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71
57) Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been
A) an increase in supply and an increase in quantity demanded.
B) an increase in both supply and demand.
C) a decrease in supply and an increase in demand.
D) a decrease in supply and an increase in quantity demanded.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
58) Refer to Figure 3.16. When the economy moves from Point C to Point A, there has been
A) an increase in demand and an increase in supply.
B) an increase in demand and an increase in quantity supplied.
C) an increase in quantity demanded and a decrease in supply.
D) an increase in quantity demanded and an increase in supply.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
59) Refer to Figure 3.16. When the economy moves from Point C to Point E, there has been
A) a decrease in supply and a decrease in quantity demanded.
B) a decrease in quantity supplied and a decrease in demand.
C) an increase in supply and an increase in quantity demanded.
D) an increase in demand and an increase in quantity supplied.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
60) Refer to Figure 3.16. When the economy moves from Point C to Point B, there has been
A) an increase in demand and an increase in supply.
B) a decrease in demand and a decrease in supply.
C) an increase in demand and a decrease in supply.
D) an increase in quantity demanded and an increase in quantity supplied.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
72
61) Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been
A) an increase in supply and a decrease in quantity demanded.
B) a decrease in both supply and demand.
C) a decrease in demand and a decrease in quantity supplied.
D) a decrease in supply and a decrease in quantity demanded.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
Refer to Scenario 3.2 below to answer the question(s) that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a
normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.
62) Refer to Scenario 3.2. As a result of the flooding during the winter, you would expect that
A) the price of lettuce would increase, the supply of lettuce would increase, and the quantity demanded
of lettuce would decrease.
B) the supply of lettuce would decrease, the price of lettuce would increase, and the quantity demanded
of lettuce would decrease.
C) the price of lettuce would increase and both the quantity of lettuce supplied and the quantity of lettuce
demanded would increase.
D) the supply of lettuce would decrease, the price of lettuce would increase, and the demand for lettuce
would decrease.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
63) Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused the
equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
73
64) Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused
A) an increase in the demand for tomatoes.
B) a decrease in the demand for tomatoes.
C) an increase in the quantity of tomatoes demanded.
D) a decrease in the quantity of tomatoes demanded.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
65) Refer to Scenario 3.2. If at the same time that part of the lettuce crop was destroyed, consumer income
also decreased, then, ceteris paribus, in the market for lettuce this would have caused
A) both the equilibrium price and quantity to decrease.
B) the equilibrium price to increase and the equilibrium quantity to decrease.
C) the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or
remained the same.
D) the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to
decrease.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
66) Refer to Scenario 3.2. The government wants to protect consumers from rising food prices. Therefore,
price restrictions are imposed on lettuce growers prohibiting them from raising the price of lettuce. This
will cause
A) an excess supply of lettuce.
B) an excess demand for lettuce.
C) an increase in the demand for lettuce.
D) a decrease in the supply of lettuce.
Topic: Market Equilibrium
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
74
Refer to the information provided in Figure 3.17 below to answer the question(s) that follow.
Figure 3.17
67) Refer to Figure 3.17. In the Rollerblade market, which is not government controlled, you accurately
predict that price will
A) increase, the quantity demanded will fall, and the quantity supplied will rise.
B) increase, the quantity demanded will rise, and the quantity supplied will fall.
C) decrease, the quantity demanded will fall, and the quantity supplied will fall.
D) decrease, the quantity demanded will rise, and the quantity supplied will fall.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-4
68) Refer to Figure 3.17. If the current quantity demanded of rollerblades is 150 per week, you accurately
predict that in this market
A) price and quantity supplied will increase and quantity demanded will decrease.
B) price and quantity supplied will decrease and quantity demanded will increase.
C) price, quantity supplied and quantity demanded will increase.
D) price, quantity supplied and quantity demanded will decrease.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-4
75
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18
69) Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2
and the price of burritos remains constant at $3.00, there will be
A) an excess supply of 150 million pounds of burritos.
B) an excess demand of 150 million pounds of burritos.
C) an excess supply of 50 million pounds of burritos.
D) an excess demand of 100 million pounds of burritos.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
70) Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D2 to D1
and the price of burritos remains constant at $4.00, there will be
A) an excess supply of 200 million pounds of burritos.
B) an excess demand of 200 million pounds of burritos.
C) an excess supply of 100 million pounds of burritos.
D) an excess demand of 100 million pounds of burritos.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
76
71) Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2,
the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A) $3.00; 250
B) $6.00; 250
C) $4.00; 350
D) $4.00; 150
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
72) Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D2 to D1,
the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A) $4.00; 350
B) $3.00; 250
C) $3.00; 400
D) $4.00; 150
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
73) Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2
and there is an excess demand of 150 million pounds of burritos, the price of burritos would be
A) $1.50.
B) $3.00.
C) $4.00.
D) $6.00.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
77
74) Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D2 to D1
and there is an excess supply of 200 million pounds of burritos, the price of burritos would be
A) $1.50.
B) $3.00.
C) $4.00.
D) $6.00.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
75) Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2,
the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A) $4.00 to $3.00; 250 to 350
B) $4.00 to $3.00; 350 to 250
C) $3.00 to $4.00; 250 to 350
D) $3.00 to $4.00; 350 to 250
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
76) Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D2 to D1,
the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A) $4.00 to $3.00; 250 to 350
B) $4.00 to $3.00; 350 to 250
C) $3.00 to $4.00; 250 to 350
D) $3.00 to $4.00; 350 to 250
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
78
Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19
77) Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2
and the price of cheeseburgers remains constant at $5.00, there will be
A) an excess supply of 6 cheeseburgers.
B) an excess demand of 6 cheeseburgers.
C) an excess supply of 3 cheeseburgers.
D) an excess demand of 4 cheeseburgers.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
78) Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2,
the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A) $5.00; 4
B) $5.00; 10
C) $7.00; 6
D) $7.00; 7
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
79
79) Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S2 to S1, the
new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A) $5.00; 4
B) $5.00; 10
C) $7.00; 6
D) $7.00; 7
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
80) Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2
and there is an excess demand of 6 cheeseburgers, the price of cheeseburgers will have
A) moved from $5.00 to $7.00.
B) moved from $7.00 to $5.00.
C) remained constant at $5.00.
D) remained constant at $7.00.
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
81) Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2,
the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A) $5.00 to $7.00; 10 to 7
B) $5.00 to $7.00; 4 to 7
C) $7.00 to $5.00; 7 to 4
D) $7.00 to $5.00; 7 to 10
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
80
82) Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S2 to S1, the
equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A) $5.00 to $7.00; 10 to 7
B) $5.00 to $7.00; 4 to 7
C) $7.00 to $5.00; 7 to 4
D) $7.00 to $5.00; 7 to 10
Topic: Market Equilibrium
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro-2
83) Related to the Economics in Practice on page 65: Increased preference for quinoa would most likely
shift the demand curve for quinoa to the ________ and lead to a(n) ________ in the price of quinoa, ceteris
paribus.
A) left; increase
B) left; decrease
C) right; increase
D) right; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
84) Related to the Economics in Practice on page 65: Consumption of quinoa has been on the rise. A grain
called teff has been referred to as quinoa's twin and is often consumed in place of quinoa. This would
make teff and quinoa ________, and an increase in the price of quinoa should ________ the demand for
teff, ceteris paribus.
A) substitutes; increase
B) substitutes; decrease
C) complements; increase
D) complements; decrease
Topic: Market Equilibrium: Economics in Practice
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-4
