Question 1

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In the figure above, a price of $35 per dozen roses results in

Accepted Answer

A price of $35 per dozen roses is likely above the equilibrium price, leading to a surplus where the quantity supplied exceeds the quantity demanded.

Question 2

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In the above figure, the shift in the supply curve from S to S1 reflects

Accepted Answer

The answer of 
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In the above figure, the shift in...

Question 3

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in_{--------------------} supply. The equilibrium price , and the equilibrium quantity_{--------------------} .

Accepted Answer

When both demand and supply decrease, the equilibrium quantity will definitely decrease. However, the change in equilibrium price is uncertain as it depends on the relative magnitudes of the shifts in demand and supply.

Question 4

Market equilibrium
i. can never occur because there are always people who want a good but cannot afford it.
ii. occurs at the intersection of the supply and demand curves. 
iii. is the point where the price equals the quantity.

Accepted Answer

Market equilibrium occurs at the intersection of the supply and demand curves, where the quantity supplied equals the quantity demanded.

Question 5

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

Accepted Answer

When the price of soda increases due to a shortage, the demand for its complement, hot dogs, decreases because consumers are less likely to buy hot dogs if they are buying less soda.

Question 6

A rise in the price of a substitute in production for a good leads to

Accepted Answer

When the price of a substitute in production rises, producers may switch to producing more of the substitute, leading to a decrease in the supply of the original good.

Question 7

The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

Accepted Answer

The answer of 
The above figure illustrates the market for...

Question 8

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

Accepted Answer

An improvement in productivity typically leads to an increase in supply, causing the supply curve to shift rightward.

Question 9

Which of the following results in an increase in the supply of a good or service?

Accepted Answer

An increase in foreign imports of the good or service increases the overall supply available in the market.

Question 10

The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then

Accepted Answer

The answer of 
The above figure shows the market for...

Question 11

Advances in productivity increase supply because they might

Accepted Answer

Advances in productivity typically decrease the cost of production, allowing firms to supply more goods at the same price.

Question 12

Consider the market for cellular phones. Which of the following shifts the demand curve leftward?

Accepted Answer

Studies showing that using cellular phones can cause brain cancer would likely decrease consumer desire to purchase them, thus shifting the demand curve leftward.

Question 13

A demand schedule shows

Accepted Answer

A demand schedule shows the quantities that people plan to buy at each different price when all other influences on buying plans remain the same.

Question 14

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

Accepted Answer

During the summer months, there is typically an increase in driving due to vacations and travel, leading to higher demand for gasoline, which can drive up prices.

Question 15

The market demand curve for mangos is

Accepted Answer

The market demand curve is the horizontal sum of all individual demand curves, as it represents the total quantity demanded by all consumers at each price level.

Question 16

An increase in the number of fast-food restaurants

Accepted Answer

An increase in the number of fast-food restaurants increases the supply of fast-food meals because more restaurants mean more meals are available in the market.

Question 17

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

Accepted Answer

The answer of Consider the market for peanut butter. If...

Question 18

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The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

Accepted Answer

The answer of 
-
The above figure shows the market for...

Question 19

The price of cotton clothing falls. As a result,

Accepted Answer

When the price of a good falls, the quantity demanded typically increases, according to the law of demand. Demand itself does not change; rather, it is the quantity demanded that changes.

Question 20

What is the "quantity demanded"?

Accepted Answer

Quantity demanded refers to the specific amount of a good that consumers are willing and able to purchase at a particular price during a given time period.

Quiz 4: Demand and Supply

- In the figure above, a price of $35 per dozen roses results in

- In the above figure, the shift in the supply curve from S to S1 reflects

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in_{--------------------} supply. The equilibrium price , and the equilibrium quantity_{--------------------} .

Market equilibrium i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity.

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

A rise in the price of a substitute in production for a good leads to

The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

Which of the following results in an increase in the supply of a good or service?

The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then

Advances in productivity increase supply because they might

Consider the market for cellular phones. Which of the following shifts the demand curve leftward?

A demand schedule shows

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

The market demand curve for mangos is

An increase in the number of fast-food restaurants

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter) , the

- The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

The price of cotton clothing falls. As a result,

What is the "quantity demanded"?

Quiz 4: Demand and Supply

- In the figure above, a price of $35 per dozen roses results in

- In the above figure, the shift in the supply curve from S to S1 reflects

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in-------------------- supply. The equilibrium price , and the equilibrium quantity-------------------- .

Market equilibrium i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity.

Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the

A rise in the price of a substitute in production for a good leads to

The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

Which of the following results in an increase in the supply of a good or service?

The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then

Advances in productivity increase supply because they might

Consider the market for cellular phones. Which of the following shifts the demand curve leftward?

A demand schedule shows

Which of the following is the best explanation for why the price of gasoline increases during the summer months?

The market demand curve for mangos is

An increase in the number of fast-food restaurants

Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter) , the

- The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?

The price of cotton clothing falls. As a result,

What is the "quantity demanded"?

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in_{--------------------} supply. The equilibrium price , and the equilibrium quantity_{--------------------} .