Question 1

Some nonprice determinants of demand are:

Accepted Answer

A)   consumer preferences, expectations of future prices, and the number of buyers in the market.
B)   consumer preferences, the price of the good, and incomes.
C)   incomes, expectations of future prices, and the number of sellers in the market.
D)   prices of related goods, knowledge of past prices, and the number of buyers in the market.E) None of the above
F) A) and B)

Question 2

Darren loves to go to the movies,and he just learned that he can buy a ticket at a discounted price using his student ID.Darren now attends movies even more often.Which of the following factors of demand caused the change in Darren's behavior?

Accepted Answer

A)   Income
B)   Price
C)   Preferences
D)   Number of buyersE) B) and C)
F) A) and B)

Question 3

A factory recently added new robots to its production line,increasing productivity.This will likely cause a:

Accepted Answer

A)   rightward shift of the supply curve.
B)   leftward shift of the supply curve.
C)   shift downward of the supply curve.
D)   movement up along the supply curve.E) All of the above
F) C) and D)

Question 4

When quantity supplied equals quantity demanded:

Accepted Answer

A)   equilibrium is reached.
B)   the market forces push the economy to produce more.
C)   the market forces push the economy to produce less.
D)   the market forces cease to function.E) A) and B)
F) None of the above

Question 5

This table shows individual demand schedules for a market.  According to the table shown,what will the equilibrium price be in this market?

Accepted Answer

A)   $0.50
B)   $1.50
C)   $2.00
D)   Cannot be determined without more information.E) A) and D)
F) A) and B)

Question 6

Consider a market that is in equilibrium.If it experiences both an increase in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

Accepted Answer

A)   price and quantity will both rise.
B)   quantity will definitely rise, while the equilibrium price cannot be predicted.
C)   price will definitely rise, while the equilibrium quantity cannot be predicted.
D)   price and quantity will both fall.E) A) and D)
F) All of the above

Question 7

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.E) A) and B)
F) None of the above

Question 8

Consider a market that is in equilibrium.If it experiences an increase in demand,what will happen? The demand curve will shift to the:

Accepted Answer

A)   right, and the equilibrium price and quantity will rise.
B)   right, and the equilibrium price will increase and the equilibrium quantity will decrease.
C)   right, and the equilibrium price and quantity will fall.
D)   left, and the equilibrium price and quantity will fall.E) None of the above
F) A) and B)

Question 9

The prices of related goods matters when determining supply because it affects:

Accepted Answer

A)   the opportunity cost of production.
B)   whether or not your good will sell.
C)   the competition in the market.
D)   the availability of substitute goods.E) C) and D)
F) A) and B)

Question 10

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.E) B) and D)
F) None of the above

Question 11

A nonprice determinant of demand refers to something that:

Accepted Answer

A)   affects the price other than demand.
B)   affects demand other than the price.
C)   determines how large a role prices play in the demand decision.
D)   determines how prices are affected by income.E) A) and B)
F) All of the above

Question 12

After getting a raise at work,Jasper now regularly buys steak instead of chicken.Which factor of demand has influenced Jasper's demand for steak?

Accepted Answer

A)   Price of a substitute good
B)   Price of a complementary good
C)   Income
D)   PreferencesE) A) and D)
F) None of the above

Question 13

The demand curve:

Accepted Answer

A)   represents consumers' willingness but not ability to buy.
B)   shows the highest amount consumers will pay for a specific quantity.
C)   visually displays the demand schedule.
D)   represents consumers' ability but not willingness to buy.E) A) and D)
F) A) and C)

Question 14

The most likely substitute good for cereal would be:

Accepted Answer

A)   a bagel.
B)   milk.
C)   pizza.
D)   a hot dog.E) B) and C)
F) A) and C)

Question 15

An increase in the price of ice cream is likely to cause:

Accepted Answer

A)   a movement to the left along the demand curve for ice cream.
B)   an inward shift of the demand curve for ice cream.
C)   an outward shift of the demand curve for ice cream.
D)   a movement to the right along the demand curve for ice cream.E) None of the above
F) A) and C)

Question 16

According to the graph shown,if the price were $15,a:

Accepted Answer

A)   shortage would exist, signaling sellers to raise their price.
B)   shortage would exist, signaling buyers to leave the market.
C)   surplus would exist, signaling sellers to drop their price.
D)   surplus would exist, signaling buyers to bid up the price.E) None of the above
F) All of the above

Question 17

For almost all goods,the:

Accepted Answer

A)   lower the price goes, the higher the quantity demanded.
B)   higher the price goes, the more luxurious it is.
C)   lower the price goes, the higher demand is.
D)   higher the price goes, the higher the quantity demanded.E) B) and C)
F) A) and C)

Question 18

The four important characteristics that define a perfectly competitive market are:

Accepted Answer

A)   standardized good, full information, no transactions costs, participants are price takers.
B)   standardized information, finished good, no transactions costs, participants are price makers.
C)   standardized good, same information for buyer and seller, low transactions costs, participants are price takers.
D)   standardized good, full information, no transactions costs, participants are price makers.E) A) and C)
F) B) and D)

Question 19

Tom was out shopping for a sweater and learned that they will all go on sale tomorrow.We would expect Tom's demand for sweaters today to:

Accepted Answer

A)   increase.
B)   shift to the left.
C)   move down along his demand curve.
D)   shift to the right.E) A) and B)
F) B) and C)

Question 20

This table shows the demand and supply schedule of a good.  According to the table shown,at a price of $1.00:

Accepted Answer

A)   a shortage will exist.
B)   a surplus will exist.
C)   more is being supplied than demanded.
D)   the market is in equilibrium.E) A) and B)
F) B) and D)

Exam 3: Markets

A surplus will occur in a market if:

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This table shows the demand and supply schedule of a good. According to the table shown,at a price of $1.00:

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This table shows individual demand schedules for a market. According to the table shown,what will the equilibrium price be in this market?

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For almost all goods,the:

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The most likely substitute good for cereal would be:

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According to the graph shown,if the price were $15,a:

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Some nonprice determinants of demand are:

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When quantity supplied equals quantity demanded:

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Consider a market that is in equilibrium.If it experiences an increase in demand,what will happen? The demand curve will shift to the:

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After getting a raise at work,Jasper now regularly buys steak instead of chicken.Which factor of demand has influenced Jasper's demand for steak?

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The prices of related goods matters when determining supply because it affects:

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A nonprice determinant of demand refers to something that:

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An increase in the price of ice cream is likely to cause:

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Darren loves to go to the movies,and he just learned that he can buy a ticket at a discounted price using his student ID.Darren now attends movies even more often.Which of the following factors of demand caused the change in Darren's behavior?

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The demand curve:

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The four important characteristics that define a perfectly competitive market are:

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Consider a market that is in equilibrium.If it experiences both an increase in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

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A demand curve is a graph:

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A factory recently added new robots to its production line,increasing productivity.This will likely cause a:

Correct AnswerverifiedShow Answer

Tom was out shopping for a sweater and learned that they will all go on sale tomorrow.We would expect Tom's demand for sweaters today to:

Correct AnswerverifiedShow Answer

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