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A popular dinner among college students today is sushi,green tea,and wasabi dip so these foods are complements.If the price of green tea increases and the price of wasabi dip increases,what would be the effect on demand for sushi at lunch?


A) The demand for sushi would decrease.
B) The demand for sushi would be unaffected, but the price would increase.
C) The demand for sushi could increase or decrease.
D) The demand for sushi would increase.
E) The demand for sushi would be unaffected, but the price would decrease.

Correct Answer

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An increase in the quantity demanded is shown as a


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

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Other things remaining the same,the quantity of a good or service demanded will increase if the price of the good or service


A) rises.
B) falls.
C) does not change.
D) rises or does not change.
E) rises or falls.

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


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

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-Which figure above shows the effect of a decrease in the number of pizza sellers? A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure B and Figure C -Which figure above shows the effect of a decrease in the number of pizza sellers?


A) Figure A
B) Figure B
C) Figure C
D) Figure D
E) Both Figure B and Figure C

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-The above figure illustrates the market for corn.If point a represents the original equilibrium and point b the new equilibrium,which of the following could have caused the change? A) a decrease in the number of corn growers B) a decrease the price of wheat, a substitute in production for corn C) an increase in the cost of the seed used to grow the corn D) an decrease in buyers' incomes if corn is an inferior good E) an increased belief among buyers that corn is healthy -The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?


A) a decrease in the number of corn growers
B) a decrease the price of wheat, a substitute in production for corn
C) an increase in the cost of the seed used to grow the corn
D) an decrease in buyers' incomes if corn is an inferior good
E) an increased belief among buyers that corn is healthy

Correct Answer

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-The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium. -The table above shows the situation in the gasoline market in Tulsa,Oklahoma.If the price of a gallon of gasoline is $3.65,then


A) there is a surplus of gasoline in Tulsa.
B) there is a shortage of gasoline in Tulsa.
C) the gasoline market in Tulsa is in equilibrium.
D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa.
E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.

Correct Answer

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A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.


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

Correct Answer

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A student at New York University used to take the Redhound bus when she visited her grandmother in Boston.After graduating,although the bus fare and the plane fare were the same as they were when she was a student,with a well paid job on Wall Street she now takes the plane to Boston to visit her grandmother.For this student,travel by Redhound bus is


A) a normal good.
B) an inferior good.
C) a substitute good.
D) a complement good.
E) a good with negative preferences.

Correct Answer

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-Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is A) 10,000 and $8. B) 90,000 and $8. C) 100,000 and $5. D) 70,000 and $6. E) 60,000 and $5. -Using the data in the table above,the equilibrium quantity and equilibrium price for a stapler is


A) 10,000 and $8.
B) 90,000 and $8.
C) 100,000 and $5.
D) 70,000 and $6.
E) 60,000 and $5.

Correct Answer

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A demand schedule shows


A) the quantities that people plan to buy in all possible circumstances.
B) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same.
C) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same.
D) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same.
E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.

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Mulch is shredded wood and is a by-product in the production of lumber.Because these two goods are produced together,they are


A) complements in production.
B) substitutes in production.
C) inputs into the same production process.
D) not related.
E) normal goods in production.

Correct Answer

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Which of the following increases the supply of a good?


A) a decrease in the price of a complement in production
B) producers expect higher prices for the good in the future
C) productivity improves
D) prices of inputs used to produce the good rise
E) The number of producers decreases.

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-The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity? A) A B) B C) C D) D E) E -The above figure shows the market for pizza.The market is in equilibrium when the wages paid pizza workers increases.What point represents the most likely new price and quantity?


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

Correct Answer

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It is expected that the price of a bushel of wheat will increase in one month.This belief will result in


A) an increase in the current supply of wheat.
B) a decrease in the current supply of wheat.
C) a decrease in the future supply of wheat.
D) no change in the current or future supply of wheat.
E) an increase in the current quantity supplied of wheat.

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Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?


A) The demand for pizzas decreases and the demand for tacos increases.
B) The demand for both goods decreases.
C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases.
D) The quantity of pizza demanded decreases and the demand for tacos increases.
E) The demand for each decreases because both are normal goods.

Correct Answer

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Suppose that the number of companies selling computer software decreases.How does this change affect the supply of computer software and the supply curve of computer software?

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A decrease in the number of sellers decr...

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-In the above figure,the shift in the supply curve from S to Sā‚‚ reflects A) an increase in the quantity of pizza supplied. B) a decrease in the quantity of pizza supplied. C) an increase in the supply of pizza. D) a decrease in the supply of pizza. E) a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied. -In the above figure,the shift in the supply curve from S to Sā‚‚ reflects


A) an increase in the quantity of pizza supplied.
B) a decrease in the quantity of pizza supplied.
C) an increase in the supply of pizza.
D) a decrease in the supply of pizza.
E) a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.

Correct Answer

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To find the market demand curve for in-line skates,we must


A) add the quantities demanded at every price and every income by every buyer of in-line skates.
B) add the quantities demanded at prices that all buyers can afford to pay.
C) sum horizontally the individual demand curves of all the buyers.
D) take account of the skate buying plans of all actual and potential buyers in all possible situations.
E) None of the above answers is correct because we need also to take account of the supply of in-line skates.

Correct Answer

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-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then A) there is a shortage and the price of t-shirts will fall. B) there is a shortage and the price of t-shirts will rise. C) there is a surplus and the price of t-shirts will rise. D) there is a surplus and the price of t-shirts will fall. E) the market is in equilibrium. -The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then


A) there is a shortage and the price of t-shirts will fall.
B) there is a shortage and the price of t-shirts will rise.
C) there is a surplus and the price of t-shirts will rise.
D) there is a surplus and the price of t-shirts will fall.
E) the market is in equilibrium.

Correct Answer

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