Question 1

A decrease in the expected future price of cars

Accepted Answer

A)   increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars.
B)   increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars.
C)   decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars.
D)   decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars.

Question 2

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

Accepted Answer

The money price of a good is the number ...

Question 3

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

Accepted Answer

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

Question 4

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Accepted Answer

A)   new supply curve that is to the right of the initial supply curve.
B)   new supply curve that is to the left of the initial supply curve.
C)   movement along the supply curve.
D)   rotation of the initial supply curve around the initial price.

Question 5

At prices above the equilibrium price, what occurs?

Accepted Answer

If the price exceeds the equilibrium pri...

Question 6

The law of demand implies that demand curves

Accepted Answer

A)   slope down.
B)   slope up.
C)   shift rightward whenever the price rises.
D)   shift leftward whenever the price rises.

Question 7

The quantity supplied of a good is

Accepted Answer

A)   the same thing as the quantity demanded at each price.
B)   the amount that the producers are planning to sell at a particular price during a given time period.
C)   equal to the difference between the quantity available and the quantity desired by all consumers and producers.
D)   the amount the firm would sell if it faced no resource constraints.

Question 8

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Accepted Answer

A)   a fall in the price of shredded wheat
B)   an increase in the cost of machinery used to shred wheat
C)   perfect weather conditions that resulted in a large wheat crop
D)   a decrease in the number of shredded wheat producers

Question 9

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

Accepted Answer

A)   price of bottled water definitely increases.
B)   price of bottled water definitely decreases.
C)   quantity of bottled water definitely increases.
D)   quantity of bottled water definitely decreases.

Question 10

An increase in technology for producing personal computers leads to

Accepted Answer

A)   an increase in the demand for personal computers.
B)   a decrease in the demand for personal computers.
C)   an increase in the supply of personal computers.
D)   a decrease in the supply of personal computers.

Question 11

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

Accepted Answer

A)   "law of demand" was definitely contradicted.
B)   "law of supply" was definitely contradicted.
C)   demand curve shifted rightward.
D)   supply curve shifted rightward.

Question 12

If the price of lumber rises, then, in the market for sawdust,

Accepted Answer

A)   the supply curve of sawdust shifts leftward.
B)   the supply curve of sawdust shifts rightward.
C)   there is a movement downward along the supply curve for sawdust.
D)   there is a movement upward along the supply curve for sawdust.

Question 13

When economists speak of preferences as influencing demand, they are referring to

Accepted Answer

A)   directly observable changes in prices and income.
B)   an individual's attitudes toward goods and services.
C)   the excess of wants over the available supplies.
D)   the availability of a good to all income classes.

Question 14

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

Accepted Answer

A)   a decrease in technology.
B)   a decrease in the relative price of a soft drink.
C)   an increase in the relative price of a soft drink.
D)   an increase in the money price of a soft drink.

Question 15

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

Accepted Answer

A)   Figure A
B)   Figure B
C)   Figure C
D)   Figure D

Question 16

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Accepted Answer

The fall in the price of a computer incr...

Question 17

A bakery can produce either cakes or cookies. If the price of cookies rises, then

Accepted Answer

A)   the supply curve of cake shifts leftward.
B)   the supply curve of cake shifts rightward.
C)   there is a movement downward along the supply curve of cakes.
D)   there is a movement upward along the supply curve of cakes.

Question 18

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

Accepted Answer

A)   inversely related to its price.
B)   directly related to its price.
C)   positively related to its price.
D)   directly related to the supply of the good.

Question 19

1 to D2 and the supply curve of gasoline does not shift. B)  demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline shifts from S2 to S1. C)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S2 to S1. D)  demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S1 to S2." class="answers-bank-image d-inline" rel="preload" >
-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

Accepted Answer

A)   demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline does not shift.
B)   demand curve for gasoline shifts from D1 to D2 and the supply curve of gasoline shifts from S2 to S1.
C)   demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S2 to S1.
D)   demand curve for gasoline does not shift, and the supply curve of gasoline shifts from S1 to S2.

Question 20

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Accepted Answer

A)   $12 per pizza.
B)   $24 per pizza.
C)   6 tacos per pizza.
D)   1/6 pizza per taco.

Exam 3: Demand and Supply

A bakery can produce either cakes or cookies. If the price of cookies rises, then

Correct AnswerverifiedShow Answer

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a

Correct AnswerverifiedShow Answer

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

Correct AnswerverifiedShow Answer

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

Correct AnswerverifiedShow Answer

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Correct AnswerverifiedThe fall in the price of a computer incr...View AnswerShow Answer

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

Correct AnswerverifiedShow Answer

The quantity supplied of a good is

Correct AnswerverifiedShow Answer

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

Correct AnswerverifiedShow Answer

A decrease in the expected future price of cars

Correct AnswerverifiedShow Answer

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

Correct AnswerverifiedThe money price of a good is the number ...View AnswerShow Answer

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

The law of demand implies that demand curves

Correct AnswerverifiedShow Answer

If the price of lumber rises, then, in the market for sawdust,

Correct AnswerverifiedShow Answer

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

Correct AnswerverifiedShow Answer

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

Correct AnswerverifiedShow Answer

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

Correct AnswerverifiedShow Answer

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

Correct AnswerverifiedShow Answer

An increase in technology for producing personal computers leads to

Correct AnswerverifiedShow Answer

When economists speak of preferences as influencing demand, they are referring to

Correct AnswerverifiedShow Answer

At prices above the equilibrium price, what occurs?

Correct AnswerverifiedIf the price exceeds the equilibrium pri...View AnswerShow Answer

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The fall in the price of a computer incr...
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The money price of a good is the number ...
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Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .

Correct Answer
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Correct Answer
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If the price exceeds the equilibrium pri...
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