Question 1

If the price of "X" increases and you buy less "Y," then

Accepted Answer

A)  "X" and "Y" are complements, and the price of "Y" will increase.
B)  "X" and "Y" are complements, and the price of "Y" will decrease.
C)  "X" and "Y" are substitutes, and the price of "Y" will increase.
D)  "X" and "Y" are substitutes, and the price of "Y" will decrease.E) B) and D)
F) A) and B)

Question 2

A leftward shift of the market demand curve for HDTVs, ceteris paribus, causes equilibrium price to

Accepted Answer

A)  Increase and quantity to decrease.
B)  Decrease and quantity to decrease.
C)  Increase and quantity to increase.
D)  Decrease and quantity to increase.E) All of the above
F) A) and D)

Question 3

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, the equilibrium market price is
  \quad    \quad    \quad    \quad    \quad Quantity Demanded by	ext {Quantity Demanded by}Quantity Demanded by

Price  Alejandro  Ben  Carl  Market $8.00842‾6.001244‾4.002046‾2.002246‾\begin{array}{cc}	ext { Price } & 	ext { Alejandro } &	ext { Ben } & 	ext { Carl }&	ext { Market }\ \$ 8.00 & 8 & 4 & 2&\underline{\quad\quad} \6.00 & 12&4 & 4&\underline{\quad\quad} \4.00 & 20 &4 & 6&\underline{\quad\quad} \2.00 & 22&4 & 6 &\underline{\quad\quad} \end{array} Price $8.006.004.002.00​ Alejandro 8122022​ Ben 4444​ Carl 2466​ Market ​​​​​  
   \quad    \quad    \quad  Quantity Supplied by 	ext { Quantity Supplied by } Quantity Supplied by  
  Price  Avery  Brandon  Cassandra $8.006046‾$6.004244‾$4.002442‾$2.00640‾\begin{array}{lcccc}	ext { Price } & 	ext { Avery } & 	ext { Brandon } & 	ext { Cassandra } \\$8.00 & 60 & 4 & 6 &\underline{\quad\quad} \\$ 6.00 & 42 & 4 & 4&\underline{\quad\quad}  \\$ 4.00 & 24 & 4 & 2&\underline{\quad\quad}  \\$ 2.00 & 6 & 4 & 0&\underline{\quad\quad}  \end{array} Price $8.00$6.00$4.00$2.00​ Avery 6042246​ Brandon 4444​ Cassandra 6420​​​​​​

Accepted Answer

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

Question 4

International participants

Accepted Answer

A)  Take no part in American markets.
B)  Participate only in American product markets.
C)  Participate only in American factor markets.
D)  Participate in both American factor markets and American product markets.E) None of the above
F) A) and C)

Question 5

When individual supply curves shift, ceteris paribus, the market supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 6

In a market economy, which of the following is an incentive for producers to produce efficiently?

Accepted Answer

A)  Government laws and regulations.
B)  Profits.
C)  The production possibilities curve.
D)  The public's welfare.E) All of the above
F) B) and C)

Question 7

Ceteris paribus means

Accepted Answer

A)  Holding everything constant except for the variables you are interested in examining.
B)  Allowing the free market to decide, not government.
C)  Changing prices to see how demand or supply shifts.
D)  Holding constant the determinant of demand or supply that you are interested in examining.E) A) and D)
F) A) and C)

Question 8

An increase in the price of gasoline will

Accepted Answer

A)  Shift the gasoline supply curve to the right.
B)  Shift the gasoline demand curve to the right.
C)  Shift the automobile supply curve to the left.
D)  Shift the automobile demand curve to the left.E) A) and B)
F) None of the above

Question 9

Suppose both the demand for and supply of salsa increase although not necessarily by the same amount) .What can we conclude about changes in the price and quantity of salsa?

Accepted Answer

A)  Both the price and quantity increase.
B)  The price increases but the change in the quantity cannot be determined.
C)  The quantity increases but the change in the price cannot be determined.
D)  Both the price and quantity decrease.E) B) and C)
F) A) and D)

Question 10

Which panel of Figure 3.3 represents the changes in the market for beef when the price of corn cattle feed)  rises and the people become more fearful of mad cow disease? Figure 3.3 Shifts of Supply and Demand

Accepted Answer

A)  A
B)  B.
C)  C.
D)  D.E) A) and D)
F) All of the above

Question 11

Which of the following is a determinant of supply?

Accepted Answer

A)  Consumer tastes or preferences.
B)  The prices of the factors of production.
C)  Income.
D)  Number of buyers.E) A) and B)
F) All of the above

Question 12

Assume peanut butter and jelly are complements.Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to

Accepted Answer

A)  Increase and the equilibrium quantity of jelly to decrease.
B)  Increase and the equilibrium quantity of jelly to increase.
C)  Decrease and the equilibrium quantity of jelly to decrease.
D)  Decrease and the equilibrium quantity of jelly to increase.E) B) and C)
F) B) and D)

Question 13

A market in which final goods and services are exchanged is a

Accepted Answer

A)  Public goods market.
B)  Product market.
C)  Factor market.
D)  Labor market.E) A) and C)
F) All of the above

Question 14

Assume two goods are substitutes.Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to

Accepted Answer

A)  Increase and the equilibrium quantity of the other good to increase.
B)  Increase and the equilibrium quantity of the other good to decrease.
C)  Decrease and the equilibrium quantity of the other good to increase.
D)  Decrease and the equilibrium quantity of the other good to decrease.E) A) and C)
F) None of the above

Question 15

Which of the following would not cause the market supply of cell phones to change?

