Question 1

Figure 4-8 
-Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Accepted Answer

A)  a movement along D2 from point A to point B
B)  a movement along D2 from point B to point A
C)  a shift from D1 to D2
D)  a shift from D2 to D1E) All of the above
F) B) and C)

Question 2

An example of a perfectly competitive market would be the market for

Accepted Answer

A)  tennis racquets.
B)  pizza.
C)  garbage collection.
D)  wheat.E) A) and B)
F) A) and C)

Question 3

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. A to DB. B) DB to DA. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-24. All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

Accepted Answer

A)  DA to DB.
B)  DB to DA.
C)  x to y.
D)  y to x.E) None of the above
F) A) and D)

Question 4

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Accepted Answer

The demand...

Question 5

Figure 4-6  
-Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate the tax as producing a movement from

Accepted Answer

A)  Point A to Point B in Panel 1.
B)  Point B to Point A in Panel 1.
C)  Point A to Point C in Panel 2.
D)  Point C to Point A in Panel 2.E) B) and C)
F) All of the above

Question 6

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' is called a(n)

Accepted Answer

A)  decrease in supply.
B)  decrease in quantity supplied.
C)  increase in supply.
D)  increase in quantity supplied.E) A) and B)
F) C) and D)

Question 7

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: 
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $20, then there will be

Accepted Answer

A)  a shortage of 300 tickets.
B)  a surplus of 300 tickets.
C)  300 tickets sold.
D)  600 tickets unsold.E) All of the above
F) A) and C)

Question 8

Figure 4-21 
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A)  2.5 units
B)  5 units
C)  7.5 units
D)  10 unitsE) C) and D)
F) A) and B)

Question 9

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A)  Leo has a limited number of sellers from which to buy coffee beans.
B)  Leo will negotiate with sellers whenever he buys coffee beans.
C)  Leo cannot influence the price of coffee beans even if he buys a large quantity of them.
D)  None of the above is correct.E) B) and C)
F) A) and B)

Question 10

When a surplus exists in a market, sellers

Accepted Answer

A)  raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
B)  raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
C)  lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
D)  lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.E) A) and B)
F) A) and C)

Question 11

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Accepted Answer

A)  Point A to Point B
B)  Point C to Point B
C)  Point C to Point D
D)  Point A to Point DE) A) and B)
F) None of the above

Question 12

Which of the following does not affect an individual's demand curve?

Accepted Answer

A)  expectations
B)  income
C)  prices of related goods
D)  the number of buyersE) A) and B)
F) A) and C)

Question 13

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Accepted Answer

A)  Point A to Point B
B)  Point C to Point B
C)  Point C to Point D
D)  Point A to Point DE) A) and B)
F) A) and C)

Question 14

Figure 4-3
Consumer 1
Consumer 2  
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

Accepted Answer

A)  0 units.
B)  10 units.
C)  15 units.
D)  25 units.E) C) and D)
F) None of the above

Question 15

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand A in the market for oranges in the United States?

Accepted Answer

A)  a freeze in Florida
B)  a technological advance that allows oranges to ripen faster
C)  a decrease in the price of apples
D)  an announcement by the FDA that oranges prevent heart diseaseE) All of the above
F) B) and D)

Question 16

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.E) C) and D)
F) None of the above

Question 17

The actions of buyers and sellers naturally move markets toward equilibrium.

Accepted Answer

A) True 
 B)False

Question 18

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

A)  encourage marijuana use, and the evidence supports this argument.
B)  encourage marijuana use, but the evidence does not support this argument.
C)  discourage marijuana use, and the evidence supports this argument.
D)  discourage marijuana use, but the evidence does not support this argument.E) B) and C)
F) A) and D)

Question 19

Figure 4-7 
-Refer to Figure 4-7. The movement from Da to Db could be caused by

Accepted Answer

A)  a decrease in price.
B)  a decrease in income, assuming the good is inferior.
C)  buyers expecting the price of the good to fall in the near future.
D)  an increase in the price of a complement.E) A) and B)
F) None of the above

Question 20

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

Correct Answer
verified

Assume Leo buys coffee beans in a competitive market. It follows that

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Correct Answer
verified

When a surplus exists in a market, sellers

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

Correct Answer
verified

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct Answer
verified

Which of the following does not affect an individual's demand curve?

Correct Answer
verified

Correct Answer
verified

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Correct Answer
verified

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand A in the market for oranges in the United States?

Correct Answer
verified

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Correct Answer
verified

An example of a perfectly competitive market would be the market for

Correct Answer
verified

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Correct Answer
verified

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db could be caused by

Correct Answer
verified

The actions of buyers and sellers naturally move markets toward equilibrium.

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' is called a(n)

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

Correct AnswerverifiedShow Answer

Assume Leo buys coffee beans in a competitive market. It follows that

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Correct AnswerverifiedShow Answer

When a surplus exists in a market, sellers

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct AnswerverifiedShow Answer

Which of the following does not affect an individual's demand curve?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand A in the market for oranges in the United States?

Correct AnswerverifiedShow Answer

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the market for

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Correct AnswerverifiedShow Answer

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db could be caused by

Correct AnswerverifiedShow Answer

The actions of buyers and sellers naturally move markets toward equilibrium.

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' is called a(n)

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The demand...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified