Question 1

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _____ and the supply of ride-on mowers _____.

Accepted Answer

A)   increases; increases
B)   decreases; decreases
C)   increases; decreases
D)   decreases; increasesE) A) and D)
F) C) and D)

Question 2

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D)  and supply curve (S2)  intersect. Something changes in the market, and the supply curve shifts to S1. What could have caused this shift?

Accepted Answer

A)   The price of pizza sauce increased.
B)   The price of pizza decreased.
C)   The price of labor for pizza shops decreased.
D)   Consumers no longer prefer to eat pizza.E) B) and D)
F) All of the above

Question 3

How should you plot a supply curve on a coordinate system diagram?

Accepted Answer

A)   Quantity goes on the horizontal axis and price goes on the vertical axis.
B)   Quantity goes on the vertical axis and price goes on the horizontal axis.
C)   Both quantity and price go on the horizontal axis.
D)   It doesn't matter which axis price and quantity are placed on.E) B) and D)
F) All of the above

Question 4

The graph shown depicts the market for a good. What state is this market in if the price of the good is $5?

Accepted Answer

A)   There is a shortage (excess demand) , signaling that sellers should leave the market.
B)   There is a shortage (excess demand) , signaling that buyers should bid up the price.
C)   There is a surplus (excess supply) , signaling that sellers should drop their price.
D)   There is a surplus (excess supply) , signaling that buyers should bid up the price.E) All of the above
F) B) and D)

Question 5

An increase in the price of ice cream is likely to cause:

Accepted Answer

A)   a movement to the left along the demand curve for ice cream.
B)   an inward shift of the demand curve for ice cream.
C)   an outward shift of the demand curve for ice cream.
D)   a movement to the right along the demand curve for ice cream.E) None of the above
F) B) and D)

Question 6

The demand for Snickers candy bars will decrease if:

Accepted Answer

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

Question 7

Which of the following is not a non-price determinant of demand?

Accepted Answer

A)   Consumer preferences
B)   Income of the consumers
C)   The number of sellers in the market
D)   The prices of related goodsE) B) and C)
F) None of the above

Question 8

2? A)  An increase in the price of buttons B)  An increase in the price of ties C)  An increase in the price of sweatshirts D)  An increase in consumers' incomes" class="answers-bank-image d-inline" rel="preload" > Assume the graph shown represents the market for button-up shirts and was originally in equilibrium where demand (D)  and supply (S)  intersect. What type of shock might cause the demand curve to shift to D2?

Accepted Answer

A)   An increase in the price of buttons
B)   An increase in the price of ties
C)   An increase in the price of sweatshirts
D)   An increase in consumers' incomesE) B) and C)
F) A) and B)

Question 9

What is likely to happen if a producer incorrectly sets the price of its product too high?

Accepted Answer

A)   A shortage (excess demand)  will result, and consumers will bid the price down to equilibrium.
B)   A surplus (excess supply)  will result, and the additional goods in inventory will prompt the producer to lower the price.
C)   A shortage (excess demand)  will result, and consumers will bid the price up to equilibrium.
D)   A surplus (excess supply)  will result, and the additional goods in inventory will prompt the producer to restrict output until sales increase.E) B) and C)
F) A) and B)

Question 10

Suppose irregular weather patterns caused very poor yields for orange farmers this past year. Which factor of supply would this change in the market for orange juice?

Accepted Answer

A)   Technology
B)   Price of input
C)   Number of sellers
D)   Price of related goodE) None of the above
F) A) and B)

Exam 3: Markets

The demand for Snickers candy bars will decrease if:

Correct Answer
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An increase in the price of ice cream is likely to cause:

Correct Answer
verified

Suppose irregular weather patterns caused very poor yields for orange farmers this past year. Which factor of supply would this change in the market for orange juice?

Correct Answer
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Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _ and the supply of ride-on mowers _.

Correct Answer
verified

Which of the following is not a non-price determinant of demand?

Correct Answer
verified

How should you plot a supply curve on a coordinate system diagram?

Correct Answer
verified

Assume the graph shown represents the market for button-up shirts and was originally in equilibrium where demand (D) and supply (S) intersect. What type of shock might cause the demand curve to shift to D₂?

Correct Answer
verified

What is likely to happen if a producer incorrectly sets the price of its product too high?

Correct Answer
verified

The graph shown depicts the market for a good. What state is this market in if the price of the good is $5?

Correct Answer
verified

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S2) intersect. Something changes in the market, and the supply curve shifts to S1. What could have caused this shift?

Correct Answer
verified

Exam 3: Markets

The demand for Snickers candy bars will decrease if:

Correct AnswerverifiedShow Answer

An increase in the price of ice cream is likely to cause:

Correct AnswerverifiedShow Answer

Suppose irregular weather patterns caused very poor yields for orange farmers this past year. Which factor of supply would this change in the market for orange juice?

Correct AnswerverifiedShow Answer

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _____ and the supply of ride-on mowers _____.

Correct AnswerverifiedShow Answer

Which of the following is not a non-price determinant of demand?

Correct AnswerverifiedShow Answer

How should you plot a supply curve on a coordinate system diagram?

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for button-up shirts and was originally in equilibrium where demand (D) and supply (S) intersect. What type of shock might cause the demand curve to shift to D2?

Correct AnswerverifiedShow Answer

What is likely to happen if a producer incorrectly sets the price of its product too high?

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. What state is this market in if the price of the good is $5?

Correct AnswerverifiedShow Answer

The graph shown depicts the market for a good. Assume the market was originally in equilibrium where the demand curve (D) and supply curve (S2) intersect. Something changes in the market, and the supply curve shifts to S1. What could have caused this shift?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Suppose the price of oil has recently increased, making it more expensive to manufacture ride-on lawn mowers. This oil price increase also makes it more expensive to run a ride-on mower. When the price of oil increases, the demand for ride-on mowers _ and the supply of ride-on mowers _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Assume the graph shown represents the market for button-up shirts and was originally in equilibrium where demand (D) and supply (S) intersect. What type of shock might cause the demand curve to shift to D₂?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified