Question 1

If the quantity demanded of a good is greater than the quantity supplied of the good at the current price,then

Accepted Answer

A)  Price will increase until it reaches the equilibrium price.
B)  The demand curve will shift to the left to create equilibrium.
C)  The supply curve will shift to the right to create equilibrium.
D)  There is a surplus of the gooD.If a shortage exists,buyers will compete for goods by offering to pay higher prices.

Question 2

Assume that pencils and pens are substitutes.If the price of pencils rises,then we will see

Accepted Answer

A)  An increase in the demand for pens.
B)  A decrease in the demand for pens.
C)  An increase in the supply of pens.
D)  A decrease in the supply of pens.

Question 3

When a surplus exists for a product,

Accepted Answer

A)  Producers increase supply.
B)  Consumers increase demand.
C)  Government purchases decrease.
D)  Producers reduce the level of output and reduce price.

Question 4

If a price is above equilibrium,

Accepted Answer

A)  A shortage will cause the price to fall and the quantity supplied to decrease.
B)  A shortage will cause the price to rise and the quantity supplied to increase.
C)  A surplus will cause the price to fall and the quantity supplied to decrease.
D)  A surplus will cause the price to fall and the quantity supplied to increase. C

Question 5

Which of the following would not cause the market supply of cell phones to change?

Accepted Answer

A)  Telecommunications are deregulated,and anyone who wants to can produce and sell cell phones.
B)  A cheaper technology for producing plastics used in producing cell phones is developed.
C)  A reduction in the demand for cell phones causes the price to fall.
D)  Taxes levied on cell phone production are reduceD.A change in the price of cell phones will cause a movement along the supply curve or a change in the quantity supplied. C

Question 6

A market is said to be in equilibrium when

Accepted Answer

A)  Demand is fully satisfied at all alternative prices.
B)  The buying intentions of all consumers are realized.
C)  The supply intentions of all sellers are realized.
D)  The quantity demanded equals the quantity supplieD.Equilibrium occurs at the intersection of the supply and demand curves.

Question 7

Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience

Accepted Answer

A)  An increase in price and an indeterminate change in quantity.
B)  An increase in price and an increase in quantity.
C)  An increase in quantity and an indeterminate change in price.
D)  A decrease in price and an indeterminate change in quantity.

Question 8

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

Accepted Answer

A)  Lower equilibrium price.
B)  Lower equilibrium quantity.
C)  Higher equilibrium price.
D)  Higher equilibrium quantity.

Question 9

According to the law of demand,during a given period of time,the quantity of a good demanded

Accepted Answer

A)  Increases as its price rises,ceteris paribus.
B)  Increases as its price falls,ceteris paribus.
C)  Decreases as its price falls,ceteris paribus.
D)  Does not change when price changes.

Question 10

A leftward shift of the market demand curve for HDTVs,ceteris paribus,causes equilibrium price to

Accepted Answer

A)  Increase and quantity to decrease.
B)  Decrease and quantity to decrease.
C)  Increase and quantity to increase.
D)  Decrease and quantity to increase.

Question 11

Market price is the same thing as equilibrium price.
Equilibrium price is the price at which quantity demanded is equal to quantity supplied.The market will tend toward equilibrium price but is not always at equilibrium.

Accepted Answer

A) True 
 B)False

Question 12

In a market economy,which of the following determines the answer to the WHAT to produce question?

Accepted Answer

A)  Direct negotiations between consumers and government.
B)  Prices and profit.
C)  Government directives.
D)  A democratic vote by all consumers.

Question 13

What are substitute goods,and how does a change in the price of one substitute good influence the demand for the other?

Accepted Answer

Substitute goods are goods that can be u...

Question 14

Which of the following is not held constant along a given demand curve for a good?

Accepted Answer

A)  Price.
B)  Consumer's income.
C)  The price of substitutes.
D)  Consumer tastes.

Question 15

A lower quantity demanded of a good reflects,ceteris paribus,

Accepted Answer

A)  Lower income.
B)  A downward shift of the supply curve.
C)  A higher price of the good.
D)  Fewer units actually purchaseD.Quantity demanded of an item and price of the same item are inversely related.

Question 16

The term market mechanism refers to

Accepted Answer

A)  The use of market prices and sales to determine resource allocation.
B)  The establishment of a ceiling price in a market.
C)  Supply curves but not demand curves.
D)  Government laws and regulations concerning how the market should operate. A

Question 17

An increase in the price of gasoline above equilibrium will

Accepted Answer

A)  Shift the gasoline supply curve to the right.
B)  Shift the gasoline demand curve to the right.
C)  Cause a surplus of gasoline.
D)  Cause a shortage of gasoline.

Question 18

Complete Table 3.1.Then answer the indicated question.   Quantity Demanded by 	ext { Quantity Demanded by } Quantity Demanded by  
  Price Alejandro Ben Carl Market $8.00842___6.001244___4.002046___2.002246___\begin{array}{rccc}	ext { Price}&	ext { Alejandro}&	ext { Ben }&	ext {Carl }&	ext {Market }\\$ 8.00 & 8 & 4 & 2&\_\_\_ \6.00 & 12 & 4 & 4&\_\_\_ \4.00 & 20 & 4 & 6 &\_\_\_\2.00 & 22 & 4 & 6&\_\_\_\end{array} Price$8.006.004.002.00​ Alejandro8122022​ Ben 4444​Carl 2466​Market ____________​    Quantity Supplied by 	ext { Quantity Supplied by } Quantity Supplied by  
  Price Avery Brandon Cassandra $8.006046___$6.004244___$4.002442___$2.00640___\begin{array}{lcll}	ext { Price}&	ext { Avery}&	ext { Brandon }&	ext {Cassandra }\\$ 8.00 & 60 & 4 & 6&\_\_\_ \\$ 6.00 & 42 & 4 & 4&\_\_\_ \\$ 4.00 & 24 & 4 & 2&\_\_\_ \\$ 2.00 & 6 & 4 & 0&\_\_\_\end{array} Price$8.00$6.00$4.00$2.00​ Avery6042246​ Brandon 4444​Cassandra 6420​____________​  Table 3.1 Individual Demand and Supply Schedules
In Table 3.1,the equilibrium market quantity is

Accepted Answer

A)  14.
B)  22.
C)  30.
D)  70

Question 19

A factor market is any place or process where

Accepted Answer

A)  Finished goods are bought and sold.
B)  Land,labor,or capital is bought and sold.
C)  Finished services are bought and sold.
D)  None of the choices are correct.

Question 20

If the price of "X" increases and you buy less "Y," then

Accepted Answer

A)  "X" and "Y" are complements,and the price of "Y" will increase.
B)  "X" and "Y" are complements,and the price of "Y" will decrease.
C)  "X" and "Y" are substitutes,and the price of "Y" will increase.
D)  "X" and "Y" are substitutes,and the price of "Y" will decrease.

Exam 3: Supply and Demand

If the quantity demanded of a good is greater than the quantity supplied of the good at the current price,then

Correct Answer
verified

Assume that pencils and pens are substitutes.If the price of pencils rises,then we will see

Correct Answer
verified

When a surplus exists for a product,

Correct Answer
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If a price is above equilibrium,

Correct Answer
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C

Which of the following would not cause the market supply of cell phones to change?

Correct Answer
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C

A market is said to be in equilibrium when

Correct Answer
verified

Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience

Correct Answer
verified

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

Correct Answer
verified

According to the law of demand,during a given period of time,the quantity of a good demanded

Correct Answer
verified

A leftward shift of the market demand curve for HDTVs,ceteris paribus,causes equilibrium price to

Correct Answer
verified

Market price is the same thing as equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.The market will tend toward equilibrium price but is not always at equilibrium.

Correct Answer
verified

In a market economy,which of the following determines the answer to the WHAT to produce question?

Correct Answer
verified

What are substitute goods,and how does a change in the price of one substitute good influence the demand for the other?

Correct Answer
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Substitute goods are goods that can be u...
View Answer

Which of the following is not held constant along a given demand curve for a good?

Correct Answer
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A lower quantity demanded of a good reflects,ceteris paribus,

Correct Answer
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The term market mechanism refers to

Correct Answer
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A

An increase in the price of gasoline above equilibrium will

Correct Answer
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Correct Answer
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A factor market is any place or process where

Correct Answer
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If the price of "X" increases and you buy less "Y," then

Correct Answer
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Exam 3: Supply and Demand

If the quantity demanded of a good is greater than the quantity supplied of the good at the current price,then

Correct AnswerverifiedShow Answer

Assume that pencils and pens are substitutes.If the price of pencils rises,then we will see

Correct AnswerverifiedShow Answer

When a surplus exists for a product,

Correct AnswerverifiedShow Answer

If a price is above equilibrium,

Correct AnswerverifiedC

Which of the following would not cause the market supply of cell phones to change?

Correct AnswerverifiedC

A market is said to be in equilibrium when

Correct AnswerverifiedShow Answer

Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience

Correct AnswerverifiedShow Answer

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

Correct AnswerverifiedShow Answer

According to the law of demand,during a given period of time,the quantity of a good demanded

Correct AnswerverifiedShow Answer

A leftward shift of the market demand curve for HDTVs,ceteris paribus,causes equilibrium price to

Correct AnswerverifiedShow Answer

Market price is the same thing as equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.The market will tend toward equilibrium price but is not always at equilibrium.

Correct AnswerverifiedShow Answer

In a market economy,which of the following determines the answer to the WHAT to produce question?

Correct AnswerverifiedShow Answer

What are substitute goods,and how does a change in the price of one substitute good influence the demand for the other?

Correct AnswerverifiedSubstitute goods are goods that can be u...View AnswerShow Answer

Which of the following is not held constant along a given demand curve for a good?

Correct AnswerverifiedShow Answer

A lower quantity demanded of a good reflects,ceteris paribus,

Correct AnswerverifiedShow Answer

The term market mechanism refers to

Correct AnswerverifiedA

An increase in the price of gasoline above equilibrium will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A factor market is any place or process where

Correct AnswerverifiedShow Answer

If the price of "X" increases and you buy less "Y," then

Correct AnswerverifiedShow Answer

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C

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C

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Substitute goods are goods that can be u...
View Answer

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A

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