Question 1

Figure 4-15
 
-Refer to Figure 4-15.At a price of $35,there would be

Accepted Answer

A)   a shortage, and the price would tend to rise from $35 to a higher price.
B)   a surplus, and the price would tend to rise from $35 to a higher price.
C)   excess demand, and the price would tend to fall from $35 to a lower price.
D)   excess supply, and the price would tend to fall from $35 to a lower price.E) A) and C)
F) A) and B)

Question 2

Figure 4-17
 
-Refer to Figure 4-17.At a price of $20,which of the following statements is not correct?

Accepted Answer

A)   The market is in equilibrium.
B)   Equilibrium price is equal to equilibrium quantity.
C)   There is no pressure for price to change.
D)   The quantity of the good that is bought and sold is 600 units.E) B) and D)
F) C) and D)

Question 3

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Accepted Answer

A)   The number of people who purchase olives decreases.
B)   Consumer income decreases, and olives are a normal good.
C)   The price of pickles decreases, and pickles are a substitute for olives.
D)   The price of olives rises.E) B) and C)
F) None of the above

Question 4

Suppose there are five suppliers of ice cream in the town of Summerville.If we add the respective quantities that each firm would produce at each of the five ice cream parlors when the price of ice cream is $2 per scoop,$2.50 per scoop,and $3 per scoop,and so forth,we have found the

Accepted Answer

A)   market demand curve.
B)   market supply curve.
C)   equilibrium curve.
D)   surplus or shortage depending on market conditions.E) B) and D)
F) A) and D)

Question 5

When quantity demanded increases at every possible price,the demand curve has

Accepted Answer

A)   shifted to the left.
B)   shifted to the right.
C)   not shifted; rather, we have moved along the demand curve to a new point on the same curve.
D)   not shifted; rather, the demand curve has become steeper.E) None of the above
F) All of the above

Question 6

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   an increase in the price of tennis balls
B)   a decrease in the price of tennis racquets
C)   an expectation by buyers that their incomes will increase in the very near future
D)   a decrease in the number of people in the United States under age 70E) A) and D)
F) A) and C)

Question 8

A market is a group of buyers and sellers of a particular good or service.

Accepted Answer

A) True 
 B)False

Question 9

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this 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) All of the above
F) B) and C)

Question 10

A market demand curve shows

Accepted Answer

A)   the relationship between price and the number of buyers in a market.
B)   how quantity demanded changes when the number of sellers changes.
C)   the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good.
D)   how much of a good all buyers are willing and able to buy at each possible price.E) A) and B)
F) C) and D)

Question 11

Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

Accepted Answer

A)   supply curve for Matthew's pies will increase.
B)   supply curve for Matthew's pies will decrease.
C)   demand curve for Matthew's pies will increase.
D)   demand curve for Matthew's pies will decrease.E) A) and B)
F) A) and C)

Question 12

Suppose you make jewelry.If the price of gold falls,then we would expect you to

Accepted Answer

A)   be willing and able to produce less jewelry than before at each possible price.
B)   be willing and able to produce more jewelry than before at each possible price.
C)   face a greater demand for your jewelry.
D)   face a weaker demand for your jewelry.E) B) and D)
F) None of the above

Question 13

Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve? Point
Price
Quantity
A
$1) 00
4
B
$1) 00
10
C
$1) 50
2
D
$1) 50
6

Accepted Answer

A)   B only
B)   B and D only
C)   A and C only
D)   D onlyE) A) and C)
F) A) and B)

Question 14

The following table contains a demand schedule for a good. 
If the law of demand applies to this good,then Q1 could be

Accepted Answer

A)   0.
B)   100.
C)   200.
D)   400.E) C) and D)
F) B) and D)

Question 15

If a good is normal,then an increase in income will result in a(n)

Accepted Answer

A)   increase in the demand for the good.
B)   decrease in the demand for the good.
C)   movement down and to the right along the demand curve for the good.
D)   movement up and to the left along the demand curve for the good.E) All of the above
F) A) and B)

Question 16

Individual demand curves are summed horizontally to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 17

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)   substitutes.
B)   complements.
C)   unrelated because one good is legal while the other one is illegal.
D)   inferior goods.E) None of the above
F) A) and D)

Question 18

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Accepted Answer

A)   the price of pork increases.
B)   the price of pork decreases.
C)   the price of pork does not change.
D)   there is no longer a market for pork.E) A) and B)
F) B) and C)

Question 19

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-15
 
-Refer to Figure 4-15.At a price of $20,there would be a(n)

Accepted Answer

A)   shortage. The law of supply and demand predicts that the price will fall from $20 to a lower price.
B)   surplus. The law of supply and demand predicts that the price will rise from $20 to a higher price.
C)   excess demand. The law of supply and demand predicts that the price will rise from $20 to a higher price.
D)   excess supply. The law of supply and demand predicts that the price will fall from $20 to a lower price.E) All of the above
F) B) and D)

Exam 4: The Market Forces of Supply and Demand.

When quantity demanded increases at every possible price,the demand curve has

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15.At a price of $20,there would be a(n)

Correct Answer
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Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this market?

Correct Answer
verified

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct Answer
verified

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Correct Answer
verified

Suppose there are five suppliers of ice cream in the town of Summerville.If we add the respective quantities that each firm would produce at each of the five ice cream parlors when the price of ice cream is $2 per scoop,$2.50 per scoop,and $3 per scoop,and so forth,we have found the

Correct Answer
verified

A market demand curve shows

Correct Answer
verified

Sellers respond to a shortage by cutting their prices.

Correct Answer
verified

A market is a group of buyers and sellers of a particular good or service.

Correct Answer
verified

If a good is normal,then an increase in income will result in a(n)

Correct Answer
verified

Suppose you make jewelry.If the price of gold falls,then we would expect you to

Correct Answer
verified

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct Answer
verified

Correct Answer
verified

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15.At a price of $35,there would be

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17.At a price of $20,which of the following statements is not correct?

Correct Answer
verified

Most studies indicate that tobacco and marijuana tend to be

Correct Answer
verified

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

Correct Answer
verified

Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

Correct Answer
verified

The following table contains a demand schedule for a good. If the law of demand applies to this good,then Q1 could be

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand.

When quantity demanded increases at every possible price,the demand curve has

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At a price of $20,there would be a(n)

Correct AnswerverifiedShow Answer

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this market?

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct AnswerverifiedShow Answer

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Correct AnswerverifiedShow Answer

Suppose there are five suppliers of ice cream in the town of Summerville.If we add the respective quantities that each firm would produce at each of the five ice cream parlors when the price of ice cream is $2 per scoop,$2.50 per scoop,and $3 per scoop,and so forth,we have found the

Correct AnswerverifiedShow Answer

A market demand curve shows

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

A market is a group of buyers and sellers of a particular good or service.

Correct AnswerverifiedShow Answer

If a good is normal,then an increase in income will result in a(n)

Correct AnswerverifiedShow Answer

Suppose you make jewelry.If the price of gold falls,then we would expect you to

Correct AnswerverifiedShow Answer

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At a price of $35,there would be

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.At a price of $20,which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Most studies indicate that tobacco and marijuana tend to be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

Correct AnswerverifiedShow Answer

The following table contains a demand schedule for a good. If the law of demand applies to this good,then Q1 could be

Correct AnswerverifiedShow Answer

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