Question 1

Use the following to answer questions 
Figure: Supply and Demand in the Orange Juice Market 
-(Figure: Supply and Demand in the Orange Juice Market)  Look at the figure Supply and Demand in the Orange Juice Market. The market is in equilibrium at point C. A reputable scientist asserts in a major scientific publication that drinking orange juice will increase your life span. What will be the most likely new equilibrium point in the orange juice market?

Accepted Answer

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

Question 2

If in a competitive market the quantity supplied exceeds the quantity demanded, we expect prices to:

Accepted Answer

A)   stay the same.
B)   rise.
C)   fall.
D)   rise to clear the market.

Question 3

It is certain that the equilibrium quantity will fall when:

Accepted Answer

A)   the supply curve and the demand curve both shift to the right.
B)   the supply curve shifts to the right and the demand curve shifts to the left.
C)   the supply curve shifts to the left and demand shifts to the right.
D)   supply shifts to the left and demand stays the same.

Question 4

Use the following to answer questions 
Figure: The Demand and Supply of Wheat 
-(Figure: The Demand and Supply of Wheat)  Look at the figure The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _____ of _____ bushels will result.

Accepted Answer

A)   shortage; 10,000
B)   shortage; 8,000
C)   surplus; 8,000
D)   surplus; 4,000

Question 5

If the price of mozzarella cheese (an ingredient in pizza)  declines, there will be:

Accepted Answer

A)   a decrease in the supply of pizza.
B)   an increase in the supply of pizza.
C)   a decrease in the quantity of pizza supplied.
D)   no change in the supply of pizza.

Question 6

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Accepted Answer

A)   an increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity.
B)   a decrease in quantity supplied and lower prices.
C)   an increase in demand and higher prices.
D)   a decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity.

Question 7

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _____ curve shifts to the _____.

Accepted Answer

A)   supply; right
B)   demand; left
C)   supply; left
D)   demand; right

Question 8

An increase in demand and a decrease in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.

Accepted Answer

A)   a decrease; a decrease
B)   an indeterminate change; an increase
C)   an indeterminate change; a decrease
D)   an increase; an indeterminate change

Question 9

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market _____ will _____, _____ the price and _____ the quantity.

Accepted Answer

A)   demand; decrease; decreasing; decreasing
B)   demand; decrease; increasing; decreasing
C)   supply; increase; decreasing; increasing
D)   supply; decrease; increasing; decreasing

Question 10

Which of the following is likely to cause a rightward shift in the demand for home-delivered pizza?

Accepted Answer

A)   a lower price of pizza
B)   a lower price of fast-food hamburgers
C)   a higher price of pepperoni
D)   a larger population

Exam 3: Supply and Demand

An increase in demand and a decrease in supply will lead to _ in equilibrium quantity and _ in equilibrium price.

Correct Answer
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Correct Answer
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Which of the following is likely to cause a rightward shift in the demand for home-delivered pizza?

Correct Answer
verified

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market ___ will _, _ the price and ___ the quantity.

Correct Answer
verified

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _ curve shifts to the _.

Correct Answer
verified

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Correct Answer
verified

It is certain that the equilibrium quantity will fall when:

Correct Answer
verified

Use the following to answer questions Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _ of _ bushels will result.

Correct Answer
verified

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

Correct Answer
verified

If in a competitive market the quantity supplied exceeds the quantity demanded, we expect prices to:

Correct Answer
verified

Exam 3: Supply and Demand

An increase in demand and a decrease in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is likely to cause a rightward shift in the demand for home-delivered pizza?

Correct AnswerverifiedShow Answer

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market _____ will _____, _____ the price and _____ the quantity.

Correct AnswerverifiedShow Answer

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _____ curve shifts to the _____.

Correct AnswerverifiedShow Answer

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time. This would lead to:

Correct AnswerverifiedShow Answer

It is certain that the equilibrium quantity will fall when:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _____ of _____ bushels will result.

Correct AnswerverifiedShow Answer

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

Correct AnswerverifiedShow Answer

If in a competitive market the quantity supplied exceeds the quantity demanded, we expect prices to:

Correct AnswerverifiedShow Answer

An increase in demand and a decrease in supply will lead to _ in equilibrium quantity and _ in equilibrium price.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market ___ will _, _ the price and ___ the quantity.

Correct Answer
verified

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _ curve shifts to the _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the following to answer questions Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _ of _ bushels will result.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified