Question 1

Which of the following is not a determinant of demand for laptop computers?

Accepted Answer

A)   Income of buyers of laptop computers
B)   The cost of inputs for producing laptop computers
C)   The prices of related goods such as software and iPads
D)   Expectations about the future price of laptop computersE) C) and D)
F) B) and D)

Question 2

The graph above represents a competitive market for a product where the government has set a price ceiling of 0A. What quantity will buyers be able to buy after the imposition of the price ceiling?

Accepted Answer

A)   0J
B)   0L
C)   JL
D)   KLE) B) and D)
F) None of the above

Question 3

Refer to the above diagram for the milk market. In this market, the equilibrium price is ____ and equilibrium quantity is ___.

Accepted Answer

A)   $1.50 per gallon; 28 million gallons
B)   $1.50 per gallon; 30 million gallons
C)   $28 per gallon; 150 million gallons
D)   $1.00 per gallon; 35 million gallonsE) C) and D)
F) B) and D)

Question 4

When economists speak of "demand" in a particular market, they refer to:

Accepted Answer

A)   The whole demand curve or schedule
B)   One point on the demand curve
C)   One price-quantity combination on the demand schedule
D)   How much of an item buyers want to buy at a given priceE) C) and D)
F) A) and C)

Question 5

1 and D2. The change in equilibrium from E1 to E2 is most likely to result from: A)  A decrease in consumer incomes B)  An increase in the cost of cattle feed C)  An increase in the price of pork D)  A decrease in the tax on beef products" class="answers-bank-image d-inline" rel="preload" > Refer to the above graph, which shows the market for beef where demand shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from:

Accepted Answer

A)   A decrease in consumer incomes
B)   An increase in the cost of cattle feed
C)   An increase in the price of pork
D)   A decrease in the tax on beef productsE) C) and D)
F) B) and D)

Question 6

1 to D2 would cause price to rise from P1 to P2? A)  Because after the shift in the demand, there would be a surplus at price P2 B)  Because after the shift in the demand, there would be a shortage at price P2 C)  Because after the shift in the demand, there would be a shortage at price P1 D)  Because after the shift in the demand, there would be a surplus at price P1" class="answers-bank-image d-inline" rel="preload" > Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2?

Accepted Answer

A)   Because after the shift in the demand, there would be a surplus at price P2
B)   Because after the shift in the demand, there would be a shortage at price P2
C)   Because after the shift in the demand, there would be a shortage at price P1
D)   Because after the shift in the demand, there would be a surplus at price P1E) None of the above
F) All of the above

Question 7

Consider the supply and demand curves depicted in the diagram above. If the government imposed a price ceiling of $15, then sellers will be willing to sell ___, and a black market could develop where the price would be:

Accepted Answer

A)   24 units; below $15
B)   36 units; above $15
C)   24 units; above $15
D)   36 units; below $15E) A) and B)
F) A) and C)

Question 8

When tickets are "scalped," then in this market transaction:

Accepted Answer

A)   The buyer benefits, but the seller does not
B)   The seller benefits, but the buyer does not
C)   Both the buyer and seller benefit
D)   Neither the buyer nor seller benefit because it is illegalE) B) and C)
F) A) and D)

Question 9

In the foreign exchange market, if Americans significantly increase their investments in securities in British financial markets, one effect is that the dollar will tend to depreciate against the pound.

Accepted Answer

A) True 
 B)False

Question 10

The presence of ticket scalpers in popular events like concerts will hurt consumers who buy from the scalpers.

Accepted Answer

A) True 
 B)False

Question 11

A and B are substitute goods, but A and C are complementary goods. If the costs of producing A decreases, then the demand for:

Accepted Answer

A)   Both B and C will decrease
B)   Both B and C will increase
C)   B will increase and the demand for C will decrease
D)   B will decrease and the demand for C will increaseE) B) and C)
F) A) and B) D

Question 12

The supply curve in a market is vertical instead of upsloping whenever:

Accepted Answer

A)   All buyers are willing to pay only one price for the item
B)   Sellers have no flexibility in setting the price of the item
C)   Buyers want to buy a fixed quantity regardless of price
D)   Sellers have a fixed quantity of the item for saleE) None of the above
F) A) and B)

Question 13

When economists describe "a market," they mean:

Accepted Answer

A)   A place where stocks and bonds are traded
B)   A communication network that allow individuals to keep in touch with each other
C)   A hypothetical place where the production of goods and services takes place
D)   A system that allows buyers and sellers to interact with one anotherE) A) and D)
F) B) and D)

Question 14

A price ceiling imposed by the government is intended to benefit the sellers of the product.

Accepted Answer

A) True 
 B)False

Question 15

An increase in the demand for MP3 music indicates that more are:

Accepted Answer

A)   Purchased even if prices of MP3 music stayed the same
B)   Demanded because MP3 music prices decreased
C)   Demanded because sellers are selling more MP3 music
D)   Purchased because sellers are putting MP3 music on saleE) B) and C)
F) C) and D)

Question 16

When economists say that the demand for a product has decreased, they mean that:

Accepted Answer

A)   The demand curve has shifted to the right
B)   The product has become particularly scarce for some reason
C)   The product has become more expensive and thus consumers are buying less of it
D)   Consumers are now willing and able to buy less of this product at each possible priceE) B) and D)
F) B) and C) D

Question 17

If we observe that the price of gold is rising and the quantity of gold traded in the market is falling, then this must be the result of an increase in the supply of gold.

Accepted Answer

A) True 
 B)False

Question 18

An increase in both supply and demand will lead to an increase in the equilibrium price and an indeterminate change in the equilibrium quantity.

Accepted Answer

A) True 
 B)False

Question 19

A headline reads "Perfect Weather Brings Record-High Coffee Harvest." This situation would lead to a(n) :

Accepted Answer

A)   Increase in the price and in the quantity purchased of coffee
B)   Decrease in the price and in the quantity purchased of coffee
C)   Increase in the price and a decrease in the quantity purchased of coffee
D)   Decrease in the price and an increase in quantity purchased of coffeeE) B) and C)
F) None of the above D

Question 20

Refer to the above diagram for the milk market. If the price were $2 per gallon, then there would be a:

Accepted Answer

A)   Shortage of 20 million gallons
B)   Shortage of 10 million gallons
C)   Surplus of 10 million gallons
D)   Surplus of 30 million gallonsE) A) and B)
F) C) and D)

Exam 3: Demand, Supply, and Market Equilibrium

Which of the following is not a determinant of demand for laptop computers?

Correct AnswerverifiedShow Answer

The graph above represents a competitive market for a product where the government has set a price ceiling of 0A. What quantity will buyers be able to buy after the imposition of the price ceiling?

Correct AnswerverifiedShow Answer

Refer to the above diagram for the milk market. In this market, the equilibrium price is ____ and equilibrium quantity is ___.

Correct AnswerverifiedShow Answer

When economists speak of "demand" in a particular market, they refer to:

Correct AnswerverifiedShow Answer

Refer to the above graph, which shows the market for beef where demand shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from:

Correct AnswerverifiedShow Answer

Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2?

Correct AnswerverifiedShow Answer

Consider the supply and demand curves depicted in the diagram above. If the government imposed a price ceiling of $15, then sellers will be willing to sell ___, and a black market could develop where the price would be:

Correct AnswerverifiedShow Answer

When tickets are "scalped," then in this market transaction:

Correct AnswerverifiedShow Answer

In the foreign exchange market, if Americans significantly increase their investments in securities in British financial markets, one effect is that the dollar will tend to depreciate against the pound.

Correct AnswerverifiedShow Answer

The presence of ticket scalpers in popular events like concerts will hurt consumers who buy from the scalpers.

Correct AnswerverifiedShow Answer

A and B are substitute goods, but A and C are complementary goods. If the costs of producing A decreases, then the demand for:

Correct AnswerverifiedD

The supply curve in a market is vertical instead of upsloping whenever:

Correct AnswerverifiedShow Answer

When economists describe "a market," they mean:

Correct AnswerverifiedShow Answer

A price ceiling imposed by the government is intended to benefit the sellers of the product.

Correct AnswerverifiedShow Answer

An increase in the demand for MP3 music indicates that more are:

Correct AnswerverifiedShow Answer

When economists say that the demand for a product has decreased, they mean that:

Correct AnswerverifiedD

If we observe that the price of gold is rising and the quantity of gold traded in the market is falling, then this must be the result of an increase in the supply of gold.

Correct AnswerverifiedShow Answer

An increase in both supply and demand will lead to an increase in the equilibrium price and an indeterminate change in the equilibrium quantity.

Correct AnswerverifiedShow Answer

A headline reads "Perfect Weather Brings Record-High Coffee Harvest." This situation would lead to a(n) :

Correct AnswerverifiedD

Refer to the above diagram for the milk market. If the price were $2 per gallon, then there would be a:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Refer to the above diagram for the milk market. In this market, the equilibrium price is __ and equilibrium quantity is _.

Correct Answer
verified

Correct Answer
verified

Refer to the above graph, which shows the market for beef where demand shifted from D₁ and D₂. The change in equilibrium from E₁ to E₂ is most likely to result from:

Correct Answer
verified

Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D₁ to D₂ would cause price to rise from P₁ to P₂?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified