Question 1

Which of the following events would cause a change in the quantity supplied of some agricultural commodity but would not cause a change in the supply of that same commodity?

Accepted Answer

A)   a change in the number of suppliers of the commodity.
B)   a change in the price of substitute goods.
C)   a technological change.
D)   a change in factor costs.
E)   a change in the price of the commodity.F) C) and D)
G) B) and C)

Question 2

Suppose that some resource X is necessary to produce some good Y. If the price of X falls

Accepted Answer

A)   there is a movement along the supply curve of good Y.
B)   the demand curve for X shifts to the right.
C)   the supply curve of good Y shifts to the right.
D)   the supply curve of resource X shifts to the left.
E)   the supply curve of good Y is unaffected.F) A) and B)
G) D) and E)

Question 3

The time period to which quantity demanded refers when constructing demand curves is

Accepted Answer

A)   one relevant to the good or service being demanded.
B)   one year.
C)   a moment in time.
D)   a long period of time.
E)   any specified time period.F) All of the above
G) B) and C)

Question 4

Economists say there has been a change in demand when there is

Accepted Answer

A)   a price change.
B)   a movement along the demand curve.
C)   a shift of the supply curve.
D)   a shift of the demand curve.
E)   a quantity change.F) A) and C)
G) A) and E)

Question 5

Suppose that the price of wheat has fallen from $3 to $2 per bushel and that the price of newsprint has fallen from $200 to $100 per tonne. The relative price of wheat in terms of newsprint

Accepted Answer

A)   has risen.
B)   has fallen.
C)   cannot be determined from the above data.
D)   is completely unrelated.
E)   remained constant.F) B) and C)
G) A) and B)

Question 6

"Demand" in a particular market refers to

Accepted Answer

A)   the relationship between demand and supply.
B)   only the quantity demanded by households at current market prices.
C)   the quantity purchased at the current market price.
D)   the entire relationship between quantity demanded and price.
E)   the quantity that is desired but not satisfied by current supply.F) A) and B)
G) B) and D)

Question 7

Given a positively sloped supply curve, a rise in the demand for that commodity causes

Accepted Answer

A)   a decrease in the equilibrium price and an increase in the equilibrium quantity exchanged.
B)   an increase in both the equilibrium price and the equilibrium quantity exchanged.
C)   a fall in sales of that commodity.
D)   a shortage of other goods.
E)   a decrease in both the equilibrium price and the equilibrium quantity exchanged.F) A) and E)
G) C) and E)

Question 8

Suppose we observe that movie theatre prices are less during the daytime than in the evening. If the supply of movies does not change between daytime and evening, then the most likely explanation for this difference in price is

Accepted Answer

A)   the evening demand curve is to the left of the daytime demand curve.
B)   the evening supply curve is to the right of the daytime supply curve.
C)   the evening demand curve is to the right of the daytime demand curve.
D)   the evening supply curve is to the left of the daytime supply curve.E) None of the above
F) A) and D)

Question 9

In a market for a good or service, the quantities demanded and supplied are

Accepted Answer

A)   a stock variable and a flow variable, respectively.
B)   neither stock nor flow variables.
C)   both stock variables.
D)   both flow variables.
E)   a flow variable and a stock variable, respectively.F) A) and D)
G) B) and E)

Question 10

An important assumption underlying a demand schedule is that

Accepted Answer

A)   household tastes rarely change.
B)   everything else except the product's price is being held constant.
C)   quantity demanded and demand mean the same thing.
D)   the numbers are not important; the general relationship between the variables is.
E)   income has little significance to household demand.F) B) and E)
G) D) and E)

Question 11

If the legal beer-drinking age is raised from 18 to 21, the changes to the equilibrium price and quantity of beer are likely to be that

Accepted Answer

A)   price falls and quantity rises.
B)   price rises and quantity rises.
C)   no change in price or quantity occurs.
D)   price rises and quantity falls.
E)   price falls and quantity falls.F) B) and D)
G) D) and E)

Question 12

The relative price of a good

Accepted Answer

A)   reflects its price in terms of units of other goods.
B)   is its price in terms of money.
C)   is equal to the average price of the good over the last 5 years.
D)   is a measure of the relative share of the consumer's income devoted to its purchase.
E)   is always measured in current dollars.F) A) and C)
G) B) and C)

Question 13

The demand for a given commodity will remain the same with a change in

Accepted Answer

A)   population.
B)   the price of the commodity.
C)   tastes in favour of the commodity.
D)   the distribution of income.
E)   average household income.F) A) and E)
G) D) and E)

Question 14

Suppose that the demand and supply curves for green tea are stated functionally as QD = 700 - Pand QS = 400 + 2P. Suppose also that a study is released proving that the regular consumption ofgreen tea prolongs life by at least a decade, and the result is that the quantity demanded of green tea doubles at the initial price. The equilibrium price in this case will increase by

Accepted Answer

A)   100%
B)   140%
C)   200%
D)   300%
E)   - insufficient information to computeF) C) and D)
G) B) and E)

Question 15

The term "supply" in a particular market refers to

Accepted Answer

A)   the particular quantity supplied at the moment.
B)   the quantity actually sold to consumers.
C)   the entire relationship between quantity supplied and price.
D)   only one point on the supply curve.
E)   only one entry in a supply schedule.F) A) and C)
G) B) and E)

Question 16

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada.  TABLE 3-3
-Refer to Table 3-3.overnight parcel delivery? From Year 1 to Year 2,

Accepted Answer

A)   the price of regular parcel delivery decreased.
B)   the government introduced a subsidy for overnight parcel delivery.
C)   consumer preferences changed toward a desire for faster delivery.
D)   the number of suppliers of overnight parcel delivery service increased.
E)   there was a decrease in the price of jet fuel.F) All of the above
G) B) and E)

Question 17

If a change in tastes has raised the price of tomatoes by 5 percent when the general price levelincreased by 2 percent, the price of tomatoes

Accepted Answer

A)   ultimately increased by 7 percent.
B)   is not affected by inflation as much.
C)   increases by 3 percent relative to the average of all prices.
D)   in fact increased by 3 percent.
E)   is not of interest anymore because it is rendered meaningless by the inflation.F) D) and E)
G) A) and B)

Question 18

Which of the following events would a change in the quantity demanded for some commodity butNOT a change in the demand for that commodity?

Accepted Answer

A)   a change in the price of the commodity.
B)   a change in the distribution of income.
C)   a change in population.
D)   a change in average household income.
E)   a change in tastes in favour of the commodity.F) All of the above
G) B) and D)

Exam 3: Demand, Supply, and Price

Which of the following events would a change in the quantity demanded for some commodity butNOT a change in the demand for that commodity?

Correct Answer
verified

If the legal beer-drinking age is raised from 18 to 21, the changes to the equilibrium price and quantity of beer are likely to be that

Correct Answer
verified

Suppose we observe that movie theatre prices are less during the daytime than in the evening. If the supply of movies does not change between daytime and evening, then the most likely explanation for this difference in price is

Correct Answer
verified

An important assumption underlying a demand schedule is that

Correct Answer
verified

The time period to which quantity demanded refers when constructing demand curves is

Correct Answer
verified

If a change in tastes has raised the price of tomatoes by 5 percent when the general price levelincreased by 2 percent, the price of tomatoes

Correct Answer
verified

Suppose that some resource X is necessary to produce some good Y. If the price of X falls

Correct Answer
verified

In a market for a good or service, the quantities demanded and supplied are

Correct Answer
verified

Economists say there has been a change in demand when there is

Correct Answer
verified

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-3 -Refer to Table 3-3.overnight parcel delivery? From Year 1 to Year 2,

Correct Answer
verified

Which of the following events would cause a change in the quantity supplied of some agricultural commodity but would not cause a change in the supply of that same commodity?

Correct Answer
verified

"Demand" in a particular market refers to

Correct Answer
verified

Given a positively sloped supply curve, a rise in the demand for that commodity causes

Correct Answer
verified

Suppose that the price of wheat has fallen from $3 to $2 per bushel and that the price of newsprint has fallen from $200 to $100 per tonne. The relative price of wheat in terms of newsprint

Correct Answer
verified

The demand for a given commodity will remain the same with a change in

Correct Answer
verified

The relative price of a good

Correct Answer
verified

Correct Answer
verified

The term "supply" in a particular market refers to

Correct Answer
verified

Exam 3: Demand, Supply, and Price

Which of the following events would a change in the quantity demanded for some commodity butNOT a change in the demand for that commodity?

Correct AnswerverifiedShow Answer

If the legal beer-drinking age is raised from 18 to 21, the changes to the equilibrium price and quantity of beer are likely to be that

Correct AnswerverifiedShow Answer

Suppose we observe that movie theatre prices are less during the daytime than in the evening. If the supply of movies does not change between daytime and evening, then the most likely explanation for this difference in price is

Correct AnswerverifiedShow Answer

An important assumption underlying a demand schedule is that

Correct AnswerverifiedShow Answer

The time period to which quantity demanded refers when constructing demand curves is

Correct AnswerverifiedShow Answer

If a change in tastes has raised the price of tomatoes by 5 percent when the general price levelincreased by 2 percent, the price of tomatoes

Correct AnswerverifiedShow Answer

Suppose that some resource X is necessary to produce some good Y. If the price of X falls

Correct AnswerverifiedShow Answer

In a market for a good or service, the quantities demanded and supplied are

Correct AnswerverifiedShow Answer

Economists say there has been a change in demand when there is

Correct AnswerverifiedShow Answer

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-3 -Refer to Table 3-3.overnight parcel delivery? From Year 1 to Year 2,

Correct AnswerverifiedShow Answer

Which of the following events would cause a change in the quantity supplied of some agricultural commodity but would not cause a change in the supply of that same commodity?

Correct AnswerverifiedShow Answer

"Demand" in a particular market refers to

Correct AnswerverifiedShow Answer

Given a positively sloped supply curve, a rise in the demand for that commodity causes

Correct AnswerverifiedShow Answer

Suppose that the price of wheat has fallen from $3 to $2 per bushel and that the price of newsprint has fallen from $200 to $100 per tonne. The relative price of wheat in terms of newsprint

Correct AnswerverifiedShow Answer

The demand for a given commodity will remain the same with a change in

Correct AnswerverifiedShow Answer

The relative price of a good

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The term "supply" in a particular market refers to

Correct AnswerverifiedShow Answer

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