Question 1

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Accepted Answer

A)   the equilibrium quantity definitely increases.
B)   the equilibrium quantity definitely decreases.
C)   the equilibrium quantity definitely remains the same.
D)   More information is needed to determine the effect on the equilibrium quantity.
E)   the equilibrium price definitely falls.F) D) and E)
G) B) and E)

Question 2

Advances in productivity increase supply because they might

Accepted Answer

A)   increase the price expected in the future.
B)   decrease the number of goods available.
C)   decrease the cost of production.
D)   raise the prices of resources used to produce the good.
E)   increase the number of firms producing the good.F) A) and B)
G) None of the above

Question 3

Which of the following increases the demand for a good or service?

Accepted Answer

A)   a fall in the price of the good or service
B)   a smaller number of consumers wanting to buy the good or service
C)   a rise in the price of the good or service
D)   a rise in the price of a substitute good or service
E)   a rise in the price of a complementF) A) and E)
G) B) and C)

Question 4

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Accepted Answer

A)   an increase in consumers' preferences for corn
B)   an increase in consumers' income if corn is a normal good
C)   an increase in labor costs of producing corn
D)   an improvement in the technology of producing corn
E)   an increase in consumers' income if corn is an inferior goodF) C) and D)
G) A) and D)

Question 5

A supply curve

Accepted Answer

A)   slopes downward.
B)   slopes upward.
C)   is a graph of the relationship between quantity supplied of a good and its price.
D)   Both answers B and C are correct.
E)   Both answers A and C are correct.F) C) and D)
G) D) and E)

Question 6

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

Accepted Answer

The answer of 
-The table above shows supply schedules for...

Question 7

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

Accepted Answer

A)   the demand for milk increases.
B)   the quantity demanded of milk increases.
C)   the price of milk falls to encourage people to drink more milk.
D)   the demand for milk is not affected.
E)   the demand for milk decreases because the price of milk rises.F) B) and E)
G) B) and C)

Question 8

List the factors that change supply and shift the supply curve.Tell what happens to supply and the supply curve when there is an increase in the factor.

Accepted Answer

The factors that change supply are produ...

Question 9

At prices above the equilibrium price,what occurs?

Accepted Answer

If the price exceeds the equilibrium pri...

Question 10

If a market begins in equilibrium and then the demand curve shifts leftward,a

Accepted Answer

A)   shortage is created, which is eliminated by a fall in price.
B)   shortage is created, which is eliminated by a rise in price.
C)   surplus is created, which is eliminated by a fall in price.
D)   surplus is created, which is eliminated by a rise in price.
E)   surplus is created, which is eliminated by the supply curve shifting leftward.F) B) and D)
G) None of the above

Question 11

-In the above figure,the movement from point a to point b reflects

Accepted Answer

A)   a decrease in the price of pizza.
B)   an increase in the demand for pizza.
C)   an increase in the number of people who eat pizza.
D)   an increase in the price of the tomato sauce used to produce pizza.
E)   a decrease in the number of firms producing pizza.F) C) and E)
G) All of the above

Question 12

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand ________ and supply ________.

Accepted Answer

A)   increases; increases
B)   decreases; decreases
C)   increases; decreases
D)   decreases; increases
E)   does not change; does not changeF) C) and D)
G) B) and C)

Question 13

What is the difference between quantity supplied and supply?

Accepted Answer

Quantity supplied is the amount that peo...

Question 14

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

Question 15

-Using the data in the table above,the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

A)   50,000 and $100.
B)   80,000 and $80.
C)   60,000 and $50.
D)   40,000 and $20.
E)   100,000 and $20.F) A) and B)
G) A) and C)

Question 16

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Accepted Answer

A)   The equilibrium price of taco chips falls, and the equilibrium quantity decreases.
B)   The equilibrium price of taco chips rises, and the equilibrium quantity decreases.
C)   There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases.
D)   The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases.
E)   The equilibrium price of taco chips rises, and the equilibrium quantity increases.F) A) and D)
G) A) and C)

Question 17

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Accepted Answer

A)   The supply increases so that the supply curve shifts rightward.
B)   The supply decreases so that the supply curve shifts leftward.
C)   The quantity supplied increases, but there is no shift in the supply curve.
D)   The quantity supplied decreases, but there is no shift in the supply curve.
E)   The quantity supplied decreases, and the supply curve shifts leftward.F) All of the above
G) C) and D)

Question 18

-In the above figure,the shift in the supply curve from S to S? reflects

Accepted Answer

A)   an increase in the quantity of pizza supplied.
B)   a decrease in the quantity of pizza supplied.
C)   an increase in the supply of pizza.
D)   a decrease in the supply of pizza.
E)   a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.F) A) and C)
G) All of the above

Question 19

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)   consumers buy more of the good only if its price rises.
E)   the demand curve shifts leftward.F) A) and D)
G) B) and C)

Question 20

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Accepted Answer

A)   shortage, so the price falls and quantity demanded increases.
B)   surplus, so the price falls and quantity demanded increases.
C)   shortage, so the price rises and quantity demanded decreases.
D)   surplus, so the price rises and quantity demanded increases.
E)   surplus, so the price falls and quantity supplied increases.F) C) and D)
G) A) and D)

Exam 4: Demand and Supply

At prices above the equilibrium price,what occurs?

Correct AnswerverifiedIf the price exceeds the equilibrium pri...View AnswerShow Answer

If a market begins in equilibrium and then the demand curve shifts leftward,a

Correct AnswerverifiedShow Answer

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

Correct AnswerverifiedShow Answer

A supply curve

Correct AnswerverifiedShow Answer

-The table above shows supply schedules for the two nail salons in town,Nancy's Nails and Fancy Nails.What is the market supply of manicures?

Correct AnswerverifiedShow Answer

List the factors that change supply and shift the supply curve.Tell what happens to supply and the supply curve when there is an increase in the factor.

Correct AnswerverifiedThe factors that change supply are produ...View AnswerShow Answer

-Using the data in the table above,the equilibrium quantity and equilibrium price for a cellular telephone is

Correct AnswerverifiedShow Answer

When demand increases,

Correct AnswerverifiedShow Answer

-In the above figure,the shift in the supply curve from S to S? reflects

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

Correct AnswerverifiedShow Answer

Advances in productivity increase supply because they might

Correct AnswerverifiedShow Answer

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound.In this case,there is a

Correct AnswerverifiedShow Answer

-In the above figure,the movement from point a to point b reflects

Correct AnswerverifiedShow Answer

Which of the following increases the demand for a good or service?

Correct AnswerverifiedShow Answer

What is the difference between quantity supplied and supply?

Correct AnswerverifiedQuantity supplied is the amount that peo...View AnswerShow Answer

For consumers,taco chips and salsa are complements.If the price of salsa rises,what is the effect on the equilibrium price and quantity of taco chips?

Correct AnswerverifiedShow Answer

The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk.As a result,

Correct AnswerverifiedShow Answer

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?

Correct AnswerverifiedShow Answer

If both producers and consumers believe that a product's price will rise in the future,then at the present,demand ________ and supply ________.

Correct AnswerverifiedShow Answer

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If the price exceeds the equilibrium pri...
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The factors that change supply are produ...
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Quantity supplied is the amount that peo...
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If both producers and consumers believe that a product's price will rise in the future,then at the present,demand and supply .

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