Question 1

A shift in demand occurs when

Accepted Answer

A)  the price of that good changes.
B)  the amount demanded of a good changes at each existing price.
C)  there is a change in quantity demanded.
D)  the price changes and the good is a normal good.

Question 2

When a rise in the price of one item results in a decrease in the demand for another good,then the two goods are

Accepted Answer

A)  substitute goods.
B)  complementary goods.
C)  inferior goods.
D)  satisfying the law of supply.

Question 3

There is a 15 percent increase in the price of lumber used by a firm that builds new homes.This causes

Accepted Answer

A)  a decrease in the quantity of new homes supplied.
B)  an increase in the supply of new homes.
C)  an increase of the quantity supplied of new homes.
D)  a decrease in the supply of new homes.

Question 4

When McDonald's runs a special for hamburgers reducing the price of Big Macs to $0.99 with all other factors held constant

Accepted Answer

A)  there is likely to be an increase in the quantity of Taco Bell's Chalupas demanded assuming Big Macs and Chalupas are substitutes.
B)  there is likely to be a decrease in demand for Taco Bell's Chalupas assuming Big Macs and Chalupas are substitutes.
C)  there is likely to be an increase in demand for Taco Bell's Chalupas assuming Big Macs and Chalupas are substitutes.
D)  there is likely to be an increase in demand for McDonald's Big Macs assuming Big Macs and Chalupas are substitutes.

Question 5

Which of the following will cause a movement along the demand curve for shoes?

Accepted Answer

A)  An increase in the price of socks
B)  An increase in income
C)  An increase in the price of shoes
D)  All of the above

Question 6

The price of a new textbook increases from $75 to $90 while the price of used copies of the textbook increases from $50 to $65.Other things equal,we would expect to observe

Accepted Answer

A)  the quantity demanded of the used textbook to increase while the quantity demanded of the new textbook to fall.
B)  the quantity demanded of both to fall.
C)  the demand for the new textbook to increase while the demand for the used textbook to decrease.
D)  the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase.

Question 7

Which of the following statements is FALSE about the demand curve?

Accepted Answer

A)  An increase in demand shifts the demand curve to the left,closer to the price axis.
B)  When only the price of a good changes,there is movement along the demand curve but no change in demand.
C)  A change in demand is graphically shown by shifting the entire demand curve.
D)  When demand decreases,there is a drop in the quantity demanded at each price.

Question 8

Which of the following is a non-price determinant of demand?

Accepted Answer

A)  income
B)  tastes and preferences
C)  prices of related goods and services
D)  All of the above are correct.

Question 9

A decrease in supply will occur when

Accepted Answer

A)  the supply curve shifts downward to the right.
B)  the supply curve shifts upward to the left.
C)  the demand curve shifts downward to the left.
D)  the demand curve shifts upward to the right.

Question 10

-Refer to the above table.What is the market quantity demanded of DVDs at a price of $12?

Accepted Answer

A)  6
B)  9
C)  12
D)  24

Question 11

In economics,the meaning of demand refers to

Accepted Answer

A)  how badly someone wants a good.
B)  the quantities of a good that people will buy at various prices.
C)  the quantities of a good that people will sell at various prices.
D)  the total satisfaction that consuming a good provides people at different prices.

Question 12

When producers anticipate that the price of their product will increase in the future,

Accepted Answer

A)  the supply curve will shift to the right.
B)  the supply curve will shift to the left.
C)  the current production will move along on the supply curve.
D)  they will immediately lobby Congress to adjust prices now.

Question 13

According to the above table,a surplus exists when

Accepted Answer

A)  the price is $1 per unit.
B)  the price is $2 per unit.
C)  the price is $3 per unit.
D)  the price is greater than $3 per unit.

Question 14

When the price of tablet devices decreased in the 2010s,there was an increase in the demand for computing apps because tablet devices and computing apps are

Accepted Answer

A)  substitute goods.
B)  capital goods.
C)  inferior goods.
D)  complementary goods.

Question 15

An increase in the number of consumers in a market would cause

Accepted Answer

A)  an increase in quantity demanded.
B)  an increase in quantity supplied.
C)  an increase in demand.
D)  an increase in supply.

Question 16

Which of the following is NOT a determinant of demand?

Accepted Answer

A)  consumers' incomes
B)  prices of other goods
C)  consumers' tastes
D)  production technology

Question 17

If one day a terrible disease were to wipe out over one-half of the world's lime trees,which of the following would likely result?

Accepted Answer

A)  The supply curve of lime juice would shift downward and to the right.
B)  The supply curve of lime juice would shift upward and to the left.
C)  The demand curve for lime juice would shift to the right.
D)  The demand curve for lime juice would shift to the left.

Question 18

Explain how a market demand curve is found.

Accepted Answer

The market demand curve is the horizonta...

Question 19

The supply curve will shift to the left when

Accepted Answer

A)  the supply of the product increases.
B)  the demand for the product decreases.
C)  some producers leave the industry.
D)  the product becomes fashionable.

Question 20

A shift of the demand curve to the left represents

Accepted Answer

A)  an increase in demand.
B)  a decrease in demand.
C)  an increase in quantity demanded.
D)  a decrease in quantity demanded.

Exam 3: Demand and Supply

-Refer to the above table.What is the market quantity demanded of DVDs at a price of $12?

Correct AnswerverifiedShow Answer

According to the above table,a surplus exists when

Correct AnswerverifiedShow Answer

A shift of the demand curve to the left represents

Correct AnswerverifiedShow Answer

There is a 15 percent increase in the price of lumber used by a firm that builds new homes.This causes

Correct AnswerverifiedShow Answer

When the price of tablet devices decreased in the 2010s,there was an increase in the demand for computing apps because tablet devices and computing apps are

Correct AnswerverifiedShow Answer

When producers anticipate that the price of their product will increase in the future,

Correct AnswerverifiedShow Answer

Which of the following is NOT a determinant of demand?

Correct AnswerverifiedShow Answer

When McDonald's runs a special for hamburgers reducing the price of Big Macs to $0.99 with all other factors held constant

Correct AnswerverifiedShow Answer

In economics,the meaning of demand refers to

Correct AnswerverifiedShow Answer

Which of the following is a non-price determinant of demand?

Correct AnswerverifiedShow Answer

A shift in demand occurs when

Correct AnswerverifiedShow Answer

Which of the following statements is FALSE about the demand curve?

Correct AnswerverifiedShow Answer

When a rise in the price of one item results in a decrease in the demand for another good,then the two goods are

Correct AnswerverifiedShow Answer

A decrease in supply will occur when

Correct AnswerverifiedShow Answer

Explain how a market demand curve is found.

Correct AnswerverifiedThe market demand curve is the horizonta...View AnswerShow Answer

Which of the following will cause a movement along the demand curve for shoes?

Correct AnswerverifiedShow Answer

The price of a new textbook increases from $75 to $90 while the price of used copies of the textbook increases from $50 to $65.Other things equal,we would expect to observe

Correct AnswerverifiedShow Answer

If one day a terrible disease were to wipe out over one-half of the world's lime trees,which of the following would likely result?

Correct AnswerverifiedShow Answer

An increase in the number of consumers in a market would cause

Correct AnswerverifiedShow Answer

The supply curve will shift to the left when

Correct AnswerverifiedShow Answer

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The market demand curve is the horizonta...
View Answer

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