Question 1

In much of the country, homeowners choose to heat their houses with either natural gas or home heating oil.Which of the following would cause a change in the demand for natural gas?
A.a change in the price of home
B.heating oil a change in income
C.an increase in consumer tastes for natural gas as an energy
D.source all of the above

Accepted Answer

all of the above

Question 2

The law of demand is illustrated by a demand curve that is:
A.horizontal.
B.downward sloping.
C.vertical.
D.upward sloping.

Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. This relationship is shown graphically by a downward-sloping demand curve. Therefore, the best choice is B.

Question 3

Which of the following will not cause an increase in demand for good X?
A)a decrease in income if good X is an inferior good
B)an increase in income if good X is a normal good
C)a decrease in the price of good X
D)an increase in consumers' taste for good X

Accepted Answer

A decrease in the price of good X would cause an increase in the quantity demanded, not an increase in demand. There are five determinants of demand: income, tastes/preferences, prices of related goods, expectations, and number of buyers. Choices A, B, and D would all cause an increase in demand for good X, because they relate to changes in one or more of the demand determinants.

Question 4

________ illustrates an inverse relationship between price and quantity.
A.A demand curve
B.A supply curve
C.A production possibility
D.frontier Equilibrium

Accepted Answer

The answer of ________ illustrates an inverse relationship between price...

Question 5

Which of the following factors would cause a movement along the demand curve for a particular good?
A.a change in the prices of related goods
B.a change in the price of that good
C.a change in the size of the population
D.both a change in the price of that good and a change in the size of the population

Accepted Answer

The answer of Which of the following factors would cause...

Question 6

A negative relationship between the quantity demanded and price is called the law of:
A.demand.
B.increasing returns.
C.market clearing.
D.supply.

Accepted Answer

The law of demand states that there is an inverse relationship between price and quantity demanded, meaning as price increases, quantity demanded decreases and vice versa.

Question 7

A decrease in the price of eggs will result in:
A.an increase in the demand for eggs.
B.an increase in the supply of eggs.
C.an increase in the quantity of eggs supplied.
D.an increase in the quantity of eggs demanded.

Accepted Answer

The answer of A decrease in the price of eggs...

Question 8

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than to fly.Which of the following provides one possible explanation for this phenomenon?
A.Air travel and vacation travel by car are complementary goods.
B.Air travel and vacation travel by car are both normal goods.
C.Air travel is a normal good and vacation travel by car is an inferior good.
D.Air travel is an inferior good and vacation travel by car is a normal good.

Accepted Answer

The answer of When the economy suffers a downturn and...

Question 9

The law of demand implies that:
A.consumers are not responsive to price changes.
B.consumers will buy more at lower prices.
C.sellers will offer more on the market at higher prices.
D.sellers will offer less on the market at lower prices.

Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded by consumers decreases, and conversely, as the price of a good or service decreases, the quantity demanded by consumers increases. Therefore, consumers are more responsive to lower prices and will buy more at lower prices.

Question 10

Over the past several years, consumers have had an increasing interest in getting a tattoo.This means that the ________ for tattoos has _.
A.quantity demanded; increased
B.demand; decreased
C.demand; increased
D.quantity demanded; decreased

Accepted Answer

The answer of Over the past several years, consumers have...

Question 11

A shift of the demand curve for thin-crust pizza would not be caused by a change in:
A)buyers' incomes.
B)the price of thin-crust pizza.
C)the price of thick-crust pizza.
D)the popularity of thin-crust pizza.

Accepted Answer

A change in the price of a good causes a movement along the demand curve, not a shift. Buyers' incomes, the price of a substitute (thick-crust pizza), and the popularity of a good can all cause a shift in the demand curve.

Question 12

Which of the following examples illustrates the law of demand? An increase in tuition encourages more students to enroll in college because the
A)quality of education has risen.
B)Consumers buy more personal computers because prices have fallen.
C)Oil companies drill for new sources of oil because oil prices are
D)higher.Fewer people play golf because incomes are lower.

Accepted Answer

According to the law of demand, as the price of a product decreases, the quantity demanded increases. In this case, the lower prices of personal computers are encouraging consumers to buy more of them. The other choices do not illustrate the law of demand.

Question 13

The law of demand states that other things equal:
A.as the price increases, the quantity demanded will increase.
B.as the price decreases, the demand curve will shift to the right.
C.as the price increases, the demand will decrease.
D.as the price increases, the quantity demanded will decrease.

Accepted Answer

The answer of The law of demand states that other...

Question 14

The market for corn in Kansas is considered to be competitive.This means there are ________
buyers and sellers of corn in Kansas.
A.many; few
B.few; many
C.many; many
D.few; few

Accepted Answer

A competitive market implies that there are many buyers and many sellers, which creates an environment in which no single buyer or seller can influence the market price of corn.

Question 15

Raclette is a popular wintertime dish in Switzerland.It is essentially melted Raclette cheese over boiled new potatoes.If the price of Raclette cheese decreased, we would expect to see:
A.an increase in demand for Raclette cheese.
B.an increase in demand for new potatoes.
C.no effect on the demand for either of the Raclette ingredients, since this is a traditional dish and its consumption does not depend on the prices of the ingredients.
D.an increase in demand for Raclette cheese and for new potatoes.

Accepted Answer

The answer of Raclette is a popular wintertime dish in...

Question 16

Which of the following statements is correct?
A.A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift of the demand curve.
B.Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
C.Both a change in quantity demanded and a change in demand are shifts of the demand curve, only in different directions.
D.A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve.

Accepted Answer

The answer of Which of the following statements is correct?
A.A...

Question 17

A negative relationship between the quantity demanded and price is called the law of _.
A.demand
B.marginality
C.efficienc
D.y supply

Accepted Answer

The answer of A negative relationship between the quantity demanded...

Question 18

Which of the following best describes the law of demand?
A.As income taxes rise, fewer new cars are purchased.
B.As the price of corn rises, more acres of corn are planted.
C.As the price of a DVD rental rises, fewer DVDs are rented.
D.As the population rises, more electricity is consumed.

Accepted Answer

The answer of Which of the following best describes the...

Question 19

The apples will decrease when apple prices rise.
A.demand for
B.quantity demanded of
C.supply of
D.equilibrium of

Accepted Answer

The given statement mentions a change in price, which would affect the quantity demanded of apples, not the demand for apples. The supply of apples is not mentioned as a variable in the statement. Equilibrium is the point where the quantity demanded equals the quantity supplied, and this is not affected by a change in price alone. Therefore, the best choice is B, which refers to the quantity demanded of apples.

Question 20

A decrease in the price of a good will result in:
A)an increase in demand.
B)an increase in supply.
C)an increase in the quantity demanded.
D)more being supplied.

Accepted Answer

A decrease in the price of a good will not necessarily result in an increase in demand or supply, as these factors are influenced by various other factors. Instead, it will result in an increase in the quantity demanded, as consumers are more willing and able to purchase the good at a lower price. The amount supplied will depend on the production costs and profitability for producers. A decrease in the price of a good will result in an increase in the quantity demanded, not an increase in demand or supply. The change in supply would depend on factors such as the cost of production and technology, while the change in demand would depend on factors such as consumer preferences and income.

Quiz 3: Supply and Demand

The law of demand is illustrated by a demand curve that is: A.horizontal. B.downward sloping. C.vertical. D.upward sloping.

Which of the following will not cause an increase in demand for good X?

________ illustrates an inverse relationship between price and quantity. A.A demand curve B.A supply curve C.A production possibility D.frontier Equilibrium

A negative relationship between the quantity demanded and price is called the law of: A.demand. B.increasing returns. C.market clearing. D.supply.

A decrease in the price of eggs will result in: A.an increase in the demand for eggs. B.an increase in the supply of eggs. C.an increase in the quantity of eggs supplied. D.an increase in the quantity of eggs demanded.

The law of demand implies that: A.consumers are not responsive to price changes. B.consumers will buy more at lower prices. C.sellers will offer more on the market at higher prices. D.sellers will offer less on the market at lower prices.

Over the past several years, consumers have had an increasing interest in getting a tattoo.This means that the ________ for tattoos has _. A.quantity demanded; increased B.demand; decreased C.demand; increased D.quantity demanded; decreased

A shift of the demand curve for thin-crust pizza would not be caused by a change in:

Which of the following examples illustrates the law of demand? An increase in tuition encourages more students to enroll in college because the

The law of demand states that other things equal: A.as the price increases, the quantity demanded will increase. B.as the price decreases, the demand curve will shift to the right. C.as the price increases, the demand will decrease. D.as the price increases, the quantity demanded will decrease.

The market for corn in Kansas is considered to be competitive.This means there are ________ buyers and sellers of corn in Kansas. A.many; few B.few; many C.many; many D.few; few

A negative relationship between the quantity demanded and price is called the law of _. A.demand B.marginality C.efficienc D.y supply

Which of the following best describes the law of demand? A.As income taxes rise, fewer new cars are purchased. B.As the price of corn rises, more acres of corn are planted. C.As the price of a DVD rental rises, fewer DVDs are rented. D.As the population rises, more electricity is consumed.

The apples will decrease when apple prices rise. A.demand for B.quantity demanded of C.supply of D.equilibrium of

A decrease in the price of a good will result in: