Question 1

Suppose that MUx/Px exceeds MUy/Py.To maximize utility,the consumer who is exhausting her income should buy:

Accepted Answer

A)  less of X only if its price falls
B)  more of Y only if its price rises
C)  more of Y and less of X
D)  more of X and less of Y
E)  the same amounts of X and YF) B) and D)
G) B) and C)

Question 2

Assume that the demand curve for product C is downward-sloping.If the price of C falls from $2 to $1.75,then:

Accepted Answer

A)  a smaller quantity of C is demanded
B)  a larger quantity of C is demanded
C)  the demand for C increases
D)  the demand for C decreases
E)  a smaller quantity of complementary product D is demandedF) A) and E)
G) B) and C)

Question 3

Which of the following is most likely to be an inferior product?

Accepted Answer

A)  fur coats
B)  iPods
C)  used clothing
D)  steak
E)  cell phonesF) B) and D)
G) None of the above

Question 4

The law of supply:

Accepted Answer

A)  reflects the amounts businesses will demand at each price in a series of prices
B)  is reflected in a downward-sloping supply curve
C)  shows that the relationship between price and quantity supplied is inverse
D)  reflects the amounts consumers will supply at each price in a series of prices
E)  reflects the direct relationship between price and quantity supplied, ceteris paribusF) B) and E)
G) A) and D)

Question 5

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,a technological innovation in making the product will:

Accepted Answer

A)  increase equilibrium price and quantity
B)  decrease equilibrium price and quantity
C)  decrease equilibrium price and increase equilibrium quantity
D)  increase equilibrium price and decrease equilibrium quantity
E)  keep equilibrium price and quantity the sameF) A) and D)
G) A) and E)

Question 6

Units of Farmers’ Product  Demanded per month 4550566167 Price per unit $54321 Units of Farmers’ Product  Supplied per month 7773686157\begin{array} { | l | l | l | l | l | l | } \hline \begin{array} { l } 	ext { Units of Farmers&#x27; Product } \	ext { Demanded per month }\end{array} & 45 & 50 & 56 & 61 & 67 \\hline 	ext { Price per unit } & \$ 5 & 4 & 3 & 2 & 1 \\hline \begin{array} { l } 	ext { Units of Farmers&#x27; Product } \	ext { Supplied per month }\end{array} & 77 & 73 & 68 & 61 & 57 \\hline\end{array} Units of Farmers’ Product  Demanded per month ​ Price per unit  Units of Farmers’ Product  Supplied per month ​​45$577​50473​56368​61261​67157​​ 
-Equilibrium price will be:

Accepted Answer

A)  $5
B)  $4
C)  $3
D)  $2
E)  $1 F) B) and E)
G) B) and C)

Question 7

"Because of unseasonably cold weather,the supply of oranges has substantially decreased." This statement indicates that:

Accepted Answer

A)  consumers will be willing and able to buy fewer oranges at each possible price
B)  the demand for oranges will necessarily rise
C)  the amount of oranges that will be available at various prices has declined
D)  the price of oranges will fall
E)  there is now a surplus of orangesF) B) and D)
G) B) and C)

Question 8

A decrease in the price of cigarettes leads to a(n) :

Accepted Answer

A)  change in the supply of cigarettes
B)  decrease in the quantity demanded of cigarettes
C)  increase in the supply of apples as tobacco farmers switch to the production of apples
D)  increase in the quantity supplied of cigarettes
E)  a change in the demand of cigarettesF) A) and E)
G) B) and C) C

Question 9

At the point where the demand and supply curves for a product intersect:

Accepted Answer

A)  the "selling price" and the "buying price" need not to be equal
B)  the market may, or may not, be in equilibrium
C)  either a shortage or a surplus of the product might exist, depending upon the degree of competition
D)  the quantity that consumers want to purchase and the amount producers choose to sell are the same
E)  price will be pushed either up or down, depending on whether there is a shortage or surplusF) All of the above
G) A) and B)

Question 10

-A surplus of 160 units would be encountered if price were:

Accepted Answer

A)  $1.10, that is, $1.60 minus $0.50
B)  $1.60
C)  $1.00
D)  $0.50
E)  $2.10, that is $1.60 plus $0.50F) B) and D)
G) B) and E) B

Question 11

0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market: A) supply has decreased and the equilibrium price has increased B) supply has decreased and the equilibrium price has decreased C) demand has decreased and equilibrium price has increased D) demand has increased and equilibrium price has increased E) demand has increased and equilibrium price has decreased" class="answers-bank-image d-inline" rel="preload" >
-S0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market:

Accepted Answer

A)  supply has decreased and the equilibrium price has increased
B)  supply has decreased and the equilibrium price has decreased
C)  demand has decreased and equilibrium price has increased
D)  demand has increased and equilibrium price has increased
E)  demand has increased and equilibrium price has decreasedF) C) and D)
G) D) and E)

Question 12

One might explain a shift to the right in the demand curve for normal product A by saying that:

Accepted Answer

A)  incomes have declined, and consumers now want to buy less of A at every price
B)  the price of A has increased and, as a result, consumers want to buy less of it
C)  preferences have changed in favour of A, so consumers now want to buy more at every price
D)  the price of A has declined and, as a result, consumers want to buy more of it
E)  product A is now more plentiful than beforeF) B) and E)
G) B) and D)

Question 13

Quantity demanded refers to the:

Accepted Answer

A)  amount of a product that consumers would be willing to purchase if they only had the income to afford it
B)  amount of a product that consumers are willing to purchase at a certain price
C)  independent variable in the relationship between price and quantity demanded
D)  minimum amount of a product that a consumer purchases to continue collecting social assistance
E)  amount of a product that consumers would be willing to purchase if its price were zeroF) B) and D)
G) B) and C)

Question 14

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in resource prices will:

Accepted Answer

A)  increase equilibrium price and quantity
B)  decrease equilibrium price and quantity
C)  decrease equilibrium price and increase equilibrium quantity
D)  increase equilibrium price and decrease equilibrium quantity
E)  keep equilibrium price and quantity the sameF) C) and D)
G) B) and E)

Question 15

If the price of K declines,the demand curve for complementary product J:

Accepted Answer

A)  shifts to the left
B)  decreases
C)  shifts to the right
D)  remains unchanged
E)  shifts so that each price of K is associated with a lower quantity demanded of KF) None of the above
G) All of the above

Question 16

0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market: A) the equilibrium position has shifted from M to K B) the increase in demand is not as great as the increase in supply C) the new equilibrium price and quantity are both greater than originally D) point M shows the new equilibrium position E) the increase in demand equals the increase in supply" class="answers-bank-image d-inline" rel="preload" >
-S0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market:

Accepted Answer

A)  the equilibrium position has shifted from M to K
B)  the increase in demand is not as great as the increase in supply
C)  the new equilibrium price and quantity are both greater than originally
D)  point M shows the new equilibrium position
E)  the increase in demand equals the increase in supplyF) All of the above
G) A) and C)

Question 17

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in consumer incomes will:

Accepted Answer

A)  increase equilibrium price and quantity if the product is a normal product
B)  decrease equilibrium price and quantity if the product is a normal product
C)  have no effect on equilibrium price and quantity
D)  reduce the quantity demanded, but not shift the demand curve
E)  increase equilibrium price and decrease equilibrium quantity if the product is an inferior productF) A) and B)
G) A) and D)

Question 18

The first Pepsi yields Craig 18 units of utility and the second Pepsi yields him an additional 12 units of utility.His total utility from three Pepsis is 38 units of utility.The marginal utility of the third Pepsi:

Accepted Answer

A)  is 26 units of utility
B)  is 6 units of utility
C)  is 8 units of utility
D)  is 4 units of utility
E)  is 2 units of utilityF) B) and D)
G) C) and E)

Question 19

Graphically,the market demand curve is:

Accepted Answer

A)  steeper than any individual demand curve that comprises it
B)  greater than the sum of the individual demand curves
C)  the horizontal sum of individual demand curves
D)  the vertical sum of individual demand curves
E)  less than the sum of the individual demand curvesF) A) and B)
G) C) and D)

Question 20

Economists use the term demand to refer to:

Accepted Answer

A)  a particular price-quantity combination on a demand curve
B)  the total amount spent on a particular product over a given time period
C)  the amount of a product that consumers are willing to purchase at a certain price
D)  the relationship between the various possible prices of a product and the quantities that consumers are willing to purchase at each price
E)  the price charged to consumers to purchase a given quantity of a productF) A) and C)
G) A) and B) D

Exam 2: Demand and Supply

Suppose that MUx/Px exceeds MUy/Py.To maximize utility,the consumer who is exhausting her income should buy:

Correct Answer
verified

Assume that the demand curve for product C is downward-sloping.If the price of C falls from $2 to $1.75,then:

Correct Answer
verified

Which of the following is most likely to be an inferior product?

