Econ 102 Sample Test Chapter 3 Spring 2020
The above table gives the demand and supply schedules for Blu-ray discs. Suppose that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices. What are the new equilibrium quantity and equilibrium price of Blu-ray discs?
16,000 and $16
The above table gives the demand and supply schedules for Blue-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is
20,000 and $20
The above table shows the demand schedule and supply schedule for chocolate chip cookies. An increase in income results in an increase in the demand for chocolate cookies by an amount of 3 pounds at every price. What are the new equilibrium quantity and equilibrium price?
5 pounds, $6.00 per pound
The table shows the demand and supply schedules for jeans
At $40 a pair, there is a shortage of jeans and the price will rise
The above figures show the market for oranges. Which figure(s) shows the effect of a new government program that provides each public school child with orange to start the day?
Figure A
The above figures show the market for gasoline. Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?
Figure B
The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?
Figure D
We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased. Which of the following events could be responsible for this?
Technological advances in digital camera production
Consider the demand curves for soft drinks show in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?
a decrease in the relative price of a soft drink
The figure above shows supply curve for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of
a decrease in the relative price of a soft drink
Georgine buys more sweaters when her income increases. For Georgine, sweaters are
a normal good
At a price of $10 in the above figure, there is
a surplus of 400 units
Beef is a normal good and people's income fall. At the same time a bumper corn crop reduced the cost of feeding steers. These changes result in
an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve
The "law of demand" predicts that, other things being equal
an increase in the price of pizza decrease of pizza demanded
A change in which of the following would NOT shift the supply curve for sneakers?
an increase in the price of sneakers
Which of the following does NOT shift the supply curve
an increase in the price of the good
When the price of an inferior good falls, the substitution effect leads to _____ in the quantity purchased and the income effect leads to ______ in the quantity purchased
an increase; a decrease
Wants, opposed to demands
are the unlimited desires of the consumer
Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is exceptionally good growing weather in the wapanzo bean growing region then supply will _____ and demand will _____
become case C; stay at ease 2
For a "change in the quantity supplied" but not "a change in supply" to occur, there must be a
both answers B and C are correct (B) rightward shift of the demand curve (C) leftward shift of the demand curve
A decrease in the price of bowling shifts the
demand curve for bowling balls rightward
The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the
demand curve shifts from D2 to D1 and the supply curve does not shift
Which of the following shifts the supply curve for oranges?
disastrous weather that destroys about half of this year's orange crop
When there is a surplus in the market, the quantity sold is
equal to the quantity demanded
A normal good is one
for which demand increases when income increases
The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?
from point a to point e
A normal good is a good for which demand
increases when income increases
If the good in the above figure is a normal good and income rises, then the new equilibrium quantity
is more than 300 units
If the price of a video download is below its equilibrium price, the quantity supplied is ______ than the quantity demanded. If the price of a video download is above its equilibrium price, the quantity supplied is _______ than the quantity demanded
less;greater
In a market, at the equilibrium price
neither buyers nor sellers can do business at a better price
In the above figure, if D2 is the original demand curve for a normal good and income decreases, which price and quantity might result?
point b, with price P1 and quantity Q1
In a supply and demand figure, the equilibrium price and quantity are found at the
point where quantity supplied equals quantity demanded
A shortage causes the
price to rise
The existence of a shortage
pushes the price up
The quantity of CDs that firms plan to sell this month depends on all of the following EXCEPT the
quantity of CDs that people plan to buy
As the price of a pound of peanuts falls, the
quantity of peanuts supplied decreases
When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the....
relative price of corn
The demand for a good increases when the price of a substitute _______ and also increases when the price of a complement __________
rises; falls
The wages rate paid by Walkman producers falls and at the same time the price of raw materials used the prediction of Walkman rises. You predict that the supply curve of Walkman will
shift either leftward or rightward
If a producer can use resources to produce either good A or good B, then A and B are
substitutes in production
In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to except the price of peanut butter would rise in the future. In the current marker for peanut butter, the price falls and the quantity decreases. This set of results means that
supply decreased by more than demand increased
A fall in the price of a good causes producers to reduce the quantity of the goof they are willing to produce. This fact illustrates
the law of supply
The "law of demand" states, other thing remaining the same, the higher
the price of a good, the smaller the quantity demanded
Which of the following increases the demand for a normal good?
the price of the good is expected to increase in the future?
The supply curve slopes upward when graphed against ________, because of ________
the price of the good; increasing marginal cost
When the price is less than the equilibrium price
the price will be forced higher, there will be a shortage, some consumers will be willing to pay a price higher than the prevailing price (D) All of the above are correct
using the figure above, suppose that roses are a normal good. If income decrease while simultaneously there is an increase in the price of the resources used to produce roses, then
the quantity will definitely decrease below 10 dozen roses
If the price of lumber rises, then, in the market for sawdust
the supply curve of sawdust shifts rightward
The price of a good will fall if
there is a surplus at the current price
Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each
there will be a surplus of soft drink
