Question 1

Table 3-4 shows the market demand and market supply schedules for music downloads. The equilibrium price of music downloads is:​

Accepted Answer

A)  $0.80.
B)  $1.00.
C)  $1.20.
D)  $1.40.
E)  $1.60

Question 2

If both the supply and demand curves shift to the left, there will be a(n) :

Accepted Answer

A)  increase in the equilibrium quantity sold.
B)  decrease in the equilibrium quantity sold.
C)  increase in the equilibrium price.
D)  decrease in the equilibrium price.
E)  a change in quantity that is indeterminate.

Question 3

Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. At a price of $4, there is a _____ of _____ pizzas.​

Accepted Answer

A)  shortage; 4,500
B)  surplus; 4,500
C)  shortage; 6,500
D)  surplus; 6,500
E)  shortage; 3,000

Question 4

Table 3-2 shows a market of mid-sized autos. If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000?Table 3-2​

Accepted Answer

A)  43,000
B)  54,000
C)  126,000
D)  158,000
E)  22,000

Question 5

According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not​

Accepted Answer

A) True 
 B)False

Question 6

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point D represents a(n) ;Figure 3-3

Accepted Answer

A)  increase in the supply of the good.
B)  decrease in the supply of the good
C)  increase in the quantity supplied of the good
D)  decrease in the quantity supplied of the good.
E)  decrease in the price of the good

Question 7

A decrease in the number of sellers in the market for a good causes:

Accepted Answer

A)  the supply curve of the good to shift to the left.
B)  the supply curve of the good to shift to the right.
C)  a movement up and to the right along a stationary supply curve of the good.
D)  a movement downward and to the left along a stationary supply curve of the good.
E)  a change in the slope of the supply curve of the good.

Question 8

Ceteris paribus, an increase in the equilibrium price and the equilibrium quantity would be caused by an increase in supply

Accepted Answer

A) True 
 B)False

Question 9

Ceteris paribus, if the price of lumber increases, we would expect an increase in the supply of lumber.

Accepted Answer

A) True 
 B)False

Question 10

If the decrease in the supply of a product is greater than the increase in its demand, _____.

Accepted Answer

A)  the price will rise, but the quantity traded will fall
B)  the price will rise, but the quantity traded could either rise or fall
C)  the price will fall, but the quantity traded could either rise or fall
D)  the quantity traded will rise, but the price could either rise or fall
E)  the price will remain the same, but the quantity traded will fall

Question 11

A decrease in the price of a good will:

Accepted Answer

A)  increase the supply of the good.
B)  decrease the supply of the good
C)  increase quantity supplied of the good.
D)  decrease quantity supplied of the good.
E)  increase the slope of the supply curve of the good.

Question 12

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point C represents a(n) :Figure 3-3

Accepted Answer

A)  increase in the supply of the good.
B)  decrease in the supply of the good.
C)  increase in the quantity supplied of the good.
D)  decrease in the quantity supplied of the good.
E)  increase in the price of the good.

Question 13

When there is an excess quantity demanded for a product at the current price, then:

Accepted Answer

A)  the price will tend to fall
B)  the price will tend to rise.
C)  the price must be above the equilibrium price.
D)  producers will reduce output and sales will fall.
E)  the quantity demanded will tend to fall.

Question 14

Incorrect. If the demand for a good increases when incomes rise and decreases when incomes fall, the good is called a normal good. See 3-2: Demand

Accepted Answer

A) True 
 B)False

Question 15

An increase in quantity demanded:

Accepted Answer

A)  is illustrated by a movement downward and to the right along a demand curve.
B)  is illustrated by a movement upward and to the left along a demand curve.
C)  is illustrated by a movement upward and to the left along a demand curve..
D)  is illustrated by a movement upward and to the left along a demand curve
E)  changes the slope of the demand curve.

Question 16

Figure 3-4 represents the market for butter. If the current price of butter equals $2 per pound, then:Figure 3-4

Accepted Answer

A)  the market is in equilibrium at 3,000 pounds per year.
B)  the market is in equilibrium at 8,000 pounds per year.
C)  the market is not in equilibrium and the quantity supplied is greater than the quantity demanded.
D)  the market is not in equilibrium and the quantity demanded is greater than the quantity supplied.
E)  the market is in equilibrium at 6,000 pounds of butter per year.

Question 17

Which of the following is true of a competitive market?

Accepted Answer

A)  The rules of supply and demand do not apply to it.
B)  Sellers have little market power.
C)  The largest firm is the price maker.
D)  Few sellers offer similar products.
E)  Government plays an important role in a competitive market.

Question 18

Figure 3-4 represents the market for butter. The equilibrium price of butter is:

Accepted Answer

A)  $5 per pound.
B)  $3 per pound.
C)  $2 per pound.
D)  $1 per pound.
E)  $4 per pound.

Question 19

The law of demand states that, ceteris paribus, an increase in:

Accepted Answer

A)  the price of a good causes its quantity demanded to increase.
B)  the price of a good causes its quantity demanded to decrease.
C)  the quantity demanded of a good causes its price to increase.
D)  the quantity demanded of a good causes its price to decrease.
E)  the quantity demanded of a good causes its supply to decrease.

Exam 3: Supply and Demand

Which of the following is true of a competitive market?

Correct Answer
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When there is an excess quantity demanded for a product at the current price, then:

Correct Answer
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Figure 3-4 represents the market for butter. The equilibrium price of butter is:

Correct Answer
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Figure 3-4 represents the market for butter. If the current price of butter equals $2 per pound, then:Figure 3-4

Correct Answer
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According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not

Correct Answer
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Incorrect. If the demand for a good increases when incomes rise and decreases when incomes fall, the good is called a normal good. See 3-2: Demand

Correct Answer
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Table 3-2 shows a market of mid-sized autos. If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000?Table 3-2

Correct Answer
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Ceteris paribus, if the price of lumber increases, we would expect an increase in the supply of lumber.

Correct Answer
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Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point C represents a(n) :Figure 3-3

Correct Answer
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A decrease in the price of a good will:

Correct Answer
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If both the supply and demand curves shift to the left, there will be a(n) :

Correct Answer
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Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point D represents a(n) ;Figure 3-3

Correct Answer
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Ceteris paribus, an increase in the equilibrium price and the equilibrium quantity would be caused by an increase in supply

Correct Answer
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Table 3-4 shows the market demand and market supply schedules for music downloads. The equilibrium price of music downloads is:

Correct Answer
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The law of demand states that, ceteris paribus, an increase in:

Correct Answer
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Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. At a price of $4, there is a _ of _ pizzas.

Correct Answer
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A decrease in the number of sellers in the market for a good causes:

Correct Answer
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If the decrease in the supply of a product is greater than the increase in its demand, _____.

Correct Answer
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An increase in quantity demanded:

Correct Answer
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Exam 3: Supply and Demand

Which of the following is true of a competitive market?

Correct AnswerverifiedShow Answer

When there is an excess quantity demanded for a product at the current price, then:

Correct AnswerverifiedShow Answer

Figure 3-4 represents the market for butter. The equilibrium price of butter is:

Correct AnswerverifiedShow Answer

Figure 3-4 represents the market for butter. If the current price of butter equals $2 per pound, then:Figure 3-4

Correct AnswerverifiedShow Answer

According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not​

Correct AnswerverifiedShow Answer

Incorrect. If the demand for a good increases when incomes rise and decreases when incomes fall, the good is called a normal good. See 3-2: Demand

Correct AnswerverifiedShow Answer

Table 3-2 shows a market of mid-sized autos. If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000?Table 3-2​

Correct AnswerverifiedShow Answer

Ceteris paribus, if the price of lumber increases, we would expect an increase in the supply of lumber.

Correct AnswerverifiedShow Answer

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point C represents a(n) :Figure 3-3

Correct AnswerverifiedShow Answer

A decrease in the price of a good will:

Correct AnswerverifiedShow Answer

If both the supply and demand curves shift to the left, there will be a(n) :

Correct AnswerverifiedShow Answer

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point D represents a(n) ;Figure 3-3

Correct AnswerverifiedShow Answer

Ceteris paribus, an increase in the equilibrium price and the equilibrium quantity would be caused by an increase in supply

Correct AnswerverifiedShow Answer

Table 3-4 shows the market demand and market supply schedules for music downloads. The equilibrium price of music downloads is:​

Correct AnswerverifiedShow Answer

The law of demand states that, ceteris paribus, an increase in:

Correct AnswerverifiedShow Answer

Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. At a price of $4, there is a _____ of _____ pizzas.​

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market for a good causes:

Correct AnswerverifiedShow Answer

If the decrease in the supply of a product is greater than the increase in its demand, _____.

Correct AnswerverifiedShow Answer

An increase in quantity demanded:

Correct AnswerverifiedShow Answer

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Correct Answer
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According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not

Correct Answer
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Correct Answer
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Table 3-2 shows a market of mid-sized autos. If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000?Table 3-2

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Table 3-4 shows the market demand and market supply schedules for music downloads. The equilibrium price of music downloads is:

Correct Answer
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Correct Answer
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Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. At a price of $4, there is a _ of _ pizzas.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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