Question 1

Along the supply curve of a good, the:

Accepted Answer

A)  supply of the good changes as its price changes.
B)  quantity supplied of the good changes as its price changes.
C)  supply of the good changes as technology changes.
D)  quantity supplied of the good changes as technology changes.
E)  quantity supplied of the good changes as income changes.

Question 2

Two goods are substitutes when a decrease in the price of one good:

Accepted Answer

A)  decreases the demand for the other good.
B)  decreases the quantity demanded of the other good.
C)  increases the demand for the other good.
D)  increases the quantity demanded of the other good.
E)  increases the quantity supplied of the other good.

Question 3

A supply curve illustrates a(n)  _____ relationship between _____ and _____.​

Accepted Answer

A)  direct; price; supply
B)  direct; price; quantity demanded
C)  direct; price; quantity supplied
D)  inverse; price; quantity demanded​
E)  inverse; price; supply

Question 4

A technological improvement that lowers production costs for Good A will:

Accepted Answer

A)  shift the supply curve for A to the left.
B)  shift the demand curve for A to the left.
C)  shift the demand curve for A to the right.
D)  shift the supply curve for A to the right.
E)  decrease the quantity demanded of Good A.

Question 5

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point E represents a(n) :Figure 3-3

Accepted Answer

A)  increase in supply
B)  decrease in supply.
C)  increase in quantity supplied.
D)  decrease in quantity supplied
E)  increase in the price of the good.

Question 6

A decrease in demand and an increase in supply are indicated by:

Accepted Answer

A)  upward shifts in both curves.
B)  downward shifts in both curves.
C)  rightward shifts in both curves.
D)  leftward shifts in both curves.
E)  a downward shift in the demand curve, but an upward shift in the supply curve.

Question 7

Which of the following is a difference between a change in quantity supplied and a change in supply?

Accepted Answer

A)  A change in quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
B)  A change in quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes
C)  A change in quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell.
D)  A change in supply and a change in the quantity supplied are the same thing.
E)  A change in quantity supplied is illustrated by a shift in the supply curve, while a change in supply is illustrated by a movement along the given supply curve.

Question 8

Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. In the given illustration, the equilibrium price per large pepperoni pizza is:​

Accepted Answer

A)  $9.
B)  $8.
C)  $7.
D)  $6.
E)  $5.

Question 9

If input prices fall, the cost of production will also fall, causing the supply curve to shift to the right.

Accepted Answer

A) True 
 B)False

Question 10

According to the law of demand, other things equal, when the price of a good or service falls, demand increases.

Accepted Answer

A) True 
 B)False

Question 11

When both supply and demand shift in the same direction, the change in the equilibrium quantity traded will be in the same direction as the shifting curves.

Accepted Answer

A) True 
 B)False

Question 12

According to the law of supply, ceteris paribus, the:

Accepted Answer

A)  quantity supplied of a good will vary directly with the price of the good.
B)  quantity supplied of a good will vary indirectly with the price of the good.
C)  quantity supplied of a good will vary directly with consumers' income
D)  quantity supplied of a good will vary indirectly with consumers' income.
E)  quantity supplied of a good will vary indirectly with the size of the population.

Question 13

At the equilibrium price, the quantity of the good that buyers are willing and able to buy:

Accepted Answer

A)  is greater than the quantity that sellers are willing and able to sell.
B)  exactly equals the quantity that sellers are willing and able to sell.
C)  is less than the quantity that sellers are willing and able to sell.
D)  equals the maximum quantity that producers could produce.
E)  equals the minimum quantity that producers need to produce.

Question 14

A decrease in quantity demanded:

Accepted Answer

A)  is illustrated by a movement downward and to the right along a demand curve.
B)  is illustrated by a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.
E)  increases the slope of the demand curve.

Question 15

When the demand and supply of grapes both increase at the same time, then the:

Accepted Answer

A)  price of grapes will fall
B)  price of grapes will rise.
C)  quantity of grapes bought and sold will fall
D)  quantity of grapes bought and sold will rise.
E)  quantity grapes bought and sold will remain the same.

Question 16

Table 3-1 shows the demand schedules for gourmet ice cream of two individuals, Sven and Larry, and the rest of the market. At a price of $8, the quantity demanded in the market would be:​Table 3-1

Accepted Answer

A)  12.
B)  22.
C)  31.
D)  39.
E)  51.

Question 17

Which of the following is true of a competitive market?

Accepted Answer

A)  In a competitive market, firms do not compete with each other.
B)  In a competitive market, the firm that charges the minimum price earns the maximum revenue.
C)  In a competitive market, the price of each unit of good is equal to the average variable cost.
D)  In a competitive market, every seller charges a different price for its output.
E)  In a competitive market, the price of each unit of the good is fixed.

Question 18

What is a market? Can you provide three examples of where a market can be found?

Accepted Answer

Answers will vary. A market is the proce...

Question 19

Table 3-1 shows the demand schedules for gourmet ice cream of two individuals, Sven and Larry, and the rest of the market. At $4, the quantity demanded in the market would be;Table 3-1

Accepted Answer

A)  12.
B)  22.
C)  31
D)  39.
E)  51.

Question 20

A technological advancement in recycling made it possible to produce a greater quantity of paper from a given quantity of recyclednewspapers. Recycled paper is used to produce notebooks. According to the given scenario, which of the following statements will be true?

Accepted Answer

A)  There will be a movement down along the supply curve of notebooks.
B)  There will be a movement up along the supply curve of notebooks.
C)  The supply curve for notebooks will shift to the left.
D)  The supply curve for notebooks will shift to the right.
E)  The supply curve for notebooks will become steeper.

Exam 3: Supply and Demand

Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. In the given illustration, the equilibrium price per large pepperoni pizza is:​

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If input prices fall, the cost of production will also fall, causing the supply curve to shift to the right.

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Table 3-1 shows the demand schedules for gourmet ice cream of two individuals, Sven and Larry, and the rest of the market. At $4, the quantity demanded in the market would be;Table 3-1

Correct AnswerverifiedShow Answer

According to the law of supply, ceteris paribus, the:

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According to the law of demand, other things equal, when the price of a good or service falls, demand increases.

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At the equilibrium price, the quantity of the good that buyers are willing and able to buy:

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Which of the following is a difference between a change in quantity supplied and a change in supply?

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A decrease in demand and an increase in supply are indicated by:

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What is a market? Can you provide three examples of where a market can be found?

Correct AnswerverifiedAnswers will vary. A market is the proce...View AnswerShow Answer

Figure 3-3 shows shifts in the supply curve of a good. A change from Point A to Point E represents a(n) :Figure 3-3

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Table 3-1 shows the demand schedules for gourmet ice cream of two individuals, Sven and Larry, and the rest of the market. At a price of $8, the quantity demanded in the market would be:​Table 3-1

Correct AnswerverifiedShow Answer

A decrease in quantity demanded:

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When both supply and demand shift in the same direction, the change in the equilibrium quantity traded will be in the same direction as the shifting curves.

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Along the supply curve of a good, the:

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When the demand and supply of grapes both increase at the same time, then the:

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A technological improvement that lowers production costs for Good A will:

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Two goods are substitutes when a decrease in the price of one good:

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A supply curve illustrates a(n) _____ relationship between _____ and _____.​

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Which of the following is true of a competitive market?

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A technological advancement in recycling made it possible to produce a greater quantity of paper from a given quantity of recyclednewspapers. Recycled paper is used to produce notebooks. According to the given scenario, which of the following statements will be true?

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Table 3-3 shows the market demand and market supply schedules for large pepperoni pizzas. In the given illustration, the equilibrium price per large pepperoni pizza is:

Correct Answer
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Answers will vary. A market is the proce...
View Answer

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Table 3-1 shows the demand schedules for gourmet ice cream of two individuals, Sven and Larry, and the rest of the market. At a price of $8, the quantity demanded in the market would be:Table 3-1

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A supply curve illustrates a(n) ___ relationship between _ and ___.

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