Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
105. The price of pork may increase as a result of:
106. Refer to the above graph, which shows the market for chicken where D1 and D2 represent
different demand curves. A change from E1 to E2 is most likely to result from:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
107. Refer to the above graph, which shows the market for chicken where D1 and D2 represent
different demand curves. A change from E1 to E2 is most likely to result from:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
108. Select the graph above that best shows the change in the market specified in the
following situation: In the market for leather coats, when leather coats become more
fashionable among young consumers.
109. Select the graph above that best shows the change in the market specified in the
following situation: In the market for chicken, when the price of a substitute, such as beef,
decreases.
110. Select the graph above that best shows the change in the market specified in the
following situation: In the market for digital cameras, when the productivity of workers in the
digital camera industry increases.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
111. Select the graph above that best shows the change in the market specified in the
following situation: In the market for houses, when consumers experience a substantial fall in
income due to a serious economic recession.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
112. Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original
supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply
curves. Starting from the initial equilibrium (point 1), what point on the graph is most likely
to result from the introduction of technological improvements in bicycle assembly, and
successful publicity campaigns by the government on the virtues of bicycling to work?
113. Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original
supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply
curves. Starting from the initial equilibrium (point 1), what point on the graph is most likely
to result from an increase in wages of bicycle workers, and a significant increase in the price
of gasoline?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
114. Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original
supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply
curves. Starting from the initial equilibrium (point 1), what point on the graph is most likely
to result from reports of increased accidents on roads involving cyclists, and the payment of
subsidies to bicycle producers?
115. What is the likely effect on the market for wine of a simultaneous increase in both
consumer incomes and producer taxes on wine?
116. Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month
the company raised its price to $35 per shirt and sold 300 shirts. Evidently the company
experienced a(n):
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
117. If peanut butter and grape jelly are complementary products, which diagram above
illustrates the effect in the peanut butter market of a decrease in the price of grape jelly?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
118. Which diagram above illustrates the effects on the peanut butter market of a higher wage
rate for peanut workers?
119. Which diagram above illustrates the effect on the peanut butter market of a technological
advance which reduces the costs of harvesting peanuts?
120. If peanut butter and cheese spread are substitute products, which diagram above
illustrates the effect on the peanut butter market of a decrease in the price of cheese spread?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
121. Refer to the four graphs above. Select the graph that best shows the changes in demand
and supply in the market specified in the following situation: In the market for beef, if
newspapers report numerous stories of confirmed cases of mad cow disease, and cattle
producers reduce their herds because of the high cost of cattle feed.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
122. Refer to the four graphs above. Select the graph that best shows the changes in demand
and supply in the market specified in the following situation: In the market for home heating
oil, if consumers experience a severely cold and long winter, and heating oil producers pay
higher prices for crude oil.
123. Refer to the four graphs above. Select the graph that best shows the changes in demand
and supply in the market specified in the following situation: In the market for camera film, if
consumers show greater interest in digital cameras that do not use film, and producers of film
have a reduction in labor costs.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
124. Refer to the four graphs above. Select the graph above that best shows the changes in
demand and supply in the market specified in the following situation: In the market for corn,
if gasoline producers use more ethanol from corn, and good weather during the growing
season increases the corn crop.
125. Refer to the four graphs above. Select the graph above that best shows the changes in
demand and supply in the market specified in the following situation: In the market for music
CDs sold in stores, if more consumers switch to music-downloads from the Internet, and the
cost of making music CDs decreases because of technological improvement in production.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
126. Refer to the four graphs above. Select the graph above that best shows changes in
demand and supply in the market specified in the following situation: In the market for autos,
if the economy experiences a deep recession, and there are lengthy strikes in the auto
industry.
127. Over a period of time, the price of a good or service increases and the quantity of the
good or service sold decreases. All of the following could account for this situation, except:
128. Which would best explain a decrease in both the price and the quantity of a product over
a period of time?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
129. An increase in demand and a decrease in supply will:
130. A decrease in supply and a decrease in demand will:
131. What combination of changes in supply and demand would most likely increase the
equilibrium quantity?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
133. An increase in the price of product A together with a decrease in the quantity of A
demanded could be the result of a(n):
134. An increase in the demand for corn is more than offset by an increase in its supply. As a
result the equilibrium price will:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
135. An increase in the supply of gasoline is more than offset by an increase in its demand. As
a result the equilibrium price will:
136. Refer to the above table. If demand decreased by 4 units at each price, what would the
new equilibrium price and quantity be?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
137. Refer to the above table. If supply decreased by 2 units at each price, what would the
new equilibrium price and quantity be?
138. Refer to the above table. If demand decreased by 4 units at each price and supply
decreased by 2 units at each price, what would the new equilibrium price and quantity be?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
139. In a competitive market illustrated by the diagram above, a price floor of $25 per unit
will result in:
140. In a competitive market illustrated by the diagram above, a price ceiling of $10 per unit
will result in:
141. In a competitive market illustrated by the diagram above, a price ceiling of $25 per unit
will result in:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
142. In a competitive market illustrated by the diagram above, for a price floor to be effective
and alter the market situation, it must be set:
143. If a price ceiling is set below the equilibrium price in a market:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
144. Consider the supply and demand curves depicted in the diagram above. If the market was
initially at equilibrium, but the government then imposed a price ceiling of $15, then the total
revenue received by suppliers would:
145. Consider the supply and demand curves depicted in the diagram above. If the
government imposed a price ceiling of $15, then buyers will be able to legally buy:
146. Consider the supply and demand curves depicted in the diagram above. If the
government imposed a price ceiling of $10, then sellers will be willing to sell:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
147. In a market with supply and demand curves as shown above, a legal price ceiling of
$2.50 will result in:
148. Government-set price floors and price ceilings: