Question 1

When economists speak of preferences as influencing demand, they are referring to

Accepted Answer

A)   directly observable changes in prices and income.
B)   an individual's attitudes toward goods and services.
C)   the excess of wants over the available supplies.
D)   the availability of a good to all income classes.E) A) and B)
F) A) and C)

Question 2

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Accepted Answer

A)   76,500.
B)   70,000.
C)   6,500.
D)   126,500.E) C) and D)
F) A) and B)

Question 3

Which of the following statements is CORRECT?

Accepted Answer

A)   A change in the quantity demanded means a shift in the demand curve.
B)   A change in demand means a movement along the demand curve.
C)   A change in demand and change in quantity demanded means the same thing.
D)   A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.E) A) and B)
F) A) and C)

Question 4

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

Accepted Answer

A)   technological advances in digital camera production
B)   consumers' preferences changed in favor of digital cameras
C)   the price of film cameras fell
D)   workers who make digital cameras received a pay raiseE) A) and D)
F) C) and D)

Question 5

A price below the equilibrium price results in

Accepted Answer

A)   a surplus.
B)   a shortage.
C)   excess supply.
D)   a further price fall.E) B) and C)
F) All of the above

Question 6

-In the above figure, a price of $15 per dozen for roses would result in

Accepted Answer

A)   equilibrium.
B)   a shortage.
C)   a surplus.
D)   downward pressure on prices.E) A) and B)
F) B) and C)

Question 7

An increase the expected future price of a good

Accepted Answer

A)   increases its demand.
B)   decreases its demand.
C)   increases its supply.
D)   has no effect on either its demand or its supply.E) A) and B)
F) B) and D)

Question 8

-The above table gives the demand and supply schedules for Blu-ray discs. Suppose that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices. What are the new equilibrium quantity and equilibrium price of Blu-ray discs?

Accepted Answer

A)   8,000 and $8
B)   16,000 and $16
C)   20,000 and $20
D)   28,000 and $28E) All of the above
F) A) and D)

Question 9

When the price is below the equilibrium price, the quantity demanded

Accepted Answer

A)   is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity.
B)   is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity.
C)   exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity.
D)   exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.E) C) and D)
F) None of the above

Question 10

Many Southern farmers face a choice between planting peanuts or cotton. In 2014, farmers anticipated higher prices for cotton. In the market for peanuts in 2014, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.

Accepted Answer

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

Question 11

1 to D2 and the supply curve does not shift. B)  demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. C)  demand curve does not shift, and the supply curve shifts from S2 to S1. D)  demand curve does not shift, and the supply curve shifts from S1 to S2." class="answers-bank-image d-inline" rel="preload" >
-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Accepted Answer

A)   demand curve shifts from D1 to D2 and the supply curve does not shift.
B)   demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2.
C)   demand curve does not shift, and the supply curve shifts from S2 to S1.
D)   demand curve does not shift, and the supply curve shifts from S1 to S2.E) All of the above
F) A) and B)

Question 12

The opportunity cost of a hot dog in terms of hamburgers is the

Accepted Answer

A)   ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers.
B)   ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers.
C)   money price of a hot dog minus the money price of a hamburger.
D)   ratio of the money price of a hot dog to the money price of a hamburger.E) None of the above
F) A) and D)

Question 13

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Accepted Answer

A)   is willing to sell
B)   actually sells
C)   needs to sell
D)   should sellE) C) and D)
F) B) and C)

Question 14

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

Accepted Answer

A)   from point a to point e
B)   from point a to point b
C)   from point a to point c
D)   from point a to point dE) All of the above
F) A) and C)

Question 15

An unusually warm winter shifts the

Accepted Answer

A)   supply curve of gloves rightward.
B)   supply curve of gloves leftward.
C)   demand curve for gloves rightward.
D)   demand curve for gloves leftward.E) A) and D)
F) A) and B)

Question 16

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

Accepted Answer

A)   a decrease in quantity demanded.
B)   an increase in demand.
C)   an increase in quantity demanded.
D)   a decrease in demand.E) None of the above
F) C) and D)

Question 17

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

Accepted Answer

A)   decreases; falls
B)   decreases; rises
C)   increases; falls
D)   increases; risesE) None of the above
F) All of the above

Question 18

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Accepted Answer

A)   X and Y are complements.
B)   X and Y both normal goods.
C)   X is an inferior good and Y is a normal good.
D)   X is a normal good and Y is an inferior good.E) All of the above
F) C) and D)

Question 19

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer

Accepted Answer

A)   tuna is a normal good and chicken is an inferior good.
B)   tuna is an inferior good and chicken is a normal good.
C)   both tuna and chicken are normal goods.
D)   both tuna and chicken are inferior goods.E) A) and C)
F) A) and B)

Question 20

The law of demand states that, other things remaining the same, the higher the price of a good, the

Accepted Answer

A)   smaller is the demand for the good.
B)   larger is the demand for the good.
C)   smaller is the quantity of the good demanded.
D)   larger is the quantity of the good demanded.E) A) and D)
F) A) and C)

Exam 3: Demand and Supply

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer

Correct AnswerverifiedShow Answer

-The above figure shows the market for oil. Because of the development of a new deep sea drilling technology the

Correct AnswerverifiedShow Answer

An unusually warm winter shifts the

Correct AnswerverifiedShow Answer

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

Correct AnswerverifiedShow Answer

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

Correct AnswerverifiedShow Answer

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

Correct AnswerverifiedShow Answer

An increase the expected future price of a good

Correct AnswerverifiedShow Answer

-The above table gives the demand and supply schedules for Blu-ray discs. Suppose that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices. What are the new equilibrium quantity and equilibrium price of Blu-ray discs?

Correct AnswerverifiedShow Answer

When economists speak of preferences as influencing demand, they are referring to

Correct AnswerverifiedShow Answer

When the price is below the equilibrium price, the quantity demanded

Correct AnswerverifiedShow Answer

Which of the following statements is CORRECT?

Correct AnswerverifiedShow Answer

-In the above figure, a price of $15 per dozen for roses would result in

Correct AnswerverifiedShow Answer

A price below the equilibrium price results in

Correct AnswerverifiedShow Answer

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Correct AnswerverifiedShow Answer

The law of demand states that, other things remaining the same, the higher the price of a good, the

Correct AnswerverifiedShow Answer

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

Correct AnswerverifiedShow Answer

The opportunity cost of a hot dog in terms of hamburgers is the

Correct AnswerverifiedShow Answer

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

Correct AnswerverifiedShow Answer

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The demand curve for a normal good shifts leftward if income or the expected future price .

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