Question 1

Consider the market for burritos, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1) the price of tortillas, used in the production of burritos, increases and (2) a new advertising campaign increases the popularity of burritos among consumers. What effect might these events have on the market for burritos?Supply will increase.Demand will increase.The equilibrium price will increase.The equilibrium quantity will decrease.

Accepted Answer

A)  I, II, and III only
B)  I and II only
C)  I and IV only
D)  II and III onlyE) C) and D)
F) B) and D)

Question 2

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S1) intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Accepted Answer

A)  The price of pizza sauce increased.
B)  The price of pizza decreased.
C)  The price of labor for pizza shops decreased.
D)  None of these would cause the supply curve to shift to S2.E) A) and B)
F) A) and C)

Question 3

Ren loves to go to the movie theater, and he just learned that he can buy a ticket at a discounted price using his student ID. Ren now sees movies at the theater even more frequently. Which of the following factors of demand caused the change in Ren's behavior?

Accepted Answer

A)  Income
B)  Price
C)  Consumer preferences
D)  Number of buyersE) B) and C)
F) None of the above

Question 4

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _____ at each price because _____.

Accepted Answer

A)  more; some of their competitors will drop out of the market
B)  less; the price of a main input has gone up
C)  more; the price of a main input has gone up
D)  more; more competitors will enter the marketE) A) and D)
F) A) and C)

Question 5

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Accepted Answer

A)  fully informed, price-taking
B)  fully informed, price-making
C)  uninformed, price-taking
D)  uninformed, price-makingE) B) and D)
F) A) and B)

Question 6

What are transaction costs?

Accepted Answer

A)  The costs incurred by buyers and sellers in agreeing to and executing a sale of goods or services.
B)  The costs that the government must pay to allow for an exchange.
C)  The costs incurred by buyers and sellers in agreeing to and executing a purchase of goods or services, excluding transportation costs.
D)  The costs that the government incurs to create a structured market for the exchange of goods and services.E) A) and B)
F) None of the above

Question 7

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Accepted Answer

A)  an increase in price.
B)  a decrease in price.
C)  an increase in income.
D)  a decrease in income.E) B) and C)
F) A) and D)

Question 8

In economic terminology, a buyer or seller who cannot affect the market price is called a:

Accepted Answer

A)  price taker.
B)  price maker.
C)  price setter.
D)  price signaler.E) A) and B)
F) C) and D)

Question 9

Juan goes to his favorite store to buy a shirt, and while he's shopping he spots a sign indicating that all shirts will be on sale starting tomorrow. We would expect Juan's current demand for sweaters to:

Accepted Answer

A)  increase.
B)  shift to the left.
C)  move down along his demand curve.
D)  shift to the right.E) A) and C)
F) A) and B)

Question 10

The most likely substitute good for hot dogs would be:

Accepted Answer

A)  ketchup.
B)  burgers.
C)  potato chips.
D)  a plate.E) A) and B)
F) A) and C)

Question 11

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Accepted Answer

A)  their physical proximity.
B)  the context.
C)  their preferences.
D)  the income levels.E) All of the above
F) B) and D)

Question 12

The equilibrium price is sometimes called the:

Accepted Answer

A)  market-clearing price.
B)  optimum price.
C)  maximum price.
D)  quantity-clearing price.E) None of the above
F) A) and B)

Question 13

A non-price determinant of demand refers to something:

Accepted Answer

A)  other than demand that affects the price.
B)  other than the price that affects demand.
C)  that determines how large a role price plays in the demand decision.
D)  that determines how prices are affected by income.E) C) and D)
F) None of the above

Question 14

For almost all goods, the _____ the price goes, the _____.

Accepted Answer

A)  lower; higher the quantity supplied
B)  higher; more luxurious the good becomes
C)  lower; more luxurious the good becomes
D)  higher; higher the quantity suppliedE) None of the above
F) All of the above

Question 15

Suppose the price of dog collars has decreased and all other variables have remained constant. This change can be shown graphically as a:

Accepted Answer

A)  shift in the demand curve to the right.
B)  shift in the demand curve to the left.
C)  movement along the demand curve to the right.
D)  movement along the demand curve to the left.E) C) and D)
F) B) and C)

Question 16

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Accepted Answer

A)  demand schedule.
B)  demand figure.
C)  demand curve.
D)  demand graph.E) B) and C)
F) A) and D)

Question 17

Due to above-average rainfall last year there was a plentiful supply of blueberries, which caused the price of blueberries to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, _____ was affected and the supply of blueberry pies will _____.

Accepted Answer

A)  the price of an input; increase
B)  the price of an input; decrease
C)  consumer preference; increase
D)  the number of sellers; increaseE) None of the above
F) A) and B)

Question 18

We say that goods are complements when they:

Accepted Answer

A)  serve similar-enough purposes that a consumer might purchase one in place of the other.
B)  are consumed together, so that purchasing one will make a consumer more likely to purchase the other.
C)  can replace something consumers typically purchase at a significantly lower price.
D)  change a consumer's preferences for a good or service.E) A) and D)
F) B) and C)

Question 19

After getting a raise at work, Gustavo now regularly buys steak instead of chicken. Which factor of demand has influenced Gustavo's demand for steak?

Accepted Answer

A)  Price of a substitute good
B)  Price of a complementary good
C)  Income
D)  PreferencesE) A) and D)
F) A) and B)

Question 20

In the market shown in the graph, the equilibrium price is ___ and the equilibrium quantity is _____.

Accepted Answer

A)  $5; 30
B)  $10; 20
C)  $20; 10
D)  $15; 30E) None of the above
F) All of the above

Exam 3: Markets

In economic terminology, a buyer or seller who cannot affect the market price is called a:

Correct Answer
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A non-price determinant of demand refers to something:

Correct Answer
verified

The most likely substitute good for hot dogs would be:

Correct Answer
verified

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Correct Answer
verified

Juan goes to his favorite store to buy a shirt, and while he's shopping he spots a sign indicating that all shirts will be on sale starting tomorrow. We would expect Juan's current demand for sweaters to:

Correct Answer
verified

After getting a raise at work, Gustavo now regularly buys steak instead of chicken. Which factor of demand has influenced Gustavo's demand for steak?

Correct Answer
verified

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _ at each price because _.

Correct Answer
verified

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Correct Answer
verified

In the market shown in the graph, the equilibrium price is _ and the equilibrium quantity is ___.

Correct Answer
verified

Due to above-average rainfall last year there was a plentiful supply of blueberries, which caused the price of blueberries to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, _ was affected and the supply of blueberry pies will _.

Correct Answer
verified

We say that goods are complements when they:

Correct Answer
verified

What are transaction costs?

Correct Answer
verified

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S1) intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Correct Answer
verified

Correct Answer
verified

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Correct Answer
verified

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Correct Answer
verified

Suppose the price of dog collars has decreased and all other variables have remained constant. This change can be shown graphically as a:

Correct Answer
verified

Ren loves to go to the movie theater, and he just learned that he can buy a ticket at a discounted price using his student ID. Ren now sees movies at the theater even more frequently. Which of the following factors of demand caused the change in Ren's behavior?

Correct Answer
verified

The equilibrium price is sometimes called the:

Correct Answer
verified

For almost all goods, the _ the price goes, the _.

Correct Answer
verified

Exam 3: Markets

In economic terminology, a buyer or seller who cannot affect the market price is called a:

Correct AnswerverifiedShow Answer

A non-price determinant of demand refers to something:

Correct AnswerverifiedShow Answer

The most likely substitute good for hot dogs would be:

Correct AnswerverifiedShow Answer

Consider the market for tacos. To figure out which buyers and sellers we should include in our description of this market, economists will consider:

Correct AnswerverifiedShow Answer

Juan goes to his favorite store to buy a shirt, and while he's shopping he spots a sign indicating that all shirts will be on sale starting tomorrow. We would expect Juan's current demand for sweaters to:

Correct AnswerverifiedShow Answer

After getting a raise at work, Gustavo now regularly buys steak instead of chicken. Which factor of demand has influenced Gustavo's demand for steak?

Correct AnswerverifiedShow Answer

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _____ at each price because _____.

Correct AnswerverifiedShow Answer

Suppose the graph shown depicts the demand for a normal good. A movement from A to C might be caused by:

Correct AnswerverifiedShow Answer

In the market shown in the graph, the equilibrium price is ___ and the equilibrium quantity is _____.

Correct AnswerverifiedShow Answer

Due to above-average rainfall last year there was a plentiful supply of blueberries, which caused the price of blueberries to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, _____ was affected and the supply of blueberry pies will _____.

Correct AnswerverifiedShow Answer

We say that goods are complements when they:

Correct AnswerverifiedShow Answer

What are transaction costs?

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S1) intersect. Something changes in the market, and the supply curve shifts to S2. What could have caused this shift?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A table that shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Correct AnswerverifiedShow Answer

A perfectly competitive market is one in which _____ buyers and sellers easily trade a standardized good or service.

Correct AnswerverifiedShow Answer

Suppose the price of dog collars has decreased and all other variables have remained constant. This change can be shown graphically as a:

Correct AnswerverifiedShow Answer

Ren loves to go to the movie theater, and he just learned that he can buy a ticket at a discounted price using his student ID. Ren now sees movies at the theater even more frequently. Which of the following factors of demand caused the change in Ren's behavior?

Correct AnswerverifiedShow Answer

The equilibrium price is sometimes called the:

Correct AnswerverifiedShow Answer

For almost all goods, the _____ the price goes, the _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Suppose the price of chocolate chips increases. The producers of chocolate chip cookies will now supply _ at each price because _.

Correct Answer
verified

Correct Answer
verified

In the market shown in the graph, the equilibrium price is _ and the equilibrium quantity is ___.

Correct Answer
verified

Due to above-average rainfall last year there was a plentiful supply of blueberries, which caused the price of blueberries to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, _ was affected and the supply of blueberry pies will _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

For almost all goods, the _ the price goes, the _.

Correct Answer
verified