Question 1

In accordance with the law of supply, both individual and market supply curves are drawn:

Accepted Answer

A)   horizontal.
B)   vertical.
C)   downward-sloping.
D)   upward-sloping.E) B) and C)
F) A) and B)

Question 2

Exhibit 3-8  Demand and Supply Data for Video Games
    Price   Quantity Demanded of Video Games   Quantity Supplied of Video Games     $75   400   900     70   450   850     65   500   800     60   550   750     55   600   700     50   650   650     45   700   600     40   750   550   
-Exhibit 3-8  Demand and Supply Data for Video Games
   Price  Quantity Demandedof Video Games  Quantity Suppliedof Video Games    $75  400  900    70  450  850    65  500  800    60  550  750    55  600  700    50  650  650    45  700  600    40  750  550   -Exhibit 3-8  Demand and Supply Data for Video Games   In Exhibit 3-8, at any market price of video games above $50, a(n)  ______________ would result, causing price to __________. A)  excess demand; rise B)  excess supply; rise C)  excess demand; fall D)  excess supply; fall" class="answers-bank-image d-inline" rel="preload" >
In Exhibit 3-8, at any market price of video games above $50, a(n)  ______________ would result, causing price to __________.

Accepted Answer

A)   excess demand; rise
B)   excess supply; rise
C)   excess demand; fall
D)   excess supply; fallE) All of the above
F) A) and C)

Question 3

Which of the following would decrease the supply of airline travel?

Accepted Answer

A)   Reduced number of airline travelers.
B)   New airline companies beginning operations.
C)   Higher fuel costs.
D)   Lower prices for airline tickets.E) A) and C)
F) None of the above C

Question 4

Exhibit 3-3 Demand curves

-Assume that crackers and soup are complementary goods. Which of the graphs in Exhibit 3-3 depicts the effect of a promotional discount that decreases the price of crackers on the demand for soup?

Accepted Answer

A)   Graph A.
B)   Graph B.
C)   Graph C.
D)   Graph D.E) B) and D)
F) A) and B)

Question 5

Exhibit 3-1 Market Demand

Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $5 is

Accepted Answer

A)   3.
B)   25.
C)   17.
D)   26.E) A) and B)
F) A) and C)

Question 6

If equilibrium is present in a market:

Accepted Answer

A)   there is either a shortage or a surplus.
B)   the quantity demanded equals quantity supplied.
C)   the quantity demanded exceeds quantity supplied.
D)   the quantity supplied exceeds quantity demanded.E) C) and D)
F) B) and C)

Question 7

A technological improvement in producing good A would cause:

Accepted Answer

A)   a shift to the right of the supply curve for A.
B)   a shift to the left of the supply curve for A.
C)   a movement upward and to the right along the supply curve for A.
D)   a movement downward and to the left along the supply curve for A.E) A) and D)
F) A) and C)

Question 8

Exhibit 3-5 Supply for Tucker's Cola Data
    Quantity supplied per week (millions of gallons)    Price per gallon     6   $3.00     5     2.50     4     2.00     3     1.50     2     1.00     1       .50   
In reference to Exhibit 3-5, assume the price of Tucker's Cola is $1.00 per gallon. If the price were to rise to $3.00 per gallon, and all other factors, such as taxes, etc. remained constant, the result would be a(n) :

Accepted Answer

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

Question 9

Which of the following could cause the supply of carrots to decrease?

Accepted Answer

A)   Consumers' incomes decrease.
B)   There is a technological advance in carrot production.
C)   Fertilizer costs increase.
D)   The number of farmers growing carrots increases.E) All of the above
F) A) and C)

Question 10

We can find the market demand for pears by:

Accepted Answer

A)   adding all the prices people are willing to pay for pears.
B)   multiplying the number of people times the price of pears.
C)   adding the number of pears that producers are willing to sell.
D)   adding the individual demand curves for pears.E) B) and D)
F) B) and C)

Question 11

An increase in demand:

Accepted Answer

A)   results in a leftward shift of the demand curve.
B)   could be caused by a decrease in the price of the good.
C)   could be caused by an increase in the price of a substitute good.
D)   is shown as movement down along a demand curve.E) None of the above
F) B) and D)

Question 12

Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?

Accepted Answer

The law of demand states that there is a...

Question 13

Which of the following will reduce the supply of motorcycles?

Accepted Answer

A)   An increase in the population age 16 to 35, the primary consumers of motorcycles.
B)   An increase in taxes imposed on motorcycle producers.
C)   A technological improvement reducing the production costs of motorcycles.
D)   A government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles.E) C) and D)
F) B) and D)

Question 14

According to the law of supply, when will lower corn prices decrease the quantity supplied of corn?

Accepted Answer

A)   always
B)   when demand is fixed
C)   when technology improves
D)   when there are no shortages nor surpluses in the corn marketE) C) and D)
F) B) and C)

Question 15

A rightward shift of a demand curve is called a(n) :

Accepted Answer

A)   increase in demand.
B)   decrease in demand.
C)   increase in quantity demanded.
D)   decrease in quantity demanded.E) All of the above
F) None of the above A

Question 16

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Accepted Answer

A)   Always.
B)   When the supply of corn is fixed.
C)   When nonprice determinants, like income and the number of buyers, are unchanged.
D)   When there are no shortages or surpluses of corn.E) B) and C)
F) A) and B) C

Question 17

Which of the following will not shift the demand curve for grapefruit to the right?

Accepted Answer

A)   An announcement that eating a grapefruit before every meal will induce weight loss.
B)   A technical development that allows machines to replace the workers who harvest grapefruit.
C)   The price of oranges, a substitute good, increases.
D)   Consumer incomes increase and grapefruit is a normal good.E) None of the above
F) B) and C)

Question 18

Which of the following events would increase the supply of tomatoes?

Accepted Answer

A)   A decrease in the price of pasta products.
B)   An increase in wages for the tomato pickers.
C)   A decrease in the cost of fertilizers for the tomato plants.
D)   Unseasonably hot, dry weather in the tomato-growing regions of the nation.E) B) and D)
F) A) and D)

Question 19

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

Accepted Answer

A)   cigarette smokers often wear cotton shirts.
B)   when incomes rise, people consume more cotton and tobacco.
C)   firms can switch from growing tobacco to cotton and vice versa.
D)   tobacco is an input in the production of cotton.E) None of the above
F) C) and D)

Question 20

If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n) :

Accepted Answer

A)   upward movement along the supply curve for cigarettes.
B)   rightward shift of the supply curve for cigarettes.
C)   downward movement along the demand curve for cigarettes.
D)   leftward shift of the supply curve for cigarettes.E) A) and D)
F) B) and D)

Exam 3: Market Demand and Supply

In accordance with the law of supply, both individual and market supply curves are drawn:

Correct Answer
verified

Correct Answer
verified

Which of the following would decrease the supply of airline travel?

Correct Answer
verified
C

Exhibit 3-3 Demand curves -Assume that crackers and soup are complementary goods. Which of the graphs in Exhibit 3-3 depicts the effect of a promotional discount that decreases the price of crackers on the demand for soup?

Correct Answer
verified

Exhibit 3-1 Market Demand Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $5 is

Correct Answer
verified

If equilibrium is present in a market:

Correct Answer
verified

A technological improvement in producing good A would cause:

Correct Answer
verified

Correct Answer
verified

Which of the following could cause the supply of carrots to decrease?

Correct Answer
verified

We can find the market demand for pears by:

Correct Answer
verified

An increase in demand:

Correct Answer
verified

Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?

Correct Answer
verified
The law of demand states that there is a...
View Answer

Which of the following will reduce the supply of motorcycles?

Correct Answer
verified

According to the law of supply, when will lower corn prices decrease the quantity supplied of corn?

Correct Answer
verified

A rightward shift of a demand curve is called a(n) :

Correct Answer
verified
A

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Correct Answer
verified
C

Which of the following will not shift the demand curve for grapefruit to the right?

Correct Answer
verified

Which of the following events would increase the supply of tomatoes?

Correct Answer
verified

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

Correct Answer
verified

If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n) :

Correct Answer
verified

Price	Quantity Demanded of Video Games	Quantity Supplied of Video Games
$75	400	900
70	450	850
65	500	800
60	550	750
55	600	700
50	650	650
45	700	600
40	750	550

Quantity supplied per week (millions of gallons)	Price per gallon
6	$3.00
5	2.50
4	2.00
3	1.50
2	1.00
1	.50

Exam 3: Market Demand and Supply

In accordance with the law of supply, both individual and market supply curves are drawn:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would decrease the supply of airline travel?

Correct AnswerverifiedC

Exhibit 3-3 Demand curves -Assume that crackers and soup are complementary goods. Which of the graphs in Exhibit 3-3 depicts the effect of a promotional discount that decreases the price of crackers on the demand for soup?

Correct AnswerverifiedShow Answer

Exhibit 3-1 Market Demand Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $5 is

Correct AnswerverifiedShow Answer

If equilibrium is present in a market:

Correct AnswerverifiedShow Answer

A technological improvement in producing good A would cause:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following could cause the supply of carrots to decrease?

Correct AnswerverifiedShow Answer

We can find the market demand for pears by:

Correct AnswerverifiedShow Answer

An increase in demand:

Correct AnswerverifiedShow Answer

Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?

Correct AnswerverifiedThe law of demand states that there is a...View AnswerShow Answer

Which of the following will reduce the supply of motorcycles?

Correct AnswerverifiedShow Answer

According to the law of supply, when will lower corn prices decrease the quantity supplied of corn?

Correct AnswerverifiedShow Answer

A rightward shift of a demand curve is called a(n) :

Correct AnswerverifiedA

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Correct AnswerverifiedC

Which of the following will not shift the demand curve for grapefruit to the right?

Correct AnswerverifiedShow Answer

Which of the following events would increase the supply of tomatoes?

Correct AnswerverifiedShow Answer

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:

Correct AnswerverifiedShow Answer

If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n) :

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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C

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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Correct Answer
verified
The law of demand states that there is a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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A

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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