Quiz 4: Demand,supply,and Market Equilibrium
Business
Q 1Q 1
A perfectly competitive market is a market that has:
A)many buyers.
B)many sellers.
C)no single buyer or seller who can affect the price.
D)All of the above are correct.
Free
Multiple Choice
D
Q 2Q 2
If a competitive market operates perfectly,it relies on:
A)the number of people buying goods.
B)the laws of supply and demand.
C)how many products can be produced for sale.
D)how much people are willing to pay for the products.
Free
Multiple Choice
B
Q 3Q 3
The quantity of a product that consumers are willing and able to buy at a given price is called the:
A)quantity demanded.
B)quantity supplied.
C)demand for a good.
D)demand schedule.
Free
Multiple Choice
A
Q 4Q 4
Quantity demanded is defined as the:
A)quantity of a product that consumers are willing and able to buy at a given price.
B)quantity of a product that sellers are willing and able to buy at a given level of income.
C)quantity of a product that consumers and producers are willing and able to buy,given their level of preference.
D)quantity of a product that consumers are willing and able to sell at a given price.
Free
Multiple Choice
Q 5Q 5
A change in the quantity demanded of a product is the result of a change in:
A)the price of the product.
B)the price of related goods.
C)consumer income.
D)the cost of producing the product.
Free
Multiple Choice
Q 6Q 6
A change in the quantity demanded of a product cannot be the result of a change in:
A)the buyer's preference.
B)the price of related goods.
C)consumer income.
D)All of the above are correct.
Free
Multiple Choice
Q 7Q 7
When a demand curve is drawn,which of the following is held constant?
A)people's income
B)people's preferences
C)prices of related goods
D)All of the above are held constant when constructing a demand curve.
Free
Multiple Choice
Q 8Q 8
When a demand curve is drawn,which of the following is NOT held constant?
A)people's income
B)people's preferences
C)prices of related goods
D)the price of the good
Free
Multiple Choice
Q 9Q 9
A demand curve is defined as the relationship between:
A)the price of a good and the quantity of that good that consumers are willing to buy.
B)the price of a good and the quantity of that good that producers are willing to sell.
C)the income of consumers and the quantity of a good that consumers are willing to buy.
D)the income of consumers and the quantity of a good that producers are willing to sell.
Free
Multiple Choice
Q 10Q 10
The law of demand states that the quantity demanded of a product increases as:
A)consumer income rises.
B)the prices of other products fall.
C)the price of the product rises.
D)the price of the product falls.
Free
Multiple Choice
Q 11Q 11
Typically,a demand curve will represent what relationship?
A)the current desire for purchases of fad products as opposed to other products
B)how much the products costs and the quantity of it produced
C)how many people are willing to buy and the quantities each will purchase
D)the price and the quantity demanded by the buyers
Free
Multiple Choice
Q 12Q 12
The law of demand can be defined as:
A)a lot of people wanting the same thing.
B)the higher the price,the smaller the quantity demanded,ceteris paribus.
C)people are willing to make limited sacrifices to acquire products.
D)none of the above.
Free
Multiple Choice
Q 13Q 13
In considering the relationships between price and quantity demanded,ceteris paribus means economists assume that:
A)price increases affect quantity.
B)quantity increases affect prices.
C)either price or quantity can affect demand.
D)all other variables remain unchanged.
Free
Multiple Choice
Q 14Q 14
When there is a change in the quantity demanded it means that the:
A)hours the customer can buy products each day have increased.
B)number of products in inventory have increased.
C)quantity a consumer is willing to buy changes when the price changes.
D)selling price of the products has not changed.
Free
Multiple Choice
Q 15Q 15
The market demand curve:
A)shows the relationship between the price of a good and the quantity that all consumers together are willing to buy.
B)is drawn assuming that variables such as income and tastes are fixed.
C)is drawn assuming that the number of consumers is fixed.
D)all of the above
Free
Multiple Choice
Q 16Q 16
Suppose that there are only three consumers of a product.At a price of $3 per unit,the first consumer would buy 6 units of the product,the second consumer would buy 5 units,and the third consumer would buy 7 units of the product.If you drew a market demand curve for this product,the quantity demanded at a price of $3 would be:
A)18 units.
B)11 units.
C)13 units.
D)unable to be determined based on the information provided.
Free
Multiple Choice
Q 17Q 17
The market demand curve is:
A)negatively sloped.
B)upward sloping.
C)always vertical
D)always horizontal.
Free
Multiple Choice
Q 18Q 18
The market demand curve is:
A)downward sloping and is flatter than an individual's demand curve.
B)upward sloping and is flatter than an individual's demand curve.
C)downward sloping and is steeper than an individual's demand curve.
D)upward sloping and is steeper than an individual's demand curve.
Free
Multiple Choice
Q 19Q 19
Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,what is the market quantity demanded at a price of $15?
A)1
B)2
C)3
D)9
Free
Multiple Choice
Q 20Q 20
Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,what is the market quantity demanded at a price of $10?
A)2
B)4
C)6
D)8
Free
Multiple Choice
Q 21Q 21
Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,if the market quantity demanded is 6,the price must be:
A)$5.
B)$10.
C)$15.
D)$20.
Free
Multiple Choice
Q 22Q 22
Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,if the market quantity demanded is 3 the price must be:
A)$5.
B)$10.
C)$15.
D)$20.
Free
Multiple Choice
Q 23Q 23
Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,if the market quantity demanded is 9 the price must be:
A)$5.
B)$10.
C)$15.
D)$20.
Free
Multiple Choice
Q 24Q 24
In the application,what was the reason why the government decreased the tax rates of cigarettes?
A)to discourage smuggling of cigarettes from the United States
B)to encourage smoking
C)to discourage smoking
D)to give in to consumer demands of lower taxes in the country.
Free
Multiple Choice
Q 25Q 25
In the application,what was/were the reason(s)why a lower price of cigarettes will increase the quantity demanded for cigarettes?
A)lower prices make current smokers smoke more cigarettes.
B)lower prices encourage people to start smoking.
C)lower prices encourage people to quit smoking.
D)A and B are both correct.
Free
Multiple Choice
Q 26Q 26
In the application,when the government lowered the price of cigarettes by lowering the tax rates,the response of the consumer was:
A)an increase in quantity demanded.
B)an increase in demand.
C)a decrease in demand.
D)a decrease in quantity demanded.
Free
Multiple Choice
Free
True False
Free
True False
Q 29Q 29
The substitution effect of a price change implies that as the price of a good falls,people are likely to buy less of the good whose price has fallen.
Free
True False
Q 30Q 30
On the "demand side" of a market,consumers indicate to producers what they are willing to buy,in what quantity,and at what price.
Free
True False
Q 31Q 31
The market demand curve shows the relationship between the price and the quantity demanded by all consumers,everything else being equal.
Free
True False
Q 32Q 32
Suppose that the price of apples decreases and the quantity of apples in the market decreases.Suggest two reasons why this might have happened.
Free
Essay
Q 33Q 33
What is a "change in quantity demanded"? How is a "change in quantity demanded" illustrated in a demand diagram?
Free
Essay
Free
Essay
Free
Essay
Q 36Q 36
Between an "individual demand curve" and a "market demand curve," which one has a steeper slope?
Free
Essay
Q 37Q 37
A supply curve is defined as the relationship between:
A)the price of a good and the quantity that consumers are willing to buy.
B)the price of a good and the quantity that producers are willing to sell.
C)the income of consumers and the quantity of a product that consumers are willing to buy.
D)the income of consumers and the quantity of a product that producers are willing to sell.
Free
Multiple Choice
Q 38Q 38
A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the:
A)supply schedule.
B)supply curve.
C)demand schedule.
D)demand curve.
Free
Multiple Choice
Q 39Q 39
The law of supply states that:
A)firms supply more of a product as consumer income rises.
B)firms supply more of a product as consumer income falls.
C)firms supply more of a product as the price of the product rises.
D)firms supply more of a product as the price of the product falls.
Free
Multiple Choice
Q 40Q 40
If the law of supply holds,then the supply curve can never:
A)slope downwards.
B)be concave.
C)shift to the right.
D)shift to the left.
Free
Multiple Choice
Q 41Q 41
When a supply curve is drawn,which of the following is held constant?
A)the amount of taxes or subsidies that a firm pays or receives
B)the number of sellers in a market
C)prices of inputs
D)All of the above are held constant when constructing a supply curve.
Free
Multiple Choice
Q 42Q 42
When a supply curve is drawn,which of the following is NOT held constant?
A)taxes and subsidies
B)the state of production technology
C)prices of inputs
D)the price of the good
Free
Multiple Choice
Q 43Q 43
A minimum supply price is defined as:
A)the lowest price at which a product is made available for sale.
B)the lowest price at which a product is bought.
C)the lowest cost to produce a good.
D)the lowest price at which other sellers also want to sell the good.
Free
Multiple Choice
Q 44Q 44
If a computer company will sell a laptop only if the price is $400 or higher,then $400 is known as:
A)the minimum supply price.
B)the input cost price.
C)the minimum production cost.
D)the minimum average cost.
Free
Multiple Choice
Q 45Q 45
The market supply curve for a particular good:
A)shows the relationship between the price of the good and the quantity that all producers together are willing to sell.
B)is drawn assuming that the other variables besides product price that affect supply are fixed.
C)is drawn assuming that the number of producers is fixed.
D)all of the above
Free
Multiple Choice
Q 46Q 46
If at a price of $1000,8 different laptop manufacturers are willing to sell 20 laptops each.If the 8 manufacturers are the only sellers of laptops in the market,then at a price of $1000,there are ________ laptops supplied in the market.
A)160
B)8
C)20
D)820
Free
Multiple Choice
Q 47Q 47
At a price of $1000,Dell Computer Co.is willing to sell 20 laptops and Compaq is willing to sell 40 laptops.IBM will only sell laptops if the price is $1300 or higher.At $1000,the market supply for laptops is:
A)60.
B)800.
C)20.
D)40.
Free
Multiple Choice
Q 48Q 48
At a price of $1000,Dell Computer Co.is willing to sell 20 laptops and Compaq is willing to sell 40 laptops.IBM will only sell laptops if the price is $1300 or higher.From the point of view of IBM,$1300 is the:
A)minimum supply price.
B)minimum cost.
C)the equilibrium price.
D)minimum loss price.
Free
Multiple Choice
Q 49Q 49
The market supply curve is:
A)negatively sloped.
B)upward sloping.
C)always vertical.
D)always horizontal.
Free
Multiple Choice
Q 50Q 50
The market supply curve is:
A)downward sloping and is flatter than an individual's supply curve.
B)upward sloping and is flatter than an individual's supply curve.
C)downward sloping and is steeper than an individual's supply curve.
D)upward sloping and is steeper than an individual's supply curve.
Free
Multiple Choice
Q 51Q 51
Why is the market supply curve positively sloped?
A)At a higher price,more firms enter the market willing to sell the product or service.
B)At a higher price,fewer firms enter the market willing to sell the product or service.
C)At a higher price,the firms already in the market and are willing to sell a larger quantity of the product or service.
D)Both A and C are correct.
Free
Multiple Choice
Q 52Q 52
Suppose that the price for fully electric vehicle made by Toyota increases.The quantity of fully electric cars sold in the market will:
A)increase,because Toyota would be willing to sell more fully electric vehicles.
B)decrease,because Toyota believes that to maintain the higher prices,it must sell a smaller quantity.
C)increase,because other auto manufacturers would want to enter the market and also sell fully electric vehicles.
D)Both A and C are correct.
Free
Multiple Choice
Q 53Q 53
According to the Application,which of the following is the most likely reason for the falling prices of wool worldwide?
A)lower demand for wool
B)the law of supply
C)higher demand for wool
D)lower quantity supplied of wool
Free
Multiple Choice
Q 54Q 54
According to the Application,which of the following is the result of the falling prices of wool worldwide?
A)lower demand for wool.
B)higher demand for synthetic fibers.
C)higher demand for wool.
D)lower quantity supplied of wool.
Free
Multiple Choice
Q 55Q 55
According to the Application,the policies proposed to help raise the price of wool focuses on:
A)lowering the demand for wool.
B)raising the supply for synthetic fibers.
C)raising the demand for wool.
D)raising the supply for wool.
Free
Multiple Choice
Q 56Q 56
According to the Application,why might introducing sheep shearing not be an effective policy to raise wool prices?
A)Increased sheep shearing might decrease the demand for wool.
B)Increased sheep searing might increase the demand for wool substitutes.
C)Increased sheep shearing will definitely increase the demand for wool,causing the prices to drop.
D)Increased sheep shearing will definitely increase the supply of wool,causing the prices to drop.
Free
Multiple Choice
Free
True False
Q 58Q 58
On the "supply side" of a market,producers indicate to consumers what they are willing to sell,in what quantity,and at what price.
Free
True False
Q 59Q 59
Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza.We would expect that:
A)the price of pizza will increase.
B)the price of pizza will decrease.
C)the supply will decrease to meet the demand.
D)the demand will increase to meet the supply.
Free
Multiple Choice
Q 60Q 60
If we observe that the price is rising in the sugar market,it could be due to:
A)an excess supply of sugar.
B)an excess demand for sugar.
C)an increase in the supply of sugar.
D)a decrease in the demand for sugar.
Free
Multiple Choice
Q 61Q 61
When consumers are willing to buy more than producers are willing to sell:
A)there is excess supply of the product in the market.
B)there is excess demand for the product in the market.
C)the market is in equilibrium.
D)the demand curve will shift until the quantity supplied equals the quantity demanded.
Free
Multiple Choice
Q 62Q 62
What happens if the price of a product is below the equilibrium price?
A)The buyers will stop purchasing a "cheap" product.
B)The producer will lower the price to make more profit.
C)There will be an excess demand for the product.
D)none of the above
Free
Multiple Choice
Q 63Q 63
Suppose that the current price in a market for Pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.At the current price,the market is experiencing:
A)an excess demand of 119 pizzas.
B)an equilibrium.
C)an excess supply of $119.
D)an excess demand of 500 pizzas.
Free
Multiple Choice
Q 64Q 64
Suppose that the current price in a market for Pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.In this market,we would expect that:
A)the price of pizzas would increase.
B)the price of pizzas would decrease.
C)buyers would want to buy more pizza in the future.
D)sellers would want to sell fewer pizzas in the future.
Free
Multiple Choice
Q 65Q 65
Suppose that the quantity demanded for cars exceeds the quantity supplied of cars.We would expect that:
A)the price of cars will increase.
B)the price of cars will decrease.
C)the supply will increase to meet the demand.
D)the demand will decrease to meet the supply.
Free
Multiple Choice
Q 66Q 66
Suppose that the quantity supplied of cars exceeds the quantity of cars demanded.We would expect that:
A)the price of cars will increase.
B)the price of cars will decrease.
C)the supply will increase to meet the demand.
D)the demand will decrease to meet the supply.
Free
Multiple Choice
Q 67Q 67
Suppose that a market for a product is in equilibrium at a price of $5 per unit.At any price above $5 per unit:
A)there will be an excess demand for the product.
B)there will be an excess supply of the product.
C)the quantity supplied of the product will be greater than the quantity demanded of that product.
D)both B and C.
Free
Multiple Choice
Q 68Q 68
Suppose that a market for a product is in equilibrium at a price of $5 per unit.At any price below $5 per unit:
A)there will be an excess demand for the product.
B)there will be an excess supply of the product.
C)the quantity supplied of the product will be greater than the quantity demanded of that product.
D)both B and C.
Free
Multiple Choice
Q 69Q 69
Figure 4.2
-In Figure 4.2,which of the panels depicts a market in which there is an excess demand for a product?
A)Panel A
B)Panel B
C)Panel C
D)None of the panels depicts a market in which there is an excess demand for a product.
Free
Multiple Choice
Q 70Q 70
Figure 4.2
-In Figure 4.2,which of the panels depicts a market in which there is an excess supply of a product?
A)Panel A
B)Panel B
C)Panel C
D)None of the panels depicts a market in which there is an excess supply of a product.
Free
Multiple Choice
Q 71Q 71
Figure 4.2
-Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to rise?
A)Panel A
B)Panel B
C)Panel C
D)None of the panels depicts a market in which the price is likely to rise.
Free
Multiple Choice
Q 72Q 72
Figure 4.2
-Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to fall?
A)Panel A
B)Panel B
C)Panel C
D)None of the panels depicts a market in which the price is likely to fall.
Free
Multiple Choice
Q 73Q 73
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $30,there is:
A)excess demand of 40 pairs of blue jeans.
B)excess supply of 40 pairs of blue jeans.
C)excess demand of 50 pairs of blue jeans.
D)excess supply of 50 pairs of blue jeans.
Free
Multiple Choice
Q 74Q 74
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $50,there is:
A)excess demand of 40 pairs of blue jeans.
B)excess supply of 40 pairs of blue jeans.
C)excess demand of 50 pairs of blue jeans.
D)excess supply of 50 pairs of blue jeans.
Free
Multiple Choice
Q 75Q 75
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $30,we would expect the price of blue jeans to ________,the quantity demanded of blue jeans to ________,and the quantity supplied of blue jeans ________.
A)increase;increase;increase
B)increase;decrease;increase
C)decrease;increase;decrease
D)decrease;decrease;increase
Free
Multiple Choice
Q 76Q 76
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $50,we would expect the price of blue jeans to ________,the quantity demanded of blue jeans to ________,and the quantity supplied of blue jeans to ________.
A)increase;increase;increase
B)increase;decrease;increase
C)decrease;increase;decrease
D)decrease;decrease;increase
Free
Multiple Choice
Q 77Q 77
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $30,we would expect that:
A)demand will decrease until quantity demanded equals quantity supplied.
B)supply will increase until quantity demanded equals quantity supplied.
C)price will increase until quantity demanded equals quantity supplied.
D)there will be no change since the market is in equilibrium.
Free
Multiple Choice
Q 78Q 78
Figure 4.3
-Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $50,we would expect that:
A)demand will increase until quantity demanded equals quantity supplied.
B)supply will decrease until quantity demanded equals quantity supplied.
C)price will decrease until quantity demanded equals quantity supplied.
D)no change will occur since the market is in equilibrium.
Free
Multiple Choice
Q 79Q 79
A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers.This is sometimes called a:
A)price ceiling.
B)price floor.
C)tax.
D)none of the above
Free
Multiple Choice
Q 80Q 80
Rent control is an example of the government imposing:
A)a price ceiling.
B)an equilibrium price.
C)a price floor.
D)a minimum supply price.
Free
Multiple Choice
Q 81Q 81
If the government imposes a price ceiling that is above the equilibrium price,then the market will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)no scarcity.
Free
Multiple Choice
Q 82Q 82
If the government imposes a price ceiling that is below the equilibrium price,then the market will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)no scarcity.
Free
Multiple Choice
Q 83Q 83
If the government imposes a price floor that is below the equilibrium price,then the market will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)no scarcity.
Free
Multiple Choice
Q 84Q 84
If the government imposes a price floor that is above the equilibrium price,then the market will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)an increase in demand.
Free
Multiple Choice
Q 85Q 85
Suppose that the equilibrium rent for apartments in San Francisco is $1200 per month.If the City of San Francisco legislates that apartment owners cannot charge rent higher than $1000,then the apartment market in San Francisco will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)an increase in supply.
Free
Multiple Choice
Q 86Q 86
Suppose that the equilibrium rent for apartments in San Francisco is $1200 per month.If the City of San Francisco legislates that apartment owners cannot charge rent higher than $1900,then the apartment market in San Francisco will experience:
A)an equilibrium.
B)a shortage.
C)an excess supply.
D)an increase in supply.
Free
Multiple Choice
Q 87Q 87
From the Application,we can infer that the presence of wine lakes indicate that the market is experiencing:
A)an equilibrium.
B)a shortage.
C)a surplus.
D)All of the above are correct.
Free
Multiple Choice
Q 88Q 88
From the Application,we can infer that if the government stops intervening in the market,then the:
A)prices will drop.
B)prices will rise.
C)the supply will decrease.
D)the demand will increase.
Free
Multiple Choice
Q 89Q 89
From the Application,we can infer that the wine lakes will grow faster if:
A)the government set minimum prices further above the equilibrium.
B)the government set maximum prices further below the equilibrium.
C)the government set maximum prices further above the equilibrium.
D)the government set minimum prices further below the equilibrium.
Free
Multiple Choice
Q 90Q 90
From the Application,we can infer that the wine lakes will disappear if:
A)the government set the price at the equilibrium.
B)the government set minimum prices below the equilibrium.
C)the government set maximum prices above the equilibrium.
D)All of the above are correct.
Free
Multiple Choice
Q 91Q 91
From the Application,we can infer that the wine lakes will disappear if:
A)the government set the minimum price below the equilibrium.
B)the government set minimum prices above the equilibrium.
C)the government takes over the production of wine.
D)All of the above are correct.
Free
Multiple Choice
Q 92Q 92
Minimum wage laws are examples of:
A)price ceilings.
B)equilibrium prices.
C)price floors.
D)minimum supply prices.
Free
Multiple Choice
Free
True False
Free
True False
Q 95Q 95
If a market is in equilibrium,there is not any pressure to change the price upward or downward.Is this a true or false assumption?
Free
True False
Q 96Q 96
Governments occasionally get involved in creating a market equilibrium by setting a maximum price that is less than the equilibrium price,resulting in a permanent excess demand for the products.
Free
True False
Q 97Q 97
________ occurs in a market when consumers are willing to buy more than producers are willing to sell,or can supply
Free
Essay
Q 98Q 98
When the quantity of a product demanded by buyers equals the quantity supplied,it is called ________.
Free
Essay
Q 99Q 99
If a government creates an excess demand for a product by setting a maximum price,it is sometimes called a ________.
Free
Essay
Q 100Q 100
A surplus occurs when producers are willing to sell more than consumers are willing to buy.This is called an ________.
Free
Essay
Q 101Q 101
A permanent excess supply of a product is possible when the government sets a minimum price that is ________ than the equilibrium price.
Free
Essay
Free
Essay
Q 103Q 103
Explain how an excess demand would lead to an increase in prices in an unregulated market.
Free
Essay
Q 104Q 104
Judy demands more peanuts as her income increases.From this,we can conclude that,for Judy:
A)peanuts are a normal good.
B)peanuts are an inferior good.
C)peanuts are a complementary good.
D)peanuts are a substitute good.
Free
Multiple Choice
Q 105Q 105
When Mary's income increases,she purchases fewer hamburgers.We can conclude that for Mary,hamburger is a(n)________ good.
A)normal
B)inferior
C)substitute
D)complementary
Free
Multiple Choice
Q 106Q 106
When Tom's income decreases,he purchases more hamburgers.We can conclude that for Tom,hamburger is a(n)________ good.
A)substitute
B)complementary
C)normal
D)inferior
Free
Multiple Choice
Q 107Q 107
Becky demands more raisins as her income increases.From this,we can conclude that,for Becky:
A)raisins are an inferior good.
B)raisins are a complementary good.
C)raisins are a normal good.
D)raisins are a substitute good.
Free
Multiple Choice
Q 108Q 108
A normal good is defined as a good for which demand decreases when:
A)the price increases.
B)income increases.
C)the price decreases.
D)income decreases.
Free
Multiple Choice
Q 109Q 109
Two goods are substitutes if:
A)the supply of one good decreases when the price of the other increases.
B)the supply of one good decreases when the price of the other decreases.
C)the demand for one good decreases when the price of the other increases.
D)the demand for one good decreases when the price of the other decreases.
Free
Multiple Choice
Q 110Q 110
The effect of income on the demand for normal goods is such that:
A)as the price of a normal good falls,people are likely to buy less of the good.
B)as the price of a good falls,people are likely to buy more of all normal goods.
C)as the price of a good falls,people are likely to buy less of all normal goods.
D)both A and C
Free
Multiple Choice
Q 111Q 111
If an increase in income results in a decrease in the demand for Honda Civics,then Honda Civics are considered:
A)normal goods.
B)inferior goods.
C)substitute goods.
D)complementary goods.
Free
Multiple Choice
Q 112Q 112
If an increase in income results in an increase in the demand for Honda Civics,then Honda Civics are considered:
A)normal goods.
B)inferior goods.
C)substitute goods.
D)complementary goods.
Free
Multiple Choice
Q 113Q 113
If incomes increase and Honda Civics are considered normal goods,then:
A)the demand for Honda Civics will increase.
B)the quantity demanded for Honda Civics will increase.
C)the demand for Honda Civics will decrease.
D)the quantity demanded for Honda Civics will decrease.
Free
Multiple Choice
Q 114Q 114
Relative to hotdogs,hotdog buns are considered:
A)complements.
B)substitutes.
C)inputs.
D)luxury goods.
Free
Multiple Choice
Q 115Q 115
Which of the following are most likely to be considered substitutes to pizzas?
A)hamburgers
B)cheese
C)pepperoni
D)soda
Free
Multiple Choice
Q 116Q 116
Which of the following is the least likely complement for hamburgers?
A)beef
B)cheese
C)hamburger buns
D)soda
Free
Multiple Choice
Q 117Q 117
Which of the following is the most likely complement for hamburgers?
A)soda
B)beef
C)hamburger buns
D)All of the above are complements.
Free
Multiple Choice
Q 118Q 118
If incomes increase and Honda Civics are considered inferior goods,then:
A)the demand for Honda Civics will increase.
B)the quantity demanded for Honda Civics will increase.
C)the demand for Honda Civics will decrease.
D)the quantity demanded for Honda Civics will decrease.
Free
Multiple Choice
Q 119Q 119
As consumers prefer smaller and more fuel-efficient cars,the:
A)demand for SUVs will decrease.
B)quantity demanded for SUVs will rise.
C)demand for SUVs will increase.
D)quantity demanded for SUVs will fall.
Free
Multiple Choice
Q 120Q 120
Assume that butter and margarine are substitutes.When the price of butter increases:
A)the demand for margarine increases.
B)the demand for margarine decreases.
C)the supply of margarine increases.
D)the supply of margarine decreases.
Free
Multiple Choice
Q 121Q 121
When the price of apples goes up:
A)the demand for apples will decrease.
B)the demand for apples will increase.
C)the quantity demanded for apples will decrease.
D)the quantity demanded for apples will increase.
Free
Multiple Choice
Q 122Q 122
Assume that chicken and beef are substitutes.When the price of beef increases:
A)the demand for chicken decreases.
B)the demand for chicken increases.
C)the supply of chicken increases.
D)the supply of chicken decreases.
Free
Multiple Choice
Q 123Q 123
When the price of peanuts falls:
A)the demand for peanuts decreases.
B)the demand for peanuts increases.
C)the quantity demanded of peanuts decreases.
D)the quantity demanded of peanuts increases.
Free
Multiple Choice
Q 124Q 124
Assume that compact discs and compact disc players are complements.When the price of compact disc players decreases:
A)the demand for compact discs increases.
B)the demand for compact discs decreases.
C)the supply of compact discs increases.
D)the supply of compact discs decreases.
Free
Multiple Choice
Q 125Q 125
Suppose that a product benefits from a successful advertising campaign.The result is that:
A)the demand for the product increases.
B)the demand for the product decreases.
C)the supply of the product increases.
D)the supply of the product decreases.
Free
Multiple Choice
Q 126Q 126
Suppose that consumers expect that the price of a product will increase in the future.The result is that:
A)the current demand for the product increases.
B)the current demand for the product decreases.
C)the current supply of the product increases.
D)the current supply of the product decreases.
Free
Multiple Choice
Q 127Q 127
Two goods are complements if:
A)the supply of one good decreases when the price of the other increases.
B)the supply of one good decreases when the price of the other decreases.
C)the demand for one good decreases when the price of the other increases.
D)the demand for one good decreases when the price of the other decreases.
Free
Multiple Choice
Q 128Q 128
Suppose you have 2 goods,X and Y.If the price of X increases and you buy more Y,then X and Y are:
A)substitutes.
B)normal goods.
C)complements.
D)inferior goods.
Free
Multiple Choice
Q 129Q 129
Suppose you have 2 goods,X and Y.If the price of X decreases and you buy more Y,then X and Y are:
A)substitutes.
B)normal goods.
C)complements.
D)inferior goods.
Free
Multiple Choice
Q 130Q 130
Suppose that consumption of oat bran is found to reduce cholesterol and improve health.The result is that:
A)the demand for oat bran decreases.
B)the demand for oat bran increases.
C)the supply of oat bran increases.
D)Both A and C are correct.
Free
Multiple Choice
Q 131Q 131
Suppose that consumers expect the price of a product to decrease in the future.The result is that:
A)the current demand for the product increases.
B)the current demand for the product decreases.
C)the current supply of the product increases.
D)the current supply of the product decreases.
Free
Multiple Choice
Q 132Q 132
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.An increase in the demand for guitars is represented by the movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 133Q 133
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.A decrease in the demand for guitars is represented by the movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 134Q 134
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume guitars are a normal good.An increase in income would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 135Q 135
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume guitars are an inferior good.An increase in income would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 136Q 136
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume that guitars and guitar strings are complements.An increase in the price of guitar strings would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 137Q 137
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume that guitars and guitar strings are complements.A decrease in the price of guitar strings would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 138Q 138
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.Assume that guitars and banjos are substitutes.A decrease in the price of banjos would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 139Q 139
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.An increase in the number of guitar players in the market would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 140Q 140
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.An increase in price of guitars would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 141Q 141
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.A decrease in price of guitars would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 142Q 142
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.A successful advertising campaign to sell guitars would bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 143Q 143
Figure 4.4
-Figure 4.4 illustrates the demand for guitars.If people expect the price of guitars to decrease in the near future,this would most likely bring about a movement from:
A)point B to point C.
B)point B to point A.
C)D1 to D0.
D)D1 to D2.
Free
Multiple Choice
Q 144Q 144
Assume that tortilla chips and salsa are complements.When the price of tortilla chips decreases:
A)the demand for salsa increases.
B)the demand for salsa decreases.
C)the supply of salsa decreases.
D)the demand for tortilla chips decreases.
Free
Multiple Choice
Q 145Q 145
An inferior good is defined as a good for which demand decreases when:
A)the price increases.
B)income increases.
C)the price decreases.
D)income decreases.
Free
Multiple Choice
Q 146Q 146
When the price of one product decreases,what does it do to the demand of its complementary product?
A)It decreases.
B)It increases.
C)They balance each other.
D)none of the above
Free
Multiple Choice
Q 147Q 147
If the population increases,what will this do for the market demand for most products?
A)no change
B)decrease
C)increase
D)none of the above
Free
Multiple Choice
Q 148Q 148
If the U.S.population increases,then:
A)the demand for electricity increases.
B)the demand for electricity decreases.
C)the quantity demanded for electricity decreases.
D)the quantity demanded for electricity increases.
Free
Multiple Choice
Q 149Q 149
If incomes increase and electricity is a normal good,then:
A)the demand for electricity increases.
B)the demand for electricity decreases.
C)the quantity demanded for electricity decreases.
D)the quantity demanded for electricity increases.
Free
Multiple Choice
Q 150Q 150
If incomes decrease and electricity is a normal good,then:
A)the demand for electricity increases.
B)the demand for electricity decreases.
C)the quantity demanded for electricity decreases.
D)the quantity demanded for electricity increases.
Free
Multiple Choice
Q 151Q 151
If incomes increase and hotdogs are inferior goods,then:
A)the demand for hotdogs increases.
B)the demand for hotdogs decreases.
C)the quantity demanded for hotdogs decreases.
D)the quantity demanded for hotdogs increases.
Free
Multiple Choice
Q 152Q 152
If the price of hotdogs are expected to increase in the future,then:
A)the current demand for hotdogs will increase.
B)the current demand for hotdogs will decrease.
C)the current quantity demanded for hotdogs will decrease.
D)the current quantity demanded for hotdogs will increase.
Free
Multiple Choice
Q 153Q 153
If the price of hotdogs are expected to decrease in the future,then:
A)the current demand for hotdogs will increase.
B)the current demand for hotdogs will decrease.
C)the current quantity demanded for hotdogs will decrease.
D)the current quantity demanded for hotdogs will increase.
Free
Multiple Choice
Q 154Q 154
The purpose of advertising products to consumers is to:
A)reduce costs for producers.
B)decrease the demand for the product.
C)increase the price of the product.
D)change consumers' tastes toward the product.
Free
Multiple Choice
Q 155Q 155
If consumers have an expectation of a product's price increasing in the near future,they will usually:
A)wait to see if the price really increases.
B)purchase more at the current price.
C)wait for the new price and compare.
D)none of the above
Free
Multiple Choice
Q 156Q 156
When a consumer's income decreases,the consumer:
A)has less to spend.
B)buys a smaller quantity of normal goods.
C)buys more of inferior goods.
D)all of the above
Free
Multiple Choice
Q 157Q 157
Decreases in the demand for products can be caused by which of the following?
A)decreases in income
B)decreases in population
C)decreases in the prices of substitute goods
D)all of the above
Free
Multiple Choice
Q 158Q 158
A decrease in demand for coffee can be caused by:
A)an increase in demand for substitute products by younger populations.
B)a decrease in demand due to changing preferences for healthier products.
C)an increase in income and coffee is an inferior good.
D)all of the above.
Free
Multiple Choice
Q 159Q 159
When the price of a product decreases,the demand for a substitute product:
A)decreases.
B)increases.
C)changes to balance the price change.
D)none of the above
Free
Multiple Choice
Q 160Q 160
According to the Application,which determinant of demand is responsible for the increase in the demand for pecans?
A)preferences
B)income
C)price of substitutes
D)price of complements
Free
Multiple Choice
Q 161Q 161
From the Application,which of the following would we observe in the market for pecans as a result of an increase in the demand for pecans?
A)higher equilibrium price and equilibrium quantity of pecans.
B)higher equilibrium price and equilibrium quantity of pecan pies.
C)lower equilibrium price and equilibrium quantity of pecans.
D)higher equilibrium price and lower equilibrium quantity of pecans.
Free
Multiple Choice
Q 162Q 162
Can we infer that pecans are normal and inferior goods,just purely from reading the Application?
A)No.The Application made no mention of changes in income.
B)No.The Application did not mention the quality of the pecans.
C)Yes,pecans are inferior goods.
D)Yes,pecans are normal goods.
Free
Multiple Choice
Free
True False
Q 164Q 164
Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other.
Free
True False
Free
True False
Q 166Q 166
Two goods are complements if an increase in the price of one good leads to an increase in demand for the other.
Free
True False
Free
True False
Q 168Q 168
If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.
Free
True False
Free
True False
Free
True False
Q 171Q 171
Use the supply and demand model to explain why it is difficult to find an on-campus parking space during peak mid-day times,although it is much easier to find a parking space during less popular evening hours.
Free
Essay
Q 172Q 172
Why do the demand curves for inferior goods slope downward,even though the law of demand is driven in part by the income effect?
Free
Essay
Q 173Q 173
What is the difference between a "shift in the demand curve" and a "movement along the demand curve"?
Free
Essay
Q 174Q 174
Name at least three variables that can affect the demand for a product and the market equilibrium.
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Free
Essay
Q 183Q 183
Hops are used to produce beer.If the price of hops decreases:
A)the demand for beer increases.
B)the demand for beer decreases.
C)the supply of beer increases.
D)the supply of beer decreases.
Free
Multiple Choice
Q 184Q 184
If the number of beer producers decreases:
A)the demand for beer increases.
B)the demand for beer decreases.
C)the supply of beer increases.
D)the supply of beer decreases.
Free
Multiple Choice
Q 185Q 185
The price of oranges has risen dramatically.Which of the following is likely to happen?
A)The quantity of oranges supplied will increase.
B)The quantity of oranges supplied will decrease.
C)The supply of oranges will decrease.
D)The supply of oranges will increase.
Free
Multiple Choice
Q 186Q 186
The price of compact discs has fallen dramatically.Which of the following is likely to happen?
A)The quantity supplied of compact discs will decrease.
B)The quantity supplied of compact discs will increase.
C)The supply of compact discs will decrease.
D)The supply of compact discs players will increase.
Free
Multiple Choice
Q 187Q 187
Flour is used to produce bread.If the price of flour increases:
A)the demand for bread increases.
B)the demand for bread decreases.
C)the supply of bread increases.
D)the supply of bread decreases.
Free
Multiple Choice
Q 188Q 188
If a technological advance makes it possible to produce bananas at a lower cost:
A)the demand for bananas increases.
B)the demand for bananas decreases.
C)the supply of bananas increases.
D)the supply of bananas decreases.
Free
Multiple Choice
Q 189Q 189
Which of the following can increase the number of pizzas a seller is willing to sell at a given price?
A)The cost of inputs such as pepperoni and cheese goes up.
B)The number of workers working in the pizza factory decreases.
C)The amount of subsidies that pizza makers receive from the government decreases.
D)A new technology is developed that allows producers to make the same sized pizza using less cheese and dough.
Free
Multiple Choice
Q 190Q 190
If the price of crude oil (an input to the production of gasoline)increases,then we will expect to see:
A)a movement along the supply curve for gasoline upwards.
B)a movement along the supply curve for gasoline downwards.
C)a shift in the supply of gasoline to the left.
D)a shift in the supply of gasoline to the right.
Free
Multiple Choice
Q 191Q 191
If the price of crude oil (an input to the production of gasoline)decreases,then we will expect to see:
A)a movement along the supply curve for gasoline upwards.
B)a movement along the supply curve for gasoline downwards.
C)a shift in the supply of gasoline to the left.
D)a shift in the supply of gasoline to the right.
Free
Multiple Choice
Q 192Q 192
A decrease in the tuition (i.e. ,price)that a public university charges would result in:
A)an upward movement along the supply curve for college classes.
B)an downward movement along the supply curve for college classes.
C)a shift in the supply of college classes to the left.
D)a shift in the supply of college classes to the right.
Free
Multiple Choice
Q 193Q 193
An increase in the amount of subsidies that a public university receives would result in:
A)an upward movement along the supply curve for college classes.
B)an downward movement along the supply curve for college classes.
C)a shift in the supply of college classes to the left.
D)a shift in the supply of college classes to the right.
Free
Multiple Choice
Q 194Q 194
A decrease in the amount of subsidies that a public university receives would result in:
A)an upward movement along the supply curve for college classes.
B)an downward movement along the supply curve for college classes.
C)a shift in the supply of college classes to the left.
D)a shift in the supply of college classes to the right.
Free
Multiple Choice
Q 195Q 195
If the number of banana producers increases:
A)the demand for bananas increases.
B)the demand for bananas decreases.
C)the supply of bananas increases.
D)the supply of bananas decreases.
Free
Multiple Choice
Q 196Q 196
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.An increase in the supply of guitars is represented by a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 197Q 197
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.A decrease in the supply of guitars is represented by a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 198Q 198
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.An increase in the price of rosewood,which is used to make guitars,would most likely cause a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 199Q 199
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.A technological advancement that makes guitars cheaper to produce would most likely cause a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 200Q 200
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.An increase in the number of guitar manufacturers would most likely cause a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 201Q 201
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.If the government offered a subsidy to guitar manufacturers for each guitar they produce,this would most likely cause a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 202Q 202
Figure 4.5
-Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from:
A)point B to point C.
B)point B to point A.
C)S1 to S0.
D)S1 to S2.
Free
Multiple Choice
Q 203Q 203
An increase in supply of a product results when:
A)more companies produce the product.
B)the companies that produce the product have reduced input costs.
C)technological innovations are introduced in the manufacturing.
D)all of the above
Free
Multiple Choice
Q 204Q 204
If there is an advance in the technology used to produce a product,what is the likely effect it may have on the supply?
A)The company would not change its manufacturing.
B)More people would be needed to produce the product.
C)It would decrease the supply.
D)It would increase the supply.
Free
Multiple Choice
Q 205Q 205
Suppose that the government requires that farms use only animals instead of machinery when planting and harvesting corn.This will result in a(n):
A)decrease in the supply of corn.
B)decrease in the quantity supplied of corn.
C)increase in the supply of corn.
D)increase in the quantity supplied of corn.
Free
Multiple Choice
Q 206Q 206
If sellers have an expectation of higher future prices:
A)the current supply of that good will decrease.
B)the current demand for that good will increase.
C)the current supply of that good will increase.
D)the current demand for that good will decrease.
Free
Multiple Choice
Q 207Q 207
If sellers have an expectation of lower future prices:
A)the current supply of that good will decrease.
B)the current demand for that good will increase.
C)the current supply of that good will increase.
D)the current demand for that good will decrease.
Free
Multiple Choice
Q 208Q 208
Bananas and apples are substitutes.When the price of bananas falls and a technological advancement in apple production occurs at the same time:
A)the equilibrium price of apples rises and the equilibrium quantity of apples falls.
B)the equilibrium price of apples rises and the equilibrium quantity of apples rises.
C)the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
D)the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.
Free
Multiple Choice
Q 209Q 209
Bananas and apples are substitutes.When the price of bananas rises and a technological advance in apple production occurs at the same time:
A)the equilibrium price of apples rises and the equilibrium quantity of apples falls.
B)the equilibrium price of apples rises and the equilibrium quantity of apples rises.
C)the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
D)the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall.
Free
Multiple Choice
Q 210Q 210
Peaches and cream are complements.When the price of peaches falls and the price of raw milk (used to make cream)rises:
A)the equilibrium price of cream rises and the equilibrium quantity of cream might rise or fall.
B)the equilibrium price of cream falls and the equilibrium quantity of cream might rise or fall.
C)the equilibrium price of cream falls and the equilibrium quantity of cream falls.
D)the equilibrium price of cream falls and the equilibrium quantity of cream rises.
Free
Multiple Choice
Q 211Q 211
Peaches and cream are complements.When the price of peaches rises and the price of raw milk (used to make cream)rises:
A)the equilibrium price of cream rises and the equilibrium quantity of cream might rise or fall.
B)the equilibrium price of cream falls and the equilibrium quantity of cream might rise or fall.
C)the equilibrium price of cream falls and the equilibrium quantity of cream rises.
D)the equilibrium quantity of cream falls and the equilibrium price of cream might rise or fall.
Free
Multiple Choice
Q 212Q 212
Suppose that a new advertising campaign extolling the virtues of apple juice is successful and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?
A)The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls.
B)The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises.
C)The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall.
D)The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall.
Free
Multiple Choice
Q 213Q 213
Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice)reduces the risk of cancer and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?
A)The price of apple juice might rise or fall and the quantity of apple juice falls.
B)The price of apple juice might rise or fall and the quantity of apple juice rises.
C)The price of apple juice falls and the quantity of apple juice falls.
D)The quantity of apple juice might rise or fall and the price of apple juice rises.
Free
Multiple Choice
Q 214Q 214
Figure 4.7
-If demand increases in Figure 4.7,then the equilibrium:
A)price and quantity rise.
B)price rises and quantity falls.
C)price falls and quantity rises.
D)price and quantity fall.
Free
Multiple Choice
Q 215Q 215
Figure 4.7
-If demand falls in Figure 4.7,then the equilibrium:
A)price and quantity rise.
B)price rises and quantity falls.
C)price falls and quantity rises.
D)price and quantity fall.
Free
Multiple Choice
Q 216Q 216
Figure 4.7
-If supply increases in Figure 4.7,then the equilibrium:
A)price and quantity rise.
B)price rises and quantity falls.
C)price falls and quantity rises.
D)price and quantity fall.
Free
Multiple Choice
Q 217Q 217
Figure 4.7
-If supply decreases in Figure 4.7,then the equilibrium:
A)price and quantity rise.
B)price rises and quantity falls.
C)price falls and quantity rises.
D)price and quantity fall.
Free
Multiple Choice
Q 218Q 218
Figure 4.7
-If demand and supply rise in Figure 4.7,then the equilibrium:
A)price rises.
B)price falls.
C)quantity rises.
D)quantity falls.
Free
Multiple Choice
Q 219Q 219
Figure 4.7
-If demand and supply decrease in Figure 4.7,then the equilibrium:
A)price rises.
B)price falls.
C)quantity rises.
D)quantity falls.
Free
Multiple Choice
Q 220Q 220
Figure 4.7
-If demand decreases and supply increases in Figure 4.7,then the equilibrium:
A)price rises.
B)price falls.
C)quantity rises.
D)quantity falls.
Free
Multiple Choice
Q 221Q 221
Figure 4.7
-If demand increases and supply decreases in Figure 4.7,then the equilibrium:
A)price rises.
B)price falls.
C)quantity rises.
D)quantity falls.
Free
Multiple Choice
Q 222Q 222
According to the application,the increase in the price of ice cream is caused by:
A)a decrease in the output of fruit trees caused by the decline in the number of honey bees that pollinate these fruit trees.
B)an increase in the output of fruit trees caused by the decline in the number of honey bees that pollinate these fruit trees.
C)a decrease in the output of fruit trees caused by the rise in the number of honey bees that pollinate these fruit trees.
D)an increase in the output of fruit trees caused by the rise in the number of honey bees that pollinate these fruit trees.
Free
Multiple Choice
Q 223Q 223
Using supply and demand analysis,the increase in the price of ice cream can be illustrated as:
A)a leftward shift in the supply curve for ice cream caused by more expensive ingredients.
B)a rightward shift in the supply curve for ice cream caused by more expensive ingredients.
C)a leftward shift in the demand curve for ice cream caused by more expensive ingredients.
D)a rightward shift in the demand curve for ice cream caused by more expensive ingredients.
Free
Multiple Choice
Q 224Q 224
Using supply and demand analysis,if the "colony collapse disorder (CCD)" of honey bees caused a leftward shift of the supply curve for ice cream,then which of the following must be true?
A)The equilibrium price of ice cream increased and the equilibrium quantity decreased.
B)The equilibrium price of ice cream decreased and the equilibrium quantity decreased.
C)The equilibrium price of ice cream increased and the equilibrium quantity increased.
D)The equilibrium price of ice cream decreased and the equilibrium quantity increased.
Free
Multiple Choice
Q 225Q 225
If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.
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True False
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True False
Q 227Q 227
A major freeze in Florida has reduced the orange yield this winter.What will be the effect of this freeze on the price and quantity in the orange market and also in the peach market? (Assume that oranges and peaches are substitutes. )
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Essay
Q 228Q 228
Suppose that the price of oranges increases and the quantity of oranges in the market decreases.Suggest two reasons why this might have happened.
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Essay
Q 229Q 229
What is the difference between a "shift in the supply curve" and a "movement along the supply curve"?
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Essay
Q 230Q 230
What is the difference between "an increase in supply" and "an increase in quantity supplied" of a good?
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Essay
Q 231Q 231
Using a graph,illustrate the effect that an increase in production costs will have on the equilibrium price and quantity of a good.
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Essay
Q 232Q 232
A decrease in the cost of labor or some other input will make the production of a product less costly and more profitable at a given price,so producers will supply more of it.This is an example of ________.
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Essay
Q 233Q 233
When a government pays a company for producing a product or good with the result that selling the product is more profitable regardless of the price so that the company will produce more of it,it is called a ________.
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Essay
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Essay
Q 235Q 235
If a government imposes a tax on the producers of a product,in addition to making the product more costly and less profitable,the tax will ________.
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Essay
Q 236Q 236
The market equilibrium price and quantity can be affected if:
A)supply and demand both increase.
B)supply and demand both decrease.
C)supply increases and demand decreases.
D)all of the above
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Multiple Choice
Q 237Q 237
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the market moves from point A to point B,there has been:
A)an increase in supply and an increase in demand.
B)an increase in supply and an increase in quantity demanded.
C)an increase in quantity supplied and an increase in demand.
D)an increase in quantity supplied and an increase in quantity demanded.
Free
Multiple Choice
Q 238Q 238
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point B to point A,there has been:
A)an increase in supply and an increase in demand.
B)an decrease in supply and an decrease in quantity demanded.
C)an increase in quantity supplied and an increase in demand.
D)an increase in quantity supplied and an increase in quantity demanded.
Free
Multiple Choice
Q 239Q 239
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point B to point C,there has been:
A)a decrease in supply and a decrease in demand.
B)a decrease in supply and a decrease in quantity demanded.
C)a decrease in quantity supplied and a decrease in demand.
D)a decrease in quantity supplied and a decrease in quantity demanded.
Free
Multiple Choice
Q 240Q 240
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point C to point E,there has been:
A)an increase in supply and a decrease in quantity demanded.
B)a decrease in supply and a decrease in quantity demanded.
C)a decrease in quantity supplied and a decrease in demand.
D)an increase in quantity supplied and a decrease in quantity demanded.
Free
Multiple Choice
Q 241Q 241
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.When the economy moves from point E to point A,there has been:
A)an increase in supply and an increase in demand.
B)an increase in supply and an increase in quantity demanded.
C)an increase in quantity supplied and an increase in demand.
D)an increase in quantity supplied and an increase in quantity demanded.
Free
Multiple Choice
Q 242Q 242
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.Suppose that the market is currently in point A.If the price of the input of the product decreases,the market will move to point:
A)A.
B)B.
C)C.
D)D.
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Multiple Choice
Q 243Q 243
Figure 4.6
-Figure 4.6 illustrates a set of supply and demand curves for a product.If the good were inferior and the consumer's income decreases,then this can be illustrated as moving from point:
A)A to B.
B)C to B.
C)E to B.
D)B to A.
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Multiple Choice
Q 244Q 244
Bananas and apples are substitutes.When the price of bananas falls,the equilibrium quantity of apples will ________ and the equilibrium price of apples will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 245Q 245
Bananas and apples are substitutes.When the price of bananas rises,the equilibrium quantity of apples will ________ and the equilibrium price of apples will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 246Q 246
Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 247Q 247
Peaches and cream are complements.When the price of peaches rises,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 248Q 248
Suppose that ramen noodles are an inferior good.When income increases,the equilibrium quantity of ramen noodles will ________ and the equilibrium price of ramen noodles will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 249Q 249
Suppose that ramen noodles are an inferior good.When income decreases,the equilibrium quantity of ramen noodles will ________ and the equilibrium price of ramen noodles will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 250Q 250
Suppose that steak is a normal good.When income increases,the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 251Q 251
Suppose that steak is a normal good.When income decreases,the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 252Q 252
Suppose that the population of a country increases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________ in that country.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 253Q 253
Suppose that the population of a country decreases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________ in that country.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 254Q 254
Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 255Q 255
Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.As a result of the study,we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________.
A)increase;increase
B)increase;decrease
C)decrease;decrease
D)decrease;increase
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Multiple Choice
Q 256Q 256
Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes.As a result of the study,we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________.
A)increase;increase
B)increase;decrease
C)decrease;decrease
D)decrease;increase
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Multiple Choice
Q 257Q 257
Suppose that the Surgeon General releases a study suggesting that steak consumption increases the risk of cancer.As a result of this study,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
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Multiple Choice
Q 258Q 258
Suppose that people expect that the price of orange juice will fall next month.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________ this month.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 259Q 259
Suppose that people expect that the price of orange juice will rise next month.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________ this month.
A)increase;increase
B)decrease;increase
C)increase;decrease
D)decrease;decrease
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Multiple Choice
Q 260Q 260
Suppose that the price of fertilizer,an input in the production of corn,falls.We would predict that the equilibrium quantity of corn will ________ and the equilibrium price of corn will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 261Q 261
Suppose that the price of fertilizer,an input in the production of corn,rises.We would predict that the equilibrium quantity of corn will ________ and the equilibrium price of corn will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
Free
Multiple Choice
Q 262Q 262
Suppose that a technological advancement substantially reduces the cost of producing cheese.We would predict that the equilibrium quantity of cheese will ________ and the equilibrium price of cheese will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 263Q 263
Suppose that a natural disaster substantially increases the cost of producing cheese.We would predict that the equilibrium quantity of cheese will ________ and the equilibrium price of cheese will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease
Free
Multiple Choice
Q 264Q 264
Suppose that in October the price of a cup of cafe latte was $1.50 and 400 lattes were consumed.In November the price of a latte was $2.00 and 600 lattes were consumed.What might have caused this change?
A)The price of tea (a substitute for cafe lattes)fell.
B)The price of tea (a substitute for cafe lattes)rose.
C)The price of coffee beans (an input of production of cafe lattes)rose.
D)The price of coffee beans (an input of production of cafe lattes)fell.
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Multiple Choice
Q 265Q 265
Suppose that in October the price of a cup of cafe latte was $1.50 and 400 lattes were consumed.In November the price of a latte was $2.00 and 200 lattes were consumed.What might have caused this change?
A)The price of tea (a substitute for cafe lattes)fell.
B)The price of tea (a substitute for cafe lattes)rose.
C)The price of coffee beans (an input of production of cafe lattes)rose.
D)The price of coffee beans (an input of production of cafe lattes)fell.
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Multiple Choice
Q 266Q 266
Suppose that in 2006,8 million cars were purchased at $15,000 each,while in 2007,10 million cars were purchased at $12,000 each.What might have caused this change?
A)The price of airplane tickets (a substitute for cars)fell.
B)The price of airplane tickets (a substitute for cars)rose.
C)There was an advance in automobile manufacturing technology.
D)There were fewer workers in automobile manufacturing.
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Multiple Choice
Q 267Q 267
Suppose that in 2006,12 million cars were purchased at $15,000 each,while in 2007,10 million cars were purchased at $12,000 each.What might have caused this change?
A)The price of airplane tickets (a substitute for cars)fell.
B)The price of airplane tickets (a substitute for cars)rose.
C)Automobile manufacturing technology increased.
D)Automobile manufacturing technology decreased.
Free
Multiple Choice
Q 268Q 268
If the equilibrium price of a good increases and the equilibrium quantity of the good decreases,we can conclude that:
A)demand increased.
B)demand decreased.
C)supply increased.
D)supply decreased.
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Multiple Choice
Q 269Q 269
If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases,we can conclude that:
A)demand increased.
B)demand decreased.
C)supply increased.
D)supply decreased.
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Multiple Choice
Q 270Q 270
Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium price of spinach will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 271Q 271
Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium quantity of spinach will ________.
A)rise;rise
B)rise;fall
C)fall;rise
D)fall;fall
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Multiple Choice
Q 272Q 272
In the Application,what did Ted Koppel identify as the explanation for why (illegal)drug prices have been dropping?
A)an increase in the supply
B)an increase in demand
C)a decrease in supply
D)a decrease in demand
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Multiple Choice
Q 273Q 273
In the Application,what did the Justice Department identify as the explanation for why (illegal)drug prices have been dropping?
A)an increase in the supply
B)an increase in demand
C)a decrease in supply
D)a decrease in demand
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Multiple Choice
Q 274Q 274
In the Application,what should we observe before we can undoubtedly attribute the lower drug prices to an increase in supply?
A)an increase in the equilibrium quantity
B)a shortage
C)a decrease in the equilibrium quantity
D)a surplus
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Multiple Choice
Q 275Q 275
In the Application,what should we observe before we can undoubtedly attribute the lower drug prices to a decrease in demand?
A)an increase in the equilibrium quantity
B)a shortage
C)a decrease in the equilibrium quantity
D)a surplus
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Multiple Choice
Q 276Q 276
If the cost of producing a good goes down,this will cause the equilibrium price of the good to go down and the equilibrium quantity of the good to go up.
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True False
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True False
Q 278Q 278
Draw a graph to illustrate the effect of higher gasoline prices on the demand for large SUVs.What is the relationship between gasoline and SUVs?
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Essay
Q 279Q 279
Draw a graph to illustrate the effect of an increase in demand on the price and quantity in a market.
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Essay
Q 280Q 280
As a result of advances in technology,cellular telephones have become cheaper to produce.Illustrate the effect of this change on the market for cellular telephones.
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Essay