Question 1

If consumer tastes are changing more in favor of the consumption of a particular good the

Accepted Answer

A)  market demand curve will shift to the left.
B)  consumer will move up a given demand curve, decreasing the quantity demanded.
C)  consumer would move down a given demand curve, decreasing the quantity demanded.
D)  consumer would move down a given demand curve, increasing the quantity demanded.
E)  market demand curve would shift to the right.

Question 2

Figure 3-19 
-Refer to Figure 3-19. Buyers who value this good less than price are represented by which line segment?

Accepted Answer

A)  AC.
B)  CE.
C)  BC.
D)  CD.

Question 3

Figure 3-18 1? A) ABD B) ACF C) BCDE D) DEF" class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-18. Which area represents consumer surplus at a price of P1?

Accepted Answer

A)  ABD
B)  ACF
C)  BCDE
D)  DEF

Question 4

A terrible storm wipes out 70 percent of the peanut crop. Explain and show graphically how this will affect the market for peanut butter and the market for jelly, a complementary good.

Accepted Answer

Higher peanut prices will shift the supp...

Question 5

When economists say the demand for a product has decreased, they mean

Accepted Answer

A)  the demand curve has shifted to the left.
B)  the product price has increased, and as a consequence, consumers are buying less of the product.
C)  consumers are now willing and able to buy more of this product at each possible price.
D)  the demand curve has shifted to the right.

Question 6

Table 3-2
 
-Refer to Table 3-2. If the price is $775, who would be willing to supply the product?

Accepted Answer

A)  Dale and Jill
B)  Dale, Jill and Denise
C)  Denise, Catherine and Jackson
D)  Catherine and Jackson

Question 7

The forces of supply and demand assure that

Accepted Answer

A)  demand curves and supply curves tend to shift to the right as time goes by.
B)  the price of a good will eventually rise in response to an excess demand for that good.
C)  when the supply curve for a good shifts, the demand curve for that good shifts in response.
D)  the equilibrium price of a good will be rising more often than it will be falling.

Question 8

Other things constant, an increase in consumer income will

Accepted Answer

A)  shift the demand curve for automobiles to the left.
B)  shift the demand curve for automobiles to the right.
C)  cause a movement along the demand curve for automobiles, but it will not shift the demand curve.
D)  lead to a reduction in the supply of automobiles.

Question 9

Suppose both the equilibrium price and quantity rise for a particular product. Which of the following best explains this situation?

Accepted Answer

A)  Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand.
B)  Supply and demand simultaneously increased and the shift in supply was less than the shift in demand.
C)  Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand.
D)  Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.

Question 10

Use the figure below to answer the following question(s) .
Figure 3-14 
-Refer to Figure 3-14. The gasoline market was initially in equilibrium at point

Accepted Answer

A)  r.
B)  s.
C)  t.
D)  u.
E)  Other things constant, an increase in the popularity and use of Sport Utility Vehicles (SUVs)  that consume more gasoline per mile driven than most other types of cars would likely move the equilibrium in this market toward point

Question 11

Suppose demand decreases and supply decreases. Which of the following will happen?

Accepted Answer

A)  Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.
B)  Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase
C)  Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
D)  Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.
E)  The change in equilibrium price and quantity cannot be determined.

Question 12

When economists say the supply of a product has decreased, they mean that

Accepted Answer

A)  the supply curve has shifted to the left.
B)  the product price has decreased, and as a consequence, suppliers are producing less of the product.
C)  producers are now willing to sell more of this product at each possible price.
D)  the supply curve has shifted to the right.

Question 13

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs represents the market for cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

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

Question 14

When economists say the quantity supplied of a product has decreased, they mean the

Accepted Answer

A)  supply curve has shifted to the left.
B)  supply curve has shifted to the right.
C)  price of the product has risen, and consequently, suppliers are producing more of it.
D)  price of the product has fallen, and consequently, suppliers are producing less of it.

Question 15

The price of a good will tend to rise when

Accepted Answer

A)  there is excess demand for the good.
B)  there is excess supply of the good.
C)  demand for the good decreases.
D)  the supply of the good increases.

Question 16

If the quantity of a good supplied is highly sensitive to the price of the good, this is illustrated by a

Accepted Answer

A)  demand curve that is relatively flat (more horizontal) .
B)  demand curve that is relatively steep (more vertical) .
C)  supply curve that is relatively flat (more horizontal) .
D)  supply curve that is relatively steep (more vertical) .

Question 17

In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

Accepted Answer

A)  It would shift the supply curve to the right.
B)  It would shift the supply curve to the left.
C)  It would shift the demand curve to the left.
D)  It would shift the demand curve to the right.

Question 18

If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively

Accepted Answer

A)  inelastic.
B)  elastic.
C)  robust.
D)  inverse.

Question 19

Which of the following best explains the source of consumer surplus for a particular product?

Accepted Answer

A)  Many consumers pay prices that are greater than the equilibrium price of the product.
B)  Many consumers would be willing to pay more than the market price for the product.
C)  Many consumers think the market price of the product is greater than its cost.
D)  Many consumers think the demand for the product is elastic.

Question 20

Which of the following will most likely result from a destruction of half of the Florida orange crop due to a hard freeze?

Accepted Answer

A)  a decrease in the demand for oranges
B)  an increase in the supply of oranges
C)  an increase in the quantity of oranges bought and sold
D)  an increase in the price of oranges

Exam 3: Demand, Supply, and the Market Process

Suppose both the equilibrium price and quantity rise for a particular product. Which of the following best explains this situation?

Correct AnswerverifiedShow Answer

Table 3-2 -Refer to Table 3-2. If the price is $775, who would be willing to supply the product?

Correct AnswerverifiedShow Answer

Suppose demand decreases and supply decreases. Which of the following will happen?

Correct AnswerverifiedShow Answer

If the quantity of a good supplied is highly sensitive to the price of the good, this is illustrated by a

Correct AnswerverifiedShow Answer

When economists say the quantity supplied of a product has decreased, they mean the

Correct AnswerverifiedShow Answer

If consumer tastes are changing more in favor of the consumption of a particular good the

Correct AnswerverifiedShow Answer

When economists say the demand for a product has decreased, they mean

Correct AnswerverifiedShow Answer

Other things constant, an increase in consumer income will

Correct AnswerverifiedShow Answer

Figure 3-18 -Refer to Figure 3-18. Which area represents consumer surplus at a price of P1?

Correct AnswerverifiedShow Answer

A terrible storm wipes out 70 percent of the peanut crop. Explain and show graphically how this will affect the market for peanut butter and the market for jelly, a complementary good.

Correct AnswerverifiedHigher peanut prices will shift the supp...View AnswerShow Answer

Which of the following best explains the source of consumer surplus for a particular product?

Correct AnswerverifiedShow Answer

If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively

Correct AnswerverifiedShow Answer

Use the figure below to answer the following question(s) . Figure 3-14 -Refer to Figure 3-14. The gasoline market was initially in equilibrium at point

Correct AnswerverifiedShow Answer

Figure 3-19 -Refer to Figure 3-19. Buyers who value this good less than price are represented by which line segment?

Correct AnswerverifiedShow Answer

The price of a good will tend to rise when

Correct AnswerverifiedShow Answer

Which of the following will most likely result from a destruction of half of the Florida orange crop due to a hard freeze?

Correct AnswerverifiedShow Answer

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct AnswerverifiedShow Answer

When economists say the supply of a product has decreased, they mean that

Correct AnswerverifiedShow Answer

The forces of supply and demand assure that

Correct AnswerverifiedShow Answer

In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?

Correct AnswerverifiedShow Answer

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Figure 3-18 -Refer to Figure 3-18. Which area represents consumer surplus at a price of P₁?

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Higher peanut prices will shift the supp...
View Answer

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