Question 1

Bob just got laid off and now has no income.We can assume that his demand for all:

Accepted Answer

A)   all normal goods will increase.
B)   all inferior goods will increase.
C)   all inferior goods will decrease.
D)   all normal goods will stay the same.E) All of the above
F) B) and D)

Question 2

One reason the supply of cell phones has increased is:

Accepted Answer

A)   cell phone towers are much more common.
B)   better technology allows them to be produced more cheaply.
C)   consumer preferences for cell phones has increased.
D)   expectations of the near future are that no landlines will exist.E) A) and B)
F) None of the above B

Question 3

Consider a market that is in equilibrium.If it experiences an increase in supply,what will happen? The supply curve will shift to the:

Accepted Answer

A)   right and the equilibrium price and quantity will rise.
B)   right and the equilibrium price will decrease and the equilibrium quantity will increase.
C)   right and the equilibrium price and quantity will fall.
D)   left and the equilibrium price and quantity will fall.E) None of the above
F) All of the above

Question 4

Demand for Snickers bars will decrease if:

Accepted Answer

A)   the price of Snickers bars decreases.
B)   a news story claiming 95% of all geniuses eat at least one Snickers bar a day is released.
C)   the price of Milky Way bars (a substitute)  decreases.
D)   the price of Milky Way bars (a substitute)  increases.E) B) and C)
F) A) and D)

Question 5

According to the graph shown,at a price of $5,there is a:

Accepted Answer

A)   shortage of 10.
B)   shortage of 20.
C)   shortage of 30.
D)   surplus of 20.E) A) and B)
F) A) and C)

Question 6

Which factor of supply would the introduction of e-mail into places of businesses be?

Accepted Answer

A)   Technology
B)   Price of input
C)   Number of sellers
D)   Expectation of the futureE) A) and D)
F) B) and C)

Question 7

This graph depicts the demand for a normal good.  A shift from A to B in the graph shown for a normal good might be caused by:

Accepted Answer

A)   an increase in price.
B)   a decrease in price.
C)   an increase in income.
D)   a decrease in income.E) All of the above
F) A) and D)

Question 8

Consider a market that is in equilibrium.If it experiences both a decrease in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

Accepted Answer

A)   price and quantity will both fall.
B)   quantity will definitely fall, while the equilibrium price cannot be predicted.
C)   price will definitely fall, while the equilibrium quantity cannot be predicted.
D)   price and quantity will both rise.E) B) and D)
F) None of the above

Question 9

A table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Accepted Answer

A)   demand schedule.
B)   demand figure.
C)   demand curve.
D)   demand graph.E) A) and B)
F) None of the above

Question 10

2.Which of the following is true? A)  Equilibrium price increased by $5. B)  Equilibrium quantity increased by 20. C)  Equilibrium price increased by $15. D)  Equilibrium quantity increased by 30." class="answers-bank-image d-inline" rel="preload" > Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S.Something changes and demand shifts to D2.Which of the following is true?

Accepted Answer

A)   Equilibrium price increased by $5.
B)   Equilibrium quantity increased by 20.
C)   Equilibrium price increased by $15.
D)   Equilibrium quantity increased by 30.E) A) and B)
F) A) and C) A

Question 11

The demand curve represents the relationship between:

Accepted Answer

A)   price and quantity demanded with everything else held constant.
B)   income and quantity demanded with everything else held constant.
C)   consumer preferences and quantity demanded with everything else held constant.
D)   income and price demanded with everything else held constant.E) None of the above
F) All of the above

Question 12

The baby boomer generation is just starting to retire,and waiting lists to get into nursing homes are on the rise.We could reasonably expect the demand for geriatric care to:

Accepted Answer

A)   increase due to the number of buyers increasing.
B)   decrease due to the number of buyers increasing.
C)   increase due to expectations of future prices.
D)   decrease due to expectations of future prices.E) All of the above
F) B) and D)

Question 13

This graph depicts the demand for a normal good.  A shift from B to A in the graph shown might be caused by:

Accepted Answer

A)   a decrease in the good's price.
B)   an increase in the good's price.
C)   a decrease in the price of a substitute.
D)   an increase in the price of a substitute.E) B) and D)
F) A) and B)

Question 14

Shopping at a warehouse,such as Sam's Club or Costco,allows its members to pay very low prices on the goods and services they buy.Customers who shop at such a store incur:

Accepted Answer

A)   transaction costs because they must be members to shop there.
B)   no transaction costs because they pay prices that are lower than any other location.
C)   transaction costs because they must buy a product in bulk.
D)   no transaction costs because members can return any item purchased for any reason.E) B) and C)
F) A) and D)

