Question 1

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

Accepted Answer

A)  increases; shifts rightward
B)  increases; shifts leftward
C)  decrease; shifts rightward
D)  decreases; shifts leftward
E)  increases; does not shift

Question 2

If the supply of iPods increases, then
i. the supply curve for iPods has shifted rightward.
ii. the price of iPods has decreased.
iii. there will be a movement upward along the iPod supply curve.

Accepted Answer

A)  i only
B)  i, ii and iii
C)  i and ii
D)  ii and iii
E)  i and iii

Question 3

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________.

Accepted Answer

A)  rightward; increase
B)  rightward; decrease
C)  leftward; increase
D)  rightward; not change
E)  leftward; not change

Question 4

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.

Question 5

Car insurance and cars are complements.If the price of car insurance increases, the

Accepted Answer

A)  demand for cars decreases.
B)  demand for cars increases.
C)  quantity of cars demanded decreases.
D)  quantity of cars demanded increases.
E)  More information is needed to determine if the demand increases or decreases.

Question 6

-Consider the market for bread.If the price of wheat rises, then the

Accepted Answer

A)  demand curve for bread shifts leftward.
B)  supply curve of bread shifts leftward.
C)  price of bread falls.
D)  equilibrium quantity of bread increases.
E)  demand curve for bread shifts rightward.

Question 7

If a market begins in equilibrium and then the demand curve shifts leftward, a

Accepted Answer

A)  shortage is created, which is eliminated by a fall in price.
B)  shortage is created, which is eliminated by a rise in price.
C)  surplus is created, which is eliminated by a fall in price.
D)  surplus is created, which is eliminated by a rise in price.
E)  surplus is created, which is eliminated by the supply curve shifting leftward.

Question 8

Which of the following describes the law of demand? When other things remain the same, as

Accepted Answer

A)  the price of gas falls, the quantity demanded of gas increases.
B)  the quantity demanded of bread increases, the price of bread falls.
C)  the price of peanut butter increases, the quantity demanded of jelly decreases.
D)  your income increases, you'll buy more hamburgers.
E)  more people decide to eat pizza, the demand for pizza increases.

Question 9

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls, which figure shows the effect of this change in price?

Accepted Answer

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

Question 10

If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________.

Accepted Answer

A)  increases; increase
B)  increases; does not change
C)  does not change; increases
D)  increases; decreases
E)  decreases; does not change

Question 11

Suppose the price of leather used to produce shoes increases.The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

Accepted Answer

A)  increases; shifts rightward
B)  increases; shifts leftward
C)  decreases; shifts rightward
D)  decreases; shifts leftward
E)  does not change; does not shift

Question 12

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

Accepted Answer

At a price of $8 there is a su...

Question 13

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits,
I∙the quantity of new automobiles supplied decreases.
Ii∙the supply of new automobiles decreases.
Iii∙the supply of new automobiles increases.

Accepted Answer

A)  only i
B)  only ii
C)  only iii
D)  both i and ii
E)  Neither i, ii, nor iii is correct.

Question 14

Suppose the government imposes a small carbon tax on automakers.But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production.In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply.The result is that the price of autos will ________ and the number of autos sold will ________.

Accepted Answer

A)  rise; perhaps change but we can't say if it increases, decreases, or stays the same
B)  rise; increase
C)  rise; decrease
D)  fall; perhaps change but we can't say if it increases, decreases, or stays the same
E)  fall; decrease

Question 15

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Accepted Answer

A)  the demand for hot dogs will increase.
B)  the demand for hot dog buns will decrease.
C)  the quantity demanded of hotdogs will decrease.
D)  the demand for hot dog buns will increase.
E)  the quantity demanded of hot dog buns will increase.

Question 16

In a recession, consumers have less income to spend.As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

Accepted Answer

A)  The demand curve would shift leftward.
B)  The demand curve would not shift but the price of dining out would rise.
C)  The effect on the demand curve is unknown.
D)  The demand curve would shift rightward.
E)  The demand curve would not shift but the price of dining out would fall.

Question 17

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus, which of the following occurred?

Accepted Answer

A)  Demand and supply increased by an equal amount.
B)  Demand and supply decreased by an equal amount.
C)  Demand increased and supply decreased by an equal amount.
D)  Demand decreased and supply increased by an equal amount.
E)  Demand increased by a larger magnitude than supply decreased.

Question 18

If the price of tangerines increases, the price of oranges also rises because

Accepted Answer

A)  consumers consider the two goods complements and so sellers decreased the supply of oranges.
B)  consumers consider the two goods substitutes and demand for oranges increases.
C)  if the supply of tangerines decreased, then the supply of oranges also must decrease.
D)  buyers must have expected a higher price for oranges and thus increased their demand for oranges.
E)  buyers' incomes must have decreased and oranges are an inferior good.

Question 19

A technological improvement lowers the cost of producing corn.As a result, the price of a pound of corn ________ and the quantity of corn ________.

