Question 1

The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Accepted Answer

A)  90
B)  230
C)  80
D)  60
E)  30F) A) and C)
G) All of the above

Question 2

When demand increases,

Accepted Answer

A)  consumers are willing to buy more at any price.
B)  consumers buy more of the good only if its price falls.
C)  the price is lower at any level of quantity demanded.
D)  the demand curve shifts leftward.
E)  consumers buy more of the good only if its price rises.F) A) and E)
G) B) and D)

Question 3

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Accepted Answer

A)  demand for Apple computers decreases.
B)  supply of Dell computers increases.
C)  demand for Dell computers decreases.
D)  demand for Dell computers increases.
E)  demand for Apple computers increases.F) A) and E)
G) B) and D)

Question 4

Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

Accepted Answer

A)  A rise in the price of a personal computer
B)  A fall in the cost of the components used to assemble personal computers
C)  A change in the expected future price of a personal computer
D)  An advance in the technology used to produce personal computers
E)  An increase in the number of firms producing personal computersF) All of the above
G) B) and E)

Question 5

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

Accepted Answer

A)  downward;increases
B)  downward;decreases
C)  upward;decreases
D)  upward;increases
E)  downward;does not changeF) B) and E)
G) None of the above

Question 6

The graph above illustrates the supply of cola.If the price of cola rises from $0.50 a can to $1.50 a can,the quantity of cola supplied

Accepted Answer

A)  increases from 0 to 6,000 cans a day.
B)  decreases from 4,000 cans to 0 cans a day.
C)  increases from 0 cans to 4,000 cans a day.
D)  remains unchanged because the supply increases not the quantity supplied.
E)  remains unchanged because the supply decreases not the quantity supplied.F) A) and E)
G) A) and C)

Question 7

If the number of companies producing memory chips increases,then the

Accepted Answer

A)  supply of memory chips increases.
B)  supply of memory chips does not change.
C)  supply of memory chips decreases.
D)  demand for memory chips increases.
E)  quantity of memory chips supplied increases.F) A) and B)
G) A) and C)

Question 8

-In the figure above,a price of $15 per dozen roses results in

Accepted Answer

A)  downward pressure on the price of roses.
B)  a shortage.
C)  a surplus.
D)  equilibrium.
E)  an eventual leftward shift of the demand curve and/or rightward shift of the supply curve.F) A) and E)
G) None of the above

Question 9

Lesley buys 6 cappuccinos per week when her income is $900 per week and buys 8 cappuccinos per week when her income is $1100 per week.For Lesley,cappuccinos are a(n) ________ good.

Accepted Answer

A)  substitute
B)  inferior
C)  normal
D)  essential
E)  luxuryF) B) and D)
G) A) and D)

Question 10

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

Accepted Answer

A)  The effect on the demand curve is unknown.
B)  The demand curve would not shift,but the price of dining out would fall.
C)  The demand curve would shift leftward.
D)  The demand curve would not shift,but the price of dining out would rise.
E)  The demand curve would shift rightward.F) A) and C)
G) B) and C)

Question 11

Which of the following increases the supply of a good?

Accepted Answer

A)  Producers expect higher prices for the good in the future.
B)  The number of producers decreases.
C)  Prices of inputs used to produce the good rise.
D)  Productivity improves.
E)  There is a decrease in the price of a complement in production.F) All of the above
G) A) and B)

Question 12

-In the above figure,________ will shift the demand curve from D to D₁.

Accepted Answer

A)  a fall in the cost of producing pizza
B)  a scientific article published that demonstrates eating pizza is good for one's health
C)  an increase in income if pizza is an inferior good
D)  buyers' expectations that pizza will be less expensive next week
E)  a decrease in the price of a hamburger,a substitute for pizzaF) A) and B)
G) A) and D)

Question 13

-The above figure shows the market for t-shirts,where the market equilibrium price is $10.If the government imposes a price ceiling of $12,then

Accepted Answer

A)  there is a surplus of 250 t-shirts.
B)  there is a surplus of 200 t-shirts.
C)  there is a shortage of 200 t-shirts.
D)  there is a shortage of 250 t-shirts.
E)  there is no change as the price ceiling is set above the equilibrium price.F) D) and E)
G) B) and D)

Question 14

A change in the demand for apples could result from any of the following EXCEPT

Accepted Answer

A)  a change in income.
B)  a change in the number of buyers.
C)  a change in the price of an apple.
D)  a change in the price of a banana.
E)  increased preferences for fresh fruit consumption for health reasons.F) A) and B)
G) A) and C)

Question 15

It is expected that the price of a tonne of wheat will increase in one month.This belief will result in

Accepted Answer

A)  a decrease in the future supply of wheat.
B)  an increase in the current supply of wheat.
C)  an increase in the current quantity supplied of wheat.
D)  a decrease in the current supply of wheat.
E)  no change in the current or future supply of wheat.F) B) and C)
G) A) and B)

Question 16

Suppose the equilibrium price of oranges is $2.00 per kilogram.If the actual price is above the equilibrium price a

Accepted Answer

A)  shortage exists,and the price rises to restore equilibrium.
B)  shortage exists,and the price falls to restore equilibrium.
C)  surplus exists,but nothing happens until either the demand or the supply changes.
D)  surplus exists,and the price falls to restore equilibrium.
E)  surplus exists,and the price rises to restore equilibrium.F) A) and B)
G) A) and C)

Question 17

In stores,it is common to find seasonal products marked down when the season ends.What explains this behaviour?

Accepted Answer

A)  The store is trying to sell the goods and realises that they are substitutes for other goods whose prices have risen.
B)  The store is trying to increase its consumers' incomes by increasing their purchasing power.
C)  The law of demand is being used to increase the quantity demanded.
D)  The store is trying to increase its customers' demand for the product.
E)  The store manager must be trying to drive away customers by selling low quality products.F) A) and B)
G) A) and C)

Question 18

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Accepted Answer

A)  increases the demand for corn.
B)  increases the supply of corn.
C)  decreases the supply of corn.
D)  Both answers A and C are correct.
E)  Both answers A and B are correct.F) C) and D)
G) B) and E)

Question 19

The quantity supplied of a good or service is the

Accepted Answer

A)  list of all quantities at different prices,as illustrated by a demand schedule and a demand curve.
B)  quantity produced at many prices.
C)  list of all quantities at different prices,as illustrated by a supply schedule and a supply curve.
D)  quantity produced at one price.
E)  one quantity produced at a variety of prices.F) B) and D)
G) B) and C)

Question 20

The quantity supplied of a good,service or resource is ________ during a specified period and at a specified price.

Accepted Answer

A)  the amount that people are willing to sell
B)  the amount that people are willing and able to buy
C)  the amount sold
D)  the amount that people are able to sell
E)  the amount that people are able and willing to sellF) A) and E)
G) A) and D)

Exam 4: Demand and Supply

If the number of companies producing memory chips increases,then the

Correct AnswerverifiedShow Answer

In stores,it is common to find seasonal products marked down when the season ends.What explains this behaviour?

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-In the figure above,a price of $15 per dozen roses results in

Correct AnswerverifiedShow Answer

Suppose the equilibrium price of oranges is $2.00 per kilogram.If the actual price is above the equilibrium price a

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Lesley buys 6 cappuccinos per week when her income is $900 per week and buys 8 cappuccinos per week when her income is $1100 per week.For Lesley,cappuccinos are a(n) ________ good.

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-The above figure shows the market for t-shirts,where the market equilibrium price is $10.If the government imposes a price ceiling of $12,then

Correct AnswerverifiedShow Answer

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

Correct AnswerverifiedShow Answer

The table above gives the demand schedule for lattes at the Bottomless Cup.If the price of a latte is $3,then the quantity of lattes demanded is ________ an hour.

Correct AnswerverifiedShow Answer

Which of the following increases the supply of a good?

Correct AnswerverifiedShow Answer

It is expected that the price of a tonne of wheat will increase in one month.This belief will result in

Correct AnswerverifiedShow Answer

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

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The quantity supplied of a good,service or resource is ________ during a specified period and at a specified price.

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The quantity supplied of a good or service is the

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A change in the demand for apples could result from any of the following EXCEPT

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When demand increases,

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The graph above illustrates the supply of cola.If the price of cola rises from $0.50 a can to $1.50 a can,the quantity of cola supplied

Correct AnswerverifiedShow Answer

-In the above figure,________ will shift the demand curve from D to D₁.

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Which of the following does NOT increase the supply of personal computers,that is,does NOT shift the supply curve of personal computers?

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Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Correct AnswerverifiedShow Answer

Researchers have found a hybrid of corn that is cheaper to grow.This technological breakthrough

Correct AnswerverifiedShow Answer

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Demand curves slope because as the price increases and other things remain the same,the quantity demanded .

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