Question 1

Demand for Shell gasoline will increase if the price of:

Accepted Answer

A)   Motor vehicles increases.
B)   BP gasoline increases.
C)   BP gasoline decreases.
D)   Shell gasoline decreases.E) None of the above
F) A) and D)

Question 2

The baby boomer generation is just starting to retire, and waiting lists to get into nursing homes are on the rise. We could reasonably expect the demand for geriatric care to:

Accepted Answer

A)   increase due to the number of buyers increasing.
B)   decrease due to the number of buyers increasing.
C)   increase due to expectations of future prices.
D)   decrease due to expectations of future prices.E) B) and C)
F) None of the above

Question 3

According to the graph shown, the equilibrium price is:

Accepted Answer

A)   $5
B)   $10
C)   $15
D)   $20E) C) and D)
F) All of the above

Question 4

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) B) and C)
F) None of the above

Question 5

Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?

Accepted Answer

A)   Equilibrium price decreased by $5.
B)   Equilibrium quantity increased by 20.
C)   Equilibrium price increased by $5.
D)   Equilibrium quantity increased by 30.E) A) and D)
F) B) and D)

Question 6

When quantity supplied equals quantity demanded:

Accepted Answer

A)   equilibrium is reached.
B)   the market forces push the economy to produce more.
C)   the market forces push the economy to produce less.
D)   the market forces cease to function.E) A) and C)
F) C) and D)

Question 7

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) A) and C)
F) C) and D)

Question 8

Irregular weather patterns caused very poor yields for orange farmers. 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 D)

Question 9

This table shows individual demand schedules for a market.  According to the table shown, at a price of $1.00, how much of the good will be demanded by Betty?

Accepted Answer

A)   16
B)   11
C)   46
D)   30E) B) and D)
F) B) and C)

Question 10

2. Which of the following is true? A)  Equilibrium price increased by $5. B)  Equilibrium quantity increased by 20. C)  Equilibrium price increased by $15. D)  Equilibrium quantity increased by 30." class="answers-bank-image d-inline" rel="preload" > Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?

Accepted Answer

A)   Equilibrium price increased by $5.
B)   Equilibrium quantity increased by 20.
C)   Equilibrium price increased by $15.
D)   Equilibrium quantity increased by 30.E) A) and B)
F) A) and C)

Question 11

Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. Which of the following factors of demand caused the change in Darren's behavior?

Accepted Answer

A)   Income
B)   Price
C)   Preferences
D)   Number of buyersE) A) and B)
F) B) and C)

Question 12

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) A) and B)
F) B) and D)

Question 13

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) All of the above
F) A) and B)

Question 14

An expectation of increased prices of a good in the future is likely to:

Accepted Answer

A)   increase current demand.
B)   decrease current demand.
C)   have no impact on current demand.
D)   only affect seller's decisions.E) A) and B)
F) A) and C)

Question 15

This table shows individual demand schedules for a market.  According to the table shown, if the price were $0.50, what will total demand by Betty and Barney be?

Accepted Answer

A)   18
B)   36
C)   75
D)   47E) B) and C)
F) A) and B)

Question 16

This table shows individual demand schedules for a market.  According to the table shown, what will the equilibrium price be in this market?

Accepted Answer

A)   $0.50
B)   $1.50
C)   $2.00
D)   Cannot be determined without more information.E) None of the above
F) A) and B)

Question 17

According to the graph shown, at a price of $5, there is a:

Accepted Answer

A)   shortage of 10.
B)   shortage of 20.
C)   shortage of 30.
D)   surplus of 20.E) None of the above
F) A) and B)

Question 18

Equilibrium takes place where:

Accepted Answer

A)   supply and demand intersect.
B)   supply is highest.
C)   demand is highest.
D)   prices are maximized.E) All of the above
F) A) and D)

Question 19

An increase in the price of Heinz ketchup is likely to cause:

Accepted Answer

A)   an increase in the demand for Hunt's ketchup, due to a change in preferences.
B)   an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
C)   a decrease in the demand for Hunt's ketchup, due to a change in preferences.
D)   an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.E) B) and C)
F) C) and D)

Question 20

An economy where private individuals guided by the invisible hand make decisions is known as a:

Accepted Answer

A)   market economy.
B)   centrally planned economy.
C)   socialist economy.
D)   barter economy.E) A) and D)
F) B) and C)

Exam 3: Markets

According to the graph shown, the equilibrium price is:

Correct AnswerverifiedShow Answer

A price taker is a buyer or seller who:

Correct AnswerverifiedShow Answer

When quantity supplied equals quantity demanded:

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?

Correct AnswerverifiedShow Answer

An economy where private individuals guided by the invisible hand make decisions is known as a:

Correct AnswerverifiedShow Answer

The baby boomer generation is just starting to retire, and waiting lists to get into nursing homes are on the rise. We could reasonably expect the demand for geriatric care to:

Correct AnswerverifiedShow Answer

Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?

Correct AnswerverifiedShow Answer

This table shows individual demand schedules for a market. According to the table shown, at a price of $1.00, how much of the good will be demanded by Betty?

Correct AnswerverifiedShow Answer

This table shows individual demand schedules for a market. According to the table shown, if the price were $0.50, what will total demand by Betty and Barney be?

Correct AnswerverifiedShow Answer

Equilibrium takes place where:

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Demand for Shell gasoline will increase if the price of:

Correct AnswerverifiedShow Answer

Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. Which of the following factors of demand caused the change in Darren's behavior?

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

According to the graph shown, at a price of $5, there is a:

Correct AnswerverifiedShow Answer

This table shows individual demand schedules for a market. According to the table shown, what will the equilibrium price be in this market?

Correct AnswerverifiedShow Answer

An increase in the price of Heinz ketchup is likely to cause:

Correct AnswerverifiedShow Answer

An expectation of increased prices of a good in the future is likely to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D₂. Which of the following is true?

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