Question 1

The price of a loaf of bread is $1.50,the price of a gallon of milk is $3.00,and the price of a pound of butter is $2.40.The price of a loaf of bread relative to a gallon of milk is ________,while the price of a gallon of milk relative to a pound of butter is ________.

Accepted Answer

A)  0.5; 0.8.
B)  0.5; 1.25.
C)  2.0; 1.25.
D)  2.0; 0.8.

Question 2

Supplier 1  Supplier 2  Supplier 3Quantity SuppliedQuantity SuppliedQuantity Supplied Price  (thousands)   (thousands)   (thousands)  81172078615655105245\begin{array}{cccc}&	ext { Supplier 1 } & 	ext { Supplier 2 } & 	ext { Supplier } 3 \&	ext {Quantity Supplied}& 	ext {Quantity Supplied} &	ext {Quantity Supplied}\	ext { Price } & 	ext { (thousands)  } & 	ext { (thousands)  } & 	ext { (thousands)  } \\hline 8 & 11 & 7 & 20 \7 & 8 & 6 & 15 \6 & 5 & 5 & 10 \5 & 2 & 4 & 5\end{array} Price 8765​ Supplier 1 Quantity Supplied (thousands)  11852​ Supplier 2 Quantity Supplied (thousands)  7654​ Supplier 3Quantity Supplied (thousands)  2015105​​ 
-Refer to the above table.The market quantity supplied when the price is $7 is

Accepted Answer

A)  0
B)  20
C)  29
D)  38

Question 3

Which of the following causes a movement along a supply curve?

Accepted Answer

A)  a change in resource costs
B)  a change in technology
C)  a change in the price
D)  all of the above

Question 4

The law of demand states that there is

Accepted Answer

A)  an inverse relationship between income and quantity demanded,ceteris paribus.
B)  a direct relationship between income and quantity demanded,ceteris paribus.
C)  no relationship between taste and quantity demanded,ceteris paribus.
D)  an inverse relationship between price and quantity demanded,ceteris paribus.

Question 5

According to the law of demand,other things being equal,

Accepted Answer

A)  when the price a good goes up,then people buy more of that good.
B)  when the price a good goes up,then people buy less of that good.
C)  when people's income goes up,then they buy more of a good.
D)  when people's income goes up,then they buy less of a good.

Question 6

If there is a surplus,

Accepted Answer

A)  fewer producers want to sell the product because it is too scarce.
B)  consumers will drive up the price further.
C)  firms will drive up the price to enhance profits.
D)  the price will decline to the equilibrium level.

Question 7

For a normal good,an increase in consumer income will lead to
I.a movement down the demand curve
II.a rightward shift in the demand curve
III.a reduction in supply

Accepted Answer

A)  I only
B)  II only
C)  III only
D)  Both II and III

Question 8

A movement along a demand curve is

Accepted Answer

A)  a change in demand and can be caused by a change in consumers' income.
B)  a change in the quantity demanded and is caused by a change in the price of the good.
C)  a change in the quantity demanded and can be caused by a change in consumers' income.
D)  a change in demand and is caused by a change in the price of the good.

Question 9

When the price of a complement (cream) decreases,the demand for the related good (coffee)

Accepted Answer

A)  will fall.
B)  remains constant.
C)  will shift outward.
D)  will shift inward.

Question 10

According to the law of supply,

Accepted Answer

A)  people buy more of a good when the price increases.
B)  people buy less of a good when the price decreases.
C)  producers provide more of a good when the price decreases.
D)  producers provide less of a good when the price decreases.

Question 11

The law of demand shows that there is

Accepted Answer

A)  an inverse relationship between price and profit.
B)  an inverse relationship between price and resource cost.
C)  an inverse relationship between price and quantity demanded.
D)  a direct relationship between price and quantity demanded.

Question 12

Suppose that the price of cornflakes is $3 per box and the price of oatmeal is $4.50 per box.Both boxes contain the same number of ounces of cereal.The relative price of cornflakes in terms of oatmeal is

Accepted Answer

A)  0.67.
B)  1.0.
C)  0.75.
D)  1.50.

Question 13

Briefly discuss the determinants of demand other than price.

Accepted Answer

An increase in income causes demand of a...

Question 14

-Refer to the above figure.The rightward shift of the curve indicates

Accepted Answer

A)  an increase in demand.
B)  an increase in supply.
C)  a change in quantity demanded.
D)  a change in quantity supplied.

Question 15

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

Accepted Answer

A)  substitutes.
B)  complements.
C)  normal.
D)  inferior.

Question 16

If the price of apples goes down,then the demand for pears will

Accepted Answer

A)  increase,assuming apples and pears are substitutes.
B)  decrease,assuming apples and pears are substitutes.
C)  decrease,assuming apples and pears are complements.
D)  remain constant,assuming apples and pears are related goods.

