Question 1

The supply curve for a good will shift to the left if:

Accepted Answer

A)  producers expect that the price of the good will soon be lower.
B)  price decreases for a substitute for the good in production.
C)  the input price for the good increases.
D)  the number of suppliers of the good increases.
E)  the price of the good decreases.F) C) and D)
G) A) and D)

Question 2

How are sales and long lines prior to store openings characteristic of markets in disequilibrium?

Accepted Answer

Answers will vary. One function of sales...

Question 3

Which of the following would shift a supply curve for a good to the right?

Accepted Answer

A)  An increase in taxes imposed on the production of the good
B)  An increase in import restrictions on the good
C)  an increase in import duties on the good
D)  An increase in subsidies on the good
E)  An increase in the price of the goodF) C) and D)
G) A) and B)

Question 4

When there is an excess quantity supplied of a product at the current price, then:

Accepted Answer

A)  the market price must be below the equilibrium price.
B)  the quantity demanded is greater than the equilibrium quantity.
C)  the market price will tend to rise
D)  the market price will tend to fall.
E)  the quantity demanded will tend to fall.F) None of the above
G) A) and B)

Question 5

When quantity demanded decreases at every possible price, there is a(n) :

Accepted Answer

A)  leftward shift in the demand curve.
B)  rightward shift in the demand curve.
C)  a downward movement along the given demand curve.
D)  upward movement along the given demand curve.
E)  increase in the slope in the given demand curve.F) B) and D)
G) All of the above

Question 6

Which of the following would cause a rightward shift in the demand curve for oranges?

Accepted Answer

A)  A freeze in Florida (a major orange producing state) 
B)  A new machine that allows orange growers to harvest oranges faster
C)  A decrease in the price of apples
D)  An announcement by the US Food and Drug Administration (FD
A)   that oranges lower cholesterol
E)  An increase in the price of orangesF) All of the above
G) None of the above

Question 7

As the price of DVD players has fallen over the last two years, more DVD players have been sold by consumer electronics firms. Is this a violation of the law of supply?

Accepted Answer

Answers will vary. No. Very likely, the ...

Question 8

Incorrect. The quantity supplied of a good is directly related to its price, ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 9

In the three months before a $1 per pack cigarette tax took effect in Alaska, smokers bought 175 million more cigarettes than during the same period a year earlier. What explains this behavior by consumers?

Accepted Answer

Answers will vary. The increase of $1 pe...

Question 10

Which of the following would cause the quantity of wheat bread demanded to increase, but not the demand for wheat?

Accepted Answer

A)  A reduction in the price of rye, used to produce rye bread
B)  A new scientific study demonstrating that wheat bread reduces the risk of colon cancer
C)  A decrease in the price of rye bread
D)  An increase in the number of farmers growing wheat
E)  A decrease in the number of farmers growing wheatF) A) and E)
G) None of the above

Question 11

If the demand for apples increases at the same time the supply of apples falls, the price of apples will tend to fall

Accepted Answer

A) True 
 B)False

Question 12

When the price of steak falls, we would expect the quantity of steak demanded to rise.

Accepted Answer

A) True 
 B)False

Question 13

The market supply schedule reflects the total quantity:

Accepted Answer

A)  supplied at the market price.
B)  supplied by all of the producers at the equilibrium price.
C)  supplied at each price by all of the producers.
D)  supplied by an individual firm at each price.
E)  supplied by an individual firm at the equilibrium price.F) B) and E)
G) B) and D)

Question 14

In markets, prices move toward equilibrium because of:

Accepted Answer

A)  the actions of buyers and sellers.
B)  government regulations imposed on market participants.
C)  decreased competition among sellers.
D)  buyers' ability to affect market outcomes.
E)  sellers' ability to affect market outcomes.F) All of the above
G) A) and D)

Question 15

Figure 3-2 shows the shifts in the demand curve for a good. A change from Point A to Point E represents a(n) :Figure 3-2

Accepted Answer

A)  increase in demand.
B)  decrease in demand​
C)  decrease in quantity demanded
D)  increase in quantity demanded
E)  increase in the price of the good.F) B) and D)
G) A) and D)

Question 16

If the electronics market is experiencing a shortage of mobile phones, then:

Accepted Answer

A)  the current price is higher than the equilibrium price.
B)  the equilibrium price is higher than the current price.
C)  the quantity demanded is less than the quantity supplied.
D)  the shortage could be eliminated by lowering the price.
E)  the equilibrium price will adjust at a lower level in the short-run.F) B) and E)
G) A) and D)

Question 17

Price reductions will usually result whenever the quantity supplied exceeds the quantity demanded at the current price.

Accepted Answer

A) True 
 B)False

Question 18

In economics, the demand for a good refers to the amount of the good that people:

Accepted Answer

A)  would like to have if the good were free.
B)  will buy at various prices.
C)  need to achieve a minimum standard of living.
D)  will buy at alternative income levels.
E)  will receive from a welfare state.F) A) and B)
G) All of the above

Question 19

Beach resorts raise their prices during the summer months, yet more people book rooms at those times. Is this a violation of the law of demand?

Accepted Answer

Answers will vary. No. During summer mon...

Question 20

Ceteris paribus, when a demand curve shifts, both the equilibrium price and quantity traded will change in the same direction as a result

Accepted Answer

A) True 
 B)False

Exam 3: Supply and Demand

Incorrect. The quantity supplied of a good is directly related to its price, ceteris paribus.

Correct AnswerverifiedShow Answer

When there is an excess quantity supplied of a product at the current price, then:

Correct AnswerverifiedShow Answer

When the price of steak falls, we would expect the quantity of steak demanded to rise.

Correct AnswerverifiedShow Answer

Beach resorts raise their prices during the summer months, yet more people book rooms at those times. Is this a violation of the law of demand?

Correct AnswerverifiedAnswers will vary. No. During summer mon...View AnswerShow Answer

Ceteris paribus, when a demand curve shifts, both the equilibrium price and quantity traded will change in the same direction as a result

Correct AnswerverifiedShow Answer

If the demand for apples increases at the same time the supply of apples falls, the price of apples will tend to fall

Correct AnswerverifiedShow Answer

If the electronics market is experiencing a shortage of mobile phones, then:

Correct AnswerverifiedShow Answer

In economics, the demand for a good refers to the amount of the good that people:

Correct AnswerverifiedShow Answer

Which of the following would cause the quantity of wheat bread demanded to increase, but not the demand for wheat?

Correct AnswerverifiedShow Answer

Figure 3-2 shows the shifts in the demand curve for a good. A change from Point A to Point E represents a(n) :Figure 3-2

Correct AnswerverifiedShow Answer

When quantity demanded decreases at every possible price, there is a(n) :

Correct AnswerverifiedShow Answer

In the three months before a $1 per pack cigarette tax took effect in Alaska, smokers bought 175 million more cigarettes than during the same period a year earlier. What explains this behavior by consumers?

Correct AnswerverifiedAnswers will vary. The increase of $1 pe...View AnswerShow Answer

The market supply schedule reflects the total quantity:

Correct AnswerverifiedShow Answer

As the price of DVD players has fallen over the last two years, more DVD players have been sold by consumer electronics firms. Is this a violation of the law of supply?

Correct AnswerverifiedAnswers will vary. No. Very likely, the ...View AnswerShow Answer

Which of the following would cause a rightward shift in the demand curve for oranges?

Correct AnswerverifiedShow Answer

The supply curve for a good will shift to the left if:

Correct AnswerverifiedShow Answer

Which of the following would shift a supply curve for a good to the right?

Correct AnswerverifiedShow Answer

In markets, prices move toward equilibrium because of:

Correct AnswerverifiedShow Answer

How are sales and long lines prior to store openings characteristic of markets in disequilibrium?

Correct AnswerverifiedAnswers will vary. One function of sales...View AnswerShow Answer

Price reductions will usually result whenever the quantity supplied exceeds the quantity demanded at the current price.

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Answers will vary. No. During summer mon...
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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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Answers will vary. The increase of $1 pe...
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Correct Answer
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Correct Answer
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Answers will vary. No. Very likely, the ...
View Answer

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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Answers will vary. One function of sales...
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Correct Answer
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