Question 1

Farm land can be used to produce either cattle or corn.If the demand for cattle increases, then the

Accepted Answer

A)  demand for corn decreases.
B)  supply of corn decreases.
C)  demand for corn increases.
D)  supply of corn increases.
E)  price of corn falls.

Question 2

Use the figure below to answer the following questions.
  Figure 3.5.2
Original equilibrium at 1.
-Refer to Figure 3.5.2, which represents the market for cow manure.If the price of milk, a complement in production of manure, rises, what is the new manure equilibrium, ceteris paribus?

Accepted Answer

A)  8
B)  3
C)  9
D)  5
E)  6

Question 3

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS.What is the equilibrium price of a knob?

Accepted Answer

A)  $5
B)  $45
C)  $40
D)  $10
E)  $75

Question 4

If A and B are substitutes and the price of A rises, we will observe

Accepted Answer

A)  an increase in the equilibrium price but a decrease in the equilibrium quantity of B.
B)  a decrease in the equilibrium price and the equilibrium quantity of B.
C)  an increase in the equilibrium price and the equilibrium quantity of B.
D)  a decrease in equilibrium price but an increase in the equilibrium quantity of B.
E)  a decrease in the demand for A.

Question 5

Which one of the following will definitely decrease the equilibrium quantity?

Accepted Answer

A)  a decrease in demand combined with an increase in supply
B)  an increase in both demand and supply
C)  an increase in price
D)  a decrease in both demand and supply
E)  an increase in demand combined with a decrease in supply

Question 6

Use the table below to answer the following questions.
Table 3.5.3 
-Refer to Table 3.5.3.Suppose that the price of a designer sport t- shirt is $10.The market has leading to .

Accepted Answer

A)  a shortage; a rise in the price
B)  a shortage; a fall in the price
C)  a surplus; a fall in the price
D)  an equilibrium; no change in the price
E)  a surplus; a rise in the price

Question 7

Use the table below to answer the following questions.
 
-Refer to Table 3.5.1.The equilibrium price is $_______ and the equilibrium quantity is _______ heaters per month.

Accepted Answer

A)  50; 350
B)  80; 300
C)  50; 450
D)  60; 400
E)  80; 500

Question 8

Use the table below to answer the following questions.
Table 3.1.1 
-Refer to Table 3.1.1.In 2017, the relative price of cola in terms of tea is

Accepted Answer

A)  2.00.
B)  1.00.
C)  0.91.
D)  2.20.
E)  1.10.

Question 9

When the price of good A rises, the supply curve of good B shifts rightward.Which of the following statements are true?

Accepted Answer

A)  A and B are complements in production.
B)  A and B are complements.
C)  A is a factor used in the production of B.
D)  A and B are substitutes.
E)  A and B are substitutes in production.

Question 10

The demand curve is P = 700 - 10QD.The supply curve is P = 400 + 5QS.At market equilibrium, the equilibrium quantity is _______ and the equilibrium price is _______ .

Accepted Answer

A)  20; 500
B)  500; 20
C)  300; 15
D)  0.05; 5
E)  5; 0.05

Question 11

If a turnip is an inferior good, then, ceteris paribus, an increase in the price of a turnip will

Accepted Answer

A)  decrease the quantity of turnips supplied.
B)  decrease the demand for turnips.
C)  increase the demand for turnips.
D)  decrease the quantity of turnips demanded.
E)  increase the supply of turnips.

Question 12

When the demand for good A increases,

Accepted Answer

A)  the equilibrium price and equilibrium quantity will decrease.
B)  the equilibrium price will decrease, but the equilibrium quantity will increase.
C)  a surplus will result.
D)  the equilibrium price will rise, but the equilibrium quantity will decrease.
E)  the equilibrium price and equilibrium quantity will increase.

Question 13

When a market is in equilibrium,

Accepted Answer

A)  supply equals demand.
B)  the number of buyers equals the number of sellers.
C)  firms are producing the maximum quantity possible given the existing technology.
D)  there is neither a surplus nor a shortage.
E)  the quantity supplied is greater than or equal to the quantity demanded.

Question 14

Use the table below to answer the following questions.
 
-Refer to Table 3.5.1.Suppose the cost of production rises and supply decreases by 100 units at each price.The new equilibrium price is $ _______and equilibrium quantity is _______ units.

Accepted Answer

A)  70; 350
B)  50; 350
C)  60; 400
D)  70; 450
E)  50; 450

Question 15

Use the figure below to answer the following questions.
 3 in Figure 3.4.1, A) this market is in equilibrium. B) there is a tendency for the price to rise. C) equilibrium quantity is Q5. D) there is a shortage in the amount of Q5 - Q1. E) there is a surplus in the amount of Q5 - Q1." class="answers-bank-image d-inline" rel="preload" > Figure 3.4.1
-At price P3 in Figure 3.4.1,

Accepted Answer

A)  this market is in equilibrium.
B)  there is a tendency for the price to rise.
C)  equilibrium quantity is Q5.
D)  there is a shortage in the amount of Q5 - Q1.
E)  there is a surplus in the amount of Q5 - Q1.

Question 16

Figure 3.2.1
-Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Accepted Answer

A)  an increase in population
B)  a rise in the price of bananas
C)  public concern about chemicals sprayed on apples
D)  a rise in the price of oranges
E)  a fall in the price of apples

Question 17

A decrease in quantity demanded is represented by a

Accepted Answer

A)  movement upward and to the left along the demand curve.
B)  rightward shift of the supply curve.
C)  leftward shift of the demand curve.
D)  rightward shift of the demand curve.
E)  movement downward and to the right along the demand curve.

Question 18

Today, the price of peanuts increases.Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future.In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases.It must be the case that

Accepted Answer

A)  the demand for peanut butter increased by more than the supply of peanut butter increased.
B)  peanut butter producers and peanut butter consumers have incorrect expectations.
C)  the supply of peanut butter decreased by more than the demand for peanut butter decreased.
D)  the supply of peanut butter decreased by more than the demand for peanut butter increased.
E)  the demand for peanut butter increased by more than the supply of peanut butter decreased.

Question 19

An increase in income

Accepted Answer

A)  decreases the demand for turnips if turnips have a very low price.
B)  increases the demand for turnips if a turnip is an inferior good.
C)  increases the supply of turnips.
D)  decreases the supply of turnips.
E)  increases the demand for turnips if a turnip is a normal good.

Question 20

Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

Accepted Answer

A)  The law of demand is violated.
B)  The supply of A decreased.
C)  The supply of A increased.
D)  The demand for A increased.
E)  The demand for A decreased.

Exam 3: Demand and Supply

Which one of the following will definitely decrease the equilibrium quantity?

Correct AnswerverifiedShow Answer

A decrease in quantity demanded is represented by a

Correct AnswerverifiedShow Answer

When the demand for good A increases,

Correct AnswerverifiedShow Answer

The demand curve is P = 700 - 10QD.The supply curve is P = 400 + 5QS.At market equilibrium, the equilibrium quantity is _______ and the equilibrium price is _______ .

Correct AnswerverifiedShow Answer

If A and B are substitutes and the price of A rises, we will observe

Correct AnswerverifiedShow Answer

When a market is in equilibrium,

Correct AnswerverifiedShow Answer

An increase in income

Correct AnswerverifiedShow Answer

Use the table below to answer the following questions. Table 3.5.3 -Refer to Table 3.5.3.Suppose that the price of a designer sport t- shirt is $10.The market has leading to .

Correct AnswerverifiedShow Answer

Use the figure below to answer the following questions. Figure 3.4.1 -At price P3 in Figure 3.4.1,

Correct AnswerverifiedShow Answer

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2, which represents the market for cow manure.If the price of milk, a complement in production of manure, rises, what is the new manure equilibrium, ceteris paribus?

Correct AnswerverifiedShow Answer

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS.What is the equilibrium price of a knob?

Correct AnswerverifiedShow Answer

Figure 3.2.1 -Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Correct AnswerverifiedShow Answer

Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

Correct AnswerverifiedShow Answer

Today, the price of peanuts increases.Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future.In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases.It must be the case that

Correct AnswerverifiedShow Answer

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.In 2017, the relative price of cola in terms of tea is

Correct AnswerverifiedShow Answer

If a turnip is an inferior good, then, ceteris paribus, an increase in the price of a turnip will

Correct AnswerverifiedShow Answer

Use the table below to answer the following questions. -Refer to Table 3.5.1.Suppose the cost of production rises and supply decreases by 100 units at each price.The new equilibrium price is $ _______and equilibrium quantity is _______ units.

Correct AnswerverifiedShow Answer

When the price of good A rises, the supply curve of good B shifts rightward.Which of the following statements are true?

Correct AnswerverifiedShow Answer

Farm land can be used to produce either cattle or corn.If the demand for cattle increases, then the

Correct AnswerverifiedShow Answer

Use the table below to answer the following questions. -Refer to Table 3.5.1.The equilibrium price is $_______ and the equilibrium quantity is _______ heaters per month.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The demand curve is P = 700 - 10Q_D.The supply curve is P = 400 + 5Q_S.At market equilibrium, the equilibrium quantity is _ and the equilibrium price is _ .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the figure below to answer the following questions. Figure 3.4.1 -At price P₃in Figure 3.4.1,

Correct Answer
verified

Correct Answer
verified

The demand curve for knobs is P = 75 - 6Q_Dand the supply curve for knobs is P = 35 + 2Q_S.What is the equilibrium price of a knob?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the table below to answer the following questions. -Refer to Table 3.5.1.Suppose the cost of production rises and supply decreases by 100 units at each price.The new equilibrium price is $ _and equilibrium quantity is _ units.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the table below to answer the following questions. -Refer to Table 3.5.1.The equilibrium price is $_ and the equilibrium quantity is _ heaters per month.

Correct Answer
verified