Question 1

1 and D1 represent the original supply and demand curves and S2 and D2 the new curves.In this market the indicated shift in supply may have been caused by: A) an increase in the wages paid to workers producing this good. B) the development of more efficient machinery for producing this commodity. C) this product becoming less fashionable. D) an increase in consumer incomes." class="answers-bank-image d-inline" rel="preload" > Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves.In this market the indicated shift in supply may have been caused by:

Accepted Answer

A)  an increase in the wages paid to workers producing this good.
B)  the development of more efficient machinery for producing this commodity.
C)  this product becoming less fashionable.
D)  an increase in consumer incomes.E) C) and D)
F) A) and B)

Question 2

Which of the following is likely to result in black markets?

Accepted Answer

A)  Price ceilings
B)  Price floors
C)  Common markets
D)  SurplusesE) A) and B)
F) A) and C)

Question 3

According to the rationing function of prices, a competitive market will:

Accepted Answer

A)  achieve an equilibrium price.
B)  eliminate shortages.
C)  eliminate surplus.
D)  all of these.E) B) and D)
F) B) and C)

Question 4

If the supply and demand curves for a product both decrease, we can say that equilibrium:

Accepted Answer

A)  quantity must fall and equilibrium price must rise.
B)  price must fall, but equilibrium quantity may either rise, fall, or remain unchanged.
C)  quantity must decline, but equilibrium price may either rise, fall, or remain unchanged.
D)  quantity and equilibrium price must both decline.E) B) and D)
F) B) and C)

Question 5

If Z is an inferior good, a decrease in money income will shift the:

Accepted Answer

A)  supply curve for Z to the left.
B)  supply curve for Z to the right.
C)  demand curve for Z to the left.
D)  demand curve for Z to the right.E) B) and D)
F) A) and B)

Question 6

A price fixed below the equilibrium price of a product will cause a shortage of that product.

Accepted Answer

A) True 
 B)False

Question 7

Refer to the above diagram.A shortage of 160 units would be encountered if price was:

Accepted Answer

A)  $1.10, that is, $1.60 minus $.50.
B)  $1.60.
C)  $1.00.
D)  $.50.E) A) and B)
F) B) and D)

Question 8

Refer to the above data.Equilibrium quantity will be:

Accepted Answer

A)  150
B)  220
C)  245
D)  100E) B) and C)
F) All of the above

Question 9

Refer to the diagram given below. 0 and S0 respectively, the initial equilibrium price and quantity will be: A) 0F and 0C respectively. B) 0G and 0B respectively. C) 0F and 0A respectively. D) 0E and 0B respectively." class="answers-bank-image d-inline" rel="preload" > The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the initial demand and supply curves are D0 and S0 respectively, the initial equilibrium price and quantity will be:

Accepted Answer

A)  0F and 0C respectively.
B)  0G and 0B respectively.
C)  0F and 0A respectively.
D)  0E and 0B respectively.E) A) and C)
F) B) and C)

Question 10

Refer to the graph below, showing the market supply and demand for a product.Assume that the market is initially in equilibrium where D1 and S1 intersect.If consumer incomes decreased and production costs increased, then new equilibrium would be at: 1 and S1 intersect.If consumer incomes decreased and production costs increased, then new equilibrium would be at:   A) P1 and Q3. B) P2 and Q2. C) P3 and Q1. D) P4 and Q2." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)  P1 and Q3.
B)  P2 and Q2.
C)  P3 and Q1.
D)  P4 and Q2.E) All of the above
F) A) and B)

Question 11

When the government sets a price that is above the equilibrium price in a market:

Accepted Answer

A)  new firms will enter the industry.
B)  there will be a surplus in the market.
C)  there will be a shortage in the market.
D)  quantity demanded in the market will equal quantity supplied.E) C) and D)
F) A) and D)

Question 12

You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1)  the demand (D)  for, or supply (S)  of, X, (2)  the equilibrium price (P)  of X and (3)  the equilibrium quantity (Q)  of X.Refer to the above.A decrease in the number of consumers of product X will:

Accepted Answer

A)  decrease S, decrease P, and decrease Q.
B)  increase D, increase P, and increase Q.
C)  decrease D, decrease P, and decrease Q.
D)  decrease D, decrease P, and increase Q.E) C) and D)
F) None of the above

Question 13

1 and D2 represent different demand curves.A change from E1 to E2 is most likely to result from: A) an increase in expectations of higher future prices for chicken. B) an increase in the cost of chicken feed to produce chickens. C) a decrease in the price of beef products. D) an increase in consumer incomes." class="answers-bank-image d-inline" rel="preload" > Refer to the above graph, which shows the market for chicken where D1 and D2 represent different demand curves.A change from E1 to E2 is most likely to result from:

Accepted Answer

A)  an increase in expectations of higher future prices for chicken.
B)  an increase in the cost of chicken feed to produce chickens.
C)  a decrease in the price of beef products.
D)  an increase in consumer incomes.E) B) and D)
F) A) and C)

Question 14

A decrease in the prices of resources used in producing a product will increase the supply of the product.

Accepted Answer

A) True 
 B)False

Question 15

When product prices change, consumers are inclined to purchase larger amounts of the now cheaper products and less of the now dearer products.This describes:

Accepted Answer

A)  the cost effect.
B)  the price effect.
C)  the income effect.
D)  the substitution effect.E) All of the above
F) A) and B)

Question 16

Refer to the above diagram.A surplus of 160 units would be encountered if price was:

Accepted Answer

A)  $1.10, that is, $1.60 minus $.50.
B)  $1.60.
C)  $1.00.
D)  $.50.E) None of the above
F) A) and D)

Question 17

If the demand for a normal good (for example, steak)  shifts to the left, the most likely reason is that:

Accepted Answer

A)  consumer incomes have fallen.
B)  cattle production has declined.
C)  the price of steak has risen.
D)  the price of cattle feed has gone up.E) B) and C)
F) A) and D)

Question 18

Blu Ray players and Blu Ray discs are:

Accepted Answer

A)  complementary goods.
B)  substitute goods.
C)  independent goods.
D)  inferior goods.E) A) and B)
F) A) and C)

Question 19

If consumer tastes or preferences for a product increase, the demand for the product will tend to decrease.

Accepted Answer

A) True 
 B)False

Question 20

The supply curve shows the relationship between:

Accepted Answer

A)  price and quantity supplied.
B)  production costs and the amount demanded.
C)  total business revenues and quantity supplied.
D)  physical inputs of resources and the resulting units of output.E) A) and B)
F) B) and C)

Exam 3: B: Demand, Supply, and Market Equilibrium

When the government sets a price that is above the equilibrium price in a market:

Correct Answer
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Refer to the above diagram.A shortage of 160 units would be encountered if price was:

Correct Answer
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Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in supply may have been caused by:

Correct Answer
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Refer to the above data.Equilibrium quantity will be:

Correct Answer
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According to the rationing function of prices, a competitive market will:

Correct Answer
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The supply curve shows the relationship between:

Correct Answer
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Refer to the above graph, which shows the market for chicken where D₁ and D₂ represent different demand curves.A change from E₁ to E₂ is most likely to result from:

Correct Answer
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Blu Ray players and Blu Ray discs are:

Correct Answer
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When product prices change, consumers are inclined to purchase larger amounts of the now cheaper products and less of the now dearer products.This describes:

Correct Answer
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If consumer tastes or preferences for a product increase, the demand for the product will tend to decrease.

Correct Answer
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Refer to the graph below, showing the market supply and demand for a product.Assume that the market is initially in equilibrium where D₁ and S₁ intersect.If consumer incomes decreased and production costs increased, then new equilibrium would be at:

Correct Answer
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If Z is an inferior good, a decrease in money income will shift the:

Correct Answer
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If the supply and demand curves for a product both decrease, we can say that equilibrium:

Correct Answer
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Refer to the diagram given below. The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the initial demand and supply curves are D₀ and S₀ respectively, the initial equilibrium price and quantity will be:

Correct Answer
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A decrease in the prices of resources used in producing a product will increase the supply of the product.

Correct Answer
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Correct Answer
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Refer to the above diagram.A surplus of 160 units would be encountered if price was:

Correct Answer
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Which of the following is likely to result in black markets?

Correct Answer
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A price fixed below the equilibrium price of a product will cause a shortage of that product.

Correct Answer
verified

If the demand for a normal good (for example, steak) shifts to the left, the most likely reason is that:

Correct Answer
verified

Exam 3: B: Demand, Supply, and Market Equilibrium

When the government sets a price that is above the equilibrium price in a market:

Correct AnswerverifiedShow Answer

Refer to the above diagram.A shortage of 160 units would be encountered if price was:

Correct AnswerverifiedShow Answer

Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves.In this market the indicated shift in supply may have been caused by:

Correct AnswerverifiedShow Answer

Refer to the above data.Equilibrium quantity will be:

Correct AnswerverifiedShow Answer

According to the rationing function of prices, a competitive market will:

Correct AnswerverifiedShow Answer

The supply curve shows the relationship between:

Correct AnswerverifiedShow Answer

Refer to the above graph, which shows the market for chicken where D1 and D2 represent different demand curves.A change from E1 to E2 is most likely to result from:

Correct AnswerverifiedShow Answer

Blu Ray players and Blu Ray discs are:

Correct AnswerverifiedShow Answer

When product prices change, consumers are inclined to purchase larger amounts of the now cheaper products and less of the now dearer products.This describes:

Correct AnswerverifiedShow Answer

If consumer tastes or preferences for a product increase, the demand for the product will tend to decrease.

Correct AnswerverifiedShow Answer

Refer to the graph below, showing the market supply and demand for a product.Assume that the market is initially in equilibrium where D1 and S1 intersect.If consumer incomes decreased and production costs increased, then new equilibrium would be at:

Correct AnswerverifiedShow Answer

If Z is an inferior good, a decrease in money income will shift the:

Correct AnswerverifiedShow Answer

If the supply and demand curves for a product both decrease, we can say that equilibrium:

Correct AnswerverifiedShow Answer

Refer to the diagram given below. The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the initial demand and supply curves are D0 and S0 respectively, the initial equilibrium price and quantity will be:

Correct AnswerverifiedShow Answer

A decrease in the prices of resources used in producing a product will increase the supply of the product.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the above diagram.A surplus of 160 units would be encountered if price was:

Correct AnswerverifiedShow Answer

Which of the following is likely to result in black markets?

Correct AnswerverifiedShow Answer

A price fixed below the equilibrium price of a product will cause a shortage of that product.

Correct AnswerverifiedShow Answer

If the demand for a normal good (for example, steak) shifts to the left, the most likely reason is that:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in supply may have been caused by:

Correct Answer
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Correct Answer
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Refer to the above graph, which shows the market for chicken where D₁ and D₂ represent different demand curves.A change from E₁ to E₂ is most likely to result from:

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Refer to the graph below, showing the market supply and demand for a product.Assume that the market is initially in equilibrium where D₁ and S₁ intersect.If consumer incomes decreased and production costs increased, then new equilibrium would be at:

Correct Answer
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Correct Answer
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Correct Answer
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Refer to the diagram given below. The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the initial demand and supply curves are D₀ and S₀ respectively, the initial equilibrium price and quantity will be:

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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