Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
58. By an “increase in demand” economists mean that:
59. The term “quantity demanded”:
60. A decrease in the demand for recreational fishing boats might be caused by an increase in
the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
61. Assume that the demand curve for product C is downsloping. If the price of C falls from
$2.00 to $1.75:
62. An increase in the quantity demanded means that:
63. An increase in product price will cause:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
64. In moving along a demand curve which of the following is not held constant?
65. In which of the following statements are the terms “demand” and “quantity demanded”
used correctly?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
66. Refer to the above diagram. A decrease in supply is depicted by a:
67. Refer to the above diagram. An increase in quantity supplied is depicted by a:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
68. The law of supply indicates that, other things equal:
69. The upward slope of the supply curve reflects the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
70. (Advanced analysis) The equation for the supply curve in the below diagram is
approximately:
71. The supply curve shows the relationship between:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
72. A firm’s supply curve is upsloping because:
73. Increasing marginal cost of production explains:
74. A leftward shift of a product supply curve might be caused by:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
75. The location of the product supply curve depends on the:
76. An improvement in production technology will:
77. Because of unseasonably cold weather, the supply of oranges has substantially decreased.
This statement indicates the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
78. If producers must obtain higher prices than before to produce a given level of output, then
the following has occurred:
79. In moving along a supply curve which of the following is not held constant?
80. Assume product A is an input in the production of product B. In turn product B is a
complement to product C. We can expect a decrease in the price of A to:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
81. Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a
basic ingredient in the production of bread and potatoes are a consumer substitute for bread,
we would expect the price of wheat to:
82. Suppose product X is an input in the production of product Y. Product Y in turn is a
substitute for product Z. An increase in the price of X can be expected to:
83. Other things equal, if the price of a key resource used to produce product X falls, the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
84. When the price of oil declines significantly, the price of gasoline also declines. The latter
occurs because of a(n):
85. An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:
86. A government subsidy to the producers of a product:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
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87. Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities
supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the
quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices?
88. Suppose that corn prices rise significantly. If farmers expect the price of corn to continue
rising relative to other crops, then we would expect:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
89. Refer to the above table. If demand is represented by columns (3) and (2) and supply is
represented by columns (3) and (5), equilibrium price and quantity will be:
90. Refer to the above table. If demand is represented by columns (3) and (1) and supply is
represented by columns (3) and (4), equilibrium price and quantity will be:
91. Refer to the above table. In relation to column (3), a change from column (2) to column
(1) would indicate a(n):
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
92. Refer to the above table. In relation to column (3), a change from column (5) to column
(4) would indicate a(n):
93. Refer to the above table. Suppose that demand is represented by columns (3) and (2) and
supply is represented by columns (3) and (5). If the price were artificially set at $9,
94. Refer to the above table. Suppose that demand is represented by columns (3) and (2) and
supply is represented by columns (3) and (5). If the price were artificially set at $6,
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
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95. Refer to the above table. In relation to column (3), a change from column (1) to column
(2) would mostly likely be caused by:
96. Refer to the above table. In relation to column (3), a change from column (4) to column
(5) would most likely be caused by:
Answer the question on the basis of the given supply and demand data for wheat:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
97. Refer to the above data. Equilibrium price will be:
98. Refer to the above data. If the price in this market was $4:
99. Refer to the above data. If price was initially $4 and free to fluctuate, we would expect
the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
100. Refer to the above diagram. The equilibrium price and quantity in this market will be:
101. Refer to the above diagram. A surplus of 160 units would be encountered if the price
was:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
102. Refer to the above diagram. A shortage of 160 units would be encountered if price was:
103. If there is a surplus of a product, its price:
104. A market is in equilibrium:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
105. If the demand and supply curves for product X are stable, a government-mandated
increase in the price of X will:
106. At the equilibrium price:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
107. Refer to the above diagram. A price of $60 in this market will result in:
108. Refer to the above diagram. A price of $20 in this market will result in a:
109. Refer to the above diagram. The highest price that buyers will be willing and able to pay
for 100 units of this product is: