Can you help me understand this Economics question?
Figure 4.2
1) In Figure 4.2, which of the panels depicts a market in which there is an excess demand for a product?
A) Panel A
B) Panel B
C) Panel C
D) None of the panels depicts a market in which there is an excess demand for a product.
2) In Figure 4.2, which of the panels depicts a market in which there is an excess supply of a product?
A) Panel A
B) Panel B
C) Panel C
D) None of the panels depicts a market in which there is an excess supply of a product.
3) Figure 4.2 depicts three market situations. Which of the panels depicts a market in which the price is likely to rise?
A) Panel A
B) Panel B
C) Panel C
D) None of the panels depicts a market in which the price is likely to rise.
4) Figure 4.2 depicts three market situations. Which of the panels depicts a market in which the price is likely to fall?
A) Panel A
B) Panel B
C) Panel C
D) None of the panels depicts a market in which the price is likely to fall.
Figure 4.3
5) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is:
A) excess demand of 40 pairs of blue jeans.
B) excess supply of 40 pairs of blue jeans.
C) excess demand of 50 pairs of blue jeans.
D) excess supply of 50 pairs of blue jeans.
6) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, there is:
A) excess demand of 40 pairs of blue jeans.
B) excess supply of 40 pairs of blue jeans.
C) excess demand of 50 pairs of blue jeans.
D) excess supply of 50 pairs of blue jeans.
7) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, we would expect the price of blue jeans to ________, the quantity demanded of blue jeans to ________, and the quantity supplied of blue jeans ________.
A) increase; increase; increase
B) increase; decrease; increase
C) decrease; increase; decrease
D) decrease; decrease; increase
8) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, we would expect the price of blue jeans to ________, the quantity demanded of blue jeans to ________, and the quantity supplied of blue jeans to ________.
A) increase; increase; increase
B) increase; decrease; increase
C) decrease; increase; decrease
D) decrease; decrease; increase
9) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, we would expect that:
A) demand will decrease until quantity demanded equals quantity supplied.
B) supply will increase until quantity demanded equals quantity supplied.
C) price will increase until quantity demanded equals quantity supplied.
D) there will be no change since the market is in equilibrium.
10) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, we would expect that:
A) demand will increase until quantity demanded equals quantity supplied.
B) supply will decrease until quantity demanded equals quantity supplied.
C) price will decrease until quantity demanded equals quantity supplied.
D) no change will occur since the market is in equilibrium.
11) Explain how an excess supply would lead to a decrease in prices.
12) Explain how an excess demand would lead to an increase in prices.
Figure 4.4
13) Figure 4.4 illustrates the demand for guitars. An increase in the demand for guitars is represented by the movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
14) Figure 4.4 illustrates the demand for guitars. A decrease in the demand for guitars is represented by the movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
15) Figure 4.4 illustrates the demand for guitars. Assume guitars are a normal good. An increase in income would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
16) Figure 4.4 illustrates the demand for guitars. Assume guitars are an inferior good. An increase in income would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
17) Figure 4.4 illustrates the demand for guitars. Assume that guitars and guitar strings are complements. An increase in the price of guitar strings would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
18) Figure 4.4 illustrates the demand for guitars. Assume that guitars and guitar strings are complements. A decrease in the price of guitar strings would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
19) Figure 4.4 illustrates the demand for guitars. Assume that guitars and banjos are substitutes. A decrease in the price of banjos would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
20) Figure 4.4 illustrates the demand for guitars. An increase in the number of guitar players in the market would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
21) Figure 4.4 illustrates the demand for guitars. An increase in price of guitars would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
22) Figure 4.4 illustrates the demand for guitars. A decrease in price of guitars would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
23) Figure 4.4 illustrates the demand for guitars. A successful advertising campaign to sell guitars would bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
24) Figure 4.4 illustrates the demand for guitars. If people expect the price of guitars to decrease in the near future, this would most likely bring about a movement from:
A) point B to point C.
B) point B to point A.
C) D1 to D0.
D) D1 to D2.
Figure 4.5
25) Figure 4.5 illustrates the supply of guitars. An increase in the supply of guitars is represented by a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
26) Figure 4.5 illustrates the supply of guitars. A decrease in the supply of guitars is represented by a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
27) Figure 4.5 illustrates the supply of guitars. An increase in the price of rosewood, which is used to make guitars, would most likely cause a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
28) Figure 4.5 illustrates the supply of guitars. A technological advancement that makes guitars cheaper to produce would most likely cause a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
29) Figure 4.5 illustrates the supply of guitars. An increase in the number of guitar manufacturers would most likely cause a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
30) Figure 4.5 illustrates the supply of guitars. If the government offered a subsidy to guitar manufacturers for each guitar they produce, this would most likely cause a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
31) Figure 4.5 illustrates the supply of guitars. If firms expect the price of guitars to go up after Christmas, then before Christmas this would most likely cause a movement from:
A) point B to point C.
B) point B to point A.
C) S1 to S0.
D) S1 to S2.
Figure 4.7
32) If demand increases in Figure 4.7, then the equilibrium:
A) price and quantity rise.
B) price rises and quantity falls.
C) price falls and quantity rises.
D) price and quantity fall.
33) If demand falls in Figure 4.7, then the equilibrium:
A) price and quantity rise.
B) price rises and quantity falls.
C) price falls and quantity rises.
D) price and quantity fall.
34) If supply increases in Figure 4.7, then the equilibrium:
A) price and quantity rise.
B) price rises and quantity falls.
C) price falls and quantity rises.
D) price and quantity fall.
35) If supply decreases in Figure 4.7, then the equilibrium:
A) price and quantity rise.
B) price rises and quantity falls.
C) price falls and quantity rises.
D) price and quantity fall.
36) If demand and supply rise in Figure 4.7, then the equilibrium:
A) price rises.
B) price falls.
C) quantity rises.
D) quantity falls.
37) If demand and supply decrease in Figure 4.7, then the equilibrium:
A) price rises.
B) price falls.
C) quantity rises.
D) quantity falls.
38) If demand decreases and supply increases in Figure 4.7, then the equilibrium:
A) price rises.
B) price falls.
C) quantity rises.
D) quantity falls.
39) If demand increases and supply decreases in Figure 4.7, then the equilibrium:
A) price rises.
B) price falls.
C) quantity rises.
D) quantity falls.
