Question 1

How have the recent increases in the price of gasoline affected the market for hybrid cars?

Accepted Answer

A)   The demand has increased, increasing the equilibrium price and quantity of hybrid cars.
B)   The supply has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
C)   The demand has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars.
D)   The demand and supply of hybrid cars have both increased in response to changing gas prices, so the equilibrium quantity has definitely decreased, but the effect on price cannot be determined without more information.

Question 2

You just heard about Burton's annual tent sale going on next week. This will likely cause your demand for a Burton jacket today to:

Accepted Answer

A)   increase because of your income constraint.
B)   increase because of your expectations of the price of Burton jackets next week.
C)   decrease because of your income constraint.
D)   decrease because of your expectations of the price of Burton jackets next week.

Question 3

The law of supply describes the:

Accepted Answer

A)   inverse relationship between price and quantity supplied.
B)   direct relationship between price and quantity supplied.
C)   inverse relationship between income and quantity supplied.
D)   direct relationship between income and quantity supplied.

Question 4

A decrease in the price of spaghetti is likely to cause:

Accepted Answer

A)   a movement to the right along the demand curve for spaghetti.
B)   an inward shift of the demand curve for spaghetti.
C)   an outward shift of the demand curve for spaghetti.
D)   a movement to the left along the demand curve for spaghetti.

Question 5

This table shows the demand and supply schedule of a good.  According to the table shown, at a price of $0.50 quantity demanded:

Accepted Answer

A)   exceeds quantity supplied and a shortage exists.
B)   is less than quantity supplied and a shortage exists.
C)   exceeds quantity supplied and a surplus exists.
D)   is less than quantity supplied and a surplus exists.

Question 6

Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

Accepted Answer

A)   The demand would increase, increasing both equilibrium price and quantity.
B)   The supply would increase, decreasing equilibrium price and increasing equilibrium quantity.
C)   The demand would decrease, decreasing both equilibrium price and quantity.
D)   The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.

Question 7

A demand curve is a graph:

Accepted Answer

A)   that visually displays the demand schedule.
B)   depicting various price-quantity combinations of a good for a seller.
C)   that shows the quantities demanded by consumers of a particular good or service at various incomes.
D)   that shows the quantities demanded by consumers of a particular good or service at one price.

Question 8

The term "shortage" refers to a:

Accepted Answer

A)   situation in which the quantity supplied is less than the quantity demanded.
B)   situation in which the quantity demanded is less than the quantity supplied.
C)   market in which goods have to be sold quickly or the goods tend to rot or otherwise expire.
D)   signal that producers need to decrease the price of the good.

Question 9

A change in a nonprice factor of supply will cause:

Accepted Answer

A)   a movement along the supply curve.
B)   a shift of the supply curve.
C)   the supply curve to rotate inward.
D)   the supply curve to rotate outward.

Question 10

Which of the following would not affect an individual's demand?

Accepted Answer

A)   Prices of related goods
B)   The individual's preferences
C)   The individual's income
D)   The costs of inputs

Question 11

According to the graph shown, the equilibrium price is ______ and equilibrium quantity is ____.

Accepted Answer

A)   $5; 30
B)   $10; 20
C)   $20; 10
D)   $15; 30

Question 12

Assume the graph shown represents the market for pizzas sold in an hour. Which of the following could be a reason S2 to S1?

Accepted Answer

A)   The price of pizza sauce has increased.
B)   The price of pizza went down.
C)   The price of labor for pizza shops went down.
D)   People just don't have preferences for pizza anymore.

Question 13

The most likely complementary good for cereal would be:

Accepted Answer

A)   a bagel.
B)   milk.
C)   pizza.
D)   a sub sandwich.

Question 14

A surplus will occur in a market if:

Accepted Answer

A)   the quantity supplied at a given price exceeds the quantity demanded at that price.
B)   the quantity demanded at a given price is less than the quantity supplied at that price.
C)   there are not enough sellers at the prevailing price.
D)   there are too many buyers at the prevailing price.

Question 15

A table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Accepted Answer

A)   demand schedule.
B)   demand figure.
C)   demand curve.
D)   demand graph.

Question 16

Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?

Accepted Answer

A)   Preferences
B)   Income
C)   Prices of related goods
D)   Number of buyers

Question 17

The demand schedule assumes that factors other than price:

Accepted Answer

A)   remain the same.
B)   must also be in the table.
C)   remain separate in the table.
D)   change as price changes.

Question 18

Which buyers and sellers are included in the market under consideration depends on:

Accepted Answer

A)   their physical proximity.
B)   the context.
C)   their preferences.
D)   the income levels.

Question 19

A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:

Accepted Answer

A)   an increase in the supply of fruitcake.
B)   a decrease in the supply of fruitcake.
C)   no change in the supply of fruitcake, but the demand would increase.
D)   no change in the supply of fruitcake, but the demand would decrease.

Question 20

Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:

Accepted Answer

A)   decrease, and his demand curve will shift to the right.
B)   decrease, and his demand curve will shift to the left.
C)   increase, and his demand curve will shift to the right.
D)   decrease, causing a movement down along his demand curve.

Exam 3: Markets

The law of supply describes the:

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A surplus will occur in a market if:

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A decrease in the price of spaghetti is likely to cause:

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The most likely complementary good for cereal would be:

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This table shows the demand and supply schedule of a good. According to the table shown, at a price of $0.50 quantity demanded:

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A change in a nonprice factor of supply will cause:

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How have the recent increases in the price of gasoline affected the market for hybrid cars?

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Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

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Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:

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A demand curve is a graph:

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The term "shortage" refers to a:

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Which of the following would not affect an individual's demand?

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A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:

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Which buyers and sellers are included in the market under consideration depends on:

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According to the graph shown, the equilibrium price is ______ and equilibrium quantity is ____.

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A table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

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Jan heads to the store to buy burgers for dinner. Seeing a sale on hot dogs, she buys those instead. The change in her demand for burgers is due to which factor?

Correct AnswerverifiedShow Answer

The demand schedule assumes that factors other than price:

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You just heard about Burton's annual tent sale going on next week. This will likely cause your demand for a Burton jacket today to:

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for pizzas sold in an hour. Which of the following could be a reason S2 to S1?

Correct AnswerverifiedShow Answer

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According to the graph shown, the equilibrium price is __ and equilibrium quantity is .

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