Correct Answer
verified

The law of supply:

Correct Answer
verified

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,a technological innovation in making the product will:

Correct Answer
verified

Correct Answer
verified

"Because of unseasonably cold weather,the supply of oranges has substantially decreased." This statement indicates that:

Correct Answer
verified

A decrease in the price of cigarettes leads to a(n) :

Correct Answer
verified
C

At the point where the demand and supply curves for a product intersect:

Correct Answer
verified

-A surplus of 160 units would be encountered if price were:

Correct Answer
verified
B

-S₀ and D₀ represent the original supply and demand curves,and S₁ and D₁ represent the new curves.In this market:

Correct Answer
verified

One might explain a shift to the right in the demand curve for normal product A by saying that:

Correct Answer
verified

Quantity demanded refers to the:

Correct Answer
verified

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in resource prices will:

Correct Answer
verified

If the price of K declines,the demand curve for complementary product J:

Correct Answer
verified

-S₀ and D₀ represent the original supply and demand curves,and S₁ and D₁ represent the new curves.In this market:

Correct Answer
verified

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in consumer incomes will:

Correct Answer
verified

The first Pepsi yields Craig 18 units of utility and the second Pepsi yields him an additional 12 units of utility.His total utility from three Pepsis is 38 units of utility.The marginal utility of the third Pepsi:

Correct Answer
verified

Graphically,the market demand curve is:

Correct Answer
verified

Economists use the term demand to refer to:

Correct Answer
verified
D

Exam 2: Demand and Supply

Suppose that MUx/Px exceeds MUy/Py.To maximize utility,the consumer who is exhausting her income should buy:

Correct AnswerverifiedShow Answer

Assume that the demand curve for product C is downward-sloping.If the price of C falls from $2 to $1.75,then:

Correct AnswerverifiedShow Answer

Which of the following is most likely to be an inferior product?

Correct AnswerverifiedShow Answer

The law of supply:

Correct AnswerverifiedShow Answer

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,a technological innovation in making the product will:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

"Because of unseasonably cold weather,the supply of oranges has substantially decreased." This statement indicates that:

Correct AnswerverifiedShow Answer

A decrease in the price of cigarettes leads to a(n) :

Correct AnswerverifiedC

At the point where the demand and supply curves for a product intersect:

Correct AnswerverifiedShow Answer

-A surplus of 160 units would be encountered if price were:

Correct AnswerverifiedB

-S0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market:

Correct AnswerverifiedShow Answer

One might explain a shift to the right in the demand curve for normal product A by saying that:

Correct AnswerverifiedShow Answer

Quantity demanded refers to the:

Correct AnswerverifiedShow Answer

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in resource prices will:

Correct AnswerverifiedShow Answer

If the price of K declines,the demand curve for complementary product J:

Correct AnswerverifiedShow Answer

-S0 and D0 represent the original supply and demand curves,and S1 and D1 represent the new curves.In this market:

Correct AnswerverifiedShow Answer

Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in consumer incomes will:

Correct AnswerverifiedShow Answer

The first Pepsi yields Craig 18 units of utility and the second Pepsi yields him an additional 12 units of utility.His total utility from three Pepsis is 38 units of utility.The marginal utility of the third Pepsi:

Correct AnswerverifiedShow Answer

Graphically,the market demand curve is:

Correct AnswerverifiedShow Answer

Economists use the term demand to refer to:

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
B

-S₀ and D₀ represent the original supply and demand curves,and S₁ and D₁ represent the new curves.In this market:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

-S₀ and D₀ represent the original supply and demand curves,and S₁ and D₁ represent the new curves.In this market:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D