Question 15

Demand for Shell gasoline will increase if the price of:

Accepted Answer

A)   Motor vehicles increases.
B)   BP gasoline increases.
C)   BP gasoline decreases.
D)   Shell gasoline decreases.E) C) and D)
F) All of the above B

Question 16

This table shows the demand and supply schedule of a good.  According to the table shown,at a price of $0.50 quantity demanded:

Accepted Answer

A)   exceeds quantity supplied and a shortage exists.
B)   is less than quantity supplied and a shortage exists.
C)   exceeds quantity supplied and a surplus exists.
D)   is less than quantity supplied and a surplus exists.E) A) and D)
F) None of the above

Question 17

Darren loves to go to the movies,and he just learned that he can buy a ticket at a discounted price using his student ID.Darren now attends movies even more often.The change in Darren's behavior would be shown graphically by a:

Accepted Answer

A)   rightward shift in his demand curve.
B)   leftward shift in his demand curve.
C)   movement down along his demand curve.
D)   movement up along his demand curve.E) B) and C)
F) All of the above

Question 18

2.What might have caused such a shift? A)  The good became more popular. B)  People expect the price of this good to drop in the near future. C)  The good became cheaper to produce. D)  Substitutes for this good became less expensive." class="answers-bank-image d-inline" rel="preload" > Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.Suppose Demand shifts and becomes D2.What might have caused such a shift?

Accepted Answer

A)   The good became more popular.
B)   People expect the price of this good to drop in the near future.
C)   The good became cheaper to produce.
D)   Substitutes for this good became less expensive.E) None of the above
F) C) and D)

Question 19

A demand schedule is a:

Accepted Answer

A)   table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.
B)   graph which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.
C)   table which shows the quantities of a particular good or service that consumers are willing to purchase at various income levels.
D)   line which shows the quantities of a particular good or service that consumers are willing to purchase at various prices.E) C) and D)
F) B) and D)

Question 20

The supply schedule assumes that factors other than:

Accepted Answer

A)   price remain the same.
B)   price must change.
C)   supply remain the same.
D)   supply must change.E) A) and C)
F) B) and D)

Exam 3: Markets

Bob just got laid off and now has no income.We can assume that his demand for all:

Correct AnswerverifiedShow Answer

One reason the supply of cell phones has increased is:

Correct AnswerverifiedB

Consider a market that is in equilibrium.If it experiences an increase in supply,what will happen? The supply curve will shift to the:

Correct AnswerverifiedShow Answer

Demand for Snickers bars will decrease if:

Correct AnswerverifiedShow Answer

According to the graph shown,at a price of $5,there is a:

Correct AnswerverifiedShow Answer

Which factor of supply would the introduction of e-mail into places of businesses be?

Correct AnswerverifiedShow Answer

This graph depicts the demand for a normal good. A shift from A to B in the graph shown for a normal good might be caused by:

Correct AnswerverifiedShow Answer

Consider a market that is in equilibrium.If it experiences both a decrease in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

Correct AnswerverifiedShow Answer

A table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S.Something changes and demand shifts to D2.Which of the following is true?

Correct AnswerverifiedA

The demand curve represents the relationship between:

Correct AnswerverifiedShow Answer

The baby boomer generation is just starting to retire,and waiting lists to get into nursing homes are on the rise.We could reasonably expect the demand for geriatric care to:

Correct AnswerverifiedShow Answer

This graph depicts the demand for a normal good. A shift from B to A in the graph shown might be caused by:

Correct AnswerverifiedShow Answer

Shopping at a warehouse,such as Sam's Club or Costco,allows its members to pay very low prices on the goods and services they buy.Customers who shop at such a store incur:

Correct AnswerverifiedShow Answer

Demand for Shell gasoline will increase if the price of:

Correct AnswerverifiedB

This table shows the demand and supply schedule of a good. According to the table shown,at a price of $0.50 quantity demanded:

Correct AnswerverifiedShow Answer

Darren loves to go to the movies,and he just learned that he can buy a ticket at a discounted price using his student ID.Darren now attends movies even more often.The change in Darren's behavior would be shown graphically by a:

Correct AnswerverifiedShow Answer

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.Suppose Demand shifts and becomes D2.What might have caused such a shift?

Correct AnswerverifiedShow Answer

A demand schedule is a:

Correct AnswerverifiedShow Answer

The supply schedule assumes that factors other than:

Correct AnswerverifiedShow Answer

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B

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Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S.Something changes and demand shifts to D₂.Which of the following is true?

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A

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B

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Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.Suppose Demand shifts and becomes D₂.What might have caused such a shift?

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