Question 1

The law of supply states that other things being equal,

Accepted Answer

A)  supply creates its own demand.
B)  supply will increase if productivity increases.
C)  as price increases, quantity supplied increases.
D)  supply will increase to meet demand if demand increases.E) C) and D)
F) A) and C)

Question 2

-Refer to the above figure. Excess quantity supplied will exist when

Accepted Answer

A)  the price is between $0 and $6.
B)  the price equals $6.
C)  the price equals $10.
D)  quantity demanded equals 15.E) A) and B)
F) None of the above

Question 3

When the price of tablets goes up and fewer tablets are purchased, this is representative of the

Accepted Answer

A)  law of demand.
B)  law of supply.
C)  law of market operations.
D)  law of increasing costs.E) None of the above
F) B) and D)

Question 4

Other things being equal, an increase in wages paid to workers in the steel industry will cause

Accepted Answer

A)  the quantity of steel demanded to increase.
B)  the quantity of steel supplied to decrease.
C)  the supply of steel to decrease.
D)  the demand for steel to decrease.E) A) and B)
F) B) and C)

Question 5

-Refer to the above figure. The market clearing price is

Accepted Answer

A)  $2.
B)  $6.
C)  $8.
D)  $10.E) A) and B)
F) All of the above

Question 6

Demand is a schedule of

Accepted Answer

A)  how much of a good a person wants.
B)  how much of a good people will purchase at each different possible price.
C)  how much of a good people will purchase at each income level.
D)  each possible price and the amount people will buy when their incomes change.E) A) and D)
F) A) and C)

Question 7

Suppose that a new study finds that eating more peanut butter will improve a person's health. As a result,

Accepted Answer

A)  the demand for peanut butter will fall.
B)  the demand for peanut butter will rise.
C)  the price of peanut butter will fall.
D)  a smaller amount of peanut butter will be purchased.E) A) and C)
F) B) and C)

Question 8

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result,

Accepted Answer

A)  the supply curve for sugar will shift to the right.
B)  the supply curve for sugar will shift to the left.
C)  the supply curve for cereal will shift to the right.
D)  the supply curve for cereal will shift to the left.E) All of the above
F) A) and D)

Exam 3: Demand and Supply

The law of supply states that other things being equal,

Correct Answer
verified

Demand is a schedule of

Correct Answer
verified

-Refer to the above figure. Excess quantity supplied will exist when

Correct Answer
verified

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result,

Correct Answer
verified

Suppose that a new study finds that eating more peanut butter will improve a person's health. As a result,

Correct Answer
verified

When the price of tablets goes up and fewer tablets are purchased, this is representative of the

Correct Answer
verified

Other things being equal, an increase in wages paid to workers in the steel industry will cause

Correct Answer
verified

-Refer to the above figure. The market clearing price is

Correct Answer
verified

Exam 3: Demand and Supply

The law of supply states that other things being equal,

Correct AnswerverifiedShow Answer

Demand is a schedule of

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-Refer to the above figure. Excess quantity supplied will exist when

Correct AnswerverifiedShow Answer

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result,

Correct AnswerverifiedShow Answer

Suppose that a new study finds that eating more peanut butter will improve a person's health. As a result,

Correct AnswerverifiedShow Answer

When the price of tablets goes up and fewer tablets are purchased, this is representative of the

Correct AnswerverifiedShow Answer

Other things being equal, an increase in wages paid to workers in the steel industry will cause

Correct AnswerverifiedShow Answer

-Refer to the above figure. The market clearing price is

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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