Question 1

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Accepted Answer

A)   Excess supply.
B)   A stable price.
C)   Excess demand.
D)   Changes in the equilibrium quantity.
E)   A rising price.

Question 2

When we move up along a given demand curve,we know that the

Accepted Answer

A)   price has fallen because the quantity demanded has increased.
B)   price has increased because the quantity demanded has decreased.
C)   quantity demanded has increased because the price has fallen.
D)   quantity demanded has decreased because the price has increased.
E)   demand has increased because the price has fallen.

Question 3

Suppose that the demand curve for a good is given by QD = 80 - PD,while the supply curve for the good is given by QS = 3PS.If the price in this market is currently equal to 10,then the quantity demanded is ______ and the quantity supplied is _____.

Accepted Answer

A)   30;70
B)   30;80
C)   80;30
D)   80;3
E)   70;30

Question 4

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

Accepted Answer

A)   the demand curve is not downward-sloping after all.
B)   the demand curve is generally downward-sloping,but it does not apply to the housing market in Toronto.
C)   there are exceptions to the generally downward-sloping demand curve;the period 1971 to 1991 is an example of such exceptions.
D)   the demand curve for small bungalows around Toronto in 1971 to 1991 is upward-sloping.
E)   over the 30-year period,the demand curve most likely shifted to the right.

Question 5

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

Accepted Answer

A)   The equilibrium price of Athlon 2 Ghz processors will rise.
B)   The equilibrium quantity of Athlon 2 Ghz processors will rise.
C)   The equilibrium price of Athlon 2 Ghz processors will fall.
D)   The equilibrium quantity of Athlon 2 Ghz processors will fall.
E)   Neither the equilibrium price nor the equilibrium quantity of Athlon 2 Ghz processors can be predicted.

Question 6

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Accepted Answer

A)   a rightward shift of the demand curve.
B)   a leftward shift of the demand curve.
C)   that the supply curve would continue to shift to the right over time.
D)   that the supply curve would eventually have to shift back to its original position.
E)   that there is a downward movement along the existing demand curve.

Question 7

Suppose that both the equilibrium price and the equilibrium quantity of ketchup fall.The most consistent explanation for these observations is

Accepted Answer

A)   a decrease in the demand for ketchup with no change in supply.
B)   an increase in the demand for ketchup with no change in supply.
C)   an increase in the demand for ketchup and a decrease in the supply of ketchup.
D)   an increase in the supply of ketchup with no change in demand.
E)   a decrease in the supply of ketchup with no change in demand.

Question 8

Which of the following is NOT a characteristic of a market in equilibrium?

Accepted Answer

A)   Quantity demanded equals quantity supplied.
B)   Excess supply is zero.
C)   All consumers are able to purchase as much as they wish.
D)   Excess demand is zero.
E)   The equilibrium price is stable,i.e. ,there is no pressure for it to change.

Question 9

Without the aid of a graph,one can say definitively that,if supply increases while demand decreases simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Accepted Answer

A)   lower;lower
B)   lower;indeterminate
C)   indeterminate;higher
D)   indeterminate;lower
E)   higher;indeterminate

Question 10

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.

Accepted Answer

A)   positive;positive
B)   positive;negative
C)   positive;indeterminate
D)   indeterminate;positive
E)   negative;negative

Question 11

The essential difference between a change in the quantity demanded and a change in demand is

Accepted Answer

A)   the first is a shift of the curve,while the second is a movement along the curve.
B)   nothing;both are caused by a change in price.
C)   the first is a movement along the curve,while the second is a shift of the curve.
D)   the first is caused by changes in income,while the second is caused by a change in price.
E)   nothing;both are caused by a change in income.

Question 12

Some economics students cite the following three factors that may cause the demand curve for houses in Calgary to shift to the right when the price of oil rises: (1) the population in Calgary increase during oil booms;
(2) the income of individuals increase during oil booms;
(3) the price of the average house rises substantially during oil booms,but is not expected to rise further.
Which of the above factors were cited correctly?

Accepted Answer

A)   Factor 1 only.
B)   Factor 2 only.
C)   Factor 3 only.
D)   Factors 1 and 2.
E)   Factors 1,2,and 3.

Question 13

Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

Accepted Answer

A)   a decrease in the demand for mustard with no change in supply.
B)   a decrease in the supply of mustard with no change in demand.
C)   a decrease in the demand for mustard and a decrease in the supply of mustard.
D)   an increase in the demand for mustard with no change in supply.
E)   an increase in the supply of mustard with no change in demand.

Question 14

When a market is not in equilibrium,then

Accepted Answer

A)   it is always possible to identify unexploited opportunities.
B)   consumers are satisfied with the market.
C)   firms are satisfied with the market.
D)   government intervention is necessary.
E)   it will have a tendency to remain in disequilibrium.

Question 15

In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar ________ while the quantity sold _______.

Accepted Answer

A)   rose;fell
B)   rose;cannot be predicted because the change is indeterminate
C)   fell;cannot be predicted because the change is indeterminate
D)   fell;rose.
E)   None of these

Question 16

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Accepted Answer

A)   a change in the price of personal computers shifts the demand curve.
B)   a change in the price of personal computers shifts the supply curve.
C)   the statement is backwards: increased demand leads to lower prices.
D)   falling prices of personal computers increase quantity demanded,not demand.
E)   falling prices of personal computers increase quantity supplied.

Question 17

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Accepted Answer

A)   a supply curve.
B)   excess demand.
C)   excess supply.
D)   a demand curve.
E)   an equilibrium.

Question 18

-Assume that the market is originally at point W.Movement to point Z is a combination of

Accepted Answer

A)   an increase in the quantity supplied and an increase in demand.
B)   an increase in supply and an increase in demand.
C)   an increase in supply and an increase in the quantity demanded.
D)   a decrease in supply and an increase in the quantity demanded.
E)   an increase in supply and a decrease in the quantity demanded.

Question 19

Which of the following is NOT true of a demand curve?

Accepted Answer

A)   It has a negative slope.
B)   It shows the amount consumers are willing and able to purchase at various prices,holding other factors constant.
C)   It relates the price of an item to the quantity demanded of that item.
D)   It relates the price of an item to the supply for that item.
E)   It shows that consumers tend to purchase less of a good as its price rises.

Question 20

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

Accepted Answer

A)   increase in the quantity of apartments demanded.
B)   increase in the supply of apartments.
C)   increase in the demand for apartments.
D)   decrease in the quantity of apartments supplied.
E)   decrease in the supply of apartments.

Exam 3: Supply and Demand: an Introduction

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Correct Answer
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-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

Correct Answer
verified

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

Correct Answer
verified

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

Correct Answer
verified

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Correct Answer
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Correct Answer
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When a market is not in equilibrium,then

Correct Answer
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Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Correct Answer
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-Assume that the market is originally at point W.Movement to point Z is a combination of

Correct Answer
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Which of the following is NOT a characteristic of a market in equilibrium?

Correct Answer
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In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar __ while the quantity sold _.

Correct Answer
verified

The essential difference between a change in the quantity demanded and a change in demand is

Correct Answer
verified

When we move up along a given demand curve,we know that the

Correct Answer
verified

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Correct Answer
verified

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is and the change in the equilibrium quantity is _.

Correct Answer
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Without the aid of a graph,one can say definitively that,if supply increases while demand decreases simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

Correct Answer
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Which of the following is NOT true of a demand curve?

Correct Answer
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Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

Correct Answer
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Suppose that the demand curve for a good is given by Q_D = 80 - P_D,while the supply curve for the good is given by Q_S = 3P_S.If the price in this market is currently equal to 10,then the quantity demanded is __ and the quantity supplied is _.

Correct Answer
verified

Suppose that both the equilibrium price and the equilibrium quantity of ketchup fall.The most consistent explanation for these observations is

Correct Answer
verified

Exam 3: Supply and Demand: an Introduction

-As the price decreases,the behaviour of the data in Column 2 is most consistent with

Correct AnswerverifiedShow Answer

-The data show the quantity of small bungalows sold in a suburb of Toronto during the month of January.Based on the given data,we can conclude that:

Correct AnswerverifiedShow Answer

At the beginning of the fall semester,university towns experience large increases in their populations,causing a(n)

Correct AnswerverifiedShow Answer

Assume both the demand for,and the supply of,Athlon 2 GHz processors increase.Which of the following outcomes is certain to occur?

Correct AnswerverifiedShow Answer

Which of the following could NEVER be a feature of an unregulated market in a state of disequilibrium?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a market is not in equilibrium,then

Correct AnswerverifiedShow Answer

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

Correct AnswerverifiedShow Answer

-Assume that the market is originally at point W.Movement to point Z is a combination of

Correct AnswerverifiedShow Answer

Which of the following is NOT a characteristic of a market in equilibrium?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The essential difference between a change in the quantity demanded and a change in demand is

Correct AnswerverifiedShow Answer

When we move up along a given demand curve,we know that the

Correct AnswerverifiedShow Answer

"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because

Correct AnswerverifiedShow Answer

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.

Correct AnswerverifiedShow Answer

Without the aid of a graph,one can say definitively that,if supply increases while demand decreases simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

Correct AnswerverifiedShow Answer

Which of the following is NOT true of a demand curve?

Correct AnswerverifiedShow Answer

Suppose that both the equilibrium price and the equilibrium quantity of mustard rise.The most consistent explanation for these observations is

Correct AnswerverifiedShow Answer

Suppose that the demand curve for a good is given by QD = 80 - PD,while the supply curve for the good is given by QS = 3PS.If the price in this market is currently equal to 10,then the quantity demanded is ______ and the quantity supplied is _____.

Correct AnswerverifiedShow Answer

Suppose that both the equilibrium price and the equilibrium quantity of ketchup fall.The most consistent explanation for these observations is

Correct AnswerverifiedShow Answer

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If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is and the change in the equilibrium quantity is _.

Correct Answer
verified

Without the aid of a graph,one can say definitively that,if supply increases while demand decreases simultaneously,the new equilibrium price is _ and the new equilibrium quantity is _______.

Correct Answer
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Correct Answer
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Correct Answer
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Suppose that the demand curve for a good is given by Q_D = 80 - P_D,while the supply curve for the good is given by Q_S = 3P_S.If the price in this market is currently equal to 10,then the quantity demanded is __ and the quantity supplied is _.

Correct Answer
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Correct Answer
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