Question 1

An announcement that smoking will harm your ability to think clearly will most likely result in:

Accepted Answer

A)   an increase in the quantity of cigarettes demanded.
B)   a decrease in the demand for cigarettes.
C)   no change in smoking habits.
D)   an increase in the equilibrium price of cigarettes.E) A) and C)
F) C) and D)

Question 2

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Accepted Answer

A)   lead to an increase in supply.
B)   lead to a decrease in demand.
C)   result in an increased price.
D)   lead to a decrease in supply.E) All of the above
F) B) and C)

Question 3

Use the following to answer questions.
Exhibit: The Market for Chocolate-Covered Peanuts
 
-(Exhibit: The Market for Chocolate-Covered Peanuts)  The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

Accepted Answer

A)   140; 40
B)   175; 60
C)   175; 80
D)   210; 50E) All of the above
F) B) and C)

Question 4

When economists study the behavior of sellers, they are studying:

Accepted Answer

A)   supply.
B)   the role of government.
C)   demand.
D)   accounting.E) All of the above
F) B) and C)

Question 5

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

Accepted Answer

A)   decrease; increase
B)   decrease; decrease
C)   decrease; remain constant
D)   increase; either increase, decrease, or remain constantE) B) and C)
F) A) and C)

Question 6

An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.

Accepted Answer

A)   an increase; an increase
B)   an increase; a decrease
C)   a decrease; an increase
D)   a decrease; a decreaseE) B) and C)
F) C) and D)

Question 7

Use the following to answer questions .
Exhibit: Demand and Supply 
-(Exhibit: Demand and Supply)  What is the equilibrium price?

Accepted Answer

A)   $2
B)   $4
C)   $6
D)   $8E) All of the above
F) None of the above

Question 8

Technology is a demand shifter.

Accepted Answer

A) True 
 B)False

Question 9

Use the following to answer questions.
Exhibit: The Supply of Music Downloads 
-(Exhibit: The Supply of Music downloads)  A decrease in the number of websites supplying music downloads would result in a change illustrated by:

Accepted Answer

A)   the move from n to o in Figure (a) .
B)   the move from p to q in Figure (b) .
C)   the move from s to t in Figure (c) .
D)   the move from u to v in Figure (d) .E) A) and C)
F) C) and D)

Question 10

The demand for a product is the quantity of it that people buy.

Accepted Answer

A) True 
 B)False

Question 11

The primary difference between a change in supply and a change in the quantity supplied is:

Accepted Answer

A)   a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve.
B)   both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
C)   a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve.
D)   a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.E) None of the above
F) A) and B)

Question 12

Use the following to answer questions .
Exhibit: Demand and Supply Shifters 
-(Exhibit: Demand and Supply Shifters)  The exhibit shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) None of the above
F) B) and C)

Question 13

A market shortage occurs if the:

Accepted Answer

A)   price is above the equilibrium price.
B)   price is equal to the equilibrium price.
C)   equilibrium price is above the current price.
D)   equilibrium price is below the current price.E) B) and C)
F) None of the above

Question 14

Which of the following is true?

Accepted Answer

A)   If demand decreases, equilibrium price increases.
B)   If demand increases, equilibrium price decreases.
C)   If demand decreases, the demand curve shifts to the left.
D)   If demand decreases, the demand curve shifts to the right.E) A) and C)
F) None of the above

Question 15

Use the following to answer questions 
Exhibit: The Demand for Music Downloads 
-(Exhibit: The Demand for music downloads)  A decrease in the price of iPods and other similar devices would result in a change illustrated by:

Accepted Answer

A)   the move from f to g in Figure (a) .
B)   the move from h to i in Figure (b) .
C)   the move from j to k in Figure (c) .
D)   the move from l to m in Figure (d) .E) A) and B)
F) B) and C)

Question 16

For most consumers, blu-ray players and blu-ray discs are likely to be:

Accepted Answer

A)   substitute goods.
B)   complementary goods.
C)   inferior goods.
D)   independent goods.E) None of the above
F) All of the above

Question 17

When the market price is established where demand and supply curves intersect:

Accepted Answer

A)   consumer buying tends to exceed the quantity producers supply.
B)   the quantity consumers demand generally fall short of the quantity producers supply.
C)   the quantity demanded and the quantity supplied are equal.
D)   all of the above will result.E) A) and B)
F) B) and D)

Question 18

There can be no shortages or surpluses at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 19

Use the following to answer questions .
Exhibit: The Determinants of Demand and Supply 
-(Exhibit: The Determinants of Demand and Supply)  The exhibit shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating a tomato a day prevents aging. Which panel best describes how this will affect the market for tomatoes?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and B)
F) B) and D)

Question 20

If economists say, "the price is too high," they mean that:

Accepted Answer

A)   quantity demanded is greater than quantity supplied.
B)   quantity supplied is greater than quantity demanded.
C)   the equilibrium price exceeds the current price.
D)   the price of a good will tend to increase.E) B) and C)
F) A) and D)

Exam 3: Demand and Supply

Correct Answer
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When the market price is established where demand and supply curves intersect:

Correct Answer
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For most consumers, blu-ray players and blu-ray discs are likely to be:

Correct Answer
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Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.

Correct Answer
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Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

Correct Answer
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Which of the following is true?

Correct Answer
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Technology is a demand shifter.

Correct Answer
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A market shortage occurs if the:

Correct Answer
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There can be no shortages or surpluses at the equilibrium price.

Correct Answer
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The demand for a product is the quantity of it that people buy.

Correct Answer
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The primary difference between a change in supply and a change in the quantity supplied is:

Correct Answer
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An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.

Correct Answer
verified

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

Correct Answer
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If both the demand for a product and the supply of it increase, then the equilibrium quantity will and the equilibrium price will .

Correct Answer
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If economists say, "the price is too high," they mean that:

Correct Answer
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Correct Answer
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All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Correct Answer
verified

An announcement that smoking will harm your ability to think clearly will most likely result in:

Correct Answer
verified

When economists study the behavior of sellers, they are studying:

Correct Answer
verified

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Correct Answer
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Exam 3: Demand and Supply

Correct AnswerverifiedShow Answer

When the market price is established where demand and supply curves intersect:

Correct AnswerverifiedShow Answer

For most consumers, blu-ray players and blu-ray discs are likely to be:

Correct AnswerverifiedShow Answer

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

Correct AnswerverifiedShow Answer

Use the following to answer questions. Exhibit: The Supply of Music Downloads -(Exhibit: The Supply of Music downloads) A decrease in the number of websites supplying music downloads would result in a change illustrated by:

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Technology is a demand shifter.

Correct AnswerverifiedShow Answer

A market shortage occurs if the:

Correct AnswerverifiedShow Answer

There can be no shortages or surpluses at the equilibrium price.

Correct AnswerverifiedShow Answer

The demand for a product is the quantity of it that people buy.

Correct AnswerverifiedShow Answer

The primary difference between a change in supply and a change in the quantity supplied is:

Correct AnswerverifiedShow Answer

An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.

Correct AnswerverifiedShow Answer

Use the following to answer questions Exhibit: The Demand for Music Downloads -(Exhibit: The Demand for music downloads) A decrease in the price of iPods and other similar devices would result in a change illustrated by:

Correct AnswerverifiedShow Answer

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

Correct AnswerverifiedShow Answer

If economists say, "the price is too high," they mean that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

Correct AnswerverifiedShow Answer

An announcement that smoking will harm your ability to think clearly will most likely result in:

Correct AnswerverifiedShow Answer

When economists study the behavior of sellers, they are studying:

Correct AnswerverifiedShow Answer

Use the following to answer questions . Exhibit: Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are bags and cents.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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If both the demand for a product and the supply of it increase, then the equilibrium quantity will and the equilibrium price will .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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