Question 1

If the quantity demanded for a product exceeds the quantity supplied,the market price will rise until

Accepted Answer

A)  the quantity demanded equals the quantity supplied.The product will then no longer be scarce.
B)  quantity demanded equals quantity supplied.The equilibrium price will then be greater than the market price.
C)  only wealthy consumers will be able to afford the product.
D)  quantity demanded equals quantity supplied.The market price will then equal the equilibrium price.

Question 2

At market equilibrium,

Accepted Answer

A)  demand equals supply.
B)  quantity demanded equals quantity supplied.
C)  surpluses are greater than shortages.
D)  shortages are greater than surpluses.

Question 3

An ________ is represented by a rightward shift of the demand curve while an ________ is represented by a movement along a given demand curve.

Accepted Answer

A)  increase in demand; decrease in demand
B)  increase in demand; increase in quantity demanded
C)  decrease in demand; decrease in quantity demanded
D)  increase in quantity demanded; increase in demand

Question 4

What are the five most important variables that shift the market supply curve?

Accepted Answer

Prices of inputs; Technologica...

Question 5

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true?

Accepted Answer

A)  An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase.
B)  A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
C)  If both demand and supply decrease,there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
D)  If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

Question 7

At a product's equilibrium price

Accepted Answer

A)  anyone who needs the product will be able to buy the product,regardless of ability to pay.
B)  the federal government will provide the product to anyone who cannot afford it.
C)  not all sellers who are willing to accept the price will find buyers for their products.
D)  any buyer who is willing and able to pay the price will find a seller for the product.

Question 8

An increase in the price of MP3 players will result in

Accepted Answer

A)  a smaller quantity of MP3 players supplied.
B)  a larger quantity of MP3 players supplied.
C)  a decrease in the demand for MP3 players.
D)  an increase in the supply of MP3 players.

Question 9

Figure 3-7 
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of blu-ray players?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)  C

Question 10

Figure 3-2 1 to S2. D) S2 to S1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-2.A decrease in the price of inputs would be represented by a movement from

Accepted Answer

A)  A to B.
B)  B to A.
C)  S1 to S2.
D)  S2 to S1.

Question 11

If a decrease in income leads to an increase in the demand for macaroni,then macaroni is

Accepted Answer

A)  an inferior good.
B)  a neutral good.
C)  a necessity.
D)  a normal good.

Question 12

If consumers believe the price of hybrid vehicles will decrease in the future,this will cause the demand for hybrid vehicles to decrease now.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would cause an increase in the supply of cheese?

Accepted Answer

A)  a decrease in the price of wine (assuming that cheese and wine are complements) 
B)  an increase in the price of cheese
C)  an increase the price of a product that producers sell instead of cheese
D)  an increase in the number of firms that produce cheese D

Question 14

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the

Accepted Answer

A)  equilibrium quantity of the tablet computers to increase and the equilibrium price of the tablet computers to decrease.
B)  equilibrium price of the tablet computers to increase and the equilibrium quantity of the tablet computers to decrease.
C)  equilibrium price and quantity of the tablet computers to increase.
D)  equilibrium price and quantity of the tablet computers to decrease.

Question 15

Figure 3-8 2 and S1 (point C) .Which of the following changes would cause the equilibrium to change to point B? A) A positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance,a complement to motorcycles. B) An increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance,a complement to motorcycles. C) An increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles. D) An increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance,a complement to motorcycles." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C) .Which of the following changes would cause the equilibrium to change to point B?

Accepted Answer

A)  A positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance,a complement to motorcycles.
B)  An increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance,a complement to motorcycles.
C)  An increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles.
D)  An increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance,a complement to motorcycles.

Question 16

If the price of propane-fueled gas grills was to decrease,then

Accepted Answer

A)  the demand for propane would decrease.
B)  the demand for propane would increase.
C)  the quantity of propane demanded would increase.
D)  the quantity of propane demanded would decrease.

Question 17

How does the increasing use of digital cameras affect the market for traditional camera film?

Accepted Answer

A)  The demand curve for traditional camera film shifts to the right.
B)  The quantity of traditional camera film demanded decreases.
C)  The quantity of traditional camera film demanded increases.
D)  The demand curve for traditional camera film shifts to the left.

Question 18

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

Accepted Answer

A)  the cost of producing the good changes.
B)  supplier expectations about future prices change.
C)  the price of the good changes.
D)  prices of substitutes in production change.

Question 19

In response to a shortage the market price of a good will rise; as the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Accepted Answer

A) True 
 B)False  False

Question 20

Figure 3-1 1 to D2. D) D2 to D1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-1.A decrease in the expected future price of the product would be represented by a movement from

Accepted Answer

A)  A to B.
B)  B to A.
C)  D1 to D2.
D)  D2 to D1.

Exam 3: Where Prices Come From: the Interaction of Demand and Supply

If the quantity demanded for a product exceeds the quantity supplied,the market price will rise until

Correct AnswerverifiedShow Answer

At market equilibrium,

Correct AnswerverifiedShow Answer

An ________ is represented by a rightward shift of the demand curve while an ________ is represented by a movement along a given demand curve.

Correct AnswerverifiedShow Answer

What are the five most important variables that shift the market supply curve?

Correct AnswerverifiedPrices of inputs; Technologica...View AnswerShow Answer

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

At a product's equilibrium price

Correct AnswerverifiedShow Answer

An increase in the price of MP3 players will result in

Correct AnswerverifiedShow Answer

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of blu-ray players?

Correct AnswerverifiedC

Figure 3-2 -Refer to Figure 3-2.A decrease in the price of inputs would be represented by a movement from

Correct AnswerverifiedShow Answer

If a decrease in income leads to an increase in the demand for macaroni,then macaroni is

Correct AnswerverifiedShow Answer

If consumers believe the price of hybrid vehicles will decrease in the future,this will cause the demand for hybrid vehicles to decrease now.

Correct AnswerverifiedShow Answer

Which of the following would cause an increase in the supply of cheese?

Correct AnswerverifiedD

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the

Correct AnswerverifiedShow Answer

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C) .Which of the following changes would cause the equilibrium to change to point B?

Correct AnswerverifiedShow Answer

If the price of propane-fueled gas grills was to decrease,then

Correct AnswerverifiedShow Answer

How does the increasing use of digital cameras affect the market for traditional camera film?

Correct AnswerverifiedShow Answer

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

Correct AnswerverifiedShow Answer

In response to a shortage the market price of a good will rise; as the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Correct AnswerverifiedFalse

Figure 3-1 -Refer to Figure 3-1.A decrease in the expected future price of the product would be represented by a movement from

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

An is represented by a rightward shift of the demand curve while an is represented by a movement along a given demand curve.

Correct Answer
verified

Correct Answer
verified
Prices of inputs; Technologica...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) .Which of the following changes would cause the equilibrium to change to point B?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified