Question 1

Other things constant,a decrease in the price of fertilizer will:

Accepted Answer

A)   increase the supply of wheat.
B)   decrease the supply of wheat.
C)   increase the demand for wheat.
D)   decrease the demand for wheat.E) A) and D)
F) B) and C)

Question 2

Exhibit 4-6 0 to S1 can be best explained by: A)  decrease in input prices. B)  price decreases for a substitute in production. C)  rise in taxes. D)  a technological advance." class="answers-bank-image d-inline" rel="preload" > Refer to Exhibit 4-6.A supply shift from S0 to S1 can be best explained by:

Accepted Answer

A)   decrease in input prices.
B)   price decreases for a substitute in production.
C)   rise in taxes.
D)   a technological advance.E) C) and D)
F) A) and B)

Question 3

Which of the following is not held constant along a given demand curve?

Accepted Answer

A)   income
B)   price
C)   tastes
D)   expectationsE) None of the above
F) A) and B)

Question 4

In economics,the demand for a good refers to the amount of the good 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) All of the above
F) None of the above

Question 5

Whenever the price of Good A increases,the demand for Good B increases as well.Good A and B appear to be:

Accepted Answer

A)   complements.
B)   substitutes.
C)   inferior goods.
D)   normal goods.E) All of the above
F) None of the above

Question 6

According to the law of supply,other things equal,when the price of a good or service rises,the quantity supplied increases,but supply does not.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of a competitive market?

Accepted Answer

A)   The rules of supply and demand do not apply to it.
B)   Buyers and sellers have little market power.
C)   Each buyer's or seller's effect on market price is substantial.
D)   Few sellers offer similar products.E) B) and D)
F) None of the above

Question 8

Which of the following is expected to happen if import restrictions are removed for a particular industry?

Accepted Answer

A)   Supply will increase
B)   Supply curve will shift to the left
C)   Demand curve will shift to the left
D)   Prices will increaseE) B) and C)
F) All of the above

Question 9

As a result of the decrease in donut prices at Real Yum Donuts,Dippin Donuts managers discover that the demand for their donuts has:

Accepted Answer

A)   increased.
B)   decreased.
C)   not changed.
D)   none of the aboveE) A) and B)
F) A) and C)

Question 10

A decrease in demand and an increase in supply are indicated by

Accepted Answer

A)   Upward shifts in both curves.
B)   Downward shifts in both curves.
C)   Rightward shifts in both curves.
D)   Leftward shifts in both curves.E) A) and B)
F) B) and C)

Question 11

Which of the following would increase the supply of childcare services?

Accepted Answer

A)   An increase number of childcare facilities
B)   An increase in the cost of certification for workers in this field
C)   An increase in the price of childcare
D)   none of the aboveE) A) and B)
F) A) and C)

Question 12

Exhibit 4-2 1,a shift to D0 would indicate a(n) : A)  increase in demand. B)  decrease in demand. C)  increase in quantity demanded. D)  decrease in quantity demanded." class="answers-bank-image d-inline" rel="preload" > Refer to Exhibit 4-2.Using the graph and beginning on D1,a shift to D0 would indicate a(n) :

Accepted Answer

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

Question 13

A decrease in the price of a good will

Accepted Answer

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

Question 14

Which of the following would cause an increase 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 FDA that oranges lowers cholesterolE) A) and B)
F) A) and C)

Question 15

The law of demand illustrates a(n) ____ relationship between price and ____.

Accepted Answer

A)   direct; quantity demanded
B)   inverse; quantity demanded
C)   inverse; demand
D)   direct; demandE) B) and C)
F) C) and D)

Question 16

The law of demand states that,ceteris paribus,an increase in

Accepted Answer

A)   price causes quantity demanded to increase.
B)   price causes quantity demanded to decrease.
C)   quantity demanded causes price to increase.
D)   quantity demanded causes price to decrease.E) A) and D)
F) A) and B)

Question 17

Which of the following will cause a change in the supply of a product?

Accepted Answer

A)   a change in the price of suppliers' inputs
B)   a change in the price of alternative goods that could be produced with the same resources
C)   a change in the expected future price of the product
D)   all of the aboveE) All of the above
F) None of the above

Question 18

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

The increase of $1 per pack is pretty si...

Question 19

If,at the current price,there is a shortage of a good,then

Accepted Answer

A)   sellers are producing more than buyers wish to buy.
B)   the market must be in equilibrium.
C)   the price is below the equilibrium price.
D)   quantity demanded equals quantity supplied.E) B) and D)
F) B) and C)

Question 20

Exhibit 4-5  Refer to Exhibit 4-5.A change from Point A to Point B represents a(n) :

Accepted Answer

A)   increase in supply.
B)   decrease in supply.
C)   increase in quantity supplied.
D)   decrease in quantity supplied.E) None of the above
F) A) and B)

Exam 4: Demand, Supply, and Market Equilibrium

Whenever the price of Good A increases,the demand for Good B increases as well.Good A and B appear to be:

Correct AnswerverifiedShow Answer

Exhibit 4-6 Refer to Exhibit 4-6.A supply shift from S0 to S1 can be best explained by:

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Which of the following is not held constant along a given demand curve?

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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 AnswerverifiedThe increase of $1 per pack is pretty si...View AnswerShow Answer

Which of the following is true of a competitive market?

Correct AnswerverifiedShow Answer

According to the law of supply,other things equal,when the price of a good or service rises,the quantity supplied increases,but supply does not.

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Which of the following would increase the supply of childcare services?

Correct AnswerverifiedShow Answer

Exhibit 4-2 Refer to Exhibit 4-2.Using the graph and beginning on D1,a shift to D0 would indicate a(n) :

Correct AnswerverifiedShow Answer

Which of the following would cause an increase in the demand curve for oranges?

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

Correct AnswerverifiedShow Answer

A decrease in the price of a good will

Correct AnswerverifiedShow Answer

Exhibit 4-5 Refer to Exhibit 4-5.A change from Point A to Point B represents a(n) :

Correct AnswerverifiedShow Answer

Other things constant,a decrease in the price of fertilizer will:

Correct AnswerverifiedShow Answer

As a result of the decrease in donut prices at Real Yum Donuts,Dippin Donuts managers discover that the demand for their donuts has:

Correct AnswerverifiedShow Answer

Which of the following is expected to happen if import restrictions are removed for a particular industry?

Correct AnswerverifiedShow Answer

Which of the following will cause a change in the supply of a product?

Correct AnswerverifiedShow Answer

A decrease in demand and an increase in supply are indicated by

Correct AnswerverifiedShow Answer

If,at the current price,there is a shortage of a good,then

Correct AnswerverifiedShow Answer

The law of demand states that,ceteris paribus,an increase in

Correct AnswerverifiedShow Answer

The law of demand illustrates a(n) ____ relationship between price and ____.

Correct AnswerverifiedShow Answer

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Exhibit 4-6 Refer to Exhibit 4-6.A supply shift from S₀ to S₁ can be best explained by:

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The increase of $1 per pack is pretty si...
View Answer

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Exhibit 4-2 Refer to Exhibit 4-2.Using the graph and beginning on D₁,a shift to D₀ would indicate a(n) :

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The law of demand illustrates a(n) relationship between price and .

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