Question 1

A(n) ________ is represented by a rightward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve.
A) increase in demand; decrease in demand
B) increase in demand; increase in quantity demanded
C) decrease in demand; decrease in quantity demanded
D) increase in quantity demanded; increase in demand

Accepted Answer

An increase in demand is represented by a rightward shift of the demand curve, indicating that at every price point, consumers are willing to buy a higher quantity of the product. An increase in quantity demanded, on the other hand, is represented by a movement along a given demand curve, indicating that consumers are willing to buy more of a product only at a lower price point. The other options are incorrect because they mix up the meaning of "demand" and "quantity demanded."

Question 2

If the price of refillable butane lighters was to decrease, then
A) the demand for butane would decrease.
B) the demand for butane would increase.
C) the quantity of butane demanded would increase.
D) the quantity of butane demanded would decrease.

Accepted Answer

The answer of If the price of refillable butane lighters...

Question 3

The phrase "demand has decreased" means that
A) a demand curve has shifted to the left.
B) there has been an upward movement along a demand curve.
C) there has been a downward movement along a demand curve.
D) a demand curve has shifted to the right.

Accepted Answer

The phrase "demand has decreased" means that less of the good or service is being demanded at every price point. This leads to a leftward shift of the demand curve.

Question 4

If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, then economists would describe this as
A) an increase in demand.
B) an increase in quantity demanded.
C) a change in consumer income.
D) an increase in consumers' taste for coffee.

Accepted Answer

An increase in quantity demanded is a movement along the demand curve in response to a change in price, while an increase in demand would refer to a shift of the entire demand curve. The other options (a change in consumer income and an increase in consumers' taste for coffee) are factors that could cause a shift in the demand curve, rather than a movement along it in response to a price change.

Question 5

Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone
A) strawberries and whipped cream are complements.
B) strawberries and whipped cream and substitutes.
C) strawberries and whipped cream are normal goods.
D) strawberries are a normal good and whipped cream is an inferior good.

Accepted Answer

If Simone increases her purchase of whipped cream when the price of strawberries decreases, it suggests that these two goods are complements, meaning that the decrease in the price of strawberries leads to an increase in the demand for whipped cream.

Question 6

If the price of gasoline decreases, what will be the impact in the market for public transportation?
A) The demand curve for public transportation shifts to the right.
B) The quantity of public transportation demanded increases.
C) The demand curve for public transportation shifts to the left.
D) The quantity of public transportation demanded decreases.

Accepted Answer

The answer of If the price of gasoline decreases, what...

Question 7

The market for smart water is becoming more competitive. The increase in competition in this market is an example of how the market responds to
A) changes in consumer tastes.
B) decreases in income.
C) changes in expected future prices.
D) decreases in the price of carbonated soda (a substitute for the product).

Accepted Answer

The increase in competition in the market for smart water is a response to changes in consumer tastes. As more consumers become interested in healthier beverage options, the demand for smart water increases, leading to more companies entering the market to satisfy this growing demand.

Question 8

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family
A) hamburgers and chicken nuggets are complements.
B) hamburgers and chicken nuggets are inferior goods.
C) hamburgers and chicken nuggets are normal goods.
D) hamburgers and chicken nuggets are substitutes.

Accepted Answer

If the Landry family decreases their purchases of chicken nuggets when the price of hamburgers decreases, it indicates that hamburgers are acting as a substitute for chicken nuggets. As the price of hamburgers decreases, the Landry family is more likely to purchase hamburgers instead of chicken nuggets, indicating that hamburgers and chicken nuggets are substitutes.

Question 9

A demand curve shows the relationship between
A) the price of a product and the quantity of the product demanded.
B) the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
C) the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer.
D) the price of a produce and the demand for the product.

Accepted Answer

A demand curve shows the relationship between the price of a product and the quantity of the product demanded. It illustrates how many units of a product consumers are willing and able to buy at different price levels. As the price of a product increases, the quantity demanded generally decreases, and vice versa.

Question 10

How does the decreasing use of traditional cameras affect the market for traditional camera film?
A) The demand curve for traditional camera film shifts to the right.
B) The quantity of traditional camera film demanded decreases.
C) The quantity of traditional camera film demanded increases.
D) The demand curve for traditional camera film shifts to the left.

Accepted Answer

The answer of How does the decreasing use of traditional...

Question 11

Table 3-2
 
-Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $55, the quantity demanded in the market would be
A) 42 oz.
B) 136 oz.
C) 178 oz.
D) 233 oz.

Accepted Answer

At a price of $55, Ari would demand 1 oz and Sonia would demand 40 oz, for a total demand of 41 oz from the two individuals. The rest of the market would demand 137 oz. Therefore, the total quantity demanded in the market would be 178 oz (41 oz + 137 oz).

Question 12

If the sales of carbonated sodas continue to decline as more cities impose soda taxes on these beverages, this will likely
A) increase the demand for premium water, because premium water and carbonated sodas are considered complements.
B) increase the demand for premium water, because premium water and carbonated sodas are considered substitutes.
C) decrease the demand for premium water, because premium water is considered an inferior good and carbonated sodas are considered normal goods.
D) decrease the demand for premium water, because premium water is considered a normal good and carbonated sodas are considered inferior goods.

Accepted Answer

When the sales of carbonated sodas decline, the demand for premium water is expected to increase because both beverages are considered substitutes - as people shift away from soda, they are likely to turn to other non-alcoholic beverages as replacements. Therefore, the increase in demand for premium water is expected.

Question 13

Table 3-2
 
-Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar falls from $45 to $35, the market quantity demanded would
A) decrease by 50 oz.
B) increase by 70 oz.
C) increase by 50 oz.
D) decrease by 70 oz.

Accepted Answer

The answer of Table 3-2
 
-Refer to Table 3-2. The...

Question 14

Table 3-2
 
-Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 36 oz.
B) increase by 52 oz.
C) increase by 36 oz.
D) decrease by 52 oz.

Accepted Answer

The answer of Table 3-2
 
-Refer to Table 3-2. The...

Question 15

If a decrease in income leads to an increase in the demand for sardines, then sardines are
A) an inferior good.
B) a neutral good.
C) a necessity.
D) a normal good.

Accepted Answer

When a decrease in income leads to an increase in demand for a good or service, it is an inferior good. Sardines are less expensive than other types of seafood, so they are often considered an inferior good. As people's incomes decrease, they may switch from more expensive seafood, such as lobster or shrimp, to less expensive options, such as sardines.

Question 16

A change in which variable will change the market demand for a product?
A) the price of the product
B) population
C) technology
D) the prices of substitutes in production

Accepted Answer

Changes in population can lead to a change in the number of potential buyers for a product, thus affecting the overall market demand. The other options may impact the demand for a specific brand or producer of the product, but not necessarily the entire market demand.

Question 17

Table 3-2
 
-Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $75, the quantity demanded in the market would be
A) 6 oz.
B) 46 oz.
C) 52 oz.
D) 127 oz.

Accepted Answer

At a price of $75, Ari demands 5 oz. of caviar and Sonia demands 8 oz. This means that the rest of the market demands a total of 39 oz. (52-5-8). Thus, the total quantity demanded in the market at a price of $75 is 5+8+39 = 52 oz.

Question 18

If, in response to an increase in the price of pineapples, the quantity of pineapples demanded decreases, then economists would describe this as
A) an decrease in demand.
B) a decrease in quantity demanded.
C) a change in consumer income.
D) a decrease in consumers' taste for pineapples.

Accepted Answer

A decrease in the quantity demanded refers to a movement along the demand curve due to a change in price. It means that consumers are still interested in buying pineapples but at a lower price. This is different from a decrease in demand, which would occur if consumers lose interest in buying pineapples altogether. Changes in consumer income or taste would cause a shift in the demand curve, not a movement along it.

Question 19

If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.

Accepted Answer

Mac and cheese is a normal good, meaning that as a consumer's income decreases, the demand for it decreases.

Question 20

Holding everything else constant, a decrease in the price of bicycles will result in
A) a decrease in the quantity of bicycles demanded.
B) an increase in the demand for bicycles.
C) a decrease in the supply of bicycles.
D) an increase in the quantity of bicycles demanded.

Accepted Answer

According to the law of demand, when the price of a good decreases, the quantity demanded of that good will increase, holding everything else constant. Therefore, a decrease in the price of bicycles will result in an increase in the quantity of bicycles demanded.

Quiz 3: Where Prices Come From: the Interaction of Demand and Supply

A(n) is represented by a rightward shift of the demand curve while a(n) is represented by a movement along a given demand curve.

If the price of refillable butane lighters was to decrease, then

The phrase "demand has decreased" means that

If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, then economists would describe this as

Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone

If the price of gasoline decreases, what will be the impact in the market for public transportation?

The market for smart water is becoming more competitive. The increase in competition in this market is an example of how the market responds to

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family

A demand curve shows the relationship between

How does the decreasing use of traditional cameras affect the market for traditional camera film?

Table 3-2 -Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $55, the quantity demanded in the market would be

If the sales of carbonated sodas continue to decline as more cities impose soda taxes on these beverages, this will likely

Table 3-2 -Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar falls from $45 to $35, the market quantity demanded would

Table 3-2 -Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would

If a decrease in income leads to an increase in the demand for sardines, then sardines are

A change in which variable will change the market demand for a product?

Table 3-2 -Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $75, the quantity demanded in the market would be

If, in response to an increase in the price of pineapples, the quantity of pineapples demanded decreases, then economists would describe this as

If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is

Holding everything else constant, a decrease in the price of bicycles will result in