Chapter 3 Review - MyWeb

12. If there is an excess supply of a good, then the problem of scarcity does not apply to that
good.
A) True
B) False
13. A recent news story reported that OPEC is expected to decrease the supply of oil next
summer. Summer is traditionally a time of increased demand for oil because of the
many families driving and flying to vacation sites. What would be the combined effect
of these two events on the summer market for gasoline
A) an increase in the price and the quantity
B) an increase in the price and an unpredictable change in the quantity
C) an unpredictable change in both the price and the quantity
D) an unpredictable change in the price and a decrease in the quantity
14. An increase in the demand for gasoline today caused by concerns that gasoline prices
will be higher tomorrow is most likely attributable to which of the following
A) income
B) consumer expectations
C) consumer preferences
D) prices of other goods
15. When the price of gas goes down and the demand for tires goes up, this means tires and
gas are:
A) substitutes.
B) complements.
C) both expensive.
D) both inexpensive.
16. All other things being constant, a decrease in the price of a good will result in:
A) an increase in demand.
B) an increase in supply.
C) an increase in the quantity demanded.
D) more being supplied.
17. Suppose the equilibrium price of Good Y is $5 and the equilibrium quantity is 150 units.
If the price of Good Y is $12:
A) the quantity demanded will be greater than 150 units.
B) the quantity supplied will be less than 150 units.
C) there will be an excess demand for Good Y.
D) there will be an excess supply of Good Y.
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