1. Correct Refer to the graph below. The dot represents a point on the individual’s demand curve for printers. Which of the following interpretations of the dot on the graph is correct? OSG_fig3_1.gif Your Answer: When one printer costs $125, this individual buys five of them per month. Correct. In this example, the quantity of printers demanded per month is five when the price per printer is $125. 2. Correct Which of the following defines a demand schedule? Your Answer: A table showing the relationship between the price of a product and the quantity of the product demanded. Correct. The demand schedule is a table, not a curve or a single amount of quantity demanded at a given price. 3. Correct Which of the following defines a market demand? Your Answer: The demand for a product by all the consumers in a given geographical area. Correct. This is the definition of market demand. 4. Correct Refer to the graph below. Along the demand curve, in what direction does quantity demanded move?
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1.Correct Refer to the graph below. The dot represents a point on the
individual’s demand curve for printers. Which of the following interpretations of the dot on the graph is correct?
OSG_fig3_1.gif
Your Answer:When one printer costs $125, this individual buys five of them per
month. Correct. In this example, the quantity of printers demanded per month is five when the price per printer is $125.
2.Correct Which of the following defines a demand schedule?
Your Answer:A table showing the relationship between the price of a product and
the quantity of the product demanded. Correct. The demand schedule is a table, not a curve or a single amount of quantity demanded at a given price.
3.Correct Which of the following defines a market demand?
Your Answer:The demand for a product by all the consumers in a given geographical
area. Correct. This is the definition of market demand.
4.Correct Refer to the graph below. Along the demand curve, in what
direction does quantity demanded move?
OSG_fig3_2.gif
Your Answer:In the opposite direction as a change in price.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
5.Correct Which of the following procedures is correct?
Your Answer:To derive a market demand curve, we add individual demand curves.
Correct. A market demand curve can be obtained from individual demand curves. To derive a market demand curve, we add the quantities that consumers are willing to purchase at a given price, and we do the same for various price levels.
6.Correct Which of the following establishes the inverse relationship
between the price of a product and the quantity of the product demanded?
Your Answer:The law of demand.
Correct. The law of demand states that there is an inverse relationship between the price of a product and the quantity of the product demanded.
7.Correct Which of the following best describes how changes in price
affect a consumer’s purchasing power?
Your Answer:The income effect.
Correct. Along with the substitution effect, the income effect helps to explain why a demand curve is downward sloping.
8.Correct When analyzing the relationship between the price of a
good and quantity demanded, other variables must be held constant. Which term best describes such an assumption?
Your Answer:The term ceteris paribus.
Correct. The term ceteris paribus is related to controlling variables during an analysis.
9.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in the price of a complementary good?
OSG_fig3_4.gif
Your Answer:The graph on the right.
Correct. Demand decreases when the price of a complementary good increases.
10.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in the taste for printers?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When tastes for a product rise, the demand for the good in question also rises.
11.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in the expected price of printers in the future?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When the expected future price of a product rises, the demand for the good in question today also rises.
12.
Correct When two goods are substitutes, which of the following occurs?
Your Answer:An increase in the price of good X leads to an increase in the quantity
demanded of good Y. Correct. When two goods, X and Y, are substitutes, an increase in the price of good X leads to an increase in the quantity demanded of good Y.
13.Correct What is a normal good?
Your Answer:A good for which demand increases as income rises.
Correct. The term normal good is related to the decision to buy more of a good as income rises.
14.Correct Refer to the graph below. Which of the following moves best
describes a change in quantity demanded?
OSG_fig3_5.gif
Your Answer:The move from A to B.
Incorrect. This move shows a change in quantity demanded, which is strictly the result of a change in price.
15.Correct Refer to the graph below. Which of the following moves best
describes what happens when a change in the price of printers affects the market demand for printers?
OSG_fig3_5.gif
Your Answer:The move from A to B.
Correct. This move shows a change in quantity demanded, which is strictly the result of a change in price.
16.Correct Which of the following defines a supply schedule?
Your Answer:A table that shows the relationship between the price of a product and
the quantity of the product supplied. Correct. A table that shows the relationship between the price of a product and the quantity of the product supplied is called the supply schedule.
17.Correct Which of the following best describes the law of supply?
Your Answer:An increase in price causes an increase in the quantity supplied, and a
decrease in price cause decrease in the quantity supplied. Correct. This is the law of supply.
18.Correct If there are three producers in a market, how can market
supply be obtained?
Your Answer:By adding the quantities supplied by each seller at various prices.
Correct. We add the quantities supplied by each seller at various prices.
19.Correct Refer to the graphs below. Each graph refers to the supply
for printers. Which of the graphs best describes the impact of an increase in productivity?
OSG_fig3_8.gif
Your Answer:The graph on the right.
Correct. This graph shows an increase in supply. When productivity increase, supply increases.
20.
Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of the graphs best describes the impact of an increase in the expected future price of the product?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the expected future price of a product increases, supply for the good in question decreases because less of the good will be produced today and more will be produced in the future in order to take advantage of the higher price in the future.
21.Correct Refer to the graphs below. Each graph refers to the supply
for printers. Which of the graphs best describes the impact of an increase in the price of the product?
OSG_fig3_8.gif
Your Answer:Neither graph.
Correct. Neither graph applies. A change in the price of a product causes a change in quantity supplied, not a change in supply (there is a difference!).
22.Correct Refer to the graph below. Which of the following moves best
describes a change in quantity supplied?
OSG_fig3_9.gif
Your Answer:A move from A to B.
Correct. A move along the supply curve shows a change in quantity supplied, not a change in supply.
23.
Correct Refer to the graph below. Which of the following moves best describes what happens when a change the price of printers affects market supply?
OSG_fig3_9.gif
Your Answer:A move from A to B.
Correct. A move along the supply curve shows a change in quantity supplied, not a change in supply.
24.Correct Refer to the graph below. Which market price results in a
shortage?
OSG_fig3_11.gif
Your Answer:$75
Correct. At this price, quantity demanded is greater than quantity supplied.
25.Correct If the magnitude of an increase in demand is greater than
the magnitude of an increase in supply, what happens to equilibrium price and quantity in the market?
Your Answer:Equilibrium price will rise and quantity will rise.
Correct. Figure 3-14a illustrates this case.
26.Correct What does the term quantity demanded refer to?
Your Answer:The quantity of a good or service that a consumer is willing to
purchase at a given price. Correct. Quantity demanded is the quantity purchased per period of time for a given price.
27.Correct Which of the following defines a demand curve?
Your Answer:A curve that shows the relationship between the price of a product and
the quantity of the product demanded. Correct. This is the definition of demand curve.
28.Correct Refer to the graph below. What happens to quantity
demanded in this graph?
OSG_fig3_2.gif
Your Answer:It increases as the price decreases.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
29.Correct When the price of a printer rises, the quantity of printers
demanded by Kate falls. According to this statement, how would we describe Kate’s demand curve for printers?
Your Answer:Downward sloping.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
30.Correct If there are three consumers in a market, how can market
demand be obtained?
Your Answer:By adding the quantities that consumers are willing to purchase at a
given price, for various price levels. Correct. A market demand curve can be obtained from individual demand curves. To derive a market demand curve, we add the quantities
that consumers are willing to purchase at a given price, and we do the same for various price levels.
31.Correct What is the law of demand?
Your Answer:The law of demand states that, holding everything else constant, when
the price of good falls, the quantity demanded will increase, and vice versa. Correct. According to the law of demand, there is an inverse relationship between the price of a product and the quantity of the product demanded.
32.Correct Which of the following best describes how consumers
consider buying those other goods when the price of a good rises?
Your Answer:The substitution effect.
Correct. The substitution effect, along with the income effect, help to explain why a demand curve is downward sloping.
33.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in the price of a substitute good?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When the price of substitute good rises, the demand for the good in question also rises.
34.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in income, assuming that printers are a normal good?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When income rises, the demand for the good in question also rises.
35.Correct Refer to the graphs below. Each graph refers to the demand
for printers. Which of the graphs best describes the impact of an increase in population?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When population rises, the demand for the good in question also rises.
36.Correct When two goods, X and Y are complements, which of the
following occurs?
Your Answer:An increase in the price of good X leads to a decrease in the quantity
demanded of good Y. Correct. When two goods, X and Y, are complements, an increase in the price of good X leads to a decrease in the quantity demanded of good Y.
37.Correct What is an inferior good?
Your Answer:A good for which demand decreases as income rises.
Correct. The term inferior good is related to the decision to buy less of a good as income rises.
38.Correct Refer to the graph below. Which of the following moves best
describes a change in demand?
OSG_fig3_5.gif
Your Answer:A move from A to C.
Correct. This move shows a change in quantity demanded, which is strictly the result of a change in price.
39.Correct Refer to the graph below. Which of the following moves best
describes what happens when a change in something other than the price of printers affects the market demand for printers?
OSG_fig3_5.gif
Your Answer:A move from A to C.
Correct. When a variable that affects demand, other than price, changes, demand shifts.
40.Correct What does the term quantity supplied refer to?
Your Answer:The quantity of a good or service that a firm is willing to supply at a
given price. Correct. Quantity supplied is the quantity of a good or service that a firm is willing to supply at a given price.
41.Correct Which of the following is the textbook’s definition of supply
curve?
Your Answer:A curve that shows the relationship between the price of a product and
the quantity of the product supplied. Correct. A curve that shows the relationship between the price of a product and the quantity of the product demanded is called a supply curve.
42.Correct Which of the following procedures is correct?
Your Answer:To derive a market supply curve, we add individual supply curves.
Correct. A market supply curve is the horizontal summation of individual supply curves.
43.Correct Refer to the graphs below. Each graph refers to the supply
for printers. Which of the graphs best describes the impact of an increase in the price of an input?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the price of an input increases, supply decreases.
44.Correct Refer to the graphs below. Each graph refers to the supply
for printers. Which of the graphs best describes the impact of an increase in the price of a substitute in production?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the price of a substitute in production increases, supply for the good in question decreases because more of the substitute is produced and less of the good in question is produced.
45.Correct Refer to the graphs below. Each graph refers to the supply
for printers. Which of the graphs best describes the impact of an increase in the number of firms in the market?
OSG_fig3_8.gif
Your Answer:
The graph on the right. Correct. This graph shows an increase in supply. When the number of firms in the market increases, supply increases.
46.Correct Refer to the graph below. Which of the following moves best
describes a change in supply?
OSG_fig3_9.gif
Your Answer:A move from B to C.
Correct. A change in supply is caused by changes in variables that affect supply, other than price, and results in a shift of the supply curve.
47.Correct Refer to the graph below. Which of the following moves best
describes what happens when a change in something other than the price of printers affects market supply?
OSG_fig3_9.gif
Your Answer:A move from B to C.
Correct. A change in supply is caused by changes in variables that affect supply, other than price, and results in a shift of the supply curve.
48.Correct Refer to the graph below. What happens when market price
equals $125?
OSG_fig3_11.gif
Your Answer:There is a surplus of 3 million printers.
Correct. At $125, quantity supplied equals 21.5 million printers, while quantity demanded is only 18.5 million printers. The difference, (21.5 – 18.5) = 3 million, is the excess quantity supplied, or surplus.
49.Correct Refer to the graph below. What is the impact of higher
population and income growth on equilibrium in this graph?
OSG_fig3_10.gif
Your Answer:A higher equilibrium price and higher equilibrium quantity.
Correct. Figure 3-13 in the textbook describes this situation.
50.Correct If the magnitude of an increase in supply is greater than the
magnitude of an increase in demand, what happens to equilibrium price and quantity in the market?
Your Answer:Equilibrium price will fall and quantity will rise.
Correct. Figure 3-14b illustrates this case.
1.Correct Refer to the graph below. The dot represents a point on the individual’s demand
curve for printers. Which of the following interpretations of the dot on the graph is correct?
OSG_fig3_1.gif
Your Answer:When one printer costs $125, this individual buys five of them per month.
Correct. In this example, the quantity of printers demanded per month is five when the price per printer is $125.
2.Correct Which of the following defines a demand schedule?
Your Answer:A table showing the relationship between the price of a product and the quantity of the product
demanded. Correct. The demand schedule is a table, not a curve or a single amount of quantity demanded at a given price.
3.Correct Which of the following defines a market demand?
Your Answer:The demand for a product by all the consumers in a given geographical area.
Correct. This is the definition of market demand.
4.Correct Refer to the graph below. Along the demand curve, in what direction does
quantity demanded move?
OSG_fig3_2.gif
Your Answer:In the opposite direction as a change in price.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
5.Correct Which of the following procedures is correct?
Your Answer:To derive a market demand curve, we add individual demand curves.
Correct. A market demand curve can be obtained from individual demand curves. To derive a market demand curve, we add the quantities that consumers are willing to purchase at a given price, and we do the same for various price levels.
6.Correct Which of the following establishes the inverse relationship between the price of a
product and the quantity of the product demanded?
Your Answer:The law of demand.
Correct. The law of demand states that there is an inverse relationship between the price of a product and the quantity of the product demanded.
7.Correct Which of the following best describes how changes in price affect a consumer’s
purchasing power?
Your Answer:The income effect.
Correct. Along with the substitution effect, the income effect helps to explain why a demand curve is downward sloping.
8.
Correct When analyzing the relationship between the price of a good and quantity demanded, other variables must be held constant. Which term best describes such an assumption?
Your Answer:The term ceteris paribus.
Correct. The term ceteris paribus is related to controlling variables during an analysis.
9.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in the price of a complementary good?
OSG_fig3_4.gif
Your Answer:The graph on the right.
Correct. Demand decreases when the price of a complementary good increases.
10.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in the taste for printers?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When tastes for a product rise, the demand for the good in question also rises.
11.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in the expected price of printers in the future?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When the expected future price of a product rises, the demand for the good in question today also rises.
12.Correct When two goods are substitutes, which of the following occurs?
Your Answer:
An increase in the price of good X leads to an increase in the quantity demanded of good Y. Correct. When two goods, X and Y, are substitutes, an increase in the price of good X leads to an increase in the quantity demanded of good Y.
13.Correct What is a normal good?
Your Answer:A good for which demand increases as income rises.
Correct. The term normal good is related to the decision to buy more of a good as income rises.
14.Correct Refer to the graph below. Which of the following moves best describes a change
in quantity demanded?
OSG_fig3_5.gif
Your Answer:The move from A to B.
Incorrect. This move shows a change in quantity demanded, which is strictly the result of a change in price.
15.Correct Refer to the graph below. Which of the following moves best describes what
happens when a change in the price of printers affects the market demand for printers?
OSG_fig3_5.gif
Your Answer:The move from A to B.
Correct. This move shows a change in quantity demanded, which is strictly the result of a change in price.
16.Correct Which of the following defines a supply schedule?
Your Answer:A table that shows the relationship between the price of a product and the quantity of the product
supplied. Correct. A table that shows the relationship between the price of a product and the quantity of the product supplied is called the supply schedule.
17.Correct Which of the following best describes the law of supply?
Your Answer:An increase in price causes an increase in the quantity supplied, and a decrease in price cause
decrease in the quantity supplied. Correct. This is the law of supply.
18.Correct If there are three producers in a market, how can market supply be obtained?
Your Answer:By adding the quantities supplied by each seller at various prices.
Correct. We add the quantities supplied by each seller at various prices.
19.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in productivity?
OSG_fig3_8.gif
Your Answer:The graph on the right.
Correct. This graph shows an increase in supply. When productivity increase, supply increases.
20.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in the expected future price of the product?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the expected future price of a product increases, supply for the good in question decreases because less of the good will be produced today and more will be produced in the future in order to take advantage of the higher price in the future.
21.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in the price of the product?
OSG_fig3_8.gif
Your Answer:Neither graph.
Correct. Neither graph applies. A change in the price of a product causes a change in quantity supplied, not a change in supply (there is a difference!).
22.Correct Refer to the graph below. Which of the following moves best describes a change
in quantity supplied?
OSG_fig3_9.gif
Your Answer:A move from A to B.
Correct. A move along the supply curve shows a change in quantity supplied, not a change in supply.
23.Correct Refer to the graph below. Which of the following moves best describes what
happens when a change the price of printers affects market supply?
OSG_fig3_9.gif
Your Answer:A move from A to B.
Correct. A move along the supply curve shows a change in quantity supplied, not a change in supply.
24.Correct Refer to the graph below. Which market price results in a shortage?
OSG_fig3_11.gif
Your Answer:$75
Correct. At this price, quantity demanded is greater than quantity supplied.
25.Correct If the magnitude of an increase in demand is greater than the magnitude of an
increase in supply, what happens to equilibrium price and quantity in the market?
Your Answer:Equilibrium price will rise and quantity will rise.
Correct. Figure 3-14a illustrates this case.
26.
Correct What does the term quantity demanded refer to?
Your Answer:The quantity of a good or service that a consumer is willing to purchase at a given price.
Correct. Quantity demanded is the quantity purchased per period of time for a given price.
27.Correct Which of the following defines a demand curve?
Your Answer:A curve that shows the relationship between the price of a product and the quantity of the
product demanded. Correct. This is the definition of demand curve.
28.Correct Refer to the graph below. What happens to quantity demanded in this graph?
OSG_fig3_2.gif
Your Answer:It increases as the price decreases.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
29.Correct When the price of a printer rises, the quantity of printers demanded by Kate falls.
According to this statement, how would we describe Kate’s demand curve for printers?
Your Answer:Downward sloping.
Correct. The demand curve is downward sloping. There is an inverse relationship between price and quantity demanded. Price and quantity demanded move in opposite directions.
30.Correct If there are three consumers in a market, how can market demand be obtained?
Your Answer:By adding the quantities that consumers are willing to purchase at a given price, for various price
levels. Correct. A market demand curve can be obtained from individual demand curves. To derive a market demand curve, we add the quantities that consumers are willing to purchase at a given price, and we do the same for various price levels.
31.Correct What is the law of demand?
Your Answer:The law of demand states that, holding everything else constant, when the price of good falls, the
quantity demanded will increase, and vice versa. Correct. According to the law of demand, there is an inverse relationship between the price of a product and the quantity of the product demanded.
32.Correct Which of the following best describes how consumers consider buying those
other goods when the price of a good rises?
Your Answer:The substitution effect.
Correct. The substitution effect, along with the income effect, help to explain why a demand curve is downward sloping.
33.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in the price of a substitute good?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When the price of substitute good rises, the demand for the good in question also rises.
34.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in income, assuming that printers are a normal good?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When income rises, the demand for the good in question also rises.
35.Correct Refer to the graphs below. Each graph refers to the demand for printers. Which of
the graphs best describes the impact of an increase in population?
OSG_fig3_4.gif
Your Answer:The graph on the left.
Correct. This graph shows an increase in demand. When population rises, the demand for the good in question also rises.
36.Correct When two goods, X and Y are complements, which of the following occurs?
Your Answer:An increase in the price of good X leads to a decrease in the quantity demanded of good Y.
Correct. When two goods, X and Y, are complements, an increase in the price of good X leads to a decrease in the quantity demanded of good Y.
37.Correct What is an inferior good?
Your Answer:A good for which demand decreases as income rises.
Correct. The term inferior good is related to the decision to buy less of a good as income rises.
38.Correct Refer to the graph below. Which of the following moves best describes a change
in demand?
OSG_fig3_5.gif
Your Answer:A move from A to C.
Correct. This move shows a change in quantity demanded, which is strictly the result of a change in price.
39.Correct Refer to the graph below. Which of the following moves best describes what
happens when a change in something other than the price of printers affects the market demand for printers?
OSG_fig3_5.gif
Your Answer:A move from A to C.
Correct. When a variable that affects demand, other than price, changes, demand shifts.
40.
Correct What does the term quantity supplied refer to?
Your Answer:The quantity of a good or service that a firm is willing to supply at a given price.
Correct. Quantity supplied is the quantity of a good or service that a firm is willing to supply at a given price.
41.Correct Which of the following is the textbook’s definition of supply curve?
Your Answer:A curve that shows the relationship between the price of a product and the quantity of the
product supplied. Correct. A curve that shows the relationship between the price of a product and the quantity of the product demanded is called a supply curve.
42.Correct Which of the following procedures is correct?
Your Answer:To derive a market supply curve, we add individual supply curves.
Correct. A market supply curve is the horizontal summation of individual supply curves.
43.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in the price of an input?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the price of an input increases, supply decreases.
44.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in the price of a substitute in production?
OSG_fig3_8.gif
Your Answer:The graph on the left.
Correct. This graph shows a decrease in supply. When the price of a substitute in production increases, supply for the good in question decreases because more of the substitute is produced and less of the good in question is produced.
45.Correct Refer to the graphs below. Each graph refers to the supply for printers. Which of
the graphs best describes the impact of an increase in the number of firms in the market?
OSG_fig3_8.gif
Your Answer:The graph on the right.
Correct. This graph shows an increase in supply. When the number of firms in the market increases, supply increases.
46.Correct Refer to the graph below. Which of the following moves best describes a change
in supply?
OSG_fig3_9.gif
Your Answer:A move from B to C.
Correct. A change in supply is caused by changes in variables that affect supply, other than price, and results in a shift of the supply curve.
47.Correct Refer to the graph below. Which of the following moves best describes what
happens when a change in something other than the price of printers affects market supply?
OSG_fig3_9.gif
Your Answer:A move from B to C.
Correct. A change in supply is caused by changes in variables that affect supply, other than price, and results in a shift of the supply curve.
48.Correct Refer to the graph below. What happens when market price equals $125?
OSG_fig3_11.gif
Your Answer:There is a surplus of 3 million printers.
Correct. At $125, quantity supplied equals 21.5 million printers, while quantity demanded is only 18.5 million printers. The difference, (21.5 – 18.5) = 3 million, is the excess quantity supplied, or surplus.
49.Correct Refer to the graph below. What is the impact of higher population and income
growth on equilibrium in this graph?
OSG_fig3_10.gif
Your Answer:A higher equilibrium price and higher equilibrium quantity.
Correct. Figure 3-13 in the textbook describes this situation.
50.Correct If the magnitude of an increase in supply is greater than the magnitude of an
increase in demand, what happens to equilibrium price and quantity in the market?
Your Answer:Equilibrium price will fall and quantity will rise.
Correct. Figure 3-14b illustrates this case.
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