Question 17

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

Accepted Answer

A)  A change in taste
B)  A change in income
C)  A change in the price of rewriteable DVDs
D)  A change in the price of rewriteable CDs

Question 18

Suppose that the price of wheat is above its equilibrium price.You would expect to see

Accepted Answer

A)  a shortage on the market that causes prices to increase further.
B)  an increase in quantity demanded because of the high price.
C)  a leftward shift of the demand curve because of the high price.
D)  sellers begin to lower their prices because of the surplus of wheat.

Question 19

Ceteris paribus,as the price of a good or service increases,

Accepted Answer

A)  people will buy more of it.
B)  people will buy less of it.
C)  people will want less of it.
D)  people will want more of it.

Question 20

The arrangements that individuals have with each other to exchange goods is known as

Accepted Answer

A)  demand.
B)  supply.
C)  a market.
D)  complements.

Exam 3: Demand and Supply

Suppose that the price of wheat is above its equilibrium price.You would expect to see

Correct Answer
verified

Suppose that the price of cornflakes is $3 per box and the price of oatmeal is $4.50 per box.Both boxes contain the same number of ounces of cereal.The relative price of cornflakes in terms of oatmeal is

Correct Answer
verified

According to the law of demand,other things being equal,

Correct Answer
verified

The law of demand states that there is

Correct Answer
verified

When the price of a complement (cream) decreases,the demand for the related good (coffee)

Correct Answer
verified

If there is a surplus,

Correct Answer
verified

The arrangements that individuals have with each other to exchange goods is known as

Correct Answer
verified

Correct Answer
verified

Ceteris paribus,as the price of a good or service increases,

Correct Answer
verified

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

Correct Answer
verified

The price of a loaf of bread is $1.50,the price of a gallon of milk is $3.00,and the price of a pound of butter is $2.40.The price of a loaf of bread relative to a gallon of milk is ,while the price of a gallon of milk relative to a pound of butter is .

Correct Answer
verified

-Refer to the above figure.The rightward shift of the curve indicates

Correct Answer
verified

A movement along a demand curve is

Correct Answer
verified

Briefly discuss the determinants of demand other than price.

Correct Answer
verified
An increase in income causes demand of a...
View Answer

According to the law of supply,

Correct Answer
verified

The law of demand shows that there is

Correct Answer
verified

If the price of apples goes down,then the demand for pears will

Correct Answer
verified

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

Correct Answer
verified

Which of the following causes a movement along a supply curve?

Correct Answer
verified

For a normal good,an increase in consumer income will lead to I.a movement down the demand curve II.a rightward shift in the demand curve III.a reduction in supply

Correct Answer
verified

Exam 3: Demand and Supply

Suppose that the price of wheat is above its equilibrium price.You would expect to see

Correct AnswerverifiedShow Answer

Suppose that the price of cornflakes is $3 per box and the price of oatmeal is $4.50 per box.Both boxes contain the same number of ounces of cereal.The relative price of cornflakes in terms of oatmeal is

Correct AnswerverifiedShow Answer

According to the law of demand,other things being equal,

Correct AnswerverifiedShow Answer

The law of demand states that there is

Correct AnswerverifiedShow Answer

When the price of a complement (cream) decreases,the demand for the related good (coffee)

Correct AnswerverifiedShow Answer

If there is a surplus,

Correct AnswerverifiedShow Answer

The arrangements that individuals have with each other to exchange goods is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Ceteris paribus,as the price of a good or service increases,

Correct AnswerverifiedShow Answer

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

Correct AnswerverifiedShow Answer

The price of a loaf of bread is $1.50,the price of a gallon of milk is $3.00,and the price of a pound of butter is $2.40.The price of a loaf of bread relative to a gallon of milk is ________,while the price of a gallon of milk relative to a pound of butter is ________.

Correct AnswerverifiedShow Answer

-Refer to the above figure.The rightward shift of the curve indicates

Correct AnswerverifiedShow Answer

A movement along a demand curve is

Correct AnswerverifiedShow Answer

Briefly discuss the determinants of demand other than price.

Correct AnswerverifiedAn increase in income causes demand of a...View AnswerShow Answer

According to the law of supply,

Correct AnswerverifiedShow Answer

The law of demand shows that there is

Correct AnswerverifiedShow Answer

If the price of apples goes down,then the demand for pears will

Correct AnswerverifiedShow Answer

If a decrease in the price of good A causes a decrease in demand for good B,the two goods are

Correct AnswerverifiedShow Answer

Which of the following causes a movement along a supply curve?

Correct AnswerverifiedShow Answer

For a normal good,an increase in consumer income will lead to I.a movement down the demand curve II.a rightward shift in the demand curve III.a reduction in supply

Correct AnswerverifiedShow Answer

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The price of a loaf of bread is $1.50,the price of a gallon of milk is $3.00,and the price of a pound of butter is $2.40.The price of a loaf of bread relative to a gallon of milk is ,while the price of a gallon of milk relative to a pound of butter is .

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
An increase in income causes demand of a...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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