45) In January, buyers of gold expect that the price of gold will rise in February.

What happens in the

66) How does the decreasing use of traditional cameras affect the market for traditional camera film?
A) The demand curve for traditional camera film shifts to the right.
B) The quantity of traditional camera film demanded decreases.
C) The quantity of traditional camera film demanded increases.
D) The demand curve for traditional camera film shifts to the left.
Answer: D
Diff: 2 Page Ref: 6/e, 77
Topic: Price of

Figure 3-2

9) Refer to Figure 3-2. An increase in price of inputs would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: D
Diff: 2 Page Ref: 6/e, 85
Topic: Prices of Inputs
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

10) Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a
movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: C
Diff: 2 Page Ref: 6/e, 85
Topic: Number of Firms in the Market
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking
11) Refer to Figure 3-2. An increase in the price of substitutes in production would be represented by a
movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: D
Diff: 2 Page Ref: 6/e, 85
Topic: Prices of Substitutes in Production
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

12) Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: B
Diff: 2 Page Ref: 6/e, 85
Topic: Quantity Supplied
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

13) Refer to Figure 3-2. A decrease in productivity would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: D
Diff: 2 Page Ref: 6/e, 85
Topic: Quantity Supplied
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

14) Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a
movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Answer: C

Figure 3-8
32) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for apples at the intersection of D1 and S1 (point A). If the price of oranges, a substitute for
apples, decreases and the wages of apple workers increase, how will the equilibrium point change?
A) The equilibrium point will move from A to E.
B) The equilibrium point will move from A to B.
C) The equilibrium point will move from A to C.
D) The equilibrium will first move from A to B, then return to A.
Answer: A
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

33) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for apples at the intersection of D1 and S1 (point A). If there is a shortage of apples, how will the
equilibrium point change?
A) The equilibrium point will move from A to B.
B) The equilibrium point will move from A to C.
C) There will be no change in the equilibrium point.
D) The equilibrium point will move from A to E.
Answer: C
Diff: 2 Page Ref: 6/e, 91
Topic: Shortage
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking
34) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for sugar at the intersection of D1 and S1 (point A). If there is an increase in the price of fertilizer
used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the
equilibrium point change?
A) The equilibrium point will move from A to B.
B) The equilibrium point will move from A to C.
C) There will be no change in the equilibrium point.
D) The equilibrium point will move from A to E.
Answer: D
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

35) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for sugar at the intersection of D1 and S2 (point B). If there is an decrease in the price of fertilizer
used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the
equilibrium point change?
A) The equilibrium point will move from B to A.
B) The equilibrium point will move from B to C.
C) There will be no change in the equilibrium point.
D) The equilibrium point will move from B to E.
Answer: B
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

36) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for apples at the intersection of D2 and S2 (point E). Which of the following changes would cause
the equilibrium to change to point A?
A) A positive change in the technology used to produce apples and decrease in the price of oranges, a
substitute for apples.
B) An increase in the wages of apple workers and a decrease in the price of oranges, a substitute for
apples.
C) An increase in the number of apple producers and a decrease in the number of apple trees as a result
of disease.
D) A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for
apples.
Answer: D
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking
37) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause
the equilibrium to change to point B?
A) A positive change in the technology used to produce apples and decrease in the price of oranges, a
substitute for apples.
B) An increase in the wages of apple workers and an increase in the price of oranges, a substitute for
apples.
C) An increase in the number of apple producers and a decrease in the number of apple trees as a result
of disease.
D) A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for
apples.
Answer: B
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking

38) Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the
market for apples at the intersection of D1 and S2 (point B). Which of the following changes would cause
the equilibrium to change to point C?
A) A positive change in the technology used to produce apples and decrease in the price of oranges, a
substitute for apples.
B) An increase in the wages of apple workers and an increase in the price of oranges, a substitute for
apples.
C) An increase in the number of apple producers and a decrease in the number of apple trees as a result
of disease.
D) A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for
apples.
Answer: A
Diff: 3 Page Ref: 6/e, 91
Topic: Shifts in Demand and Supply
*: Recurring
Learning Outcome: Micro-4: Explain how supply and demand function in competitive markets.
AACSB: Analytic thinking