Accepted Answer

A)  Telecommunications are deregulated, and anyone who wants to can produce and sell cell phones.
B)  A cheaper technology for producing plastics used in producing cell phones is developed.
C)  A reduction in the demand for cell phones causes the price to fall.
D)  Taxes levied on cell phone production are reduced.E) A) and B)
F) B) and C)

Question 16

If there is a shortage at a given price, then

Accepted Answer

A)  That price is the equilibrium price.
B)  That price is greater than the equilibrium price.
C)  That price is less than the equilibrium price.
D)  There is no equilibrium price in the market.E) A) and D)
F) A) and C)

Question 17

Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are

Accepted Answer

A)  Substitutes in production.
B)  Complements in production; by-products.
C)  Unrelated in the sawmill operator's decision.
D)  None of the choices are correct.E) A) and D)
F) B) and C)

Question 18

Which of the following is a determinant of market supply?

Accepted Answer

A)  Consumer expectations.
B)  Consumers' income.
C)  Consumers' desire for the good.
D)  Available technology.E) A) and B)
F) C) and D)

Question 19

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

Accepted Answer

A)  An increase in the demand for airline tickets.
B)  A decrease in the supply of airline tickets.
C)  A decrease in the demand for airline tickets.
D)  No change in the supply of or demand for airline tickets because the price is not changing right nowE) B) and C)
F) A) and B)

Question 20

A shift in supply is defined as a change in

Accepted Answer

A)  Price.
B)  Quantity supplied because of a change in price.
C)  Equilibrium quantity.
D)  Supply because of a change in a determinant of supply.E) All of the above
F) A) and C)

Exam 3: Supply and Demand

Assume two goods are substitutes.Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to

Correct Answer
verified

An increase in the price of gasoline will

Correct Answer
verified

A leftward shift of the market demand curve for HDTVs, ceteris paribus, causes equilibrium price to

Correct Answer
verified

Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are

Correct Answer
verified

If there is a shortage at a given price, then

Correct Answer
verified

Assume peanut butter and jelly are complements.Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to

Correct Answer
verified

A shift in supply is defined as a change in

Correct Answer
verified

Which of the following is a determinant of market supply?

Correct Answer
verified

Which panel of Figure 3.3 represents the changes in the market for beef when the price of corn cattle feed) rises and the people become more fearful of mad cow disease? Figure 3.3 Shifts of Supply and Demand

Correct Answer
verified

A market in which final goods and services are exchanged is a

Correct Answer
verified

Correct Answer
verified

Suppose both the demand for and supply of salsa increase although not necessarily by the same amount) .What can we conclude about changes in the price and quantity of salsa?

Correct Answer
verified

When individual supply curves shift, ceteris paribus, the market supply curve shifts.

Correct Answer
verified

If the price of "X" increases and you buy less "Y," then

Correct Answer
verified

Which of the following would not cause the market supply of cell phones to change?

Correct Answer
verified

Which of the following is a determinant of supply?

Correct Answer
verified

International participants

Correct Answer
verified

In a market economy, which of the following is an incentive for producers to produce efficiently?

Correct Answer
verified

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

Correct Answer
verified

Ceteris paribus means

Correct Answer
verified

Exam 3: Supply and Demand

Assume two goods are substitutes.Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to

Correct AnswerverifiedShow Answer

An increase in the price of gasoline will

Correct AnswerverifiedShow Answer

A leftward shift of the market demand curve for HDTVs, ceteris paribus, causes equilibrium price to

Correct AnswerverifiedShow Answer

Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are

Correct AnswerverifiedShow Answer

If there is a shortage at a given price, then

Correct AnswerverifiedShow Answer

Assume peanut butter and jelly are complements.Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to

Correct AnswerverifiedShow Answer

A shift in supply is defined as a change in

Correct AnswerverifiedShow Answer

Which of the following is a determinant of market supply?

Correct AnswerverifiedShow Answer

Which panel of Figure 3.3 represents the changes in the market for beef when the price of corn cattle feed) rises and the people become more fearful of mad cow disease? Figure 3.3 Shifts of Supply and Demand

Correct AnswerverifiedShow Answer

A market in which final goods and services are exchanged is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose both the demand for and supply of salsa increase although not necessarily by the same amount) .What can we conclude about changes in the price and quantity of salsa?

Correct AnswerverifiedShow Answer

When individual supply curves shift, ceteris paribus, the market supply curve shifts.

Correct AnswerverifiedShow Answer

If the price of "X" increases and you buy less "Y," then

Correct AnswerverifiedShow Answer

Which of the following would not cause the market supply of cell phones to change?

Correct AnswerverifiedShow Answer

Which of the following is a determinant of supply?

Correct AnswerverifiedShow Answer

International participants

Correct AnswerverifiedShow Answer

In a market economy, which of the following is an incentive for producers to produce efficiently?

Correct AnswerverifiedShow Answer

Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be

Correct AnswerverifiedShow Answer

Ceteris paribus means

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified