Question 1

Which of the following would NOT change demand?

Accepted Answer

A)   the price of the product
B)   information about the product's health effects
C)   the income of the consumers
D)   the price of related products

Question 2

A price floor that is set above the equilibrium price

Accepted Answer

A)   causes suppliers to lower their prices.
B)   is binding.
C)   is non-binding.
D)   creates a shortage.

Question 3

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

Accepted Answer

A) True 
 B)False

Question 4

A restriction on the number of people allowed to be medical doctors in the United States would most likely

Accepted Answer

A)   increase doctors' fees.
B)   decrease the demand for doctors.
C)   decrease the demand for nurses.
D)   decrease the number of people who get sick.

Question 5

Agricultural price supports are

Accepted Answer

A)   price ceilings.
B)   price floors.
C)   quantity quotas.
D)   taxes.

Question 6

A increase in quantity demanded as a result of a change in price

Accepted Answer

A)   is a rightward shift of the demand curve.
B)   is a leftward shift of the demand curve.
C)   leaves the demand curve unchanged.
D)   is not possible.

Question 7

The supply curve is influenced by

Accepted Answer

A)   the income of consumers.
B)   the number of customers in the market.
C)   the prices of the inputs required to produce the product.
D)   whether the economy is free-market or command.

Question 8

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

Accepted Answer

A)   those who are buying pizza value it at least $50 per pizza.
B)   those who are not buying pizza value it more than $50 per pizza.
C)   only those who are extremely wealthy are buying pizza.
D)   the price of pizza needs to be regulated by the federal government.

Question 9

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Accepted Answer

A)   0; there is excess supply at $7.
B)   20 units
C)   30 units
D)   10 units

Question 10

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

Accepted Answer

A)   the market quantity demanded at a price of $10 is at least 13 movies per week.
B)   Jordan is obviously more wealthy than either Sam or Jeanna.
C)   Sam is irrational compared to Jenna or Jordan.
D)   the movie industry is unprofitable.

Question 11

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop?

Accepted Answer

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

Question 12

If the price of a good is initially below the equilibrium level

Accepted Answer

A)   the supply curve will shift leftward.
B)   the supply curve will shift rightward.
C)   firms supply none of the good.
D)   excess demand exists.

Question 13

The quantity of a good that consumers demand depends only on the price of the good.

Accepted Answer

A) True 
 B)False

Question 14

At equilibrium,quantity sold equals the quantity bought.This implies that

Accepted Answer

A)   to sell more, producers require more in payment than consumers are willing to pay.
B)   government regulation is necessary.
C)   to sell less would require a lower price but would yield greater profit.
D)   those who don't buy have been treated unfairly.

Question 15

Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good.The price of a substitute good increases and the price of an input to production also increases.Graph the original demand and supply curves,and the curves after the substitute good and input prices increase.How will the equilibrium price change after the substitute and input prices increase?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> See the above figure.The new demand cur...

Question 16

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve,and a change in a good's own price causes a ________ the demand curve.

Accepted Answer

A)   shift of; shift of
B)   shift of; movement along
C)   movement along; shift of
D)   movement along; movement along

Question 17

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

Accepted Answer

A)   $0.
B)   $5.
C)   $12.
D)   $14.

Question 18

Equilibrium is defined as a situation in which

Accepted Answer

A)   neither buyers nor sellers want to change their behavior.
B)   no government regulations exist.
C)   demand curves are perfectly horizontal.
D)   suppliers will supply any amount that buyers wish to buy.

Question 19

As the price of a good increases,the change in the quantity demanded can be shown by

Accepted Answer

A)   shifting the demand curve leftward.
B)   shifting the demand curve rightward.
C)   moving down along the same demand curve.
D)   moving up along the same demand curve.

Question 20

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Accepted Answer

A)   no pizzas supplied.
B)   equilibrium.
C)   excess supply.
D)   excess demand.

Exam 2: Supply and Demand

Agricultural price supports are

Correct Answer
verified

The supply curve is influenced by

Correct Answer
verified

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Correct Answer
verified

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop?

Correct Answer
verified

A price floor that is set above the equilibrium price

Correct Answer
verified

Which of the following would NOT change demand?

Correct Answer
verified

A increase in quantity demanded as a result of a change in price

Correct Answer
verified

The quantity of a good that consumers demand depends only on the price of the good.

Correct Answer
verified

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

Correct Answer
verified

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Correct Answer
verified

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

Correct Answer
verified

As the price of a good increases,the change in the quantity demanded can be shown by

Correct Answer
verified

A restriction on the number of people allowed to be medical doctors in the United States would most likely

Correct Answer
verified

At equilibrium,quantity sold equals the quantity bought.This implies that

Correct Answer
verified

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

Correct Answer
verified

Correct Answer
verified
See the above figure.The new demand cur...
View Answer

A change in a relevant factor other than the price of the good itself causes a the demand curve,and a change in a good's own price causes a the demand curve.

Correct Answer
verified

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

Correct Answer
verified

Equilibrium is defined as a situation in which

Correct Answer
verified

If the price of a good is initially below the equilibrium level

Correct Answer
verified

Exam 2: Supply and Demand

Agricultural price supports are

Correct AnswerverifiedShow Answer

The supply curve is influenced by

Correct AnswerverifiedShow Answer

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Correct AnswerverifiedShow Answer

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop?

Correct AnswerverifiedShow Answer

A price floor that is set above the equilibrium price

Correct AnswerverifiedShow Answer

Which of the following would NOT change demand?

Correct AnswerverifiedShow Answer

A increase in quantity demanded as a result of a change in price

Correct AnswerverifiedShow Answer

The quantity of a good that consumers demand depends only on the price of the good.

Correct AnswerverifiedShow Answer

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

Correct AnswerverifiedShow Answer

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Correct AnswerverifiedShow Answer

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

Correct AnswerverifiedShow Answer

As the price of a good increases,the change in the quantity demanded can be shown by

Correct AnswerverifiedShow Answer

A restriction on the number of people allowed to be medical doctors in the United States would most likely

Correct AnswerverifiedShow Answer

At equilibrium,quantity sold equals the quantity bought.This implies that

Correct AnswerverifiedShow Answer

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

Correct AnswerverifiedShow Answer

Correct Answerverified See the above figure.The new demand cur...View AnswerShow Answer

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve,and a change in a good's own price causes a ________ the demand curve.

Correct AnswerverifiedShow Answer

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

Correct AnswerverifiedShow Answer

Equilibrium is defined as a situation in which

Correct AnswerverifiedShow Answer

If the price of a good is initially below the equilibrium level

Correct AnswerverifiedShow Answer

Correct Answer
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verified
See the above figure.The new demand cur...
View Answer

A change in a relevant factor other than the price of the good itself causes a the demand curve,and a change in a good's own price causes a the demand curve.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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