Question 1

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 iiiF) C) and D)
G) C) and E)

Question 2

A normal good is defined as a good

Accepted Answer

A)   with a downward sloping demand curve.
B)   for which demand increases when the price of a substitute rises.
C)   for which demand increases when income increases.
D)   for which demand increases when the number of demanders increases.
E)   for which demand increases when the price of a complement falls.F) C) and D)
G) D) and E)

Question 3

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Accepted Answer

A change in demand occurs when consumers...

Question 4

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

Accepted Answer

A)   falls; decreases
B)   falls; increases
C)   rises; decreases
D)   rises; increases
E)   falls; does not changeF) B) and E)
G) C) and D)

Question 5

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Accepted Answer

A)   the demand for personal computers decreased.
B)   the initial price was too high and nobody bought personal computers.
C)   there were technological advances in the production of personal computers.
D)   people's incomes increased and personal computers are an inferior good.
E)   None of the above answers is correct.F) All of the above
G) A) and E)

Question 6

An increase in the quantity demanded is shown as

Accepted Answer

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

Question 7

When does a surplus occur?

Accepted Answer

A surplus occurs when the pric...

Question 8

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Accepted Answer

A)   the equilibrium price definitely rises.
B)   the equilibrium price definitely falls.
C)   the equilibrium price definitely remains the same.
D)   More information is needed to determine the effect on the equilibrium price.
E)   the equilibrium quantity definitely increases.F) B) and D)
G) D) and E)

Question 9

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Accepted Answer

A)   the supply curve of film shifts rightward.
B)   the demand curve for film shifts leftward.
C)   there is a movement up along the demand curve for film.
D)   there is a movement down along the demand curve for film.
E)   neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.F) A) and B)
G) All of the above

Question 10

When does a shortage occur?

Accepted Answer

A shortage occurs when the pri...

Question 11

Which of the following shifts the demand curve for movies rightward?

Accepted Answer

A)   an increase in the price of NetFlix, a substitute for movies
B)   an increase in the price of movie tickets
C)   a decrease in the price of move tickets
D)   an increase in movie star salaries
E)   an increase in the price of HDTV setsF) B) and D)
G) C) and D)

Question 12

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Accepted Answer

A)   Your demand for cars will decrease.
B)   The market supply of cars will increase.
C)   Your demand for cars will increase.
D)   The market supply of cars will decrease.
E)   The demand and the supply for cars will decrease.F) A) and C)
G) None of the above

Question 13

When the price of oranges increases,

Accepted Answer

A)   the supply of oranges increases.
B)   the quantity of oranges demanded increases.
C)   the quantity of oranges supplied increases.
D)   the supply of oranges decreases.
E)   none of the aboveF) B) and E)
G) A) and B)

Question 14

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter) along with a drought in peanut growing areas,the

Accepted Answer

A)   equilibrium quantity of bread increases.
B)   equilibrium quantity of peanut butter definitely decreases.
C)   equilibrium quantity of peanut butter might increase or might decrease.
D)   equilibrium price of peanut butter definitely rises.
E)   equilibrium price of peanut butter definitely falls.F) None of the above
G) C) and D)

Question 15

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Accepted Answer

A)   A
B)   B
C)   C
D)   D
E)   EF) C) and D)
G) A) and E)

Question 16

Consider the market for peanut butter.If there is an increase in the price of peanuts,

Accepted Answer

A)   there is an upward movement along the supply curve for peanut butter.
B)   the supply curve for peanuts shifts rightward.
C)   there is a decrease in the supply of peanuts.
D)   there is a decrease in the supply of peanut butter.
E)   there is a decrease in the demand for peanut butter.F) A) and E)
G) All of the above

Question 17

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Accepted Answer

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

Question 18

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Accepted Answer

A)   the amount people are willing to buy
B)   the amount people are able to buy
C)   the amount people are willing and able to offer
D)   the amount people are willing and able to buy
E)   the amount people are willing to buy because it is the amount sellers are willing to sellF) A) and D)
G) None of the above

Question 19

The law of demand refers to how

Accepted Answer

A)   demand changes when people's incomes change.
B)   demand changes when the prices of substitutes and complements change.
C)   the quantity demanded changes when the price of the good changes.
D)   the price of the good changes when people's demand for the good changes.
E)   the quantity demanded changes when the demand for the good changes.F) C) and D)
G) D) and E)

Question 20

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Accepted Answer

The answer of Last year a very severe ice storm...

Exam 4: Demand and Supply

When does a surplus occur?

Correct Answer
verified
A surplus occurs when the pric...
View Answer

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Correct Answer
verified

An increase in the quantity demanded is shown as

Correct Answer
verified

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Correct Answer
verified

Which of the following shifts the demand curve for movies rightward?

Correct Answer
verified

Consider the market for peanut butter.If there is an increase in the price of peanuts,

Correct Answer
verified

The law of demand refers to how

Correct Answer
verified

Correct Answer
verified

When the demand for a good decreases,its equilibrium price and equilibrium quantity .

Correct Answer
verified

When does a shortage occur?

Correct Answer
verified
A shortage occurs when the pri...
View Answer

When the price of oranges increases,

Correct Answer
verified

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

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Correct Answer
verified
A change in demand occurs when consumers...
View Answer

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Correct Answer
verified

A normal good is defined as a good

Correct Answer
verified

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter) along with a drought in peanut growing areas,the

Correct Answer
verified

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Correct Answer
verified

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Correct Answer
verified

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

Correct Answer
verified

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Correct Answer
verified

Exam 4: Demand and Supply

When does a surplus occur?

Correct AnswerverifiedA surplus occurs when the pric...View AnswerShow Answer

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

Correct AnswerverifiedShow Answer

An increase in the quantity demanded is shown as

Correct AnswerverifiedShow Answer

Consider the market for camera film.If more people start using digital cameras,which do not require film,

Correct AnswerverifiedShow Answer

Which of the following shifts the demand curve for movies rightward?

Correct AnswerverifiedShow Answer

Consider the market for peanut butter.If there is an increase in the price of peanuts,

Correct AnswerverifiedShow Answer

The law of demand refers to how

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

Correct AnswerverifiedShow Answer

When does a shortage occur?

Correct AnswerverifiedA shortage occurs when the pri...View AnswerShow Answer

When the price of oranges increases,

Correct AnswerverifiedShow 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

Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?

Correct AnswerverifiedA change in demand occurs when consumers...View AnswerShow Answer

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

Correct AnswerverifiedShow Answer

A normal good is defined as a good

Correct AnswerverifiedShow Answer

Consider the market for peanut butter.If there is an increase in the price of bread (a complement for peanut butter) along with a drought in peanut growing areas,the

Correct AnswerverifiedShow Answer

When personal computers were first produced,the price was very high.As time passed,the price of personal computers fell because

Correct AnswerverifiedShow Answer

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Correct AnswerverifiedShow Answer

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

-The above figure shows the market for pizza.The market is in equilibrium.Pizza and tacos are substitutes for consumers.The price of tacos falls.What point represents the most likely new price and quantity?

Correct AnswerverifiedShow Answer

Correct Answer
verified
A surplus occurs when the pric...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

When the demand for a good decreases,its equilibrium price and equilibrium quantity .

Correct Answer
verified

Correct Answer
verified
A shortage occurs when the pri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A change in demand occurs when consumers...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If an early frost destroys most of the apple crop,the equilibrium price of an apple and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified