Class: __ECON 1101 CRN 40185__ Date: __1/20/23__
1. An increase in the price of sugar (an ingredient for soft drinks) and an increased concern
about tooth decay caused by the consumption of soft drinks will result in which of the
following in the soft drink market?
A) Both the equilibrium price and quantity will increase.
B) Equilibrium quantity will decrease, but equilibrium price may decrease, increase,
or stay the same.
C) Both equilibrium price and equilibrium quantity will decrease.
D) Equilibrium quantity will increase, but equilibrium price may decrease, increase, or
stay the same.
Use the following to answer questions 2-3:
Figure: The Market for Candy
2. (Figure: The Market for Candy) Look at the figure The Market for Candy. Equilibrium
occurs at a price of ________, and the equilibrium quantity is equal to ________.
A) P1; Q5
B) P2; Q3
C) P3; Q2
D) P1; Q3
3. (Figure: The Market for Candy) Look at the figure The Market for Candy. A surplus of
the good will exist at a price of:
A) P1.
B) P2.
C) P3.
D) There are no surpluses in this market.
Page 1
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, Use the following to answer questions 4-7:
Figure: Shifts in Demand and Supply
4. (Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply.
The figure shows how supply and demand might shift in response to specific events.
Suppose consumer incomes increase. Which panel best describes how this will affect
the market for used furniture, an inferior good?
A) panel A
B) panel B
C) panel C
D) panel D
5. (Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply.
The figure shows how supply and demand might shift in response to specific events.
Suppose scientists discover that eating a tomato a day prevents aging. Which panel best
describes how this will affect the market for tomatoes?
A) panel A
B) panel B
C) panel C
D) panel D
Page 2
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1. An increase in the price of sugar (an ingredient for soft drinks) and an increased concern
about tooth decay caused by the consumption of soft drinks will result in which of the
following in the soft drink market?
A) Both the equilibrium price and quantity will increase.
B) Equilibrium quantity will decrease, but equilibrium price may decrease, increase,
or stay the same.
C) Both equilibrium price and equilibrium quantity will decrease.
D) Equilibrium quantity will increase, but equilibrium price may decrease, increase, or
stay the same.
Use the following to answer questions 2-3:
Figure: The Market for Candy
2. (Figure: The Market for Candy) Look at the figure The Market for Candy. Equilibrium
occurs at a price of ________, and the equilibrium quantity is equal to ________.
A) P1; Q5
B) P2; Q3
C) P3; Q2
D) P1; Q3
3. (Figure: The Market for Candy) Look at the figure The Market for Candy. A surplus of
the good will exist at a price of:
A) P1.
B) P2.
C) P3.
D) There are no surpluses in this market.
Page 1
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https://www.coursehero.com/file/246893381/HW-2docx/
, Use the following to answer questions 4-7:
Figure: Shifts in Demand and Supply
4. (Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply.
The figure shows how supply and demand might shift in response to specific events.
Suppose consumer incomes increase. Which panel best describes how this will affect
the market for used furniture, an inferior good?
A) panel A
B) panel B
C) panel C
D) panel D
5. (Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply.
The figure shows how supply and demand might shift in response to specific events.
Suppose scientists discover that eating a tomato a day prevents aging. Which panel best
describes how this will affect the market for tomatoes?
A) panel A
B) panel B
C) panel C
D) panel D
Page 2
This study source was downloaded by 100000900629999 from CourseHero.com on 10-31-2025 03:01:49 GMT -05:00
https://www.coursehero.com/file/246893381/HW-2docx/
