Question 1

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

When the number of buyers of pounds decreases and the number of sellers increases, it leads to a surplus of pounds in the market. This surplus puts downward pressure on the price, causing the equilibrium price of a pound to fall.

Question 2

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Accepted Answer

During Thanksgiving, the demand for turkeys increases, leading to an upward movement along the supply curve as suppliers respond to higher prices by supplying more turkeys.

Question 3

Consider the market for bread.If the price of wheat rises,then the

Accepted Answer

An increase in the price of wheat, a key input in bread production, will increase the cost of producing bread. This will cause a leftward shift in the supply curve for bread, resulting in a higher equilibrium price and a lower equilibrium quantity of bread.

Question 4

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

Accepted Answer

When both the number of buyers and sellers in a currency market increases, the effect on the equilibrium price depends on the relative change in demand and supply. If the increase in buyers (demand) is larger than the increase in sellers (supply), the price will rise. If the increase in sellers is larger, the price will fall. If both increase equally, the price might remain the same.

Question 5

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

Accepted Answer

The answer of 
-The graph illustrates the market for bottled...

Question 6

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

Accepted Answer

When the demand for a good decreases, there is excess supply in the market which leads to a fall in the equilibrium price. As the demand is low, producers reduce the supply which also leads to a decrease in the equilibrium quantity. Therefore, the correct choice is A) falls; decreases.

Question 7

When demand increases and supply decreases by the same amount,the equilibrium quantity ________ and the equilibrium price ________.

Accepted Answer

The answer of When demand increases and supply decreases by...

Question 8

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer ________ and the quantity ________.

Accepted Answer

The advancement in technology typically leads to a decrease in manufacturing costs, which in turn reduces the price of computers. As the price falls, more people can afford computers, leading to an increase in the quantity sold.

Question 9

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

Accepted Answer

An increase in the price of a substitute in production, such as feather dusters, will increase the cost of producing feather pillows. This will cause a decrease in the supply of feather pillows, and therefore a leftward shift of the supply curve. As a result, the equilibrium price of feather pillows will increase and the quantity demanded will decrease. None of the other choices accurately reflect the relationship between the price of feather dusters and the market for feather pillows.

Question 10

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, families tend to go on vacation, increasing the demand for gasoline as they drive more frequently and cover longer distances. The increase in demand results in an increase in the price of gasoline.

Question 11

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

Accepted Answer

An increase in the number of people looking to buy ceiling fans would lead to an increase in the demand for ceiling fans, as more people are interested in purchasing them. This could result in a rise in the price of a ceiling fan, as the demand for them outstrips the available supply. Therefore, option B is the best choice.

Question 12

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Accepted Answer

An increase in the number of buyers shifts the demand curve to the right, and technological advances shift the supply curve to the right. Both shifts lead to an increase in the equilibrium quantity of computers.

Question 13

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy ________ and the quantity of candy ________.

Accepted Answer

When both supply and demand increase by the same amount, the price tends to remain stable while the quantity of the product in the market increases.

Question 14

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

Accepted Answer

When both supply and demand increase, the equilibrium quantity will definitely increase. The effect on price is uncertain without knowing the relative magnitudes of the shifts in supply and demand.

Question 15

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

Accepted Answer

When demand increases more significantly than supply decreases, the equilibrium price increases due to higher demand. The equilibrium quantity also increases because the effect of increased demand outweighs the effect of decreased supply.

Question 16

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

An increase in demand combined with a decrease in supply would lead to a shortage of the product, causing the equilibrium price to rise as suppliers raise their prices to capture additional profit.

Question 17

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

Accepted Answer

The increase in benefits to consuming beef and the decrease in the cost of feeding steers will both incentivize an increase in the quantity of beef supplied. As a result, the equilibrium quantity of beef will increase.

Question 18

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

Accepted Answer

According to the law of supply and demand, a decrease in supply results in a decrease in the quantity supplied and an increase in price. Thus, option C is the correct answer as it leads to an increase in equilibrium price and a decrease in the equilibrium quantity.

Question 19

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

Accepted Answer

When the price of lettuce, an ingredient in tacos, increases, the cost of producing tacos also increases. This leads to a decrease in supply, causing the equilibrium price of tacos to rise (as they become more expensive to make) and the equilibrium quantity to decrease (as fewer tacos are produced and sold at the higher price).

Question 20

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn ________ and the quantity of corn ________.

Accepted Answer

When the cost of producing corn is lowered, the supply curve for corn shifts to the right (increases) since it is cheaper for producers to produce corn. This results in a decrease in price (falls) and an increase in quantity (increases) of corn.

Quiz 4: Demand and Supply

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

Consider the market for turkeys.In the United States,because of Thanksgiving in the month of November,

Consider the market for bread.If the price of wheat rises,then the

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds increases and the number of sellers of pounds increases,the equilibrium price of a pound

-The graph illustrates the market for bottled water.If the producers of bottled water switch to using improved technology,then the

When the demand for a good decreases,its equilibrium price and equilibrium quantity .

When demand increases and supply decreases by the same amount,the equilibrium quantity and the equilibrium price .

The technology associated with manufacturing computers has advanced enormously.This change has led to the price of a computer and the quantity .

Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then

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

The number of people looking to buy ceiling fan buyers increases,so there is an increase in the

-The graph illustrates the market for computers.If the number of buyers of computers increases and technology advances,you predict that the

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result,the price of candy and the quantity of candy .

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases.What are we sure of?

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline and the equilibrium quantity .

Which of the following definitely results in a product's equilibrium price rising?

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco and the equilibrium quantity .

A technological improvement lowers the cost of producing corn.As a result,the price of a pound of corn and the quantity of corn .