Question 1

If sneakers and hiking boots are substitutes and the price of sneakers falls, what will happen?

Accepted Answer

A)  Demand for sneakers will rise.
B)  Demand for sneakers will fall.
C)  Demand for hiking boots will rise.
D)  Demand for hiking boots will fall.E) B) and C)
F) None of the above

Question 2

Use the following figure to answer the question :
-A move from F to G represents

Accepted Answer

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

Question 3

If people have trouble selling their houses, they should ________ the price of the houses until they make the sale.

Accepted Answer

The answer of If people have trouble selling their houses,...

Question 4

If coffee is a substitute for tea, and the price of coffee rises, what will happen?

Accepted Answer

A)  Demand for tea will decrease.
B)  Demand for tea will increase.
C)  The quantity demanded of coffee will rise.
D)  The quantity demanded of tea will decrease.E) A) and B)
F) C) and D)

Question 5

A rightward shift of the entire supply curve

Accepted Answer

A)  is an increase in supply.
B)  might be due to a positive change in technology.
C)  might be due to a decrease in the cost of labor.
D)  might be due to an increase in the number of sellers.
E)  all of the choices are correct.F) C) and D)
G) D) and E)

Question 6

As income falls, the demand for inferior goods

Accepted Answer

A)  rises.
B)  falls.
C)  stays about the same.
D)  cannot be determined.E) A) and B)
F) A) and C)

Question 7

If good A and good B are substitutes and the price of good A decreases, the demand for good B will

Accepted Answer

A)  not change.
B)  decrease.
C)  increase.
D)  become nonexistent.E) A) and B)
F) A) and C)

Question 8

When quantity demanded is greater than quantity supplied,

Accepted Answer

A)  there is a surplus.
B)  price will fall until it gets back to equilibrium.
C)  quantity supplied will rise and quantity demanded will fall.
D)  quantity supplied will fall and quantity demanded will rise.
E)  All of the answers are true.F) A) and E)
G) B) and C)

Question 9

Statement I: When the price of a good is increased, there is an implicit assumption that there is no change in any other factors that would affect quantity demanded. Statement II: There are many other factors that influence demand other than price.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) B) and C)

Question 10

Use the following figure to answer the question :2 to D3 is a(n)  ____. A) an increase in quantity demanded B) a decrease in quantity demanded C) an increase in demand D) a decrease in demand" class="answers-bank-image d-inline" rel="preload" >
-A move from D2 to D3 is a(n)  ____.

Accepted Answer

A)  an increase in quantity demanded
B)  a decrease in quantity demanded
C)  an increase in demand
D)  a decrease in demandE) B) and D)
F) A) and B)

Question 11

A mild winter in the United States is likely to

Accepted Answer

A)  increase the supply for heating oil.
B)  decrease the supply for heating oil.
C)  increase the demand for heating oil.
D)  decrease the demand for heating oil.E) A) and B)
F) A) and C)

Question 12

A decrease in the price of memberships to Gold's Gym fitness centers is likely to:

Accepted Answer

A)  decrease the demand for workout clothing.
B)  increase the demand for workout clothing.
C)  decrease the demand for Gold's Gym memberships.
D)  increase the demand for Gold's Gym memberships.E) A) and D)
F) B) and C)

Question 13

A shift in the supply curve for gasoline in the United States would result if

Accepted Answer

A)  magnet-lift trains, that were capable of going 300-miles-per-hour, were built connecting all major cities in the America.
B)  the price of gasoline decreased.
C)  a new method for drilling through rock opened up vast new oil reserves in Wyoming.
D)  electric cars became inexpensive and popular.E) A) and B)
F) A) and C)

Question 14

Computers and computer software are complements. A decrease in the price of computers is likely to

Accepted Answer

A)  decrease the demand for computers.
B)  decrease the demand for computer software.
C)  increase the demand for computers.
D)  increase the demand for computer software.E) A) and C)
F) A) and D)

Question 15

A rightward shift of the entire demand curve

Accepted Answer

A)  might be due to a decline in income if it is a normal good.
B)  might be due to an increase in income if it is an inferior good.
C)  might be due to a tax increase on the product.
D)  might be due to an increase in population.E) None of the above
F) B) and C)

Question 16

When demand decreases, the demand curve shifts

Accepted Answer

A)  on its axis, becoming flatter.
B)  upward and to the right.
C)  downward and to the left.
D)  on its axis, becoming more vertical.E) None of the above
F) A) and B)

Question 17

Use the following figure to answer the question :
-A move from E to F represents

Accepted Answer

A)  an increase in quantity demanded.
B)  a decrease in quantity demanded.
C)  an increase in demand.
D)  a decrease in demand.E) A) and D)
F) A) and C)

Question 18

Use the following figure to answer the question :
-A move from F to G represents

Accepted Answer

A)  an increase in quantity supplied.
B)  a decrease in quantity supplied.
C)  an increase in supply.
D)  a decrease in supply.E) A) and B)
F) A) and C)

Question 19

All but which one of the following could shift the supply curve for bicycles?

Accepted Answer

A)  An increase in the price of aluminum used in the bicycles.
B)  An increase in the price of bicycles.
C)  An increase in the number of bicycle manufacturers.
D)  A new, cheaper way of producing bicycles.
E)  A new union contract that raises the price of labor in bicycle factories.F) C) and E)
G) All of the above

Question 20

When the demand for CDs rises, buyers will purchase more CDs at

Accepted Answer

A)  all prices.
B)  some prices.
C)  no prices.D) B) and C)
E) A) and C)

Exam 5: Demand, Supply, and Equilibrium

A shift in the supply curve for gasoline in the United States would result if

Correct AnswerverifiedShow Answer

Computers and computer software are complements. A decrease in the price of computers is likely to

Correct AnswerverifiedShow Answer

All but which one of the following could shift the supply curve for bicycles?

Correct AnswerverifiedShow Answer

Use the following figure to answer the question : -A move from F to G represents

Correct AnswerverifiedShow Answer

If good A and good B are substitutes and the price of good A decreases, the demand for good B will

Correct AnswerverifiedShow Answer

A mild winter in the United States is likely to

Correct AnswerverifiedShow Answer

A rightward shift of the entire demand curve

Correct AnswerverifiedShow Answer

Use the following figure to answer the question : -A move from D2 to D3 is a(n) ____.

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When demand decreases, the demand curve shifts

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Use the following figure to answer the question : -A move from F to G represents

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If coffee is a substitute for tea, and the price of coffee rises, what will happen?

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When quantity demanded is greater than quantity supplied,

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Statement I: When the price of a good is increased, there is an implicit assumption that there is no change in any other factors that would affect quantity demanded. Statement II: There are many other factors that influence demand other than price.

Correct AnswerverifiedShow Answer

As income falls, the demand for inferior goods

Correct AnswerverifiedShow Answer

A rightward shift of the entire supply curve

Correct AnswerverifiedShow Answer

If sneakers and hiking boots are substitutes and the price of sneakers falls, what will happen?

Correct AnswerverifiedShow Answer

Use the following figure to answer the question : -A move from E to F represents

Correct AnswerverifiedShow Answer

If people have trouble selling their houses, they should ________ the price of the houses until they make the sale.

Correct AnswerverifiedShow Answer

A decrease in the price of memberships to Gold's Gym fitness centers is likely to:

Correct AnswerverifiedShow Answer

When the demand for CDs rises, buyers will purchase more CDs at

Correct AnswerverifiedShow Answer

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Use the following figure to answer the question : -A move from D₂ to D₃ is a(n) ____.

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