Question 1

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Accepted Answer

A)  shortage, so the price falls and quantity demanded increases.
B)  surplus, so the price falls and quantity demanded increases.
C)  shortage, so the price rises and quantity demanded decreases.
D)  surplus, so the price rises and quantity demanded increases.
E)  surplus, so the price falls and quantity supplied increases.

Question 2

When there is a surplus of snowboards, the

Accepted Answer

A)  demand for snowboards is greater than the supply of snowboards.
B)  supply of snowboards is greater than the demand for snowboards.
C)  quantity of snowboards demanded is greater than the quantity of snowboards supplied.
D)  quantity of snowboards supplied is greater than the quantity of snowboards demanded.
E)  the price rises to restore the equilibrium.

Question 3

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

Accepted Answer

A)  rises; increases
B)  rises; decreases
C)  falls; increases
D)  falls; decreases
E)  does not change; decreases

Question 4

If both producers and consumers believe that a product's price will rise in the future, then at the present, the equilibrium price

Accepted Answer

A)  does not change.
B)  rises.
C)  falls.
D)  might rise, fall, or not change, but the change can never be predicted.
E)  might rise, fall, or not change depending on whether the effect from the producers is greater than or less than the effect from the consumers.

Question 5

-The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

Accepted Answer

A)  Figure A
B)  Figure B
C)  Figure C
D)  Figure D
E)  None of the figures represent this change.

Question 6

The law of supply states that, other things remaining the same,

Accepted Answer

A)  demand increases when supply increases.
B)  if the price of a good increases, firms buy less of it.
C)  if the price of a good increases, the quantity supplied increases.
D)  as people's income increase, the supply of goods increases.
E)  if the price of a good increases, the supply increases.

Question 7

A surplus of cardboard boxes means that

Accepted Answer

A)  at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.
B)  at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.
C)  the current price of a cardboard box is less than the equilibrium price.
D)  at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium..
E)  More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

Question 8

Price  (dollars per  cellular phone)   Quantity  demanded  (thousands)   Quantity  supplied  (thousands)  100501008055805060602010040\begin{array} { c c c } \begin{array} { c } 	ext { Price } \	ext { (dollars per } \	ext { cellular phone)  }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { demanded } \	ext { (thousands)  }\end{array} & \begin{array} { c } 	ext { Quantity } \	ext { supplied } \	ext { (thousands)  }\end{array} \\hline 100 & 50 & 100 \80 & 55 & 80 \50 & 60 & 60 \20 & 100 & 40 \\hline\end{array} Price  (dollars per  cellular phone)  ​100805020​ Quantity  demanded  (thousands)  ​505560100​ Quantity  supplied  (thousands)  ​100806040​​ 
-Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)  50,000 and $100.
B)  80,000 and $80.
C)  60,000 and $50.
D)  40,000 and $20.
E)  100,000 and $20.

Question 9

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Accepted Answer

A)  increases; rightward
B)  increases; leftward
C)  decreases; rightward
D)  decreases; leftward
E)  does not change; rightward

Question 10

-The above figure shows the market for pizza. The market is in equilibrium. Pizza and tacos are substitutes for consumers. The price of tacos falls. What point represents the most likely new price and quantity?

Accepted Answer

A)  A
B)  B
C)  C
D)  D
E)  E

Question 11

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

Accepted Answer

A)  will rise.
B)  will fall
C)  will remain the same.
D)  might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers.
E)  None of the above answers is correct.

Question 12

A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price ________, and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change
C)  falls; increases
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same

Question 13

-Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda

Accepted Answer

A)  increases the demand for peanuts.
B)  decreases the demand for peanuts.
C)  decreases the demand for soda.
D)  increases the demand for soda.
E)  has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.

Question 14

Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

Accepted Answer

A)  rises.
B)  falls.
C)  does not change.
D)  rises or does not change.
E)  rises or falls.

Question 15

An increase in the productivity of producing jeans results in

Accepted Answer

A)  the quantity of jeans supplied increasing.
B)  the supply of jeans increasing.
C)  buyers demanding more jeans because they are now more efficiently produced.
D)  buyers demanding fewer jeans because their price will fall, which signals lower quality.
E)  some change but the impact on the supply of jeans is impossible to predict.

Question 16

Consider the market for turkeys. In the United States, because of Thanksgiving in the month of November,

Accepted Answer

A)  there is a downward movement along the demand curve for turkeys.
B)  there is an upward movement along the supply curve for turkeys.
C)  the supply curve of turkeys shifts leftward.
D)  the demand curve for turkeys shifts leftward.
E)  neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

Question 17

If good weather conditions results in a larger than normal crop of peaches, then the

Accepted Answer

A)  equilibrium price of peaches rises and the equilibrium quantity of peaches increases.
B)  equilibrium price of peaches falls and the equilibrium quantity of peaches increases.
C)  demand curve for peaches shifts leftward.
D)  increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases.
E)  equilibrium price of peaches falls and the equilibrium quantity of peaches decreases.

Question 18

The market demand curve for mousetraps is

Accepted Answer

A)  found by summing the quantities of mousetraps demanded at each income level by each buyer.
B)  found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer.
C)  the horizontal sum of the individual demand curves for mousetraps of all the buyers.
D)  Both answers B and C are correct.
E)  Both answers A and C are correct.

Question 19

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

Accepted Answer

A)  the demand for hot dogs will increase.
B)  the demand for hot dog buns will decrease.
C)  the quantity demanded of hotdogs will decrease.
D)  the demand for hot dog buns will increase.
E)  the quantity demanded of hot dog buns will increase.

Question 20

-The diagram above illustrates the market for apartments in Victoria, British Columbia.
a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus?
b. What is the equilibrium rent and quantity of apartments?

Accepted Answer

a. If the rent is $300 per mon...

Exam 4: Demand and Supply

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

Correct Answer
verified

-The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

Correct Answer
verified

The law of supply states that, other things remaining the same,

Correct Answer
verified

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

Correct Answer
verified

Correct Answer
verified

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b. What is the equilibrium rent and quantity of apartments?

Correct Answer
verified
a. If the rent is $300 per mon...
View Answer

A surplus of cardboard boxes means that

Correct Answer
verified

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

Correct Answer
verified

A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price , and the equilibrium quantity .

Correct Answer
verified

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter and the equilibrium quantity of scooters .

Correct Answer
verified

If both producers and consumers believe that a product's price will rise in the future, then at the present, the equilibrium price

Correct Answer
verified

Consider the market for turkeys. In the United States, because of Thanksgiving in the month of November,

Correct Answer
verified

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Correct Answer
verified

An increase in the productivity of producing jeans results in

Correct Answer
verified

-The above figure shows the market for pizza. The market is in equilibrium. Pizza and tacos are substitutes for consumers. The price of tacos falls. What point represents the most likely new price and quantity?

Correct Answer
verified

If good weather conditions results in a larger than normal crop of peaches, then the

Correct Answer
verified

The market demand curve for mousetraps is

Correct Answer
verified

-Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda

Correct Answer
verified

Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

Correct Answer
verified

When there is a surplus of snowboards, the

Correct Answer
verified

Exam 4: Demand and Supply

-The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound

Correct AnswerverifiedShow Answer

-The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

Correct AnswerverifiedShow Answer

The law of supply states that, other things remaining the same,

Correct AnswerverifiedShow Answer

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a. If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b. What is the equilibrium rent and quantity of apartments?

Correct Answerverifieda. If the rent is $300 per mon...View AnswerShow Answer

A surplus of cardboard boxes means that

Correct AnswerverifiedShow Answer

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________.

Correct AnswerverifiedShow Answer

A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price ________, and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter ________ and the equilibrium quantity of scooters ________.

Correct AnswerverifiedShow Answer

If both producers and consumers believe that a product's price will rise in the future, then at the present, the equilibrium price

Correct AnswerverifiedShow Answer

Consider the market for turkeys. In the United States, because of Thanksgiving in the month of November,

Correct AnswerverifiedShow Answer

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Correct AnswerverifiedShow Answer

An increase in the productivity of producing jeans results in

Correct AnswerverifiedShow Answer

-The above figure shows the market for pizza. The market is in equilibrium. Pizza and tacos are substitutes for consumers. The price of tacos falls. What point represents the most likely new price and quantity?

Correct AnswerverifiedShow Answer

If good weather conditions results in a larger than normal crop of peaches, then the

Correct AnswerverifiedShow Answer

The market demand curve for mousetraps is

Correct AnswerverifiedShow Answer

-Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda

Correct AnswerverifiedShow Answer

Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

Correct AnswerverifiedShow Answer

When there is a surplus of snowboards, the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. If the rent is $300 per mon...
View Answer

Correct Answer
verified

An increase in the number of producers of bird seed the supply of bird seed and shifts the supply curve of bird seed .

Correct Answer
verified

A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price , and the equilibrium quantity .

Correct Answer
verified

Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter and the equilibrium quantity of scooters .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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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Correct Answer
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