Question 1

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Accepted Answer

A)  an increase in the cost of hard drives
B)  an increase in the productivity of the workers manufacturing laptops
C)  a decrease in the price of laptops
D)  an increase in the price of laptops
E)  a decrease in the number of laptop manufactures and sellersF) B) and C)
G) D) and E)

Question 2

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Accepted Answer

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

Question 3

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________, and the equilibrium quantity ________.

Accepted Answer

A)  does not change; increases
B)  rises; decreases
C)  falls; perhaps changes but we can't say if it increases, decreases, or stays the same
D)  rises; perhaps changes but we can't say if it increases, decreases, or stays the same
E)  falls; increasesF) A) and D)
G) B) and E)

Question 4

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

Accepted Answer

A)  the demand curve shifts rightward.
B)  the demand curve shifts leftward.
C)  there is a movement down along the demand curve to a larger quantity demanded.
D)  there is a movement up along the demand curve to a smaller quantity demanded.
E)  the demand curve shifts rightward and there is a movement up along the demand curve to a smaller quantity demanded.F) A) and E)
G) A) and B)

Question 5

-Consider the market for camera film.If more people start using digital cameras, which do not require film,

Accepted Answer

A)  the supply curve of film shifts rightward.
B)  the demand curve for film shifts leftward.
C)  there is a movement up along the demand curve for film.
D)  there is a movement down along the demand curve for film.
E)  neither the demand curve nor the supply curve for film shifts; instead there is a movement along both.F) C) and E)
G) C) and D)

Question 6

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result, the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases
B)  rises; decreases
C)  falls; increases
D)  falls; decreases
E)  does not change; decreasesF) A) and D)
G) A) and C)

Question 7

The price of cotton clothing falls.As a result,

Accepted Answer

A)  the quantity demanded of cotton clothing increases.
B)  the demand for cotton clothing increases.
C)  the quantity demanded of cotton clothing decreases.
D)  the demand for cotton clothing decreases.
E)  both the demand for cotton clothing increases and the quantity demand of cotton clothing increases.F) None of the above
G) D) and E)

Question 8

-In the above figure, an increase in productivity

Accepted Answer

A)  shifts the supply curve from S to S₁.
B)  shifts the supply curve from S to S₂.
C)  results in a movement from point a to point b.
D)  results in a movement from point b to point a.
E)  has no effect.F) C) and D)
G) B) and D)

Question 9

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

Accepted Answer

A)  Figure A
B)  Figure B
C)  Figure C
D)  Figure D
E)  None of the above because a prohibition cannot be illustrated using demand and supply figures.F) All of the above
G) A) and B)

Question 10

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

Accepted Answer

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

Question 11

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Accepted Answer

A)  a decrease in the costs of production
B)  an increase in the product's price
C)  an advance in the technology used to produce the good
D)  an increase in the price of another product that the suppliers can produce
E)  an increase in the number of firms producing the good or serviceF) C) and E)
G) A) and B)

Question 12

Which of the following lower the equilibrium price of a canoe?

Accepted Answer

A)  an increase in the supply of canoes
B)  an increase in the demand for canoes
C)  an increase in the quantity of canoes supplied
D)  a decrease in the supply of canoes
E)  Both answers A and B are correct.F) C) and E)
G) A) and C)

Question 13

-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 14

What leads to a decrease in the quantity supplied of a good or service?

Accepted Answer

The quantity supplied of a goo...

Question 15

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________, and the equilibrium quantity ________.

Accepted Answer

A)  rises; increases
B)  perhaps changes but we can't say if it rises, falls, or stays the same; does not change
C)  falls; increases
D)  perhaps changes but we can't say if it rises, falls, or stays the same; increases
E)  falls; perhaps changes but we can't say if it increases, decreases, or stays the sameF) A) and D)
G) C) and E)

Question 16

If both the supply and demand curves shift simultaneously, we can always predict what will happen to

Accepted Answer

A)  both the price and the quantity.
B)  either the price or the quantity, but not both.
C)  only the price.
D)  only the quantity.
E)  neither the price nor the quantity.F) A) and E)
G) D) and E)

Question 17

The number of people looking to buy ceiling fan buyers increases, so there is an increase in the

Accepted Answer

A)  quantity of ceiling fans demanded and a surplus of ceiling fans.
B)  demand for ceiling fans and a rise in the price of a ceiling fan.
C)  demand for ceiling fans and a surplus of ceiling fans.
D)  supply of ceiling fans and no change in the price of a ceiling fan.
E)  demand for ceiling fans and in the supply of ceiling fans.F) B) and E)
G) C) and E)

Question 18

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) A) and E)
G) A) and C)

Question 19

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Accepted Answer

A)  studies showing using cellular phones can cause brain cancer
B)  a decrease in the price of cellular phones
C)  a decrease in the quantity demanded of cellular phones
D)  an increase in the services provided by cellular phones, such as text messaging
E)  an increase in the price of cellular phonesF) B) and D)
G) None of the above

Question 20

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Accepted Answer

A)  an increase in the price of a rutabaga
B)  an exceptionally cold summer that killed much of the rutabaga crop
C)  a fall in the price of fertilizer used to grow rutabagas
D)  Both answers A and C shift the supply curve of rutabagas rightward.
E)  Both answers A and B shift the supply curve of rutabagas rightward.F) A) and B)
G) D) and E)

Exam 4: Demand and Supply

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Correct AnswerverifiedShow Answer

-Consider the market for camera film.If more people start using digital cameras, which do not require film,

Correct AnswerverifiedShow Answer

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________, and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

-The above figure shows the market for laptops.Which of the following shifts the supply curve from S₀ to S₂?

Correct AnswerverifiedShow Answer

If both the supply and demand curves shift simultaneously, we can always predict what will happen to

Correct AnswerverifiedShow Answer

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

Correct AnswerverifiedShow Answer

The price of cotton clothing falls.As a result,

Correct AnswerverifiedShow Answer

A supply curve

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result, the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

-In the above figure, an increase in productivity

Correct AnswerverifiedShow Answer

The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________, and the equilibrium quantity ________.

Correct AnswerverifiedShow Answer

The number of people looking to buy ceiling fan buyers increases, so there is an increase in the

Correct AnswerverifiedShow Answer

What leads to a decrease in the quantity supplied of a good or service?

Correct AnswerverifiedThe quantity supplied of a goo...View AnswerShow Answer

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

Correct AnswerverifiedShow Answer

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

Correct AnswerverifiedShow Answer

Which of the following lower the equilibrium price of a canoe?

Correct AnswerverifiedShow Answer

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

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

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price , and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Fresh orange juice and frozen orange juice are substitutes in production.The price of fresh orange juice rises.As a result, the equilibrium price of frozen orange juice and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified

The demand for cat food decreases while the supply increases.The equilibrium price of cat food , and the equilibrium quantity .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The quantity supplied of a goo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified