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Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
1. When economists describe "a market," they mean:
2. All markets involve the following elements, except:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
3. In the labor markets,
4. A market demand schedule for a product would indicate that:
5. When one speaks of "demand" in a particular market, this refers to:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
6. Other things being equal, the law of demand suggests that as:
7. A higher price reduces the quantity demanded for a product because:
8. Which is consistent with the law of demand?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
9. The demand curve is a representation of the relationship between the quantity of a product
demanded and:
10. As a result of a fall in the price of gasoline, consumers can afford to take more driving
trips. This is an illustration of:
11. As a result of a decrease in the price of MP3 music, consumers download more songs and
buy fewer CDs. This is an illustration of:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
12. Which statement best illustrates the concept of diminishing marginal utility?
13. The rationale for the law of demand can best be understood on the basis of:
14. The horizontal axis of a graph which shows a market demand curve indicates the:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
15. Graphically, the horizontal sum of all individual demand curves is known as:
The table below shows the demand for wheat in a market where there are just three buyers.
16. Refer to the above table. At a price of $6, the market demand for wheat is:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
17. Refer to the above table. The market quantity demanded for wheat is:
18. If there were 500 buyers with demand schedules similar to the market demand of the three
buyers in the table above, then the quantity of wheat demanded at $5 by the 500 buyers would
be:
19. Which of the following is a determinant of demand?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
20. An increase in the demand for computers indicates that:
21. Which is not a determinant of demand?
22. Which is a determinant of the demand for housing?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
23. Which would be a likely cause of an increase in the demand for pizza?
24. Which will not cause a change in the demand for product A?
25. Which goods would usually be an inferior good?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
26. If product Y is an inferior good, a decrease in consumer incomes will:
27. For most products, purchases tend to fall with decreases in buyers' incomes. Such
products are known as:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
28. Refer to the above diagram, which shows three demand curves for coffee. Which of the
following would cause a shift in coffee demand from D1 to D2?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
29. Refer to the above diagram, which shows three demand curves for coffee. Which of the
following would cause a shift in coffee demand from D1 to D3?
30. Suppose that goods A and B are close substitutes. If the price of good A falls, then we
would expect an:
31. Which factor will decrease the demand for a product?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
32. Which would cause an increase in the demand for product A?
33. Which of the following pairs are not considered to be complementary goods?
34. If the price of gasoline increases and car dealers suffer a decrease in demand for sport
utility vehicles, then gasoline and sport utility vehicles are:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
35. All of the following would affect the position of the demand curve for personal
computers, except the:
36. If the price of ground beef increases, the demand for hamburger buns is predicted to:
37. An increase in the price of product B leads to an increase in the demand for product C.
This indicates that products B and C are:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
38. All of the following would cause an increase in the demand for private airplanes at a given
price, except a(n):
39. When economists say that the demand for a product has decreased, they mean that:
40. Which would have no effect on the demand for motorcycles?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
41. An increase in the price of product G will result in a:
42. Refer to the above graph with three demand curves. An increase in quantity demanded
would be illustrated by a change from:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
43. Refer to the above graph with three demand curves. A decrease in demand would be
illustrated as a change from:
44. Refer to the above graph with three demand curves. An increase in price, other factors
constant, would cause a change from:
45. An increase in demand is shown graphically by a:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
46. A decrease in demand is shown graphically as a:
47. Which statement is true about supply?
48. If the price of a product decreases, we would expect:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
49. An "increase in the quantity supplied" suggests a:
50. Suppose that a more efficient way to produce a good is discovered, thus lowering
production costs for the good. This will cause a(n):
51. Which of the following is a determinant of supply?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
52. If farmers withhold some of their current corn harvest from the market because they
anticipate a higher price of corn in the future, then this would cause a(n):
53. Which of the following will not cause the supply curve to shift?
54. Which would cause a rightward shift in the supply curve for telephone service?
