Question 1

If the price of an Xbox player falls, then in the market for Xbox games

Accepted Answer

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

Question 2

If macaroni and cheese is an inferior good, an increase in income will

Accepted Answer

A)   not affect the demand for macaroni and cheese.
B)   decrease the demand for macaroni and cheese.
C)   increase the demand for macaroni and cheese.
D)   create no income effect.

Question 3

The price of jet fuel falls. This fall shifts the

Accepted Answer

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

Question 4

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Accepted Answer

A)   none of the points that are illustrated.
B)   point b.
C)   point c.
D)   point d.

Question 5

The existence of a shortage

Accepted Answer

A)   means resources are being allocated efficiently.
B)   is impossible in a market economy.
C)   pushes the price up.
D)   pushes the price down.

Question 6

-The above figures show the market for hamburger meat. Which figure(s)  shows the effect of a nation-wide strike by butchers and meat-packers?

Accepted Answer

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

Question 7

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand.

Accepted Answer

A) True 
 B)False

Question 8

An economist says: "The supply curve has two interpretations." What does the economist mean?

Accepted Answer

The first interpretation is that the sup...

Question 9

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

Accepted Answer

A)   both the supply and the demand for automobiles.
B)   the supply but not the demand for automobiles.
C)   the demand but not the supply of automobiles.
D)   neither the supply nor the demand for automobiles.

Question 10

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri...

Question 11

As the price of a pound of peanuts falls, the

Accepted Answer

A)   demand for peanuts increases.
B)   demand for peanuts decreases.
C)   quantity of peanuts demanded increases.
D)   Both answers A and C are correct.

Question 12

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

Question 13

When the demand for blue jeans increases, what happens next?

Accepted Answer

If the demand for blue jeans increases, ...

Question 14

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

Accepted Answer

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

Question 15

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 16

When the price is below the equilibrium price, the quantity demanded

Accepted Answer

A)   is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity.
B)   is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity.
C)   exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity.
D)   exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.

Question 17

An increase in demand combined with no change in supply

Accepted Answer

A)   raises the equilibrium price.
B)   lowers the equilibrium price.
C)   results in only a movement rightward along the demand curve.
D)   decreases demand because the supply curve does not shift.

Question 18

The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

Accepted Answer

A) True 
 B)False

Question 19

In 2014, the price of peanuts increased. In the market for peanut butter, this change led to ________ and which therefore ________ the price of peanut butter and ________ the quantity of peanut butter.

Accepted Answer

A)   a decrease in the supply; increased; decreased
B)   an increase in supply; decreased; increased
C)   a decrease in demand; decreased; decreased
D)   an increase in demand; increased; increased

Question 20

Which of the following statements is CORRECT?

Accepted Answer

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

Exam 3: Demand and Supply

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

Correct AnswerverifiedShow Answer

The existence of a shortage

Correct AnswerverifiedShow Answer

If the price of an Xbox player falls, then in the market for Xbox games

Correct AnswerverifiedShow Answer

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

Correct AnswerverifiedShow Answer

When the demand for blue jeans increases, what happens next?

Correct AnswerverifiedIf the demand for blue jeans increases, ...View AnswerShow Answer

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Correct AnswerverifiedShow Answer

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand.

Correct AnswerverifiedShow Answer

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers?

Correct AnswerverifiedShow Answer

The price of jet fuel falls. This fall shifts the

Correct AnswerverifiedShow Answer

In 2014, the price of peanuts increased. In the market for peanut butter, this change led to ________ and which therefore ________ the price of peanut butter and ________ the quantity of peanut butter.

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT?

Correct AnswerverifiedShow Answer

As the price of a pound of peanuts falls, the

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

When the price is below the equilibrium price, the quantity demanded

Correct AnswerverifiedShow Answer

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

Correct AnswerverifiedShow Answer

An increase in demand combined with no change in supply

Correct AnswerverifiedShow Answer

The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

Correct AnswerverifiedShow Answer

An economist says: "The supply curve has two interpretations." What does the economist mean?

Correct AnswerverifiedThe first interpretation is that the sup...View AnswerShow Answer

If macaroni and cheese is an inferior good, an increase in income will

Correct AnswerverifiedShow Answer

At prices above the equilibrium price, what occurs?

Correct AnswerverifiedIf the price exceeds the equilibrium pri...View AnswerShow Answer

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If the demand for blue jeans increases, ...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In 2014, the price of peanuts increased. In the market for peanut butter, this change led to and which therefore the price of peanut butter and the quantity of peanut butter.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A change in demand occurs when consumers...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The first interpretation is that the sup...
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Correct Answer
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Correct Answer
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If the price exceeds the equilibrium pri...
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