Question 1

-Refer to Exhibit 3-14.At a price of $12,there is a ____________ unit ____________ of good X.
A) 195; shortage
B) 230; shortage
C) 195; surplus
D) 230; surplus
E) 180; shortage

Accepted Answer

The answer of 
-Refer to Exhibit 3-14.At a price of...

Question 2

Suppose that the average price of refrigerators has fallen over the past few years,yet the refrigerator companies have offered more and more of them for sale.Does this mean that the supply curve for refrigerators is downward sloping? Explain.

Accepted Answer

The answer of Suppose that the average price of refrigerators...

Question 3

A change in price will lead to a change in __________ and to a change in __________,while a change in government subsidies will lead to a change in __________ and a change in the number of buyers will lead to a change in __________.
A) quantity demanded; quantity supplied; supply; demand
B) demand; quantity supplied; supply; quantity demanded
C) quantity demanded; supply; quantity supplied; demand
D) quantity supplied; quantity demanded; demand; supply
E) quantity demanded; demand; quantity supplied; supply

Accepted Answer

A change in price affects the quantity demanded and quantity supplied directly, while a change in government subsidies affects supply, and a change in the number of buyers affects demand.

Question 4

-Refer to Exhibit 3-17.At a price of $20,the quantity demanded of good X is ____________ than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon ______________.This would push the price __________ the equilibrium price.
A) greater; fall; toward
B) greater; rise; toward
C) less; fall; toward
D) less; rise; away from
E) less; fall; away from

Accepted Answer

The answer of 
-Refer to Exhibit 3-17.At a price of...

Question 5

The law of demand states that ____________and quantity demanded are _____________ related,ceteris paribus.
A) price; directly
B) price; inversely
C) demand;inversely
D) quantity supplied; directly
E) supply; directly

Accepted Answer

The law of demand states that price and quantity demanded are inversely related, ceteris paribus. This means that as the price of a good or service increases, the quantity demanded for that good or service will decrease, and vice versa.

Question 6

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.
A) rise; greater
B) fall; less
C) fall; greater
D) rise; less
E) a and b

Accepted Answer

When the quantity demanded is greater than the quantity supplied, prices tend to rise to reach equilibrium, as the scarcity of the product increases its value. Conversely, when the quantity demanded is less than the quantity supplied, prices tend to fall to eliminate the surplus and reach equilibrium.

Question 7

Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market.
-Refer to Exhibit 3-13.Each individual consumer's demand curve is ________________ sloping and the market demand curve is _________________ sloping.
A) upward; also upward
B) downward; also downward
C) upward; downward
D) downward; upward

Accepted Answer

Individual consumer demand curves and the market demand curve both slope downward due to the law of demand, which states that as the price of a good decreases, the quantity demanded increases, and vice versa.

Question 8

When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber.Given that lumber is timber that has been sawed or split into planks and boards,explain in terms of supply and/or demand how the hurricane impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity):
a.
Domestic lumber
b.
Imported lumber
c.
New home construction

Accepted Answer

The answer of When Hurricane Katrina hit the Gulf Coast...

Question 9

Equilibrium and disequilibrium
A) are real world states.
B) are mental constructs used by economists.
C) foreshadow what is about to happen in a market.
D) a and b
E) a,b and c

Accepted Answer

The answer of Equilibrium and disequilibrium
A) are real world states.
B)...

Question 10

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks.The result would be a(n)________________ in the equilibrium price of soft drinks and a(n)______________________in the equilibrium quantity of soft drinks.
A) increase; decrease
B) increase; increase
C) decrease; decrease
D) decrease; increase

Accepted Answer

When a tax is imposed on the production of a good, the supply curve shifts to the left (decreases). This causes the equilibrium price to increase and the equilibrium quantity to decrease, as the taxed amount is partially passed on to consumers in the form of higher prices.Most of the time, taxes act like a wedge between the supply curve and the demand curve, and so consumers pay a higher price and producers receive a lower price.

Question 11

-Refer to Exhibit 3-17.At a price of $16,the quantity demanded of good X is ____________ than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon ______________.This would push the price __________ the equilibrium price.
A) greater; fall; toward
B) greater; rise; toward
C) less; fall; toward
D) less; rise; away from
E) greater; rise; away from

Accepted Answer

At a price of $16, if the quantity demanded is greater than the quantity supplied, there is a shortage, causing the price to rise toward the equilibrium price.

Question 12

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Accepted Answer

The answer of Describe one of the two reasons given...

Question 13

Which of the following is an example of a service?
A) medical care
B) dental care
C) a psychology lecture
D) a television set
E) a,b and c

Accepted Answer

Medical care, dental care, and a psychology lecture are all examples of services because they involve the provision of intangible benefits or activities performed for a consumer, unlike a television set, which is a tangible good.

Question 14

-Refer to Exhibit 3-14.At a price of $13,there is a ____________ of ____________ units of good X.
A) shortage; 140
B) shortage; 160
C) surplus; 140
D) surplus; 20
E) surplus; 100

Accepted Answer

At a price of $13, the quantity demanded is 140 units, while the quantity supplied is 160 units. This means that there is a surplus of 20 units (160 - 140 = 20).

Question 15

-Refer to Exhibit 3-14.At a price of $10,there is a ____________ of ____________ units of good X.
A) surplus; 340
B) shortage; 230
C) surplus; 60
D) shortage; 340
E) shortage; 270

Accepted Answer

The answer of 
-Refer to Exhibit 3-14.At a price of...

Question 16

Explain the difference between a change in demand and a change in quantity demanded.Be sure to specify what causes each to change and how they differ when graphed.

Accepted Answer

The answer of Explain the difference between a change in...

Question 17

According to the law of demand,the higher the price of an assigned textbook,the _______________ the quantity demanded of assigned textbooks will be,ceteris paribus,and the ______________ likely students will seek out an alternative to the assigned textbook.
A) lower; less
B) lower; more
C) higher; less
D) higher; more

Accepted Answer

The law of demand states that, all else being equal, as the price of a good increases, the quantity demanded of that good decreases. Therefore, if the price of an assigned textbook is higher, the quantity demanded will be lower, and students will be more likely to seek alternatives.

Question 18

-Refer to Exhibit 3-14.At a price of $15,there is a ____________ of ____________ units of good X.
A) shortage; 40
B) surplus; 90
C) surplus; 40
D) shortage; 20
E) surplus; 20

Accepted Answer

At a price of $15, the quantity supplied exceeds the quantity demanded by 40 units, resulting in a surplus of 40 units of good X.

Question 19

-Refer to Exhibit 3-14.At a price of $11,there is a ____________ of ____________ units of good X.
A) shortage; 290
B) shortage; 215
C) surplus; 40
D) surplus; 290
E) shortage; 230

Accepted Answer

At a price of $11, the quantity demanded is 290 units, while the quantity supplied is 215 units. This creates a shortage of 290 - 215 = 75 units.

Question 20

Explain the difference between a change in supply and a change in quantity supplied.Be sure to state what causes each to change and how they differ when graphed.

Accepted Answer

The answer of Explain the difference between a change in...

Quiz 3: Supply and Demand: Theory

-Refer to Exhibit 3-14.At a price of $12,there is a unit of good X.

Suppose that the average price of refrigerators has fallen over the past few years,yet the refrigerator companies have offered more and more of them for sale.Does this mean that the supply curve for refrigerators is downward sloping? Explain.

A change in price will lead to a change in and to a change in ,while a change in government subsidies will lead to a change in and a change in the number of buyers will lead to a change in .

-Refer to Exhibit 3-17.At a price of $20,the quantity demanded of good X is than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon .This would push the price the equilibrium price.

The law of demand states that and quantity demanded are _ related,ceteris paribus.

If a market is in disequilibrium,economists would predict that the product's price would to reach equilibrium when the quantity demanded is than the quantity supplied.

Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market. -Refer to Exhibit 3-13.Each individual consumer's demand curve is sloping and the market demand curve is _ sloping.

Equilibrium and disequilibrium

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks.The result would be a(n) in the equilibrium price of soft drinks and a(n) ______in the equilibrium quantity of soft drinks.

-Refer to Exhibit 3-17.At a price of $16,the quantity demanded of good X is than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon .This would push the price the equilibrium price.

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Which of the following is an example of a service?

-Refer to Exhibit 3-14.At a price of $13,there is a of units of good X.

-Refer to Exhibit 3-14.At a price of $10,there is a of units of good X.

Explain the difference between a change in demand and a change in quantity demanded.Be sure to specify what causes each to change and how they differ when graphed.

According to the law of demand,the higher the price of an assigned textbook,the _ the quantity demanded of assigned textbooks will be,ceteris paribus,and the likely students will seek out an alternative to the assigned textbook.

-Refer to Exhibit 3-14.At a price of $15,there is a of units of good X.

-Refer to Exhibit 3-14.At a price of $11,there is a of units of good X.

Explain the difference between a change in supply and a change in quantity supplied.Be sure to state what causes each to change and how they differ when graphed.

Quiz 3: Supply and Demand: Theory

-Refer to Exhibit 3-14.At a price of $12,there is a ____________ unit ____________ of good X.

Suppose that the average price of refrigerators has fallen over the past few years,yet the refrigerator companies have offered more and more of them for sale.Does this mean that the supply curve for refrigerators is downward sloping? Explain.

A change in price will lead to a change in __________ and to a change in __________,while a change in government subsidies will lead to a change in __________ and a change in the number of buyers will lead to a change in __________.

-Refer to Exhibit 3-17.At a price of $20,the quantity demanded of good X is ____________ than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon ______________.This would push the price __________ the equilibrium price.

The law of demand states that ____________and quantity demanded are _____________ related,ceteris paribus.

If a market is in disequilibrium,economists would predict that the product's price would __________ to reach equilibrium when the quantity demanded is __________ than the quantity supplied.

Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market. -Refer to Exhibit 3-13.Each individual consumer's demand curve is ________________ sloping and the market demand curve is _________________ sloping.

Equilibrium and disequilibrium

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks.The result would be a(n) ________________ in the equilibrium price of soft drinks and a(n) ______________________in the equilibrium quantity of soft drinks.

-Refer to Exhibit 3-17.At a price of $16,the quantity demanded of good X is ____________ than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon ______________.This would push the price __________ the equilibrium price.

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

Which of the following is an example of a service?

-Refer to Exhibit 3-14.At a price of $13,there is a ____________ of ____________ units of good X.

-Refer to Exhibit 3-14.At a price of $10,there is a ____________ of ____________ units of good X.

Explain the difference between a change in demand and a change in quantity demanded.Be sure to specify what causes each to change and how they differ when graphed.

According to the law of demand,the higher the price of an assigned textbook,the _______________ the quantity demanded of assigned textbooks will be,ceteris paribus,and the ______________ likely students will seek out an alternative to the assigned textbook.

-Refer to Exhibit 3-14.At a price of $15,there is a ____________ of ____________ units of good X.

-Refer to Exhibit 3-14.At a price of $11,there is a ____________ of ____________ units of good X.

Explain the difference between a change in supply and a change in quantity supplied.Be sure to state what causes each to change and how they differ when graphed.

-Refer to Exhibit 3-14.At a price of $12,there is a unit of good X.

A change in price will lead to a change in and to a change in ,while a change in government subsidies will lead to a change in and a change in the number of buyers will lead to a change in .

-Refer to Exhibit 3-17.At a price of $20,the quantity demanded of good X is than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon .This would push the price the equilibrium price.

The law of demand states that and quantity demanded are _ related,ceteris paribus.

If a market is in disequilibrium,economists would predict that the product's price would to reach equilibrium when the quantity demanded is than the quantity supplied.

Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market. -Refer to Exhibit 3-13.Each individual consumer's demand curve is sloping and the market demand curve is _ sloping.

Suppose that the government imposes a new $1 per-unit tax on the production of soft drinks.The result would be a(n) in the equilibrium price of soft drinks and a(n) ______in the equilibrium quantity of soft drinks.

-Refer to Exhibit 3-17.At a price of $16,the quantity demanded of good X is than the quantity supplied of good X,and economists would use this information to predict that the price of good X would soon .This would push the price the equilibrium price.

-Refer to Exhibit 3-14.At a price of $13,there is a of units of good X.

-Refer to Exhibit 3-14.At a price of $10,there is a of units of good X.

According to the law of demand,the higher the price of an assigned textbook,the _ the quantity demanded of assigned textbooks will be,ceteris paribus,and the likely students will seek out an alternative to the assigned textbook.

-Refer to Exhibit 3-14.At a price of $15,there is a of units of good X.

-Refer to Exhibit 3-14.At a price of $11,there is a of units of good X.