Question 1

Economists use the terms neutral good and normal good interchangeably.

Accepted Answer

Neutral good and normal good are not interchangeable terms. A normal good is one for which demand increases as income increases, while a neutral good is one that has no significant impact on overall utility or happiness.

Question 2

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.

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 3

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

Accepted Answer

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

Question 4

Equilibrium and disequilibrium

Accepted Answer

The answer of Equilibrium and disequilibrium
...

Question 5

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

Accepted Answer

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

Question 6

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 __________.

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 7

Exhibit 3-13
  Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market.
-Refer to Exhibit 3-13.Fill in blanks (E)and (F)respectively with the market quantity demanded at each given price.

Accepted Answer

Looking at the graph, at a price of $27, the market quantity demanded is 48. This is the only price and quantity combination that matches one of the options given. None of the other options match any of the price and quantity points on the graph.

Question 8

In moving along a demand curve,everything is held constant except the prices of related goods.

Accepted Answer

In moving along a demand curve, everything is held constant except the price of the good itself. The prices of related goods are factors that can shift the entire demand curve.

Question 9

To an economist,an increase in demand means the same thing as an increase in quantity demanded.

Accepted Answer

An increase in demand refers to the overall shift of the demand curve due to factors such as changes in consumer preferences or income, while an increase in quantity demanded refers to a movement along the demand curve due to a change in price.

Question 10

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

Accepted Answer

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

Question 11

Supply curves are always upward sloping.

Accepted Answer

The answer of Supply curves are always upward sloping....

Question 12

When the price of Toyota Corollas rises,ceteris paribus,the demand for Corollas falls.

Accepted Answer

The answer of When the price of Toyota Corollas rises,ceteris...

Question 13

Exhibit 3-13
  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.

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 14

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

Accepted Answer

At a price of $15, the quantity demanded is 10 and the quantity supplied is 50. Therefore, there is a surplus of 40 units (quantity supplied - quantity demanded = surplus).

Question 15

A surplus will occur in a market when the price of the product is above the equilibrium price.

Accepted Answer

When the price of a product is set above the equilibrium price in a market, there will be more supply than demand, resulting in a surplus.

Question 16

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

Accepted Answer

At a price of $13, the quantity demanded of good X is 100 units, while the quantity supplied is only 40 units. Therefore, there is a shortage of 140 units.

Question 17

Which of the following is an example of a service?

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 18

Exhibit 3-17
 
-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.

Accepted Answer

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

Question 19

If the government increased licensing requirements for beauty salons,the supply curve for salon services would shift to the left.

Accepted Answer

Increasing licensing requirements would make it harder for new beauty salons to enter the market, resulting in a decrease in the supply of salon services and a leftward shift in the supply curve.

Question 20

Exhibit 3-17
 
-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.

Accepted Answer

At a price of $20, the quantity demanded of good X is less than the quantity supplied of good X, which creates a surplus in the market. Economists would use this information to predict that the price of good X would soon fall. This would push the price toward the equilibrium price which is lower than $20. Therefore, the best choice is C, which says that the price would fall toward the equilibrium price.

Quiz 3: Supply and Demand: Theory

Economists use the terms neutral good and normal good interchangeably.

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.

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

Equilibrium and disequilibrium

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $11,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 .

Exhibit 3-13 Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market. -Refer to Exhibit 3-13.Fill in blanks (E) and (F) respectively with the market quantity demanded at each given price.

In moving along a demand curve,everything is held constant except the prices of related goods.

To an economist,an increase in demand means the same thing as an increase in quantity demanded.

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

Supply curves are always upward sloping.

When the price of Toyota Corollas rises,ceteris paribus,the demand for Corollas falls.

Exhibit 3-13 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.

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

A surplus will occur in a market when the price of the product is above the equilibrium price.

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

Which of the following is an example of a service?

Exhibit 3-17 -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.

If the government increased licensing requirements for beauty salons,the supply curve for salon services would shift to the left.

Exhibit 3-17 -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.

Quiz 3: Supply and Demand: Theory

Economists use the terms neutral good and normal good interchangeably.

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.

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

Equilibrium and disequilibrium

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $11,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 __________.

Exhibit 3-13 Assume that Jose,Kaitlyn,Leah,and Maria are the only buyers in this market. -Refer to Exhibit 3-13.Fill in blanks (E) and (F) respectively with the market quantity demanded at each given price.

In moving along a demand curve,everything is held constant except the prices of related goods.

To an economist,an increase in demand means the same thing as an increase in quantity demanded.

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

Supply curves are always upward sloping.

When the price of Toyota Corollas rises,ceteris paribus,the demand for Corollas falls.

Exhibit 3-13 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.

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

A surplus will occur in a market when the price of the product is above the equilibrium price.

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

Which of the following is an example of a service?

If the government increased licensing requirements for beauty salons,the supply curve for salon services would shift to the left.

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.

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

Exhibit 3-14 -Refer to Exhibit 3-14.At a price of $11,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 .

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

Exhibit 3-13 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.

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

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