Question 1

a. What is the difference between a "change in demand" and a "change in quantity demanded?" Graph your answer.
b. For each of the following changes, determine whether there will be a change in quantity demanded or a change in demand.
i. a change in input costs
ii a change in producer expectations
iii. a change in price
iv. a change in technology
v. a change in the number of buyers

Accepted Answer

a. A change in demand refers to a shift ...

Question 2

The quantity demanded refers to the amount consumers are willing and able to purchase at different prices. Why is it important that consumers are not only willing, but also able to buy in analysing demand?

Accepted Answer

Supply and demand are the forces which m...

Question 3

A group of buyers and sellers with the potential to trade is known as

Accepted Answer

A)   a cartel.
B)   a market.
C)   an industry.
D)   a sector.E) A) and B)
F) A) and C)

Question 4

An inferior good is one for which an increase in income causes a(n)

Accepted Answer

A)   decrease in supply.
B)   increase in demand.
C)   increase in supply.
D)   decrease in demand.E) B) and D)
F) C) and D)

Question 5

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

Accepted Answer

A)   There is an increase in the quantity demanded of apples and in the supply for apples.
B)   There is an increase in the demand and supply of apples.
C)   There is an increase in the demand for apples and a decrease in the supply of apples.
D)   There is a decrease in the quantity demanded of apples and an increase in the supply for apples.
E)   There is an increase in the demand for apples and an increase in the quantity supplied of apples.F) A) and B)
G) A) and C)

Question 6

Refer to Table 3-1. Given this data, if the price of CD players is €200, ?
  Table 3-1  QUANTITY  QUANTITY  DEMANDED  SUPPLIED  PRICE ‾ (units per week)  ‾ (units per week)  ‾€1001000100€150900300€200800500€250600600€300300650\begin{array}{l}	ext { Table 3-1 }\\begin{array}{|l|l|l|}\hline & 	ext { QUANTITY } & 	ext { QUANTITY } \\hline & 	ext { DEMANDED } & 	ext { SUPPLIED } \\hline\underline { 	ext { PRICE }} & \underline {	ext { (units per week)  }} & \underline {	ext { (units per week)  }} \\hline € 100 & 1000 & 100 \\hline € 150 & 900 & 300 \\hline € 200 & 800 & 500 \\hline € 250 & 600 & 600 \\hline € 300 & 300 & 650 \\hline\end{array}\end{array} Table 3-1  PRICE ​€100€150€200€250€300​ QUANTITY  DEMANDED  (units per week)  ​1000900800600300​ QUANTITY  SUPPLIED  (units per week)  ​100300500600650​​​ 
?

Accepted Answer

A)   there will be a surplus.
B)   there will be a shortage.
C)   the market is in equilibrium.
D)   the supply will increase. E) None of the above
F) B) and C)

Question 7

Temporary shortages in a market are eliminated by

Accepted Answer

A)   decreases in the price, which cause quantity supplied to fall and quantity demanded to rise.
B)   decreases in the price, which cause quantity supplied to rise and quantity demanded to fall.
C)   increases in the price, which cause quantity supplied to fall and quantity demanded to rise.
D)   increases in the price, which cause quantity supplied to rise and quantity demanded to fall.E) B) and C)
F) All of the above

Question 8

A decrease in supply is represented by a

Accepted Answer

A)   movement downward and to the left along a supply curve.
B)   movement upward and to the right along a supply curve.
C)   rightward shift of a supply curve.
D)   leftward shift of a supply curve.E) None of the above
F) A) and C)

Question 9

In a perfectly competitive market, both buyers and sellers have ________ knowledge and so are able to make decisions independently

Accepted Answer

A)   perfect.
B)   imperfect
C)   little
D)   a fair amount ofE) A) and B)
F) None of the above

Question 10

Higher wages in the European car industry would __________ the prices of European-made cars and __________ the quantity traded.

Accepted Answer

A)   lower; lower
B)   lower; raise
C)   raise; lower
D)   raise; raiseE) A) and C)
F) None of the above

Question 11

Which of the following sets of goods are most likely to be complementary goods?

Accepted Answer

A)   shoes and pizza
B)   cars and computers
C)   footballs and football boots
D)   football tickets and baseball ticketsE) B) and C)
F) A) and B)

Question 12

The law of demand states that an increase in the price of a good decreases the demand for that good.

Accepted Answer

A) True 
 B)False

Question 13

Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect

Accepted Answer

A)   the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
B)   the equilibrium quantity to rise and the equilibrium price to rise.
C)   the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.
D)   the equilibrium quantity to rise and the equilibrium price to fall.
E)   the equilibrium quantity to rise and the equilibrium price to remain constant.F) A) and E)
G) A) and C)

Question 14

Suppose that the demand for apples increased more than the supply of apples increased. The net effect of these two changes would be

Accepted Answer

A)   an increase in the equilibrium price and a decrease in the equilibrium quantity.
B)   an increase in the equilibrium price and an increase in the equilibrium quantity.
C)   a decrease in the equilibrium price and an increase in the equilibrium quantity.
D)   a decrease in the equilibrium price and a decrease in the equilibrium quantity.E) None of the above
F) C) and D)

Question 15

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

Accepted Answer

A)   quantity demanded.
B)   demand.
C)   supply.
D)   quantity supplied.E) A) and D)
F) B) and D)

Question 16

The commercial airliner industry, consisting of Boeing and Airbus, represents

Accepted Answer

A)   perfect competition.
B)   oligopoly.
C)   monopoly.
D)   None of the above are correct.E) A) and D)
F) B) and C)

Exam 3: The Market Forces of Supply and Demand

A decrease in supply is represented by a

Correct Answer
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The law of demand states that an increase in the price of a good decreases the demand for that good.

Correct Answer
verified

Suppose that the demand for apples increased more than the supply of apples increased. The net effect of these two changes would be

Correct Answer
verified

An inferior good is one for which an increase in income causes a(n)

Correct Answer
verified

In a perfectly competitive market, both buyers and sellers have ________ knowledge and so are able to make decisions independently

Correct Answer
verified

Correct Answer
verified

The commercial airliner industry, consisting of Boeing and Airbus, represents

Correct Answer
verified

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

Correct Answer
verified

Which of the following sets of goods are most likely to be complementary goods?

Correct Answer
verified

The quantity demanded refers to the amount consumers are willing and able to purchase at different prices. Why is it important that consumers are not only willing, but also able to buy in analysing demand?

Correct Answer
verified
Supply and demand are the forces which m...
View Answer

Higher wages in the European car industry would the prices of European-made cars and the quantity traded.

Correct Answer
verified

Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect

Correct Answer
verified

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

Correct Answer
verified

Temporary shortages in a market are eliminated by

Correct Answer
verified

Correct Answer
verified
a. A change in demand refers to a shift ...
View Answer

A group of buyers and sellers with the potential to trade is known as

Correct Answer
verified

Exam 3: The Market Forces of Supply and Demand

A decrease in supply is represented by a

Correct AnswerverifiedShow Answer

The law of demand states that an increase in the price of a good decreases the demand for that good.

Correct AnswerverifiedShow Answer

Suppose that the demand for apples increased more than the supply of apples increased. The net effect of these two changes would be

Correct AnswerverifiedShow Answer

An inferior good is one for which an increase in income causes a(n)

Correct AnswerverifiedShow Answer

In a perfectly competitive market, both buyers and sellers have ________ knowledge and so are able to make decisions independently

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The commercial airliner industry, consisting of Boeing and Airbus, represents

Correct AnswerverifiedShow Answer

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

Correct AnswerverifiedShow Answer

Which of the following sets of goods are most likely to be complementary goods?

Correct AnswerverifiedShow Answer

The quantity demanded refers to the amount consumers are willing and able to purchase at different prices. Why is it important that consumers are not only willing, but also able to buy in analysing demand?

Correct AnswerverifiedSupply and demand are the forces which m...View AnswerShow Answer

Higher wages in the European car industry would __________ the prices of European-made cars and __________ the quantity traded.

Correct AnswerverifiedShow Answer

Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect

Correct AnswerverifiedShow Answer

The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as

Correct AnswerverifiedShow Answer

Temporary shortages in a market are eliminated by

Correct AnswerverifiedShow Answer

Correct Answerverifieda. A change in demand refers to a shift ...View AnswerShow Answer

A group of buyers and sellers with the potential to trade is known as

Correct AnswerverifiedShow Answer

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Supply and demand are the forces which m...
View Answer

Higher wages in the European car industry would the prices of European-made cars and the quantity traded.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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a. A change in demand refers to a shift ...
View Answer

Correct Answer
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