Accepted Answer

A)  rises; increases
B)  rises; decreases
C)  falls; increases
D)  falls; decreases
E)  falls; does not change

Question 20

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Accepted Answer

Yes, the information in the ta...

Exam 4: Demand and Supply

In a recession, consumers have less income to spend.As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

Correct Answer
verified

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

Correct Answer
verified
At a price of $8 there is a su...
View Answer

If the supply of iPods increases, then i. the supply curve for iPods has shifted rightward. ii. the price of iPods has decreased. iii. there will be a movement upward along the iPod supply curve.

Correct Answer
verified

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, I∙the quantity of new automobiles supplied decreases. Ii∙the supply of new automobiles decreases. Iii∙the supply of new automobiles increases.

Correct Answer
verified

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts , the equilibrium quantity of movie tickets will .

Correct Answer
verified

Car insurance and cars are complements.If the price of car insurance increases, the

Correct Answer
verified

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

Correct Answer
verified

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls, which figure shows the effect of this change in price?

Correct Answer
verified

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus, which of the following occurred?

Correct Answer
verified

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Correct Answer
verified

Correct Answer
verified

Which of the following describes the law of demand? When other things remain the same, as

Correct Answer
verified

If the demand and supply both increase equally, then the equilibrium price and the equilibrium quantity .

Correct Answer
verified

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Correct Answer
verified
Yes, the information in the ta...
View Answer

A technological improvement lowers the cost of producing corn.As a result, the price of a pound of corn and the quantity of corn .

Correct Answer
verified

Suppose the price of leather used to produce shoes increases.The higher price of leather the supply of shoes and the supply curve of shoes .

Correct Answer
verified

-Consider the market for bread.If the price of wheat rises, then the

Correct Answer
verified

If a market begins in equilibrium and then the demand curve shifts leftward, a

Correct Answer
verified

The number of corn producers increases, so the supply of corn and the supply curve of corn .

Correct Answer
verified

If the price of tangerines increases, the price of oranges also rises because

Correct Answer
verified

Exam 4: Demand and Supply

In a recession, consumers have less income to spend.As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

Correct AnswerverifiedShow Answer

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus?

Correct AnswerverifiedAt a price of $8 there is a su...View AnswerShow Answer

If the supply of iPods increases, then i. the supply curve for iPods has shifted rightward. ii. the price of iPods has decreased. iii. there will be a movement upward along the iPod supply curve.

Correct AnswerverifiedShow Answer

The United Auto Workers bargained for higher wages and more benefits for autoworkers.As a result of the higher wages and increased benefits, I∙the quantity of new automobiles supplied decreases. Ii∙the supply of new automobiles decreases. Iii∙the supply of new automobiles increases.

Correct AnswerverifiedShow Answer

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________.

Correct AnswerverifiedShow Answer

Car insurance and cars are complements.If the price of car insurance increases, the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-The above figures show the market for HD televisions.If the price of the LCD screens used to produce these televisions falls, which figure shows the effect of this change in price?

Correct AnswerverifiedShow Answer

Both the demand for and supply of cars changes in France.You observe that the quantity of cars does not change but the price rises.Thus, which of the following occurred?

Correct AnswerverifiedShow Answer

Hot dogs and hot dog buns are complements.If the price of a hot dog falls, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following describes the law of demand? When other things remain the same, as

Correct AnswerverifiedShow Answer

If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

-The table above indicates how many thousands of containers of ice cream three different companies are willing to produce at different prices.Does this information reflect the law of supply? Why or why not?

Correct AnswerverifiedYes, the information in the ta...View AnswerShow Answer

A technological improvement lowers the cost of producing corn.As a result, the price of a pound of corn ________ and the quantity of corn ________.

Correct AnswerverifiedShow Answer

Suppose the price of leather used to produce shoes increases.The higher price of leather ________ the supply of shoes and the supply curve of shoes ________.

Correct AnswerverifiedShow Answer

-Consider the market for bread.If the price of wheat rises, then the

Correct AnswerverifiedShow Answer

If a market begins in equilibrium and then the demand curve shifts leftward, a

Correct AnswerverifiedShow Answer

The number of corn producers increases, so the supply of corn ________ and the supply curve of corn ________.

Correct AnswerverifiedShow Answer

If the price of tangerines increases, the price of oranges also rises because

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
At a price of $8 there is a su...
View Answer

Correct Answer
verified

Correct Answer
verified

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts , the equilibrium quantity of movie tickets will .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If the demand and supply both increase equally, then the equilibrium price and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified
Yes, the information in the ta...
View Answer

A technological improvement lowers the cost of producing corn.As a result, the price of a pound of corn and the quantity of corn .

Correct Answer
verified

Suppose the price of leather used to produce shoes increases.The higher price of leather the supply of shoes and the supply curve of shoes .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The number of corn producers increases, so the supply of corn and the supply curve of corn .

Correct Answer
verified

Correct Answer
verified