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Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
55. All of the following would affect the position of the supply curve for cranberries, except
the:
56. A leftward shift of the supply curve for oil in the United States is most likely to result
from:
57. All of the following are assumed to be constant when the supply curve for a product is
drawn, except the:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
58. Refer to the above diagram, which shows three supply curves for corn. Which of the
following would cause the change in the supply of corn illustrated by the shift from S1 to S2?
59. Refer to the above diagram, which shows three supply curves for corn. Which of the
following would cause the change in the supply of corn illustrated by the shift from S1 to S3?
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
60. Which would cause a leftward shift in the supply curve for car washes?
61. A fall in the price of milk, used in the production of ice cream, will:
62. A movement along a given supply curve for a product is caused by a change in the:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
63. Which would cause an increase in quantity supplied of product A?
64. A plastics manufacturer can make either toys or containers. If the demand for toys
increases, then the:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
65. Refer to the above graph. An increase in the quantity supplied, other factors constant,
would best be reflected by a change from:
66. Refer to the above graph. A decrease in supply would best be reflected by a change from:
67. There is a shortage in a market for a product when:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
68. There is a surplus in a market for a product when:
69. A market for a product is in equilibrium when:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
70. Refer to the above diagram. The equilibrium price and quantity for milk in this market
are:
71. Refer to the above diagram. If the price were $2 per gallon, there would be a:
72. Refer to the above diagram. If the price were $1 per gallon, there would be a:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
73. Refer to the above diagram illustrating the market for corn. The equilibrium price and
quantity in this market are:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
74. Refer to the above diagram illustrating the market for corn. If the price in this market is at
$4 per bushel, then there will be a:
75. Refer to the above diagram illustrating the market for corn. If the price in this market is
fixed at $2 per bushel, then:
76. If the market price is above the equilibrium price:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
77. Refer to the above table. At a price of $15 per unit, which of the following would exist?
78. Refer to the above table. In a free-market economy, the market price and quantity will
adjust to:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
79. Refer to the above table. A surplus exists when the price is:
80. Refer to the above table. A shortage of 1,500 units will occur when the price is:
81. When a shortage of a commodity occurs, we would expect to find that:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
82. The market system automatically corrects a surplus condition in a competitive market by:
83. In competitive markets a surplus or shortage will:
84. In a competitive market, if the existing price is below the equilibrium price, market forces
will drive the price:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
85. A competitive market for a product must be in equilibrium when:
86. If an economy is being "productively efficient," then that means the economy is:
87. Allocative efficiency means that:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
88. Refer to the above table. If a technological advance lowers production costs such that the
quantity supplied increases by 60 units of this product at each price, the new equilibrium price
would be:
89. Refer to the above table. A technological advance lowers production costs such that the
quantity supplied increases by 60 units of this product at each price. As a result of this
technological change, equilibrium output in this market:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
3-35
The following data show the supply and demand schedules for a product.
90. Refer to the above data. The government now introduces a subsidy payment to producers
of $30 per unit. Assuming a purely competitive market for the product, the new equilibrium
price will be between:
The following data show the supply and demand schedules for a product in a competitive
market.
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
91. Refer to the above data. At the equilibrium price and quantity, consumer spending for all
units of the product bought and sold will be:
92. Refer to the above data. If there is a change in market conditions so that demand increases
by 20 units at each price, then:
93. A decrease in supply, holding demand constant, will cause:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
94. Which of the following statements is true?
95. An increase in the quantity of automobiles supplied would be caused by which of the
following?
96. A television station reports that the price of coffee has increased but the quantity traded in
the market has decreased. This situation would be caused by a(n):
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
97. A newspaper reports that the average price of new homes in a certain city had decreased,
and the number of new homes sold had also decreased. This situation is probably caused by:
98. A news story states that "CDs lose their appeal as consumers switch to iPods for music."
In a competitive market for CDs, this situation would lead to a(n):
99. A decrease in the price of digital cameras would lead to a(n):
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
100. A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation
would lead to a(n):
101. An increase in demand for oil along with a simultaneous increase in supply of oil will:
Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix)
102. Refer to the above graph, which shows the market for a product. Which of the following
could not explain the indicated increase in equilibrium price from P1 to P2?
103. Refer to the above graph, which shows the market for a product. Which of the following
would best explain why the shift in demand from D1 to D2 would cause price to rise from P1
to P2?
104. A and B are substitute goods, but A and C are complementary goods. If the costs of
producing A decrease, then the demand for:
