Question 1

Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 2

1 to S2. D)  S2 to S1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from

Accepted Answer

A)   A to B.
B)   B to A.
C)   S1 to S2.
D)   S2 to S1.E) B) and D)
F) A) and B)

Question 3

From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?

Accepted Answer

An increase in the price of mo...

Question 4

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

Accepted Answer

A)   D decreases, S no change, P and Q decrease
B)   S decreases, D no change, P increases, Q decreases
C)   D and S decrease, P and Q increase
D)   D no change, S decreases, P increases, Q increasesE) All of the above
F) A) and C)

Question 5

1 to D2. D)  D2 to D1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-1. An increase in population would be represented by a movement from

Accepted Answer

A)   A to B.
B)   B to A.
C)   D1 to D2.
D)   D2 to D1.E) A) and B)
F) B) and C)

Question 6

If the price of a product is above equilibrium, what forces it down?

Accepted Answer

When the price is above equilibrium, a s...

Question 7

'Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase. This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right.' Which of the following correctly comments on this statement?

Accepted Answer

A)   The statement will be true if consumer tastes for apples and oranges do not change.
B)   The statement is false because a change in the price of apples would not change the demand for apples.
C)   The statement is false because oranges are inferior goods; apples are normal goods.
D)   The statement is false because one cannot assume that apples and oranges are substitutes for all consumers.E) None of the above
F) C) and D)

Question 8

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

Accepted Answer

A)   There is no difference between the two terms; they both refer to a shift of the demand curve.
B)   An 'increase in demand' is represented by a rightward shift of the demand curve while an 'increase in quantity demanded' is represented by a movement along a given demand curve.
C)   There is no difference between the two terms; they both refer to a movement downward along a given demand curve.
D)   An 'increase in demand' is represented by a movement along a given demand curve, while an 'increase in quantity demanded' is represented by a rightward shift of the demand curve.E) B) and C)
F) C) and D)

Question 9

In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?

Accepted Answer

A)   The supply curve shifts to the right.
B)   The supply curve shifts to the left.
C)   The quantity demanded and the quantity supplied of platinum increase.
D)   The demand curve shifts to the right.E) A) and C)
F) A) and B)

Question 10

The phrase 'demand has decreased' means that

Accepted Answer

A)   a demand curve has shifted to the left.
B)   there has been an upward movement along a demand curve.
C)   there has been a downward movement along a demand curve.
D)   a demand curve has shifted to the right.E) A) and B)
F) A) and C)

Question 11

If, in response to an increase in the price of chocolate, the quantity of chocolate demanded decreases, economists would describe this as

Accepted Answer

A)   a decrease in demand.
B)   a decrease in quantity demanded.
C)   a change in consumer income.
D)   a decrease in consumers' taste for chocolate.E) A) and B)
F) All of the above

Question 12

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and S1 (point A. If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

Accepted Answer

A)   The equilibrium point will move from A to B.
B)   The equilibrium point will move from A to C.
C)   There will be no change in the equilibrium point.
D)   The equilibrium point will move from A to E.E) C) and D)
F) A) and B)

Question 13

Holding everything else constant, a decrease in the price of bicycles will result in

Accepted Answer

A)   a decrease in the quantity of bicycles demanded.
B)   an increase in the demand for bicycles.
C)   a decrease in the supply of bicycles.
D)   an increase in the quantity of bicycles demanded.E) C) and D)
F) All of the above

Question 14

1 to S2. D)  S2 to S1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 3-2. A decrease in productivity would be represented by a movement from

Accepted Answer

A)   A to B.
B)   B to A.
C)   S1 to S2.
D)   S2 to S1.E) B) and C)
F) A) and C)

Question 15

-Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

Accepted Answer

A)   Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans.
B)   Graph A represents the market for original Picasso paintings and Graph B represents the market for designer jeans.
C)   Graph A represents both the market for original Picasso paintings and designer jeans.
D)   Graph B represents both the market for original Picasso paintings and designer jeans.E) All of the above
F) C) and D)

Question 16

If, in the market for oranges, the supply has increased then

Accepted Answer

A)   the supply curve for oranges has shifted to the right.
B)   the supply curve for oranges has shifted to the left.
C)   there has been a movement upwards along the supply curve for oranges.
D)   there has been a movement downwards along the supply curve for oranges.E) B) and D)
F) A) and C)

Question 17

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A. If the price of oranges, a substitute for apples, decreases and the wages of apple workers increase, how will the equilibrium point change?

Accepted Answer

A)   The equilibrium point will move from A to E.
B)   The equilibrium point will move from A to B.
C)   The equilibrium point will move from A to C.
D)   The equilibrium will first move from A to B, then return to A.E) B) and D)
F) None of the above

Question 18

If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, economists would describe this as

Accepted Answer

A)   an increase in demand.
B)   an increase in quantity demanded.
C)   a change in consumer income.
D)   an increase in consumers' taste for grapes.E) B) and D)
F) B) and C)

Question 19

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Accepted Answer

A)   an increase in demand and an increase in supply
B)   an increase in supply
C)   an increase in supply and an increase in demand greater than the increase in supply
D)   a decrease in demand and an increase in supplyE) None of the above
F) A) and B)

Question 20

Which of the following would shift the supply curve for MP3 players to the left?

Accepted Answer

A)   an increase in the price of an input used to produce MP3 players
B)   a decrease in consumer tastes for MP3 players
C)   an increase in the number of firms that produce MP3 players
D)   an increase in the productivity of the workers who produce MP3 playersE) B) and C)
F) All of the above

Exam 3: Where Prices Come Frome : The Interaction of Demand and Supply

-Refer to Figure 3-2. A decrease in productivity would be represented by a movement from

Correct Answer
verified

From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?

Correct Answer
verified
An increase in the price of mo...
View Answer

-Refer to Figure 3-1. An increase in population would be represented by a movement from

Correct Answer
verified

If, in the market for oranges, the supply has increased then

Correct Answer
verified

Correct Answer
verified

If, in response to an increase in the price of chocolate, the quantity of chocolate demanded decreases, economists would describe this as

Correct Answer
verified

-Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

Correct Answer
verified

Which of the following would shift the supply curve for MP3 players to the left?

Correct Answer
verified

-Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from

Correct Answer
verified

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

Correct Answer
verified

Correct Answer
verified

In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?

Correct Answer
verified

If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, economists would describe this as

Correct Answer
verified

Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied.

Correct Answer
verified

The phrase 'demand has decreased' means that

Correct Answer
verified

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

Correct Answer
verified

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Correct Answer
verified

Correct Answer
verified

Holding everything else constant, a decrease in the price of bicycles will result in

Correct Answer
verified

If the price of a product is above equilibrium, what forces it down?

Correct Answer
verified
When the price is above equilibrium, a s...
View Answer

Exam 3: Where Prices Come Frome : The Interaction of Demand and Supply

-Refer to Figure 3-2. A decrease in productivity would be represented by a movement from

Correct AnswerverifiedShow Answer

From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?

Correct AnswerverifiedAn increase in the price of mo...View AnswerShow Answer

-Refer to Figure 3-1. An increase in population would be represented by a movement from

Correct AnswerverifiedShow Answer

If, in the market for oranges, the supply has increased then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If, in response to an increase in the price of chocolate, the quantity of chocolate demanded decreases, economists would describe this as

Correct AnswerverifiedShow Answer

-Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

Correct AnswerverifiedShow Answer

Which of the following would shift the supply curve for MP3 players to the left?

Correct AnswerverifiedShow Answer

-Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from

Correct AnswerverifiedShow Answer

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?

Correct AnswerverifiedShow Answer

If, in response to a decrease in the price of grapes, the quantity of grapes demanded increases, economists would describe this as

Correct AnswerverifiedShow Answer

Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied.

Correct AnswerverifiedShow Answer

The phrase 'demand has decreased' means that

Correct AnswerverifiedShow Answer

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

Correct AnswerverifiedShow Answer

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Holding everything else constant, a decrease in the price of bicycles will result in

Correct AnswerverifiedShow Answer

If the price of a product is above equilibrium, what forces it down?

Correct AnswerverifiedWhen the price is above equilibrium, a s...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
An increase in the price of mo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When the price is above equilibrium, a s...
View Answer