Question 1

If the price of mozzarella cheese (an ingredient in pizza) declines,there will be:

Accepted Answer

A)   a decrease in the supply of pizza.
B)   an increase in the supply of pizza.
C)   a decrease in the quantity of pizza supplied.
D)   no change in the supply of pizza.E) A) and D)
F) B) and D)

Question 2

Which factor is MOST likely to shift the supply of milk to the right?

Accepted Answer

A)   a tax on each litre of milk produced
B)   an increase in household income,milk being a normal good
C)   a decrease in the price of feed given to dairy cows
D)   the bankruptcy of many small dairy farmsE) B) and C)
F) All of the above

Question 3

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

Accepted Answer

A)   an increase in the quantity of cigarettes demanded.
B)   a decrease in the demand for cigarettes.
C)   no change in smoking habits.
D)   an increase in the price of cigarettes.E) All of the above
F) C) and D)

Question 4

The _____ apples will decrease when apple prices rise.

Accepted Answer

A)   demand for
B)   quantity demanded of
C)   supply of
D)   equilibrium ofE) None of the above
F) All of the above

Question 5

The typical supply curve illustrates that:

Accepted Answer

A)   other things equal,the quantity supplied for a good is inversely related to the price of a good.
B)   other things equal,the supply of the good creates its own demand for the good.
C)   other things equal,the quantity supplied for a good is positively related to the price of a good.
D)   price and quantity supplied are unrelated.E) C) and D)
F) A) and B)

Question 6

Which factor would NOT cause the supply curve to shift?

Accepted Answer

A)   a change in the technology of production
B)   a change in factor costs
C)   a change in the price of the good
D)   a change in suppliers' expectations of future pricesE) A) and D)
F) All of the above

Question 7

In the local market for coffee,if Joyce's Java and Everyday Joe's coffee shops go out of business,the _____ curve shifts to the _____.

Accepted Answer

A)   supply;right
B)   demand;left
C)   supply;left
D)   demand;rightE) A) and C)
F) C) and D)

Question 8

Consider the market for corn.What happens if there is an increased demand for corn tortillas and,at the same time,a new corn seed becomes available that dramatically increases the yield per hectare?

Accepted Answer

A)   Price and quantity decrease.
B)   The change in price is indeterminate;quantity decreases.
C)   The change in price is indeterminate;quantity increases.
D)   Price increases;the change in quantity is indeterminate.E) A) and C)
F) A) and D)

Question 9

Use the following to answer questions:
Figure: The Market for Candy 1. B)  P2. C)  P3. D)  There are no surpluses in this market." class="answers-bank-image d-inline" rel="preload" >
-(Figure: The Market for Candy) Use Figure: The Market for Candy.A surplus of the good will exist at a price of:

Accepted Answer

A)   P1.
B)   P2.
C)   P3.
D)   There are no surpluses in this market.E) All of the above
F) B) and D)

Question 10

Market equilibrium occurs when:

Accepted Answer

A)   there is no incentive for prices to change in the market.
B)   the quantity demanded equals the quantity supplied.
C)   the market clears.
D)   there is no incentive for prices to change in the market,the quantity demanded equals the quantity supplied,and the market clears.E) B) and C)
F) A) and D)

Question 11

If Benjamin considers sushi to be a normal good and if his income increases by 20%,his purchases of sushi will:

Accepted Answer

A)   decrease by 20%.
B)   increase.
C)   decrease.
D)   not change.E) All of the above
F) B) and C)

Question 12

Suppose that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Accepted Answer

A)   The price will increase,but quantity may increase,decrease,or stay the same.
B)   The price will decrease,but quantity may increase,decrease,or stay the same.
C)   The price will decrease and quantity will decrease.
D)   The price will increase and quantity will increase.E) B) and D)
F) B) and C)

Question 13

An increase in _____ will have an ambiguous (uncertain) effect on price.

Accepted Answer

A)   tastes and preferences
B)   the price of a substitute
C)   the price of a complement
D)   incomeE) A) and B)
F) C) and D)

Question 14

If goods A and Z are complements,an increase in the price of good Z will:

Accepted Answer

A)   increase the demand for good A.
B)   decrease the demand for good A.
C)   decrease the demand for good Z.
D)   decrease the demand for both good A and good Z.E) C) and D)
F) A) and B)

Question 15

A new wonder diet that results in a dramatic weight loss sweeps through Canada.The key to the diet is to eat large amounts of red meat (beef) but no poultry or carbohydrate-rich foods.As hundreds of thousands of Canadians switch to the new diet,we can expect a(n) _____ in the _____ poultry,leading to a shift to the _____ in the _____ curve for poultry and _____ poultry prices.

Accepted Answer

A)   decrease;supply of;left;supply;higher
B)   increase;supply of;right;supply;higher
C)   decrease;demand for;right;demand;lower
D)   decrease;demand for;left;demand;lowerE) All of the above
F) A) and C)

Question 16

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Accepted Answer

A)   demand for;right
B)   demand for;left
C)   supply of;right
D)   supply of;leftE) A) and B)
F) All of the above

Question 17

According to the law of demand,if the price of steak increases in Alberta,the demand for steak will decrease in Alberta.

Accepted Answer

A) True 
 B)False

Question 18

If people demand more of product A when the price of B falls,then A and B are:

Accepted Answer

A)   not related.
B)   substitutes.
C)   complements.
D)   inferior goods.E) B) and C)
F) C) and D)

Question 19

The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Accepted Answer

A)   a bountiful harvest
B)   increasing production of corn-based ethanol
C)   decreasing household incomes,with corn being a normal good
D)   a decrease in the price of wheat,a substitute in consumptionE) A) and C)
F) B) and C)

Question 20

Use the following to answer questions:
Figure: Shifts in Demand and Supply 
-(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply.The figure shows how supply and demand might shift in response to specific events.Suppose scientists discover that eating a tomato a day prevents ageing.Which panel BEST describes how this will affect the market for tomatoes?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and B)
F) A) and C)

Exam 3: Supply and Demand

Suppose that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Correct Answer
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The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Correct Answer
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Correct Answer
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If Benjamin considers sushi to be a normal good and if his income increases by 20%,his purchases of sushi will:

Correct Answer
verified

The typical supply curve illustrates that:

Correct Answer
verified

If people demand more of product A when the price of B falls,then A and B are:

Correct Answer
verified

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _ Blu-ray players shifting to the _.

Correct Answer
verified

An increase in _____ will have an ambiguous (uncertain) effect on price.

Correct Answer
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The _____ apples will decrease when apple prices rise.

Correct Answer
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An announcement that smoking will harm your ability to think clearly will MOST likely result in:

Correct Answer
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Correct Answer
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In the local market for coffee,if Joyce's Java and Everyday Joe's coffee shops go out of business,the _ curve shifts to the _.

Correct Answer
verified

Which factor would NOT cause the supply curve to shift?

Correct Answer
verified

Use the following to answer questions: Figure: The Market for Candy -(Figure: The Market for Candy) Use Figure: The Market for Candy.A surplus of the good will exist at a price of:

Correct Answer
verified

If goods A and Z are complements,an increase in the price of good Z will:

Correct Answer
verified

Which factor is MOST likely to shift the supply of milk to the right?

Correct Answer
verified

Market equilibrium occurs when:

Correct Answer
verified

If the price of mozzarella cheese (an ingredient in pizza) declines,there will be:

Correct Answer
verified

According to the law of demand,if the price of steak increases in Alberta,the demand for steak will decrease in Alberta.

Correct Answer
verified

Consider the market for corn.What happens if there is an increased demand for corn tortillas and,at the same time,a new corn seed becomes available that dramatically increases the yield per hectare?

Correct Answer
verified

Exam 3: Supply and Demand

Suppose that supply increases and demand decreases.What is the MOST likely effect on price and quantity?

Correct AnswerverifiedShow Answer

The market for corn is in equilibrium.Which factor is most likely to INCREASE the equilibrium price of corn?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If Benjamin considers sushi to be a normal good and if his income increases by 20%,his purchases of sushi will:

Correct AnswerverifiedShow Answer

The typical supply curve illustrates that:

Correct AnswerverifiedShow Answer

If people demand more of product A when the price of B falls,then A and B are:

Correct AnswerverifiedShow Answer

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Correct AnswerverifiedShow Answer

An increase in _____ will have an ambiguous (uncertain) effect on price.

Correct AnswerverifiedShow Answer

The _____ apples will decrease when apple prices rise.

Correct AnswerverifiedShow Answer

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the local market for coffee,if Joyce's Java and Everyday Joe's coffee shops go out of business,the _____ curve shifts to the _____.

Correct AnswerverifiedShow Answer

Which factor would NOT cause the supply curve to shift?

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: The Market for Candy -(Figure: The Market for Candy) Use Figure: The Market for Candy.A surplus of the good will exist at a price of:

Correct AnswerverifiedShow Answer

If goods A and Z are complements,an increase in the price of good Z will:

Correct AnswerverifiedShow Answer

Which factor is MOST likely to shift the supply of milk to the right?

Correct AnswerverifiedShow Answer

Market equilibrium occurs when:

Correct AnswerverifiedShow Answer

If the price of mozzarella cheese (an ingredient in pizza) declines,there will be:

Correct AnswerverifiedShow Answer

According to the law of demand,if the price of steak increases in Alberta,the demand for steak will decrease in Alberta.

Correct AnswerverifiedShow Answer

Consider the market for corn.What happens if there is an increased demand for corn tortillas and,at the same time,a new corn seed becomes available that dramatically increases the yield per hectare?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases.This set of observations can be the result of the _ Blu-ray players shifting to the _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the local market for coffee,if Joyce's Java and Everyday Joe's coffee shops go out of business,the _ curve shifts to the _.

Correct Answer
verified

Correct Answer
verified

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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