Question 1

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Accepted Answer

A) True 
 B)False

Question 2

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Accepted Answer

A)  demand curve for cigarettes rightward.
B)  demand curve for cigarettes leftward.
C)  supply curve for cigarettes rightward.
D)  supply curve for cigarettes leftward.E) C) and D)
F) B) and D)

Question 3

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Accepted Answer

A)  Less rental housing is available, as prospective landlords find it unprofitable to rent at restricted prices.
B)  The quality of rental housing declines as landlords lack the funds and incentive to maintain properties.
C)  Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled.
D)  All of these choices are correct.E) B) and C)
F) B) and D)

Question 4

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

Accepted Answer

The law of diminishing marginal utility ...

Question 5

A government tax per unit of output reduces supply.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in the price of digital cameras will

Accepted Answer

A)  cause the demand curve for memory cards to become vertical.
B)  shift the demand curve for memory cards to the right.
C)  shift the demand curve for memory cards to the left.
D)  not affect the demand for memory cards.E) All of the above
F) A) and B)

Question 7

Surge prices

Accepted Answer

A)  create shortages of rides during peak demand times.
B)  increase both the demand for and supply of rides.
C)  result in surpluses in the ride market by generating too much supply.
D)  reflect greater anticipated demand and elicit greater quantity supplied of drivers.E) B) and D)
F) A) and B)

Question 8

Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4) , equilibrium price and quantity will be

Accepted Answer

A)  $7 and 40 units.
B)  $8 and 60 units.
C)  $7 and 50 units.
D)  $9 and 60 units.
E)  $7 and 30 units.F) D) and E)
G) A) and C)

Question 9

Give three explanations for the law of demand.

Accepted Answer

Three explanations of the law ...

Question 10

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Accepted Answer

A) True 
 B)False

Question 11

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Accepted Answer

A)  increase in the demand for gasoline.
B)  decrease in the demand for gasoline.
C)  increase in the supply of gasoline.
D)  decrease in the supply of gasoline.E) C) and D)
F) A) and C)

Exam 3: Demand, Supply, and Market Equilibrium

Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4) , equilibrium price and quantity will be

Correct Answer
verified

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

Correct Answer
verified
The law of diminishing marginal utility ...
View Answer

Surge prices

Correct Answer
verified

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Correct Answer
verified

A decrease in the price of digital cameras will

Correct Answer
verified

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Correct Answer
verified

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Correct Answer
verified

Give three explanations for the law of demand.

Correct Answer
verified
Three explanations of the law ...
View Answer

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Correct Answer
verified

A government tax per unit of output reduces supply.

Correct Answer
verified

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Correct Answer
verified

Exam 3: Demand, Supply, and Market Equilibrium

Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4) , equilibrium price and quantity will be

Correct AnswerverifiedShow Answer

Sue's Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25 percent off, and the third is 50 percent off. Describe how this sale relates to individual demand and marginal utility.

Correct AnswerverifiedThe law of diminishing marginal utility ...View AnswerShow Answer

Surge prices

Correct AnswerverifiedShow Answer

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Correct AnswerverifiedShow Answer

A decrease in the price of digital cameras will

Correct AnswerverifiedShow Answer

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Correct AnswerverifiedShow Answer

A decrease in the price of multi-touch screens for electronic tablets will increase the supply of electronic tablets.

Correct AnswerverifiedShow Answer

Give three explanations for the law of demand.

Correct AnswerverifiedThree explanations of the law ...View AnswerShow Answer

An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.

Correct AnswerverifiedShow Answer

A government tax per unit of output reduces supply.

Correct AnswerverifiedShow Answer

When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n)

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The law of diminishing marginal utility ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Three explanations of the law ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified