Question 1

Students can rent a Blu- ray movie at Campus Video for $4. As the price of Blu- ray players falls, the

Accepted Answer

A)  demand for Blu- ray movies will increase.
B)  quantity supplied of Blu- ray movies will decrease.
C)  quantity demanded of Blu- ray movies will increase.
D)  supply of Blu- ray movies will decrease.

Question 2

If the price of crude oil falls, the equilibrium price of petrol ________ and the equilibrium quantity________.

Accepted Answer

A)  falls; increases
B)  falls; decreases
C)  rises; increases
D)  rises; decreases

Question 3

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

Accepted Answer

A)  Figure A
B)  Figure B
C)  Figures B and C
D)  Figure D

Question 4

The supply curve slopes upward when graphed against ________, because of ________.

Accepted Answer

A)  income; decreasing marginal cost
B)  the price of the good; increasing marginal cost
C)  the price of the good; decreasing marginal cost
D)  income; increasing marginal cost

Question 5

Which of the following is true?

Accepted Answer

A)  The demand curve for a good shifts leftward when the price of a substitute rises.
B)  If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
C)  An increase in population shifts the demand curve for most goods leftward.
D)  For an inferior good, when income increases, the demand curve shifts leftward.

Question 6

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Accepted Answer

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

Question 7

Which of the following decreases the supply of restaurant meals?

Accepted Answer

A)  Consumers' incomes increase and restaurant meals are a normal good.
B)  The price of movies, a complement to restaurant meals, falls.
C)  Consumers' incomes decrease and restaurant meals are a normal good.
D)  Waiters get a pay raise.

Question 8

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is
12,000 per year, there is a ________ in the market and the price will ________.

Accepted Answer

A)  shortage; rise
B)  surplus; rise
C)  shortage; fall
D)  surplus; fall

Question 9

The quantity of iPods that people plan to buy this month depends on all of the following except the

Accepted Answer

A)  price of a music download from iTunes.
B)  price of CD players.
C)  price of an iPod.
D)  technology used to produce an iPod.

Question 10

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded

Accepted Answer

A)  is less than the quantity supplied and a shortage results.
B)  exceeds the quantity supplied and a shortage results.
C)  exceeds the quantity supplied and a surplus results.
D)  is less than the quantity supplied and a surplus results.

Question 11

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

Accepted Answer

A)  a surplus; rise
B)  neither a shortage nor a surplus; not change
C)  a surplus; fall
D)  a shortage; fall

Question 12

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

A)  demand curve does not shift, and the supply curve shifts from S2 to S1.
B)  demand curve shifts from D1 to D2 and the supply curve does not shift.
C)  demand curve does not shift, and the supply curve shifts from S1 to S2.
D)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2.

Question 13

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

Accepted Answer

A)  is 300 units.
B)  is more than 300 units.
C)  is less than 300 units.
D)  could be less than, equal to, or more than 300 units.

Question 14

People buy more of good 1 when the price of good 2 rises. These goods are

Accepted Answer

A)  substitutes.
B)  complements.
C)  normal goods.
D)  inferior goods.

Question 15

When the price of a good falls, the income effect for a normal good implies that people buy

Accepted Answer

A)  less of that good because they cannot afford to buy all the things they previously bought.
B)  more of that good because the relative price of the good has risen.
C)  more of that good because they can afford to buy more of all the things they previously bought.
D)  less of that good because the relative price of the good has fallen.

Question 16

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Accepted Answer

A)  normal.
B)  inferior.
C)  substitutes.
D)  complements.

Question 17

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Accepted Answer

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

Question 18

Which of the following is consistent with the law of demand?

Accepted Answer

A)  An increase in the price of a cola causes a decrease in the quantity of cola demanded.
B)  A decrease in the price of a litre of milk causes a decrease in the quantity of milk demanded.
C)  A decrease in the price of juice causes no change in the quantity of juice demanded.
D)  An increase in the price of a DVD causes a decrease in the demand for DVDs.

Question 19

-In the above figure, a price of $15 per dozen roses would result in a so that the price of roses will .

Accepted Answer

A)  shortage; fall
B)  surplus; fall
C)  surplus; rise
D)  shortage; rise

Question 20

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

Accepted Answer

A)  Figure A
B)  Figure B
C)  Figure C
D)  Figure D

Exam 3: Demand and Supply

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Correct AnswerverifiedShow Answer

-The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?

Correct AnswerverifiedShow Answer

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

Correct AnswerverifiedShow Answer

-In the above figure, a price of $15 per dozen roses would result in a so that the price of roses will .

Correct AnswerverifiedShow Answer

If the price of crude oil falls, the equilibrium price of petrol ________ and the equilibrium quantity________.

Correct AnswerverifiedShow Answer

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

Correct AnswerverifiedShow Answer

People buy more of good 1 when the price of good 2 rises. These goods are

Correct AnswerverifiedShow Answer

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza?

Correct AnswerverifiedShow Answer

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded

Correct AnswerverifiedShow Answer

The quantity of iPods that people plan to buy this month depends on all of the following except the

Correct AnswerverifiedShow Answer

Which of the following decreases the supply of restaurant meals?

Correct AnswerverifiedShow Answer

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

Correct AnswerverifiedShow Answer

The supply curve slopes upward when graphed against ________, because of ________.

Correct AnswerverifiedShow Answer

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

Correct AnswerverifiedShow Answer

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Correct AnswerverifiedShow Answer

Students can rent a Blu- ray movie at Campus Video for $4. As the price of Blu- ray players falls, the

Correct AnswerverifiedShow Answer

When the price of a good falls, the income effect for a normal good implies that people buy

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is consistent with the law of demand?

Correct AnswerverifiedShow Answer

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Correct AnswerverifiedShow Answer

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If the price of a CD is equal to the equilibrium price, there will be of CDs and the price will .

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If the price of crude oil falls, the equilibrium price of petrol and the equilibrium quantity.

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If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will .

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The supply curve slopes upward when graphed against , because of .

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If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will and the equilibrium quantity will .

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