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Tests, Surveys, and Pools Tests
Test Canvas : TestBanks Chapter 03: Supply and Demand
Microeconom ics, 3e
Test Canvas: TestBanks Chapter 03: Supply and Demand
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1. True/False: A competitive market occurs when ther...
Question A competitive market occurs when there are many buyers and sellers of the same
good.
2. True/False: The demand curve for season tickets f...
Question The demand curve for season tickets for the Miami Dolphins is the graphical
representation of how many tickets consumers want to buy at any given price.
3. True/False: An increase in demand for good X coul...
Question An increase in demand for good X could be caused by a decrease in the price of X.
4. True/False: The terms decrease in demand and decr...
Question The terms decrease in demand and decrease in quantity demanded can be used
interchangeably.
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5. True/False: According to the law of demand, if th...
Question According to the law of demand, if the price of steak increases in Rhode Island, the
demand for steak will decrease in Rhode Island.
6. True/False: An increase in income will always shi...
Question An increase in income will always shift the demand curve to the right.
7. True/False: If coffee and tea are viewed as subst...
Question If coffee and tea are viewed as substitutes in consumption, then an increase in the
price of coffee will increase the demand for tea.
8. True/False: After graduation many students' deman...
Question After graduation many students' demand for used cars decreases. This could be
because used cars are considered a normal good to college graduates.
9. True/False: The supply curve for apartments in Or...
Question The supply curve for apartments in Oregon reflects how many apartments landlords
are willing and able to offer for rent at a specific price.
10. True/False: An increase in the price of contact l...
Question An increase in the price of contact lenses will increase the supply of contact
lenses.
11. True/False: A major input into vanilla ice cream ...
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A major input into vanilla ice cream is cream. An increase in the price of cream will
reduce the quantity of vanilla ice cream supplied, but it will not reduce the supply of
vanilla ice cream.
12. True/False: If the input costs associated with su...
Question If the input costs associated with supplying gasoline increases in Wisconsin, the
supply of gasoline will decrease in Wisconsin.
13. True/False: If there is an excess supply of a goo...
Question If there is an excess supply of a good, the problem of scarcity does not apply to
that good.
14. True/False: Figure: Supply, Demand, and Equilibri...
Question Figure: Supply, Demand, and Equilibrium
Reference: Ref 3-18
(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and
Equilibrium. In the figure, there will be an excess supply of the good at a price of
P1.
15. True/False: Figure: Supply, Demand, and Equilibri...
Question
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Figure: Supply, Demand, and Equilibrium
Reference: Ref 3-18
(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and
Equilibrium. In the figure, there will be an excess demand of the good at a price of
P3.
16. True/False: Suppose there is an excess supply of ...
Question Suppose there is an excess supply of chemical engineers in India. Over time, the
salaries for chemical engineers will fall in India.
17. True/False: Suppose there is an excess demand for...
Question Suppose there is an excess demand for water in Florida. This means that we can
expect the price of water to increase in Florida over time.
18. True/False: If consumer tastes for electric cars ...
Question If consumer tastes for electric cars increase over the next 10 years, we will see an
increase in the demand for electric cars, higher electric car prices, and an increase
in the equilibrium quantity of electric cars.
19. True/False: “In 2008, air travel decreased ...
Question “In 2008, air travel decreased substantially despite significant reductions in ticket
prices.” If this information is correct, it indicates that the law of demand did not
apply to air travel in 2008.
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20. True/False: If demand decreases and supply increa...
Question If demand decreases and supply increases, the direction of change in the
equilibrium quantity is unpredictable unless the relative magnitudes of the demand
and supply changes are known.
21. Multiple Choice: The market for corn in Kansas is cons...
Question The market for corn in Kansas is considered to be competitive. This means there
are ________ buyers and ________ sellers of corn in Kansas.
Answer many; few
22. Multiple Choice: The law of demand states that other t...
Question The law of demand states that other things equal:
Answer as the price increases, the quantity demanded will increase.
23. Multiple Choice: A negative relationship between the q...
Question A negative relationship between the quantity demanded and price is called the law
of:
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24. Multiple Choice: Which of the following examples illus...
Question Which of the following examples illustrates the law of demand?
Answer An increase in tuition encourages more students to enroll in college because
the quality of education has risen.
25. Multiple Choice: ________ illustrates an inverse relat...
Question ________ illustrates an inverse relationship between price and quantity.
26. Multiple Choice: A negative relationship between the q...
Question A negative relationship between the quantity demanded and price is called the law
of ________.
27. Multiple Choice: The law of demand is illustrated by a...
Question The law of demand is illustrated by a demand curve that is:
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vertical.
upward sloping.
28. Multiple Choice: The law of demand implies that:
Question The law of demand implies that:
Answer consumers are not responsive to price changes.
29. Multiple Choice: The ________ apples will decrease whe...
Question The ________ apples will decrease when apple prices rise.
Answer demand for
30. Multiple Choice: A decrease in the price of a good wil...
Question A decrease in the price of a good will result in:
Answer an increase in demand.
31. Multiple Choice: Which of the following factors would ...
Question Which of the following factors would cause a movement along the demand curve for
a particular good?
Answer a change in the prices of related goods
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32. Multiple Choice: A decrease in the price of eggs will ...
Question A decrease in the price of eggs will result in:
Answer an increase in the demand for eggs.
33. Multiple Choice: Which of the following best describes...
Question Which of the following best describes the law of demand?
Answer As income taxes rise, fewer new cars are purchased.
34. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is correct?
Answer A change in demand is a movement along the demand curve, and a change in
quantity demanded is a shift of the demand curve.
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35. Multiple Choice: In much of the country, homeowners ch...
Question In much of the country, homeowners choose to heat their houses with either
natural gas or home heating oil. Which of the following would cause a change in
the demand for natural gas?
Answer a change in the price of home heating oil
36. Multiple Choice: Raclette is a popular wintertime dish...
Question Raclette is a popular wintertime dish in Switzerland. It is essentially melted
Raclette cheese over boiled new potatoes. If the price of Raclette cheese
decreased, we would expect to see:
Answer an increase in demand for Raclette cheese.
37. Multiple Choice: When the economy suffers a downturn a...
Question When the economy suffers a downturn and the incomes of many people decrease,
vacationers are more likely to take car trips than to fly. Which of the following
provides one possible explanation for this phenomenon?
Answer Air travel and vacation travel by car are complementary goods.
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38. Multiple Choice: A shift of the demand curve for thin-...
Question A shift of the demand curve for thin-crust pizza would not be caused by a change
in:
Answer buyers' incomes.
39. Multiple Choice: If goods A and B are substitutes, a d...
Question If goods A and B are substitutes, a decrease in the price of good B will:
Answer increase the demand for good A.
40. Multiple Choice: If goods A and Z are complements, an ...
Question If goods A and Z are complements, an increase in the price of good Z will:
Answer increase the demand for good A.
41. Multiple Choice: Over the past several years, consumer...
Question Over the past several years, consumers have had an increasing interest in getting a
tattoo. This means that the ________ for tattoos has ________.
Answer quantity demanded; increased
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42. Multiple Choice: Which of the following will not cause...
Question Which of the following will not cause an increase in demand for good X?
Answer a decrease in income if good X is an inferior good
43. Multiple Choice: A good is normal if which of the foll...
Question A good is normal if which of the following is true?
Answer When income increases, the demand remains unchanged.
44. Multiple Choice: A good is inferior if which of the fo...
Question A good is inferior if which of the following is true?
Answer When income increases, the demand remains unchanged.
45. Multiple Choice: The demand curve for videos has shift...
Question The demand curve for videos has shifted to the right. What could have caused it?
Answer a fall in the price of videos
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46. Multiple Choice: Which of the following best describes...
Question Which of the following best describes demand?
Answer A change in demand is a movement along the demand curve, and a change in
quantity demanded is a shift in the demand curve.
47. Multiple Choice: If people demand more of product A wh...
Question If people demand more of product A when the price of B falls, then A and B are:
Answer not related.
48. Multiple Choice: If the demand for tires goes down whe...
Question If the demand for tires goes down when the price of gas goes up, then tires and gas
are:
Answer substitutes.
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49. Multiple Choice: An increase in the price of hamburger...
Question An increase in the price of hamburger would probably result in ________ in the
demand for hamburger buns.
50. Multiple Choice: An announcement that smoking will har...
Question An announcement that smoking will harm your ability to think clearly will most
likely result in:
51. Multiple Choice: If steak and potatoes are complements...
Question If steak and potatoes are complements, when the price of steak goes up, the
demand curve for potatoes:
Answer shifts to the right.
52. Multiple Choice: If chicken and beef are substitutes, ...
Question If chicken and beef are substitutes, then a fall in the price of chicken will bring
about:
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53. Multiple Choice: For most goods, purchases tend to ris...
Question For most goods, purchases tend to rise with increases in buyers' incomes and to
fall with decreases in buyers' incomes. Such goods are known as:
Answer inferior goods.
54. Multiple Choice: An inferior good is one for which ___...
Question An inferior good is one for which ________ in buyers' income causes ________.
Answer an increase; an increase in demand
55. Multiple Choice: Pizza is a normal good. If students' ...
Question Pizza is a normal good. If students' incomes at your college increase, the effect on
pizza would be:
56. Multiple Choice: After graduation from college, you mi...
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Question After graduation from college, you might have an increase in your income from a
new job. If, as a result, you decide that you will purchase more T-bone steak and
less hamburger, then for you hamburger would be considered:
Answer a normal good.
57. Multiple Choice: An increase in the demand for gasolin...
Question An increase in the demand for gasoline today caused by concerns that gasoline
prices will be higher tomorrow is most likely attributable to which of the following?
Answer income
58. Multiple Choice: Which of the following would shift th...
Question Which of the following would shift the demand curve for new textbooks to the right?
Answer a decrease in the price of paper
59. Multiple Choice: Which of the following is likely to c...
Question Which of the following is likely to cause a rightward shift in the demand for home-
delivered pizza?
Answer a lower price of pizza
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60. Multiple Choice: Which of the following describes two ...
Question Which of the following describes two goods that are most likely substitutes in
consumption?
Answer loaves of bread and sticks of butter
61. Multiple Choice: The demand for meals at a local Apple...
Question The demand for meals at a local Applebee's will shift to the left if:
62. Multiple Choice: Which will not increase demand for de...
Question Which will not increase demand for desktop computers?
Answer an increase in the incomes of computer users
63. Multiple Choice: What will happen in the market for ca...
Question What will happen in the market for canned pinto beans if your income increases?
Answer Demand will increase if pinto beans are an inferior good.
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64. Multiple Choice: When the price of gas goes down and t...
Question When the price of gas goes down and the demand for tires goes up, a likely
possibility is that tires and gas are:
Answer substitutes.
65. Multiple Choice: If the price of hamburger decreased, ...
Question If the price of hamburger decreased, it would probably result in ________ in the
demand for hamburger buns.
Answer a decrease
66. Multiple Choice: The demand curve for running shoes ha...
Question The demand curve for running shoes has shifted to the right. What could have
caused it?
Answer a fall in the price of running shoes
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67. Multiple Choice: Figure: Demand for Coconuts Reference...
Question Figure: Demand for Coconuts
Reference: Ref 3-1
(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If
coconuts area normal good and the price of coconuts increases, it would be
represented in the figure as a movement from:
Answer A to B.
68. Multiple Choice: Figure: Demand for Coconuts Reference...
Question
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Figure: Demand for Coconuts
Reference: Ref 3-1
(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If fish is a
substitute good for coconuts and the price of fish increases, it will be represented
in the figure as a movement from:
69. Multiple Choice: Figure: Demand for Coconuts Reference...
Question Figure: Demand for Coconuts
Reference: Ref 3-1
(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If
coconuts are a normal good and the income level of consumers falls, it will be
represented in the figure as a movement from:
Answer A to C.
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70. Multiple Choice: Figure: Demand for Coconuts Reference...
Question Figure: Demand for Coconuts
Reference: Ref 3-1
(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If there is
an increase in preference for coconuts, it will be represented in the figure as a
movement from:
71. Multiple Choice: Figure: Demand for Coconuts Reference...
Question
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