18) Using the data in the table above, the equilibrium quantity and equilibrium price for a
cellular telephone are
A) 50,000 and $100.
B) 80,000 and $80.
C) 60,000 and $50.
D) 40,000 and $20.
E) 100,000 and $20.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
19) Using the data in the table above, at the price of $80 a phone,
A) a shortage of 25,000 cellular telephones occurs.
B) a surplus of 80,000 cellular telephones occurs.
C) a surplus of 25,000 cellular telephones occurs.
D) a shortage of 55,000 cellular telephones occurs.
E) the market is in equilibrium.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
71
20) Using the data in the table above, the equilibrium quantity and equilibrium price for a
stapler is
A) 10,000 and $8.
B) 90,000 and $8.
C) 100,000 and $5.
D) 70,000 and $6.
E) 60,000 and $5.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
21) Using the data in the table above, if the price of a stapler is $8, then there is ________ of
staplers and the quantity of staplers demanded ________ the quantity of staplers supplied.
A) a surplus; is greater than
B) a surplus; is less than
C) a shortage; is greater than
D) a shortage; is less than
E) neither a surplus nor a shortage; equals
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
22) Using the data in the table above, if the price of a stapler is $5, then there is ________ of
staplers, and the quantity of staplers demanded ________ the quantity of staplers supplied.
A) a surplus; is greater than
B) a surplus; is less than
C) a shortage; is greater than
D) a shortage; is less than
E) neither a surplus nor a shortage; equals
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
72
23) In the igure above, a price of $35 per dozen roses results in
A) a shortage.
B) equilibrium.
C) a surplus.
D) upward pressure on the price of roses.
E) an eventual rightward shift of the demand curve and/or leftward shift of the supply
curve.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
24) In the igure above, a price of $15 per dozen roses results in
A) equilibrium.
B) a shortage.
C) a surplus.
D) downward pressure on the price of roses.
E) an eventual leftward shift of the demand curve and/or rightward shift of the supply
curve.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
73
25) The above igure shows the market for game day t-shirts. If the price of t-shirts is $8,
then
A) there is a shortage and the price of t-shirts will rise.
B) there is a surplus and the price of t-shirts will rise.
C) the market is in equilibrium.
D) there is a shortage and the price of t-shirts will fall.
E) there is a surplus and the price of t-shirts will fall.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
26) The above igure shows the market for game day t-shirts. If the price of t-shirts is $10,
then
A) there is a surplus and the price of t-shirts will rise.
B) there is a shortage and the price of t-shirts will rise.
C) there is a shortage and the price of t-shirts will fall.
D) there is a surplus and the price of t-shirts will fall.
E) the market is in equilibrium.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
74
27) The above igure shows the market for game day t-shirts. If the price of t-shirts is $12,
then
A) there is a shortage and the price of t-shirts will fall.
B) there is a shortage and the price of t-shirts will rise.
C) there is a surplus and the price of t-shirts will rise.
D) there is a surplus and the price of t-shirts will fall.
E) the market is in equilibrium.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
28) The above igure shows the market for game day t-shirts. If the price of t-shirts is $8,
then
A) the market is in equilibrium.
B) there is a surplus and the price of t-shirts will rise.
C) the quantity demanded is greater than quantity supplied.
D) there is a shortage and the price of t-shirts will fall.
E) there is a surplus and the price of t-shirts will fall.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
29) Assume a competitive market is in equilibrium. There is an increase in demand, but no
change in supply. As a result, the equilibrium price ________, and the equilibrium quantity
________.
A) rises; increases
B) rises; does not change
C) falls; does not change
D) falls; decreases
E) falls; increases
Skill: Level 2: Using deinitions
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
75
30) If a market begins in equilibrium and then the demand curve shifts leftward, a
A) shortage is created, which is eliminated by a fall in price.
B) shortage is created, which is eliminated by a rise in price.
C) surplus is created, which is eliminated by a fall in price.
D) surplus is created, which is eliminated by a rise in price.
E) surplus is created, which is eliminated by the supply curve shifting leftward.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
31) When the demand curve shifts rightward and the market moves to a new equilibrium,
then the
A) supply increases.
B) supply decreases.
C) quantity supplied increases.
D) quantity supplied decreases.
E) price falls to restore the equilibrium.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
32) Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts
________, the equilibrium quantity of movie tickets will ________.
A) rightward; increase
B) rightward; decrease
C) leftward; increase
D) rightward; not change
E) leftward; not change
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
76
33) If consumers buy a large number of plug-in electric cars, the equilibrium price of
electricity will ________ and the equilibrium quantity of electricity will ________.
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
E) not change; increase
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
34) Because of a sharp increase in the price of gasoline, the demand for Sports Utility
vehicles (SUVs) has decreased. So, the high price of gasoline leads to a
A) leftward shift of the demand curve for SUVs and the supply curve of SUVs.
B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.
C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of
SUVs.
D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
35) If the price of tangerines increases, the price of oranges also rises because
A) consumers consider the two goods complements, and so sellers decreased the supply of
oranges.
B) consumers consider the two goods substitutes, and demand for oranges increases.
C) if the supply of tangerines decreased, then the supply of oranges also must decrease.
D) buyers must have expected a higher price for oranges and thus increased their demand
for oranges.
E) buyers’ incomes must have decreased, and oranges are an inferior good.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
77
36) Suppose that the equilibrium price and quantity of new houses both increase. Which of
the following could be a cause of this change?
A) Both the supply and the demand for new houses increased, and the supply increased by
more than the demand.
B) The demand for new houses increased, and the supply did not change.
C) Both the supply and demand for new houses decreased.
D) The supply of new houses decreased, and the demand for new houses did not change.
E) The supply of new houses increased, and the demand for new houses did not change.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
37) Suppose that the equilibrium price and quantity of new houses both increase. Which of
the following could be a cause of this change?
A) The wage paid carpenters who build new houses might have risen.
B) A technological advance in framing a new house might have occurred.
C) The rent for nearby apartments might have fallen.
D) More home buyers might have moved into the area.
E) The cost of wood framing used to build houses might have fallen.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
38) Suppose that over the next few years, the demand for dancing to country and western
music decreases. Hence, at country and western dance clubs, the equilibrium price of
admission ________, and the equilibrium quantity of dancing ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) does not change; decreases
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
78
39) For consumers, taco chips and salsa are complements. If the price of salsa rises, what
is the efect on the equilibrium price and quantity of taco chips?
A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases.
B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases.
C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity
increases.
D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium
quantity increases.
E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
40) Computer chips are a normal good. Suppose the economy slips into a recession so that
income falls. As a result, the demand for computer chips ________ so that the price of a
computer chip ________.
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
E) decreases; does not change
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
41) Bagels and cream cheese are complementary goods. Suppose that the price for lour,
which is used to produce bagels, increases. The equilibrium price of cream cheese ________,
and the equilibrium quantity of cream cheese ________.
A) rises; decreases
B) rises; increases
C) falls; decreases
D) does not change; does not change
E) falls; increases
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
79
42) Suppose that people decide riding scooters is no longer fun. The equilibrium price of a
scooter ________, and the equilibrium quantity of scooters ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) does not change; decreases
Skill: Level 4: Applying models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
43) Assume a market is in equilibrium. There is an increase in supply, but no change in
demand As a result the equilibrium price ________, and the equilibrium quantity ________.
A) rises; increases
B) rises; decreases
C) rises; does not change
D) falls; decreases
E) falls; increases
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
44) If good weather conditions result in a larger than normal crop of peaches, then the
A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.
C) demand curve for peaches shifts leftward.
D) increase in the supply of peaches induces a greater demand for peaches, so that the
equilibrium price rises and the equilibrium quantity increases.
E) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
Skill: Level 3: Using models
Section: Checkpoint 4.3
Status: Old
AACSB: Analytical thinking
80