Question 1

At a price above the equilibrium price,there is

Accepted Answer

A)   a shortage.
B)   a surplus.
C)   excess demand.
D)   super-equilibrium.
E)   none of the above

Question 2

Exhibit 3-5 
-Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point V and is now at point Z,the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

Accepted Answer

A)   greater than;greater than
B)   less than;greater than
C)   greater than;less than
D)   less than;less than

Question 3

Exhibit 3-10 
-Refer to Exhibit 3-10.300 units of X will be exchanged in this market if the price is

Accepted Answer

A)   $30.
B)   $20.
C)   $10.
D)   any of the above
E)   none of the above

Question 4

Which of the following statements best represents the law of supply?

Accepted Answer

A)   Price and quantity supplied are inversely related.
B)   Price and quantity supplied are directly related.
C)   Price and quantity supplied are inversely related,ceteris paribus.
D)   Price and quantity supplied are directly related,ceteris paribus.
E)   Price and supply are directly related,ceteris paribus.

Question 5

At a price below the equilibrium price,there is

Accepted Answer

A)   a surplus.
B)   a shortage.
C)   excess supply.
D)   sub-equilibrium.
E)   none of the above

Question 6

Which of the following illustrates the law of demand?

Accepted Answer

A)   Jorge buys fewer pencils at $2 per pencil than at $1 per pencil,ceteris paribus.
B)   Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon,ceteris paribus.
C)   Karissa buys fewer sweaters at $50 each than at $35 each,ceteris paribus.
D)   a,b,and c
E)   a and c

Question 7

When a market is in disequilibrium,such as when the quantity supplied of a good is greater than the quantity demanded of that good,the price of the good will rise,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 8

Labor is a resource that is necessary to produce many goods."If the price of labor falls," says the economist,"the prices of goods will soon follow." How does this work?

Accepted Answer

A)   If the price of labor falls,the supply of goods rises,and the prices of those goods fall.
B)   If the price of labor falls,the quantity supplied of goods rises,and the prices of those goods fall.
C)   If the price of labor falls,the demand for goods falls,and the prices of those goods fall.
D)   If the price of labor falls,the demand for goods rises,and the prices of those goods fall.
E)   If the price of labor falls,the supply of goods falls,and the prices of those goods fall.

Question 9

At a price for which the quantity supplied exceeds the quantity demanded,a __________ is experienced,which pushes the price __________ toward its equilibrium value.

Accepted Answer

A)   surplus;downward
B)   surplus;upward
C)   shortage;downward
D)   shortage;upward

Question 10

Exhibit 3-7 1 is the relevant supply curve,an increase in the price of good X may cause A)  the supply of good X to shift from S1 to S2 B)  the supply of good X to shift from S1 to S3. C)  a movement along S1 perhaps from point A to point B. D)  a movement along S1 perhaps from point A to point C. E)  no change in the quantity supplied of good X." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 3-7.If S1 is the relevant supply curve,an increase in the price of good X may cause

Accepted Answer

A)   the supply of good X to shift from S1 to S2
B)   the supply of good X to shift from S1 to S3.
C)   a movement along S1 perhaps from point A to point B.
D)   a movement along S1 perhaps from point A to point C.
E)   no change in the quantity supplied of good X.

Question 11

Oil producers expect that oil prices next year will be lower than oil prices this year.As a result,oil producers are most likely to

Accepted Answer

A)   place more oil on the market this year,thus shifting the present supply curve of oil rightward.
B)   hold some oil off the market this year,thus shifting the present supply curve of oil leftward.
C)   place more oil on the market this year,thus increasing the quantity supplied of oil at lower but not higher prices.
D)   hold some oil off the market this year,thus decreasing the quantity supplied of oil at lower but not higher prices.

Question 12

Resource X is necessary to the production of good Y.If the price of resource X rises,

Accepted Answer

A)   the supply curve of Y shifts leftward.
B)   the supply curve of Y shifts rightward.
C)   the supply curve of Y is unaffected.
D)   there is a movement down the supply curve of Y.
E)   there is a movement up the supply curve of Y.

Question 13

Exhibit 3-14
 
-Refer to Exhibit 3-14.At a price of $15,there is a ____________ unit ____________ of good X.

Accepted Answer

A)   40;shortage
B)   90;surplus
C)   40;surplus
D)   20;shortage
E)   20;surplus

Question 14

If a supply curve shifts rightward,this means

Accepted Answer

A)   suppliers are willing and able to offer less of the good for sale at every price.
B)   suppliers are willing and able to offer more of the good for sale at every price.
C)   quantity supplied is greater at every price.
D)   suppliers are willing and able to offer more of the good for sale only at a particular price.
E)   b and c

Question 15

Resource X is necessary to the production of good Y.If the price of resource X falls,the equilibrium price of Y will ______________ and the equilibrium quantity of Y will

Accepted Answer

A)   rise;rise.
B)   fall;fall.
C)   fall;rise.
D)   rise;fall.

Question 16

Exhibit 3-5 
-Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point W and is now at point X,the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

Accepted Answer

A)   greater than;greater than
B)   less than;greater than
C)   greater than;less than
D)   less than;less than

Question 17

Which of the following is descriptive of the law of diminishing marginal utility?

Accepted Answer

A)   The third hamburger consumed provides less utility than the second hamburger consumed.
B)   The third hamburger is priced higher than the first hamburger.
C)   As price falls,quantity demanded rises,ceteris paribus.
D)   The price of a good rises as the costs of producing that good rise.
E)   none of the above

Question 18

If demand increases by a lesser amount than supply increases,then equilibrium price __________ and equilibrium quantity __________.

Accepted Answer

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

Question 19

A market is said to be in disequilibrium if

Accepted Answer

A)   it exhibits either a surplus or a shortage.
B)   the number of units that individuals are willing to buy exceeds the number of units they can afford.
C)   it is a market for an inferior good.
D)   none of the above

Question 20

Exhibit 3-3 1 to D2 can NOT occur from a change in the A)  population. B)  price of a substitute for good Y. C)  average income of good Y buyers. D)  price of good Y." class="answers-bank-image d-inline" rel="preload" > Good Y
-Refer to Exhibit 3-3.A shift in demand from D1 to D2 can NOT occur from a change in the

Accepted Answer

A)   population.
B)   price of a substitute for good Y.
C)   average income of good Y buyers.
D)   price of good Y.

Exam 3: Supply and Demand: Theory

Exhibit 3-5 -Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point V and is now at point Z,the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

Correct AnswerverifiedShow Answer

Exhibit 3-3 Good Y -Refer to Exhibit 3-3.A shift in demand from D1 to D2 can NOT occur from a change in the

Correct AnswerverifiedShow Answer

Resource X is necessary to the production of good Y.If the price of resource X falls,the equilibrium price of Y will ______________ and the equilibrium quantity of Y will

Correct AnswerverifiedShow Answer

Exhibit 3-5 -Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point W and is now at point X,the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

Correct AnswerverifiedShow Answer

Oil producers expect that oil prices next year will be lower than oil prices this year.As a result,oil producers are most likely to

Correct AnswerverifiedShow Answer

Exhibit 3-7 -Refer to Exhibit 3-7.If S1 is the relevant supply curve,an increase in the price of good X may cause

Correct AnswerverifiedShow Answer

When a market is in disequilibrium,such as when the quantity supplied of a good is greater than the quantity demanded of that good,the price of the good will rise,ceteris paribus.

Correct AnswerverifiedShow Answer

Which of the following is descriptive of the law of diminishing marginal utility?

Correct AnswerverifiedShow Answer

If a supply curve shifts rightward,this means

Correct AnswerverifiedShow Answer

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $15,there is a ____________ unit ____________ of good X.

Correct AnswerverifiedShow Answer

At a price above the equilibrium price,there is

Correct AnswerverifiedShow Answer

Exhibit 3-10 -Refer to Exhibit 3-10.300 units of X will be exchanged in this market if the price is

Correct AnswerverifiedShow Answer

Which of the following statements best represents the law of supply?

Correct AnswerverifiedShow Answer

Resource X is necessary to the production of good Y.If the price of resource X rises,

Correct AnswerverifiedShow Answer

A market is said to be in disequilibrium if

Correct AnswerverifiedShow Answer

Which of the following illustrates the law of demand?

Correct AnswerverifiedShow Answer

If demand increases by a lesser amount than supply increases,then equilibrium price __________ and equilibrium quantity __________.

Correct AnswerverifiedShow Answer

At a price below the equilibrium price,there is

Correct AnswerverifiedShow Answer

At a price for which the quantity supplied exceeds the quantity demanded,a __________ is experienced,which pushes the price __________ toward its equilibrium value.

Correct AnswerverifiedShow Answer

Labor is a resource that is necessary to produce many goods."If the price of labor falls," says the economist,"the prices of goods will soon follow." How does this work?

Correct AnswerverifiedShow Answer

Exhibit 3-5 -Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point V and is now at point Z,the new equilibrium price is it was originally and the new equilibrium quantity is __ it was originally.

Correct Answer
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Exhibit 3-3 Good Y -Refer to Exhibit 3-3.A shift in demand from D₁ to D₂ can NOT occur from a change in the

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Exhibit 3-5 -Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point W and is now at point X,the new equilibrium price is it was originally and the new equilibrium quantity is __ it was originally.

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Exhibit 3-7 -Refer to Exhibit 3-7.If S₁ is the relevant supply curve,an increase in the price of good X may cause

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Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $15,there is a unit of good X.

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If demand increases by a lesser amount than supply increases,then equilibrium price and equilibrium quantity .

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At a price for which the quantity supplied exceeds the quantity demanded,a is experienced,which pushes the price toward its equilibrium value.

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Correct Answer
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