Question 1

A shift of a demand curve to the right, all other things unchanged, will:

Accepted Answer

A)   increase equilibrium price and quantity.
B)   decrease equilibrium price and quantity.
C)   decrease quantity and increase price.
D)   increase quantity and decrease price.E) A) and B)
F) A) and C) A

Question 2

If a demand curve shifts to the left, then:

Accepted Answer

A)   the equilibrium price would go up and the equilibrium quantity would go down.
B)   the equilibrium price would go down and the equilibrium quantity would go up.
C)   a lower equilibrium price and quantity would result.
D)   a higher equilibrium price and quantity would result.E) C) and D)
F) B) and C) C

Question 3

-(Exhibit: Demand and Supply)  Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Accepted Answer

A)   $2
B)   $4
C)   $6
D)   $8E) B) and D)
F) None of the above

Question 4

-(Exhibit: Demand and Supply Shifters)  The exhibit shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) B) and D)
F) A) and B)

Question 5

When economists study the behavior of sellers, they are studying:

Accepted Answer

A)   supply.
B)   the role of government.
C)   demand.
D)   accounting.E) None of the above
F) A) and D)

Question 6

The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

Accepted Answer

A)   The equilibrium price falls and the equilibrium quantity rises.
B)   The equilibrium price rises and the equilibrium quantity falls.
C)   The equilibrium price and quantity rise.
D)   The equilibrium price and quantity fall.E) All of the above
F) B) and C)

Question 7

-(Exhibit: Demand and Supply Shifters)  The exhibit shows how supply and demand might shift in response to specific events. Suppose a wet and sunny year increases the nation's sweet pea crop by 20 percent. Which panel best describes how this will affect the market for frozen sweet corn, a substitute for sweet peas?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) B) and C)
F) A) and B)

Question 8

The relationship between the quantity of a good or service sellers are willing to offer for sale at different prices is:

Accepted Answer

A)   supply.
B)   demand.
C)   equilibrium.
D)   disequilibrium.E) B) and C)
F) B) and D)

Question 9

A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

Accepted Answer

A)   an increase; an increase
B)   an increase; a decrease
C)   a decrease; an increase
D)   a decrease; a decreaseE) None of the above
F) B) and D)

Question 10

At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

Accepted Answer

A) True 
 B)False

Question 11

Demand is best defined as the:

Accepted Answer

A)   amount of a commodity that buyers would be willing and able to purchase at a specific price.
B)   price that buyers would be willing and able to pay for a specific quantity of a good.
C)   relationship between the price of a good and the quantity people are able to purchase, all other things unchanged.
D)   relationship between the price of a good and the quantity people are willing and able to purchase, all other things unchanged.E) A) and B)
F) None of the above D

Question 12

Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies)  rises. What happens in the market for cookies?

Accepted Answer

A)   The equilibrium price and quantity rise.
B)   The equilibrium price rises, and the equilibrium quantity falls.
C)   The equilibrium price and quantity fall.
D)   The equilibrium price falls, and the equilibrium quantity rises.E) A) and C)
F) B) and D)

Question 13

If demand and supply both decrease:

Accepted Answer

A)   both price and quantity will be less.
B)   both price and quantity will go up.
C)   price will fall but quantity will go up.
D)   quantity will go down but the effect on price is indeterminate.E) None of the above
F) A) and B)

Question 14

-(Exhibit: Demand and Supply Shifters)  The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing handheld calculators improves. Which panel best describes how this will affect the market for handheld calculators?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) B) and C)
F) A) and B)

Question 15

An increase in demand and a decrease in supply, will lead to a(n)  ________ in equilibrium quantity and a(n)  ________ in equilibrium price.

Accepted Answer

A)   decrease; decrease
B)   indeterminate change; increase
C)   indeterminate change; decrease
D)   increase; indeterminate changeE) A) and B)
F) B) and D)

Question 16

If the price in the market for a commodity is above the market equilibrium price, the:

Accepted Answer

A)   price will remain unchanged.
B)   price will rise to clear the market.
C)   quantity supplied exceeds the quantity demanded.
D)   quantity demanded exceeds the quantity supplied.E) B) and C)
F) B) and D)

Question 17

Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:

Accepted Answer

A)   a reduction in the demand for pizza.
B)   an increase in the quantity of pizza demanded.
C)   no change in the demand for pizza.
D)   an increase in the demand for pizza.E) A) and D)
F) C) and D)

Question 18

When economists study the behavior of buyers, they are studying:

Accepted Answer

A)   supply.
B)   the role of government.
C)   demand.
D)   psychology.E) B) and C)
F) C) and D)

Question 19

Demand and supply curves are drawn assuming ceteris paribus. This means that:

Accepted Answer

A)   economists ignore all assumptions.
B)   economists don't watch for the fallacy of false cause.
C)   changes will be proportional.
D)   all other things besides price and quantity are assumed unchanged.E) B) and D)
F) C) and D)

Question 20

An increase in the price of a good will lead to an increase in the quantity supplied.

Accepted Answer

A) True 
 B)False

Exam 3: Demand and Supply

A shift of a demand curve to the right, all other things unchanged, will:

Correct Answer
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A

If a demand curve shifts to the left, then:

Correct Answer
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C

-(Exhibit: Demand and Supply) Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Correct Answer
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-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil?

Correct Answer
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When economists study the behavior of sellers, they are studying:

Correct Answer
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The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

Correct Answer
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Correct Answer
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The relationship between the quantity of a good or service sellers are willing to offer for sale at different prices is:

Correct Answer
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A decrease in supply, with no change in demand, will lead to in equilibrium quantity and in equilibrium price.

Correct Answer
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At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

Correct Answer
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Demand is best defined as the:

Correct Answer
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D

Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for cookies?

Correct Answer
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If demand and supply both decrease:

Correct Answer
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-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing handheld calculators improves. Which panel best describes how this will affect the market for handheld calculators?

Correct Answer
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An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

Correct Answer
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If the price in the market for a commodity is above the market equilibrium price, the:

Correct Answer
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Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:

Correct Answer
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When economists study the behavior of buyers, they are studying:

Correct Answer
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Demand and supply curves are drawn assuming ceteris paribus. This means that:

Correct Answer
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An increase in the price of a good will lead to an increase in the quantity supplied.

Correct Answer
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Exam 3: Demand and Supply

A shift of a demand curve to the right, all other things unchanged, will:

Correct AnswerverifiedA

If a demand curve shifts to the left, then:

Correct AnswerverifiedC

-(Exhibit: Demand and Supply) Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Correct AnswerverifiedShow Answer

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil?

Correct AnswerverifiedShow Answer

When economists study the behavior of sellers, they are studying:

Correct AnswerverifiedShow Answer

The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The relationship between the quantity of a good or service sellers are willing to offer for sale at different prices is:

Correct AnswerverifiedShow Answer

A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

Correct AnswerverifiedShow Answer

At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

Correct AnswerverifiedShow Answer

Demand is best defined as the:

Correct AnswerverifiedD

Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for cookies?

Correct AnswerverifiedShow Answer

If demand and supply both decrease:

Correct AnswerverifiedShow Answer

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing handheld calculators improves. Which panel best describes how this will affect the market for handheld calculators?

Correct AnswerverifiedShow Answer

An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

Correct AnswerverifiedShow Answer

If the price in the market for a commodity is above the market equilibrium price, the:

Correct AnswerverifiedShow Answer

Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:

Correct AnswerverifiedShow Answer

When economists study the behavior of buyers, they are studying:

Correct AnswerverifiedShow Answer

Demand and supply curves are drawn assuming ceteris paribus. This means that:

Correct AnswerverifiedShow Answer

An increase in the price of a good will lead to an increase in the quantity supplied.

Correct AnswerverifiedShow Answer

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A

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C

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A decrease in supply, with no change in demand, will lead to in equilibrium quantity and in equilibrium price.

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D

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An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

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