Question 1

-In the figure above, a decrease in the quantity of oil supplied but NOT in the supply of oil is shown by a movement from

Accepted Answer

A)   point a to point e.
B)   point a to point c.
C)   point a to point b.
D)   point a to point d.

Question 2

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. An increase in income results in an increase in the demand for chocolate cookies by an amount of 3 pounds at every price. What are the new equilibrium quantity and equilibrium price?

Accepted Answer

A)   5 pounds, $4.00 per pound
B)   5 pounds, $6.00 per pound
C)   4 pounds, $5.00 per pound
D)   5 pounds, $5.00 per pound

Question 3

The price of jet fuel falls. This fall shifts the

Accepted Answer

A)   demand curve for airplane trips rightward.
B)   supply curve of airplane trips rightward.
C)   demand curve for airplane trips leftward.
D)   supply curve of airplane trips leftward.

Question 4

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

Accepted Answer

A)   point a to point d
B)   point a to point c
C)   point a to point e
D)   point a to point b

Question 5

The price of a gallon of milk falls. Which of the following is a possible cause?

Accepted Answer

A)   A drought that reduces supplies of feed grains fed to cows that produce milk.
B)   Milk is a normal good and people's incomes rise.
C)   A discovery that milk cause diabetes.
D)   A decrease in the price of oatmeal, a complement to milk.

Question 6

2 is the original demand curve for a normal good and income decreases, which price and quantity might result? A)  point a, with price P2 and quantity Q2  B)  point b, with price P1 and quantity Q1 C)  point c, with price P3 and quantity Q3  D)  point d, with price P1 and quantity Q3 " class="answers-bank-image d-inline" rel="preload" >
-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

Accepted Answer

A)   point a, with price P2 and quantity Q2 
B)   point b, with price P1 and quantity Q1
C)   point c, with price P3 and quantity Q3 
D)   point d, with price P1 and quantity Q3

Question 7

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

Accepted Answer

A)   with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward.
B)   with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs.
C)   more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs.
D)   Both answers A and C are correct.

Question 8

Which of the following does NOT shift the demand curve for broccoli?

Accepted Answer

A)   an increase in the cost of fertilizer used to grow broccoli
B)   a warning by the U.S. Surgeon General that broccoli causes schizophrenia
C)   a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year
D)   an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop

Question 9

The law of demand implies that, other things remaining the same,

Accepted Answer

A)   as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.
B)   as the demand for cheeseburgers increases, the price of a cheeseburger will fall.
C)   as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.
D)   as income increases, the quantity of cheeseburgers demanded will increase.

Question 10

If more people buy larger cars that have lower gas mileage, the equilibrium price of gasoline will
And the equilibrium quantity will .

Accepted Answer

A)   rise; increase
B)   rise; decrease
C)   fall; decrease
D)   fall; increase

Question 11

Assume that beef and pork are substitutes for consumers. There is a drought in the cattle grazing areas. The drought will shift the

Accepted Answer

A)   supply curve of pork leftward.
B)   demand curve for pork rightward.
C)   supply curve of pork rightward.
D)   demand curve for pork leftward.

Question 12

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are .

Accepted Answer

A)   a normal good
B)   a complement good
C)   an inferior good
D)   a substitute good

Question 13

Which of the following statements is correct?

Accepted Answer

A)   When demand increases, both the price and the quantity increase.
B)   When supply decreases, both the price and the quantity decrease.
C)   When demand decreases, the price rises and the quantity decreases.
D)   When supply increases, the quantity decreases and the price rises.

Question 14

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Accepted Answer

A)   leftward shift of the supply curve of bicycles.
B)   rightward shift of the demand curve for bicycles.
C)   rightward shift of the supply curve of bicycles.
D)   leftward shift of the demand curve for bicycles.

Question 15

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The increase in the income in...

Question 16

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin and the demand for aspirin
So that the equilibrium price of aspirin _ .

Accepted Answer

A)   decreases; increases; might rise, fall, or stay the same
B)   increases; increases; rises
C)   increases; decreases; might rise, fall, or stay the same
D)   decreases; increases; rises

Question 17

If the price of a DVD player falls, then in the market for DVDs,

Accepted Answer

A)   there is a movement upward along the demand curve for DVDs.
B)   there is a movement downward along the demand curve for DVDs.
C)   the demand curve for DVDs shifts leftward.
D)   the demand curve for DVDs shifts rightward.

Question 18

Which of the following explains why supply curves slope upward?

Accepted Answer

A)   prices and income
B)   increasing marginal cost
C)   substitutes in production and complements in production
D)   resources and technology

Question 19

Oatmeal is an inferior good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

Accepted Answer

A)   an increase in the price of cold cereal
B)   a decrease in population size
C)   an increase in income
D)   an increase in the price of raisins

Question 20

2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result? A)  point a, with price P2 and quantity Q2  B)  point b, with price P1 and quantity Q1 C)  point c, with price P3 and quantity Q3  D)  point d, with price P1 and quantity Q3 " class="answers-bank-image d-inline" rel="preload" >
-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Accepted Answer

A)   point a, with price P2 and quantity Q2 
B)   point b, with price P1 and quantity Q1
C)   point c, with price P3 and quantity Q3 
D)   point d, with price P1 and quantity Q3

Exam 3: Demand and Supply

If more people buy larger cars that have lower gas mileage, the equilibrium price of gasoline will And the equilibrium quantity will .

Correct AnswerverifiedShow Answer

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Correct AnswerverifiedShow Answer

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

Correct Answerverified The increase in the income in...View AnswerShow Answer

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

Correct AnswerverifiedShow Answer

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin and the demand for aspirin So that the equilibrium price of aspirin _ .

Correct AnswerverifiedShow Answer

The price of a gallon of milk falls. Which of the following is a possible cause?

Correct AnswerverifiedShow Answer

Assume that beef and pork are substitutes for consumers. There is a drought in the cattle grazing areas. The drought will shift the

Correct AnswerverifiedShow Answer

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. An increase in income results in an increase in the demand for chocolate cookies by an amount of 3 pounds at every price. What are the new equilibrium quantity and equilibrium price?

Correct AnswerverifiedShow Answer

The law of demand implies that, other things remaining the same,

Correct AnswerverifiedShow Answer

-In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?

Correct AnswerverifiedShow Answer

The price of jet fuel falls. This fall shifts the

Correct AnswerverifiedShow Answer

Which of the following explains why supply curves slope upward?

Correct AnswerverifiedShow Answer

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are .

Correct AnswerverifiedShow Answer

-In the above figure, if D2 is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

-In the figure above, a decrease in the quantity of oil supplied but NOT in the supply of oil is shown by a movement from

Correct AnswerverifiedShow Answer

If the price of a DVD player falls, then in the market for DVDs,

Correct AnswerverifiedShow Answer

Which of the following does NOT shift the demand curve for broccoli?

Correct AnswerverifiedShow Answer

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

Correct AnswerverifiedShow Answer

Oatmeal is an inferior good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

Correct AnswerverifiedShow Answer

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The increase in the income in...
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-In the above figure, if D₂is the original demand curve for a normal good and income decreases, which price and quantity might result?

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-In the above figure, if D₂is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

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