Question 1

Exhibit 3-2 1 to point B on D2? A)  There was a decrease in the price of a substitute for good X. B)  There was an increase in the price of a complement to good X. C)  There was a decline in technology in the production of good X. D)  There was an increase in the price of a substitute for good X." class="answers-bank-image d-inline" rel="preload" > Good X
-Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D1 to point B on D2?

Accepted Answer

A)   There was a decrease in the price of a substitute for good X.
B)   There was an increase in the price of a complement to good X.
C)   There was a decline in technology in the production of good X.
D)   There was an increase in the price of a substitute for good X.E) B) and D)
F) All of the above

Question 2

Which of the following statements represents a correct and sequentially accurate economic explanation?

Accepted Answer

A)   X is an inferior good and Y is a substitute for X.Income rises,the demand for X falls,the price of X falls,and the demand for Y rises.
B)   X is an inferior good and Y is a substitute for X.Income rises,the demand for X falls,the price of X falls,and the demand for Y falls.
C)   X is an inferior good and Y is a substitute for X.Income falls,the demand for X rises,the price of X rises,and the demand for Y falls.
D)   X is an inferior good and Y is a substitute for X.Income rises,the quantity demanded of X rises,the price of X rises,and the demand for Y falls.
E)   none of the aboveF) B) and E)
G) A) and E)

Question 3

If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then ____________ is _______________.

Accepted Answer

A)   producers' surplus;$103
B)   consumers' surplus;$103
C)   consumers' surplus;$3
D)   producers' surplus;$3
E)   consumers' surplus;$40F) A) and B)
G) A) and E)

Question 4

If Max's demand for hot dogs falls as his income rises,then for Max hot dogs are

Accepted Answer

A)   a bad good.
B)   an inferior good.
C)   a preferential good.
D)   a normal good.
E)   a neutral good.F) C) and E)
G) D) and E)

Question 5

As the price of good X rises,the demand for good Y falls.Therefore,goods X and Y are

Accepted Answer

A)   substitutes.
B)   normal goods.
C)   complements.
D)   inferior goods.
E)   none of the aboveF) A) and B)
G) A) and C)

Question 6

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following will not shift a supply curve?

Accepted Answer

A)   a change in the price of relevant resources
B)   a change in the good's own price
C)   a change in the number of sellers
D)   a change in per-unit costs brought about by a change in taxes.E) C) and D)
F) All of the above

Question 8

An increase in supply is graphically represented by a leftward shift of the supply curve.

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 3-4 
-Refer to Exhibit 3-4.A price of $6 in the market will result in a

Accepted Answer

A)   shortage of 10 units.
B)   surplus of 10 units.
C)   surplus of 5 units.
D)   shortage of 5 units.E) A) and B)
F) A) and D)

Question 10

A surplus will occur in a market when the price of the product is above the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 11

As the price of good A rises,the demand for good B rises.Therefore,goods A and B are

Accepted Answer

A)   normal goods.
B)   inferior goods.
C)   substitutes.
D)   complements.
E)   none of the aboveF) B) and D)
G) A) and B)

Question 12

When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber.Given that lumber is timber that has been sawed or split into planks and boards,explain in terms of supply and/or demand how the hurricane impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity):
a.
Domestic lumber
b.
Imported lumber
c.
New home construction

Accepted Answer

a.The severe weather would be expected t...

Question 13

Exhibit 3-8 
-Refer to Exhibit 3-8.Equilibrium price and quantity are

Accepted Answer

A)   $3 and 25 units.
B)   $3 and 15 units.
C)   $5 and 15 units.
D)   $5 and 25 units.
E)   $1 and 25 units.F) B) and C)
G) B) and D)

Question 14

In the supply-and-demand diagram of the market for peanut butter,the equilibrium point has moved down and to the right.What could have caused this?

Accepted Answer

A)   a fall in the price of peanuts
B)   a rise in the price of peanuts
C)   a rise in income,assuming that peanut butter is an inferior good
D)   a shift in preferences toward peanut butterE) A) and B)
F) A) and D)

Question 15

A rightward shift in the demand curve for tennis balls could be caused by

Accepted Answer

A)   a fall in the price of tennis balls.
B)   a fall in the price of tennis rackets.
C)   a rise in the price of tennis lessons.
D)   a fall in income,assuming tennis balls are a normal good.E) None of the above
F) A) and D)

Question 16

Demand refers to

Accepted Answer

A)   how much of a good people are willing and able to buy at a particular price.
B)   the different quantities of a good people are willing and able to buy at different prices.
C)   the different quantities of a good people are willing and able to buy at a particular price.
D)   how much of a good people are willing to buy at different prices.
E)   none of the aboveF) C) and D)
G) A) and C)

Question 17

If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is

Accepted Answer

A)   $20
B)   $70
C)   $50
D)   $30
E)   There is not enough information to answer the question.F) C) and D)
G) B) and D)

Question 18

In moving along a demand curve,which of the following is NOT held constant?

Accepted Answer

A)   the prices of substitute goods
B)   the prices of complementary goods
C)   consumer incomes
D)   the price of the good for which the demand curve is relevantE) All of the above
F) None of the above

Question 19

Consider a point on a market demand curve.The point represents

Accepted Answer

A)   a single price and the quantity demanded by an individual buyer.
B)   a single price and the sum of the quantities demanded by all buyers.
C)   various prices and various quantities demanded.
D)   a single price and the quantity demanded by an individual buyer at that price and all other prices.
E)   a and cF) A) and B)
G) A) and C)

Question 20

Which of the following statements is false?

Accepted Answer

A)   The shift factors for the supply curve are: income,preferences,prices of related goods,the number of buyers,and expectations of future price.
B)   A change in (own) price changes the quantity supplied of a good.
C)   A change in demand is graphically represented by a shift in the demand curve.
D)   A change in quantity demanded is represented by a movement along a given demand curve.E) All of the above
F) C) and D)

Exam 3: Supply and Demand: Theory

In moving along a demand curve,which of the following is NOT held constant?

Correct Answer
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As the price of good A rises,the demand for good B rises.Therefore,goods A and B are

Correct Answer
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A rightward shift in the demand curve for tennis balls could be caused by

Correct Answer
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As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Correct Answer
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If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then is ___.

Correct Answer
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In the supply-and-demand diagram of the market for peanut butter,the equilibrium point has moved down and to the right.What could have caused this?

Correct Answer
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Exhibit 3-2 Good X -Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D₁ to point B on D₂?

Correct Answer
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If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is

Correct Answer
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Which of the following will not shift a supply curve?

Correct Answer
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A surplus will occur in a market when the price of the product is above the equilibrium price.

Correct Answer
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Correct Answer
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a.The severe weather would be expected t...
View Answer

Demand refers to

Correct Answer
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Consider a point on a market demand curve.The point represents

Correct Answer
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If Max's demand for hot dogs falls as his income rises,then for Max hot dogs are

Correct Answer
verified

As the price of good X rises,the demand for good Y falls.Therefore,goods X and Y are

Correct Answer
verified

Exhibit 3-8 -Refer to Exhibit 3-8.Equilibrium price and quantity are

Correct Answer
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Which of the following statements is false?

Correct Answer
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Which of the following statements represents a correct and sequentially accurate economic explanation?

Correct Answer
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An increase in supply is graphically represented by a leftward shift of the supply curve.

Correct Answer
verified

Exhibit 3-4 -Refer to Exhibit 3-4.A price of $6 in the market will result in a

Correct Answer
verified

Exam 3: Supply and Demand: Theory

In moving along a demand curve,which of the following is NOT held constant?

Correct AnswerverifiedShow Answer

As the price of good A rises,the demand for good B rises.Therefore,goods A and B are

Correct AnswerverifiedShow Answer

A rightward shift in the demand curve for tennis balls could be caused by

Correct AnswerverifiedShow Answer

As long as the maximum buying price of a good is less than the minimum selling price of that good,an exchange will occur.

Correct AnswerverifiedShow Answer

If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then ____________ is _______________.

Correct AnswerverifiedShow Answer

In the supply-and-demand diagram of the market for peanut butter,the equilibrium point has moved down and to the right.What could have caused this?

Correct AnswerverifiedShow Answer

Exhibit 3-2 Good X -Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D1 to point B on D2?

Correct AnswerverifiedShow Answer

If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is

Correct AnswerverifiedShow Answer

Which of the following will not shift a supply curve?

Correct AnswerverifiedShow Answer

A surplus will occur in a market when the price of the product is above the equilibrium price.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.The severe weather would be expected t...View AnswerShow Answer

Demand refers to

Correct AnswerverifiedShow Answer

Consider a point on a market demand curve.The point represents

Correct AnswerverifiedShow Answer

If Max's demand for hot dogs falls as his income rises,then for Max hot dogs are

Correct AnswerverifiedShow Answer

As the price of good X rises,the demand for good Y falls.Therefore,goods X and Y are

Correct AnswerverifiedShow Answer

Exhibit 3-8 -Refer to Exhibit 3-8.Equilibrium price and quantity are

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Which of the following statements represents a correct and sequentially accurate economic explanation?

Correct AnswerverifiedShow Answer

An increase in supply is graphically represented by a leftward shift of the supply curve.

Correct AnswerverifiedShow Answer

Exhibit 3-4 -Refer to Exhibit 3-4.A price of $6 in the market will result in a

Correct AnswerverifiedShow Answer

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If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then is ___.

Correct Answer
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Exhibit 3-2 Good X -Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D₁ to point B on D₂?

Correct Answer
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a.The severe weather would be expected t...
View Answer

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