Question 1

A price taker is a buyer or seller who:

Accepted Answer

A)   cannot affect the market price.
B)   takes the market price and chooses to increase or decrease it.
C)   takes prices in the area and averages them together to set the price for his/her good.
D)   can affect the market price, but only when collaborating with other buyers or sellers.E) All of the above
F) B) and C)

Question 2

This table shows individual demand schedules for a market.  According to the table shown,what can be said of Betty and Barney's demand for this good?

Accepted Answer

A)   Betty's and Barney's demand both follow the law of demand.
B)   Barney's demand follows the law of demand, but Betty's does not.
C)   Betty's demand follows the law of demand, but Barney's does not.
D)   Neither Betty's nor Barney's demand follows the law of demand.E) B) and D)
F) A) and B)

Question 3

The demand schedule assumes that factors other than price:

Accepted Answer

A)   remain the same.
B)   must also be in the table.
C)   remain separate in the table.
D)   change as price changes.E) All of the above
F) C) and D)

Question 4

The supply curve represents the relationship between:

Accepted Answer

A)   price and quantity supplied with everything else held constant.
B)   income and quantity supplied with everything else held constant.
C)   consumer preferences and quantity supplied with everything else held constant.
D)   income and price supplied with everything else held constant.E) B) and C)
F) A) and B)

Question 5

The city of Burlington gets very hot each summer and very cold each winter.We would expect the demand for lemonade to:

Accepted Answer

A)   increase constantly.
B)   decrease each summer and increase each winter.
C)   increase each summer and decrease each winter.
D)   decrease constantly.E) C) and D)
F) B) and D)

Question 6

Suppose there is a tornado that levels a city.As rebuilding begins,how might you analyze this effect in the market for lumber?

Accepted Answer

A)   The demand for lumber would increase, increasing both the equilibrium price and quantity.
B)   The supply of lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
C)   The demand for lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
D)   The supply of lumber would decrease, increasing the equilibrium price and decreasing the equilibrium quantity.E) All of the above
F) None of the above

Question 7

A change in a nonprice factor of supply will cause:

Accepted Answer

A)   a movement along the supply curve.
B)   a shift of the supply curve.
C)   the supply curve to rotate inward.
D)   the supply curve to rotate outward.E) C) and D)
F) B) and C)

Question 8

Assume the graph shown represents the market for pizzas sold in an hour.Which of the following could be a reason S2 to S1?

Accepted Answer

A)   The price of pizza sauce has increased.
B)   The price of pizza went down.
C)   The price of labor for pizza shops went down.
D)   People just don't have preferences for pizza anymore.E) A) and B)
F) A) and C)

Question 9

A supply curve is a:

Accepted Answer

A)   graph that visually displays the supply schedule.
B)   graph depicting various price-quantity combinations of multiple goods.
C)   graph that shows the quantities of a particular good or service that producers will sell at one price.
D)   table that displays various price-quantity combinations of a good or service.E) None of the above
F) B) and C)

Question 10

The recent rise in the price of gasoline has caused:

Accepted Answer

A)   automakers to produce more gas-efficient cars.
B)   automakers to drop the price of gas-efficient vehicles.
C)   automakers to spend more money marketing bigger vehicles.
D)   would not affect an automaker's supply decisions.E) B) and C)
F) A) and C)

Question 11

An article about how coffee boosts critical thinking is likely to affect which determinant of demand?

Accepted Answer

A)   Incomes
B)   Preferences
C)   Number of sellers in the market
D)   PriceE) A) and D)
F) B) and C)

Question 12

There has been a decrease in the demand for socks.This change can be shown graphically as a:

Accepted Answer

A)   shift in the demand curve to the right.
B)   shift in the demand curve to the left.
C)   movement along the demand curve to the right.
D)   movement along the demand curve to the left.E) C) and D)
F) A) and C)

Question 13

For almost all goods,the:

Accepted Answer

A)   lower the price goes, the higher the quantity supplied.
B)   higher the price goes, the more luxurious it is.
C)   lower the price goes, the more luxurious it is.
D)   higher the price goes, the higher the quantity supplied.E) B) and D)
F) C) and D)

Question 14

John just won the Megamillions jackpot.We can assume that his demand for all:

Accepted Answer

A)   normal goods will increase.
B)   inferior goods will increase.
C)   normal goods will decrease.
D)   normal goods will stay the same.E) A) and D)
F) All of the above

Question 15

Consider a market that is in equilibrium.If it experiences both an increase in demand and an increase in supply,what can be said of the new equilibrium? The equilibrium:

Accepted Answer

A)   price and quantity will both rise.
B)   quantity will definitely rise, while the equilibrium price cannot be predicted.
C)   price will definitely rise, while the equilibrium quantity cannot be predicted.
D)   price and quantity will both fall.E) B) and D)
F) None of the above

Question 16

A decrease in the price of spaghetti is likely to cause:

Accepted Answer

A)   a movement to the right along the demand curve for spaghetti.
B)   an inward shift of the demand curve for spaghetti.
C)   an outward shift of the demand curve for spaghetti.
D)   a movement to the left along the demand curve for spaghetti.E) All of the above
F) A) and B)

Question 17

A nonprice determinant of supply refers to something that:

Accepted Answer

A)   affects the price other than supply.
B)   affects supply other than the price.
C)   determines how large a role prices play in the supply decision.
D)   determines how prices are affected by the seller's income.E) A) and B)
F) None of the above

Question 18

Consider the market for ride-on lawn mowers and the recent increases in the price of oil.The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers.An increase in the price of oil also makes it more expensive to run a ride-on mower.What is likely to happen to equilibrium price and quantity of lawn mowers as a result in the changing price of oil? Supply and demand will both:

Accepted Answer

A)   increase, increasing equilibrium quantity and having an indeterminate effect on price.
B)   decrease, decreasing equilibrium quantity and having an indeterminate effect on price.
C)   increase, increasing equilibrium price and having an indeterminate effect on quantity.
D)   decrease, increasing equilibrium price and having an indeterminate effect on quantity.E) A) and C)
F) B) and D)

Question 19

Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen? The supply curve will shift to the:

Accepted Answer

A)   left and the equilibrium price and quantity will rise.
B)   left and the equilibrium price will increase and the equilibrium quantity will decrease.
C)   left and the equilibrium price and quantity will fall.
D)   right and the equilibrium price and quantity will fall.E) All of the above
F) None of the above

Question 20

The city of Burlington is a very popular town for tourists to visit in the summer.We would expect the:

Accepted Answer

A)   demand for normal goods to increase each summer.
B)   demand for normal goods to decrease each summer.
C)   prices of all normal goods to decrease each summer.
D)   demand curve for normal goods to shift to the left.E) C) and D)
F) All of the above

Exam 3: Markets

The demand schedule assumes that factors other than price:

Correct Answer
verified

Correct Answer
verified

Suppose there is a tornado that levels a city.As rebuilding begins,how might you analyze this effect in the market for lumber?

Correct Answer
verified

The recent rise in the price of gasoline has caused:

Correct Answer
verified

John just won the Megamillions jackpot.We can assume that his demand for all:

Correct Answer
verified

The city of Burlington gets very hot each summer and very cold each winter.We would expect the demand for lemonade to:

Correct Answer
verified

A price taker is a buyer or seller who:

Correct Answer
verified

A decrease in the price of spaghetti is likely to cause:

Correct Answer
verified

A change in a nonprice factor of supply will cause:

Correct Answer
verified

Assume the graph shown represents the market for pizzas sold in an hour.Which of the following could be a reason S2 to S1?

Correct Answer
verified

An article about how coffee boosts critical thinking is likely to affect which determinant of demand?

Correct Answer
verified

Consider a market that is in equilibrium.If it experiences both an increase in demand and an increase in supply,what can be said of the new equilibrium? The equilibrium:

Correct Answer
verified

Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen? The supply curve will shift to the:

Correct Answer
verified

This table shows individual demand schedules for a market. According to the table shown,what can be said of Betty and Barney's demand for this good?

Correct Answer
verified

A supply curve is a:

Correct Answer
verified

The supply curve represents the relationship between:

Correct Answer
verified

A nonprice determinant of supply refers to something that:

Correct Answer
verified

There has been a decrease in the demand for socks.This change can be shown graphically as a:

Correct Answer
verified

For almost all goods,the:

Correct Answer
verified

The city of Burlington is a very popular town for tourists to visit in the summer.We would expect the:

Correct Answer
verified

Exam 3: Markets

The demand schedule assumes that factors other than price:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose there is a tornado that levels a city.As rebuilding begins,how might you analyze this effect in the market for lumber?

Correct AnswerverifiedShow Answer

The recent rise in the price of gasoline has caused:

Correct AnswerverifiedShow Answer

John just won the Megamillions jackpot.We can assume that his demand for all:

Correct AnswerverifiedShow Answer

The city of Burlington gets very hot each summer and very cold each winter.We would expect the demand for lemonade to:

Correct AnswerverifiedShow Answer

A price taker is a buyer or seller who:

Correct AnswerverifiedShow Answer

A decrease in the price of spaghetti is likely to cause:

Correct AnswerverifiedShow Answer

A change in a nonprice factor of supply will cause:

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for pizzas sold in an hour.Which of the following could be a reason S2 to S1?

Correct AnswerverifiedShow Answer

An article about how coffee boosts critical thinking is likely to affect which determinant of demand?

Correct AnswerverifiedShow Answer

Consider a market that is in equilibrium.If it experiences both an increase in demand and an increase in supply,what can be said of the new equilibrium? The equilibrium:

Correct AnswerverifiedShow Answer

Consider a market that is in equilibrium.If it experiences a decrease in supply,what will happen? The supply curve will shift to the:

Correct AnswerverifiedShow Answer

This table shows individual demand schedules for a market. According to the table shown,what can be said of Betty and Barney's demand for this good?

Correct AnswerverifiedShow Answer

A supply curve is a:

Correct AnswerverifiedShow Answer

The supply curve represents the relationship between:

Correct AnswerverifiedShow Answer

A nonprice determinant of supply refers to something that:

Correct AnswerverifiedShow Answer

There has been a decrease in the demand for socks.This change can be shown graphically as a:

Correct AnswerverifiedShow Answer

For almost all goods,the:

Correct AnswerverifiedShow Answer

The city of Burlington is a very popular town for tourists to visit in the summer.We would expect the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified