Question 1

Refer to the accompanying figure. What event would cause the supply curve to shift out?

Accepted Answer

A)   Consumers earn higher incomes.
B)   Consumers earn lower incomes.
C)   The price of an input increased.
D)   Firms entered the market.
E)   Firms expected the price to rise in the future.F) A) and E)
G) A) and D) D

Question 2

The change in equilibrium shown in the accompanying figure would be explained by a(n) :

Accepted Answer

A)   increase in the price of an input and an increase in the price of a complement.
B)   decrease in the price of an input and an increase in the price of a complement.
C)   decrease in the price of an input and an increase the in price of a substitute.
D)   increase in the price of an input and a decrease in the price of a complement.
E)   increase in the price of an input and a increase in the price of a substitute.F) B) and C)
G) A) and D)

Question 3

If the cost of flour increases from $3 to $5 a bag, you could predict the supply curve for bagels to:

Accepted Answer

A)   shift to the right.
B)   shift to the left.
C)   become steeper.
D)   become flatter.
E)   increase.F) D) and E)
G) A) and B)

Question 4

Refer to the table below:  Assume that the market for iPods has only two consumers: Chuck and Ryan. According the table above, if the price of an iPod is $85, the market will demand:

Accepted Answer

A)   8 iPods.
B)   6 iPods.
C)   5 iPods.
D)   28 iPods.
E)   45 iPods.F) A) and D)
G) B) and C)

Question 5

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

Accepted Answer

A)   The equilibrium price will go up and equilibrium quantity will go up.
B)   The equilibrium price will go down and equilibrium quantity will be indeterminate.
C)   The equilibrium price will be indeterminate and equilibrium quantity will go up.
D)   The equilibrium price will go up and equilibrium quantity will be indeterminate.
E)   The equilibrium price will be indeterminate and equilibrium quantity will go down.F) A) and D)
G) B) and D)

Question 6

Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market each, a quarter of these suppliers supply 40 widgets to the market each, and a quarter of these suppliers supply 50 widgets to the market each. What is the market supply for widgets?

Accepted Answer

A)   100
B)   125
C)   400
D)   4,000
E)   1,750F) A) and B)
G) None of the above

Question 7

When supply shifts left and demand shifts right, the:

Accepted Answer

A)   equilibrium price always rises.
B)   equilibrium price always falls.
C)   equilibrium quantity always falls.
D)   equilibrium quantity always rises.
E)   equilibrium price is indeterminate.F) C) and D)
G) B) and E)

Question 8

Many consumer items eventually go out of style, and because fewer people want these items, demand for them drops. When this happens, we usually see production of these items stop. What happens to the equilibrium price and equilibrium quantity in a market like this?

Accepted Answer

A)   The equilibrium price goes up and equilibrium quantity goes up.
B)   The equilibrium price is indeterminate and equilibrium quantity goes up.
C)   The equilibrium price goes down and equilibrium quantity is indeterminate.
D)   The equilibrium price is indeterminate and equilibrium quantity goes down.
E)   The equilibrium price goes up and equilibrium quantity is indeterminate.F) A) and D)
G) None of the above

Question 9

Which of the following would cause the demand curve to shift to the right?

Accepted Answer

A)   Income decreases for an inferior good.
B)   Income decreases for a normal good.
C)   Tastes and preferences decrease.
D)   The price of a substitute decreases.
E)   The price of a complement increases.F) A) and E)
G) C) and E)

Question 10

Refer to the accompanying figure. When the price changes from P1 to P2, we will see a(n) : 1 to P2, we will see a(n) :   A)  decrease in supply from Q1 to Q2. B)  increase in supply from Q2 to Q1. C)  decrease in quantity supplied from Q1 to Q2. D)  increase in quantity supplied from Q2 to Q1. E)  shift of the supply curve." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   decrease in supply from Q1 to Q2.
B)   increase in supply from Q2 to Q1.
C)   decrease in quantity supplied from Q1 to Q2.
D)   increase in quantity supplied from Q2 to Q1.
E)   shift of the supply curve.F) D) and E)
G) A) and E)

Question 11

Wine and cheese are complement goods because they are consumed together. What would you expect to happen to the equilibrium quantity of cheese if the price of wine increased and all else is held constant?

Accepted Answer

A)   It would increase because of a supply shift.
B)   It would increase because of a demand shift.
C)   It would stay the same because of both a demand and a supply shift.
D)   It would decrease because of a supply shift.
E)   It would decrease because of a demand shift.F) A) and C)
G) A) and E)

Question 12

A supply schedule:

Accepted Answer

A)   is a curve representing the relationship between the price of a good or service and the quantity supplied.
B)   is a list of goods and services supplied at different prices.
C)   is a table representing the relationship between the price of a good or service and the quantity supplied.
D)   can be used only to analyze individuals' supply for a good or service.
E)   can be used only to analyze the entire market's supply for a good or service.F) A) and D)
G) B) and E)

Question 13

A change in quantity supplied:

Accepted Answer

A)   is represented by a shift in the supply curve.
B)   is represented by a movement along the supply curve.
C)   happens only when the price increases.
D)   happens only when the price decreases.
E)   is positive if the price of the good decreases.F) B) and D)
G) All of the above

Question 14

A technological advancement for Good A will shift the _________ curve of Good A to the _________, making the equilibrium price _________.

Accepted Answer

A)   demand; left; decrease.
B)   supply; right; increase.
C)   demand; right; increase.
D)   supply; left; increase.
E)   supply; right; decrease.F) A) and D)
G) A) and B) E

Question 15

According to the figure below, at the price of $5:

Accepted Answer

A)   the equilibrium quantity is 500.
B)   the quantity demanded is 500.
C)   the demand is 500.
D)   there is a surplus.
E)   there is a shortage.F) A) and E)
G) A) and C) B

Question 16

According to the accompanying figure, if the price is $10, there is a:

Accepted Answer

A)   shortage of 15 units.
B)   surplus of 15 units.
C)   shortage of 30 units.
D)   surplus of 30 units.
E)   surplus of 22 units.F) B) and C)
G) All of the above

Question 17

What would you expect to happen to the price of bagels if the price of flour decreased and the price of cream cheese decreased?

Accepted Answer

A)   The equilibrium price of bagels will be indeterminate and the equilibrium quantity will go up.
B)   The equilibrium price will go up and the equilibrium quantity will go up.
C)   The equilibrium price will go down and the equilibrium quantity will be indeterminate.
D)   The equilibrium price will be indeterminate and the equilibrium quantity will go down.
E)   The equilibrium price will go up and the equilibrium quantity will be indeterminate.F) B) and D)
G) A) and B)

Question 18

When both supply and demand decrease, the equilibrium price:

Accepted Answer

A)   increases and equilibrium quantity increases.
B)   is indeterminate and equilibrium quantity increases.
C)   decreases and equilibrium quantity is indeterminate.
D)   increases and equilibrium quantity is indeterminate.
E)   is indeterminate and equilibrium quantity decreases.F) A) and D)
G) B) and D)

Question 19

Something is an inferior good if the demand for the good:

Accepted Answer

A)   increases as the consumer's income increases.
B)   increases as the consumer's income decreases.
C)   decreases as the price of a complement increases.
D)   decreases as the price of a substitute increases.
E)   decreases as the consumer's income decreases.F) A) and C)
G) B) and E)

Question 20

Refer to the table below. If the price of this good is $2.00, there would be a _________ of _________ units.

Accepted Answer

A)   shortage; 20
B)   surplus; 50
C)   shortage; 30
D)   surplus; 30
E)   surplus; 20F) A) and B)
G) A) and C)

Exam 3: The Market at Work: Supply and Demand

Refer to the accompanying figure. What event would cause the supply curve to shift out?

Correct Answer
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D

The change in equilibrium shown in the accompanying figure would be explained by a(n) :

Correct Answer
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If the cost of flour increases from $3 to $5 a bag, you could predict the supply curve for bagels to:

Correct Answer
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Refer to the table below: Assume that the market for iPods has only two consumers: Chuck and Ryan. According the table above, if the price of an iPod is $85, the market will demand:

Correct Answer
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What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

Correct Answer
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Correct Answer
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When supply shifts left and demand shifts right, the:

Correct Answer
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Many consumer items eventually go out of style, and because fewer people want these items, demand for them drops. When this happens, we usually see production of these items stop. What happens to the equilibrium price and equilibrium quantity in a market like this?

Correct Answer
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Which of the following would cause the demand curve to shift to the right?

Correct Answer
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Refer to the accompanying figure. When the price changes from P₁ to P₂, we will see a(n) :

Correct Answer
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Wine and cheese are complement goods because they are consumed together. What would you expect to happen to the equilibrium quantity of cheese if the price of wine increased and all else is held constant?

Correct Answer
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A supply schedule:

Correct Answer
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A change in quantity supplied:

Correct Answer
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A technological advancement for Good A will shift the _____ curve of Good A to the _, making the equilibrium price _____.

Correct Answer
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E

According to the figure below, at the price of $5:

Correct Answer
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B

According to the accompanying figure, if the price is $10, there is a:

Correct Answer
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What would you expect to happen to the price of bagels if the price of flour decreased and the price of cream cheese decreased?

Correct Answer
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When both supply and demand decrease, the equilibrium price:

Correct Answer
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Something is an inferior good if the demand for the good:

Correct Answer
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Refer to the table below. If the price of this good is $2.00, there would be a _ of _ units.

Correct Answer
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Exam 3: The Market at Work: Supply and Demand

Refer to the accompanying figure. What event would cause the supply curve to shift out?

Correct AnswerverifiedD

The change in equilibrium shown in the accompanying figure would be explained by a(n) :

Correct AnswerverifiedShow Answer

If the cost of flour increases from $3 to $5 a bag, you could predict the supply curve for bagels to:

Correct AnswerverifiedShow Answer

Refer to the table below: Assume that the market for iPods has only two consumers: Chuck and Ryan. According the table above, if the price of an iPod is $85, the market will demand:

Correct AnswerverifiedShow Answer

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When supply shifts left and demand shifts right, the:

Correct AnswerverifiedShow Answer

Many consumer items eventually go out of style, and because fewer people want these items, demand for them drops. When this happens, we usually see production of these items stop. What happens to the equilibrium price and equilibrium quantity in a market like this?

Correct AnswerverifiedShow Answer

Which of the following would cause the demand curve to shift to the right?

Correct AnswerverifiedShow Answer

Refer to the accompanying figure. When the price changes from P1 to P2, we will see a(n) :

Correct AnswerverifiedShow Answer

Wine and cheese are complement goods because they are consumed together. What would you expect to happen to the equilibrium quantity of cheese if the price of wine increased and all else is held constant?

Correct AnswerverifiedShow Answer

A supply schedule:

Correct AnswerverifiedShow Answer

A change in quantity supplied:

Correct AnswerverifiedShow Answer

A technological advancement for Good A will shift the _________ curve of Good A to the _________, making the equilibrium price _________.

Correct AnswerverifiedE

According to the figure below, at the price of $5:

Correct AnswerverifiedB

According to the accompanying figure, if the price is $10, there is a:

Correct AnswerverifiedShow Answer

What would you expect to happen to the price of bagels if the price of flour decreased and the price of cream cheese decreased?

Correct AnswerverifiedShow Answer

When both supply and demand decrease, the equilibrium price:

Correct AnswerverifiedShow Answer

Something is an inferior good if the demand for the good:

Correct AnswerverifiedShow Answer

Refer to the table below. If the price of this good is $2.00, there would be a _________ of _________ units.

Correct AnswerverifiedShow Answer

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D

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Refer to the accompanying figure. When the price changes from P₁ to P₂, we will see a(n) :

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A technological advancement for Good A will shift the _____ curve of Good A to the _, making the equilibrium price _____.

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E

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B

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Refer to the table below. If the price of this good is $2.00, there would be a _ of _ units.

Correct Answer
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