Question 1

The Market for Chocolate-Covered Peanuts
 
-(Exhibit: The Market for Chocolate-Covered Peanuts)  If the price of chocolate-covered peanuts is 80 cents, there is:

Accepted Answer

A)   a surplus of 140 bags per month.
B)   a shortage of 140 bags per month.
C)   a surplus of 70 bags per month.
D)   a shortage of 70 bags per month.

Question 2

-(Exhibit: Demand Shifters and Supply Shifters)  The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows down the aging process. Which panel best describes how this will affect the market for asparagus?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d)

Question 3

Which of the following will not cause the demand for milk (a normal good)  to increase in the current time period?

Accepted Answer

A)   a fall in the price of milk
B)   an increase in income
C)   an expected increase in milk prices
D)   a decrease in the price of cookies (a complement)

Question 4

Economists know that a particular good can be classified as an inferior good if a(n)  ________ in buyers' income causes a(n)  ________ .

Accepted Answer

A)   increase; increase in demand
B)   increase; increase in quantity demanded
C)   increase; decrease in demand
D)   decrease; decrease in demand

Question 5

There can be no shortages or surpluses at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 6

If the current price is above the equilibrium price, we would expect:

Accepted Answer

A)   quantity demanded to exceed quantity supplied.
B)   upward pressure on price.
C)   quantity supplied to exceed quantity demanded.
D)   no change in the market price.

Question 7

Which of the following would result in a movement along the demand curve?

Accepted Answer

A)   a change in preferences
B)   an increase in the number of buyers
C)   an increase in the number of suppliers
D)   a decrease in income

Question 8

If the price of a commodity increases as the result of increased demand, you would expect the:

Accepted Answer

A)   supply to increase.
B)   quantity supplied to increase.
C)   quantity supplied to decrease.
D)   supply curve to shift to the right.

Question 9

If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.

Accepted Answer

A)   increase; either increase, decrease, or remain constant
B)   decrease; either increase, decrease, or remain constant
C)   increase; increase
D)   increase; decrease

Question 10

Supply is best defined as the:

Accepted Answer

A)   relationship between the quantity of a good or service buyers are able to purchase, all other things unchanged.
B)   relationship between the quantity of a good or service buyers are willing to purchase, all other things unchanged.
C)   relationship between the quantity of a good or service sellers are willing to offer for sale and various prices, all other things unchanged.
D)   quantity of a good or service sellers are willing to offer for sale at a specific price, all other things unchanged.

Question 11

The Market for Chocolate-Covered Peanuts
 
-(Exhibit: The Market for Chocolate-Covered Peanuts)  If the price of chocolate-covered peanuts is 40 cents, the price will:

Accepted Answer

A)   remain unchanged.
B)   fall to 30 cents.
C)   rise to 50 cents.
D)   rise to 60 cents.

Question 12

Which of the following most correctly states the law of demand?

Accepted Answer

A)   As the price falls all other things unchanged, demand will go up.
B)   As the price goes up, all other things unchanged, demand will go down.
C)   As the price falls, all other things unchanged, the quantity demanded will go down.
D)   As the price falls, all other things unchanged, the quantity demanded will increase.

Question 13

A decrease in supply is caused by:

Accepted Answer

A)   a decrease in resource prices.
B)   an increase in the number of sellers in the market.
C)   suppliers' expectations of higher prices in the future.
D)   an advancement in the technology for producing the good.

Exam 3: Demand and Supply

A decrease in supply is caused by:

Correct Answer
verified

If the current price is above the equilibrium price, we would expect:

Correct Answer
verified

Supply is best defined as the:

Correct Answer
verified

There can be no shortages or surpluses at the equilibrium price.

Correct Answer
verified

Which of the following would result in a movement along the demand curve?

Correct Answer
verified

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

Correct Answer
verified

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 40 cents, the price will:

Correct Answer
verified

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

Correct Answer
verified

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Correct Answer
verified

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows down the aging process. Which panel best describes how this will affect the market for asparagus?

Correct Answer
verified

If the price of a commodity increases as the result of increased demand, you would expect the:

Correct Answer
verified

If both the demand for a product and the supply of it decrease, then the equilibrium quantity will and the equilibrium price will .

Correct Answer
verified

Which of the following most correctly states the law of demand?

Correct Answer
verified

Exam 3: Demand and Supply

A decrease in supply is caused by:

Correct AnswerverifiedShow Answer

If the current price is above the equilibrium price, we would expect:

Correct AnswerverifiedShow Answer

Supply is best defined as the:

Correct AnswerverifiedShow Answer

There can be no shortages or surpluses at the equilibrium price.

Correct AnswerverifiedShow Answer

Which of the following would result in a movement along the demand curve?

Correct AnswerverifiedShow Answer

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 80 cents, there is:

Correct AnswerverifiedShow Answer

The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 40 cents, the price will:

Correct AnswerverifiedShow Answer

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

Correct AnswerverifiedShow Answer

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Correct AnswerverifiedShow Answer

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows down the aging process. Which panel best describes how this will affect the market for asparagus?

Correct AnswerverifiedShow Answer

If the price of a commodity increases as the result of increased demand, you would expect the:

Correct AnswerverifiedShow Answer

If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.

Correct AnswerverifiedShow Answer

Which of the following most correctly states the law of demand?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Economists know that a particular good can be classified as an inferior good if a(n) in buyers' income causes a(n) .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If both the demand for a product and the supply of it decrease, then the equilibrium quantity will and the equilibrium price will .

Correct Answer
verified

Correct Answer
verified