A) and D)
G) A) and E)

Question 14

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri...

Question 15

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Accepted Answer

A)   the supply of Web pages increases and the price falls.
B)   the supply curve of Web pages shifts leftward and the price falls.
C)   the demand for Web pages increases and the price rises.
D)   the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward.
E)   the demand for Web pages increases and the price falls.F) A) and B)
G) B) and E)

Question 16

An increase in the quantity demanded is shown as

Accepted Answer

A)   a movement along the demand curve.
B)   a movement toward the demand curve.
C)   a rightward shift of the demand curve.
D)   a leftward shift of the demand curve.
E)   both a movement along the demand curve and a shift of the demand curve.F) D) and E)
G) A) and E)

Question 17

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.

Accepted Answer

A)   rises; decreases
B)   falls; perhaps changes but we can't say if it increases, decreases, or stays the same
C)   falls; increases
D)   does not change; perhaps changes but we can't say if it increases, decreases, or stays the same
E)   rises; perhaps changes but we can't say if it increases, decreases, or stays the sameF) B) and C)
G) A) and C)

Question 18

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

Accepted Answer

Advances in technology increase the supp...

Question 19

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Accepted Answer

A)   shifts; causes
B)   shifts; does not cause
C)   does not shift; causes
D)   does not shift; does not cause
E)   None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.F) A) and C)
G) B) and C)

Question 20

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Quantity demanded } \
\text { (tons of cat food per year) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (dollars per pound of cat } \
\text { food) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (tons of cat food per year) }
\end{array} \
\hline 52 & 1.00 & 15 \
46 & 1.50 & 26 \
43 & 2.00 & 34 \
40 & 2.50 & 40 \
35 & 3.00 & 44 \
\hline
\end{array}$$
-The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Accepted Answer

The equilibrium price is $2.50...

Exam 4: Demand and Supply

An increase in the quantity demanded is shown as

Correct Answer
verified

A change in the price of a good its supply curve and a movement along its supply curve.

Correct Answer
verified

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

Correct Answer
verified

When does a shortage occur?

Correct Answer
verified
A shortage occurs when the pri...
View Answer

What is the difference between a normal good and an inferior good.Give an example of each.

Correct Answer
verified
A good is a normal good if an increase i...
View Answer

A rise in the price of a substitute in production for a good leads to

Correct Answer
verified

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Correct Answer
verified

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Correct Answer
verified

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ,and the equilibrium quantity .

Correct Answer
verified

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

Correct Answer
verified

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Correct Answer
verified

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

Correct Answer
verified
Advances in technology increase the supp...
View Answer

Market equilibrium occurs when

Correct Answer
verified

Which of the following shifts the demand curve for movies rightward?

Correct Answer
verified

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and "quantity demanded" are the same thing.

Correct Answer
verified

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Correct Answer
verified

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Correct Answer
verified

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Correct Answer
verified

Correct Answer
verified
The equilibrium price is $2.50...
View Answer

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

Correct Answer
verified

Exam 4: Demand and Supply

An increase in the quantity demanded is shown as

Correct AnswerverifiedShow Answer

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Correct AnswerverifiedShow Answer

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

Correct AnswerverifiedShow Answer

When does a shortage occur?

Correct AnswerverifiedA shortage occurs when the pri...View AnswerShow Answer

What is the difference between a normal good and an inferior good.Give an example of each.

Correct AnswerverifiedA good is a normal good if an increase i...View AnswerShow Answer

A rise in the price of a substitute in production for a good leads to

Correct AnswerverifiedShow Answer

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Correct AnswerverifiedShow Answer

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Correct AnswerverifiedShow Answer

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

Correct AnswerverifiedShow Answer

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Correct AnswerverifiedShow Answer

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

Correct AnswerverifiedAdvances in technology increase the supp...View AnswerShow Answer

Market equilibrium occurs when

Correct AnswerverifiedShow Answer

Which of the following shifts the demand curve for movies rightward?

Correct AnswerverifiedShow Answer

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and "quantity demanded" are the same thing.

Correct AnswerverifiedShow Answer

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Correct AnswerverifiedShow Answer

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Correct AnswerverifiedShow Answer

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe equilibrium price is $2.50...View AnswerShow Answer

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

Correct AnswerverifiedShow Answer

Correct Answer
verified

A change in the price of a good its supply curve and a movement along its supply curve.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A shortage occurs when the pri...
View Answer

Correct Answer
verified
A good is a normal good if an increase i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ,and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Advances in technology increase the supp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The equilibrium price is $2.50...
View Answer

Correct Answer
verified