Question 1

At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50?

Accepted Answer

A)   12,000
B)   16,000
C)   4,000
D)   28,000
E)   25,000F) A) and E)
G) B) and E)

Question 2

James specializes in college-level economics tutoring. He knows that during the two weeks before finals he can charge more for an hour of private tutoring. Expecting this price increase, James will

Accepted Answer

A)   supply less tutoring now, shifting supply to the left.
B)   supply more tutoring now, shifting supply to the right.
C)   supply less tutoring now, shifting supply to the right.
D)   supply more tutoring now, shifting supply to the left.
E)   change the price of tutoring without any shift in supply.F) A) and E)
G) A) and B)

Question 3

A demand schedule

Accepted Answer

A)   is a curve representing the relationship between the price of a good or service and the quantity demanded.
B)   is a list of goods and services demanded at different prices.
C)   is a table representing the relationship between the price of a good or service and the quantity demanded.
D)   can only be used to analyze the individual's demand for a good or service.
E)   can only be used to analyze the entire market's demand for a good or service.F) A) and B)
G) None of the above

Question 4

Refer to the accompanying graph. If a tax is placed on a good and all else is held constant, we would assume that the supply curve would 1 to S3. B)  remain at S1. C)  shift from S1 to S2. D)  shift from S2 to S1. E)  shift from S2 to S3." class="answers-bank-image d-inline" rel="preload" >

Accepted Answer

A)   shift from S1 to S3.
B)   remain at S1.
C)   shift from S1 to S2.
D)   shift from S2 to S1.
E)   shift from S2 to S3.F) A) and D)
G) A) and C)

Question 5

Higher input costs

Accepted Answer

A)   reduce profits.
B)   increase profits.
C)   shift the demand curve.
D)   always happen during a recession.
E)   provide an incentive to hire more workers.F) A) and D)
G) A) and E)

Question 6

When supply shifts right and demand shifts left,

Accepted Answer

A)   the equilibrium price always rises.
B)   the equilibrium price always falls.
C)   the equilibrium quantity always falls.
D)   the equilibrium quantity always rises.
E)   the equilibrium price is indeterminate.F) C) and D)
G) A) and D)

Question 7

When firms in a market expect the price of their products to rise, the supply curve of their goods_______ , causing the equilibrium price to_______ .

Accepted Answer

A)   decreases; rise
B)   decreases; fall
C)   increases; fall
D)   increases; rise
E)   increases; rise and the equilibrium quantity to fallF) A) and C)
G) A) and E)

Question 8

Something is a normal good if the demand for the good

Accepted Answer

A)   increases as the consumer's income increases.
B)   increases as the consumer's income decreases.
C)   decreases if the price of a substitute good increases.
D)   increases if the price of a complement good increases.
E)   decreases as the income of the consumer increases.F) C) and E)
G) A) and E)

Question 9

If the price of a good increases, holding all else constant,

Accepted Answer

A)   the demand for all of that good's substitutes will decrease.
B)   the quantity demanded for that good will increase.
C)   the demand for all of that good's complements will increase.
D)   the demand for all of that good's substitutes will increase.
E)   the demand curve will shift to the left.F) A) and D)
G) D) and E)

Question 10

If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _______and the equilibrium quantity to_______ , holding all else constant.

Accepted Answer

A)   increase; increase
B)   increase; decrease
C)   decrease; decrease
D)   decrease; increase
E)   remain the same; remain the sameF) C) and D)
G) B) and E)

Question 11

Layla attends the farmer's market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar?

Accepted Answer

A)   The farmer's market in Bakersfield is an imperfect market, so prices are set by the producers.
B)   The farmer's market in Bakersfield is a monopoly because it is the only place to buy fresh fruit on Sundays.
C)   The farmer's market in Bakersfield is a competitive market, so prices are set by the consumer.
D)   The farmer's market in Bakersfield is a competitive market, so neither the consumer nor the producer has a large influence on the price, allowing for the market to set the price.
E)   The farmer's market in Bakersfield is an imperfect market where Layla's decision whether to purchase an orange will not change the price of an orange.F) D) and E)
G) B) and E)

Question 12

The law of supply states that, all other things being equal,

Accepted Answer

A)   the quantity supplied falls when the price falls, and the quantity supplied rises when the price rises.
B)   the quantity supplied falls when the price rises, and the quantity supplied rises when the price falls.
C)   the supply falls when the price falls, and the demand rises when the price rises.
D)   the supply falls when the price rises, and the demand rises when the price falls.
E)   price and quantity are always negatively correlated.F) C) and E)
G) B) and C)

Question 13

When the demand curve shifts to the right and the supply curve is held constant,

Accepted Answer

A)   the equilibrium price and quantity decrease.
B)   the equilibrium price increases and the equilibrium quantity decreases.
C)   the equilibrium price decreases and the equilibrium quantity increases.
D)   the equilibrium price and quantity increase.
E)   one can see a movement along the demand curve.F) B) and E)
G) C) and E)

Question 14

When the number of firms in a market decreases,

Accepted Answer

A)   the demand curve shifts to the left.
B)   the demand curve shifts to the right.
C)   the supply curve shifts to the right.
D)   the supply curve shifts to the left.
E)   both the supply and the demand curves shift to the left.F) C) and E)
G) B) and E)

Question 15

Sabrina decided to start selling lemonade on her street. The other kids in the neighborhood noticed that Sabrina was making a lot of money selling lemonade. These kids decided to open their own lemonade stand. When they opened their own lemonade stand, the equilibrium price _______and the equilibrium quantity_______ .

Accepted Answer

A)   increased; decreased
B)   decreased; increased
C)   increased; increased
D)   decreased; decreased
E)   stayed the same; stayed the sameF) A) and C)
G) C) and D)

Question 16

When both supply and demand shift to the left, the equilibrium

Accepted Answer

A)   price always rises.
B)   price always falls.
C)   quantity always falls.
D)   quantity always rises.
E)   quantity is indeterminate.F) All of the above
G) B) and E)

Question 17

There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices?

Accepted Answer

A)   Ticket prices will be lower because each team is a monopoly in the city.
B)   Ticket prices will be higher because each team is a monopoly in the city.
C)   Ticket prices will be lower because each team lacks market power.
D)   Ticket prices will be higher because each team is faced with strong competition.
E)   Ticket prices are unaffected by the number of teams in a city.F) C) and E)
G) C) and D)

Question 18

Katarina drives past the same gas station every day. She realizes that the gas station always changes its prices on Tuesdays but keeps the price steady the rest of the week. On Saturday, Katarina turns on the news and hears a report projecting that the price of gasoline is going to increase. Holding all else constant, what do you think would happen to Katarina's demand for gasoline on Monday?

Accepted Answer

A)   Her demand would shift to the right.
B)   Her demand would shift to the left.
C)   We would see a movement down on her demand curve but no shift.
D)   We would see a movement up on her demand curve but no shift.
E)   We would see nothing happen to her demand curve until the price changed on Tuesday.F) A) and B)
G) A) and E)

Question 19

When the price falls, what happens?

Accepted Answer

A)   There is no change in the quantity supplied or supply.
B)   There is an increase in the supply.
C)   There is a decrease in the supply.
D)   There is an increase in the quantity supplied.
E)   There is a decrease in the quantity supplied.F) All of the above
G) B) and E)

Question 20

When supply shifts left and demand shifts right,

Accepted Answer

A)   the equilibrium price always rises.
B)   the equilibrium price always falls.
C)   the equilibrium quantity always falls.
D)   the equilibrium quantity always rises.
E)   the equilibrium price is indeterminate.F) A) and E)
G) D) and E)

Exam 3: The Market at Work: Supply and Demand

If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _and the equilibrium quantity to_ , holding all else constant.

Correct Answer
verified

When the price falls, what happens?

Correct Answer
verified

When the demand curve shifts to the right and the supply curve is held constant,

Correct Answer
verified

When supply shifts left and demand shifts right,

Correct Answer
verified

Correct Answer
verified

There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices?

Correct Answer
verified

At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50?

Correct Answer
verified

If the price of a good increases, holding all else constant,

Correct Answer
verified

A demand schedule

Correct Answer
verified

Something is a normal good if the demand for the good

Correct Answer
verified

When both supply and demand shift to the left, the equilibrium

Correct Answer
verified

James specializes in college-level economics tutoring. He knows that during the two weeks before finals he can charge more for an hour of private tutoring. Expecting this price increase, James will

Correct Answer
verified

Correct Answer
verified

When firms in a market expect the price of their products to rise, the supply curve of their goods_ , causing the equilibrium price to_ .

Correct Answer
verified

When the number of firms in a market decreases,

Correct Answer
verified

When supply shifts right and demand shifts left,

Correct Answer
verified

The law of supply states that, all other things being equal,

Correct Answer
verified

Higher input costs

Correct Answer
verified

Refer to the accompanying graph. If a tax is placed on a good and all else is held constant, we would assume that the supply curve would

Correct Answer
verified

Layla attends the farmer's market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar?

Correct Answer
verified

Exam 3: The Market at Work: Supply and Demand

If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _______and the equilibrium quantity to_______ , holding all else constant.

Correct AnswerverifiedShow Answer

When the price falls, what happens?

Correct AnswerverifiedShow Answer

When the demand curve shifts to the right and the supply curve is held constant,

Correct AnswerverifiedShow Answer

When supply shifts left and demand shifts right,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices?

Correct AnswerverifiedShow Answer

At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50?

Correct AnswerverifiedShow Answer

If the price of a good increases, holding all else constant,

Correct AnswerverifiedShow Answer

A demand schedule

Correct AnswerverifiedShow Answer

Something is a normal good if the demand for the good

Correct AnswerverifiedShow Answer

When both supply and demand shift to the left, the equilibrium

Correct AnswerverifiedShow Answer

James specializes in college-level economics tutoring. He knows that during the two weeks before finals he can charge more for an hour of private tutoring. Expecting this price increase, James will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When firms in a market expect the price of their products to rise, the supply curve of their goods_______ , causing the equilibrium price to_______ .

Correct AnswerverifiedShow Answer

When the number of firms in a market decreases,

Correct AnswerverifiedShow Answer

When supply shifts right and demand shifts left,

Correct AnswerverifiedShow Answer

The law of supply states that, all other things being equal,

Correct AnswerverifiedShow Answer

Higher input costs

Correct AnswerverifiedShow Answer

Refer to the accompanying graph. If a tax is placed on a good and all else is held constant, we would assume that the supply curve would

Correct AnswerverifiedShow Answer

Layla attends the farmer's market in her hometown of Bakersfield every Sunday. She notices that all of the oranges sold by the many different farmers at the market have roughly the same price, as do most other products that are alike. Which statement best explains why the prices are so similar?

Correct AnswerverifiedShow Answer

If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to _and the equilibrium quantity to_ , holding all else constant.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

When firms in a market expect the price of their products to rise, the supply curve of their goods_ , causing the equilibrium price to_ .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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