Question 1

Equilibrium price will unambiguously increase when

Accepted Answer

A)   demand increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously.
B)   demand increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously.
C)   demand decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously.
D)   demand decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.E) B) and C)
F) C) and D)

Question 2

Table 4-6
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 4-6.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 $30,then there will be

Accepted Answer

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

Question 3

Figure 4-10 
-Refer to Figure 4-10.If the price is $10,then there would be a

Accepted Answer

A)   shortage of 400 and price would rise.
B)   surplus of 400 and price would rise.
C)   shortage of 600 and price would rise.
D)   surplus of 600 and price would rise.E) All of the above
F) B) and D)

Question 4

When quantity demanded increases at every possible price,we know that 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) B) and C)
F) A) and D)

Question 5

Most markets in the economy are

Accepted Answer

A)   markets in which sellers,rather than buyers,control the price of the product.
B)   markets in which buyers,rather than sellers,control the price of the product.
C)   perfectly competitive.
D)   highly competitive.E) B) and C)
F) C) and D)

Question 6

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)   the government makes shortages illegal.
B)   resources are abundant in market economies.
C)   prices adjust to eliminate shortages.
D)   quantity supplied is always greater than quantity demanded in market economies.E) A) and B)
F) All of the above

Question 7

A market supply curve shows

Accepted Answer

A)   the total quantity supplied at all possible prices.
B)   the average quantity supplied by producers at all possible prices.
C)   how quantity supplied changes when the number of sellers changes.
D)   suppliers' responses,in terms of the amounts they will supply,to the demands of buyers.E) None of the above
F) C) and D)

Question 8

The market supply curve

Accepted Answer

A)   is found by vertically adding the individual supply curves.
B)   slopes downward.
C)   represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good.
D)   represents the sum of the quantities supplied by all the sellers at each price of the good.E) A) and B)
F) A) and C)

Question 9

A higher price for batteries would result in a(n)

Accepted Answer

A)   increase in the demand for flashlights.
B)   decrease in the demand for flashlights.
C)   increase in the demand for batteries.
D)   decrease in the demand for batteries.E) B) and C)
F) C) and D)

Question 10

Which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)   An increase in the demand for gasoline.
B)   An increase in the price of gasoline.
C)   An increase in the number of producers of gasoline
D)   An increase in the price of oil,an input into the production of gasoline.E) A) and C)
F) B) and C)

Question 11

Figure 4-10 
-Refer to Figure 4-10.At a price of $15,

Accepted Answer

A)   quantity demanded exceeds quantity supplied.
B)   there is a shortage.
C)   there is an excess demand.
D)   All of the above are correct.E) A) and C)
F) B) and C)

Question 12

Table 4-1
 
-Refer to Table 4-1.If these are the only four buyers in the market,then the market quantity demanded at a price of $2 is

Accepted Answer

A)   0 units.
B)   3.5 units.
C)   6 units.
D)   14 units.E) A) and D)
F) B) and D)

Question 13

Figure 4-14
Panel (a) Panel (b)    Panel (c) Panel (d)   
-Refer to Figure 4-14.Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and B)
F) None of the above

Question 14

Individual supply curves are summed vertically to obtain the market supply curve.

Accepted Answer

A) True 
 B)False

Question 15

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-10 
-Refer to Figure 4-10.In this market,equilibrium price and quantity,respectively,are

Accepted Answer

A)   $15 and 400.
B)   $20 and 600.
C)   $25 and 500.
D)   $25 and 800.E) B) and C)
F) A) and B)

Question 17

If buyers and sellers in a certain market are price takers,then individually

Accepted Answer

A)   they have no influence on market price.
B)   they have some influence on market price,but that influence is limited.
C)   buyers will be able to find prices lower than those determined in the market.
D)   sellers will find it difficult to sell all they want to sell at the market price.E) B) and C)
F) A) and D)

Question 18

Which of the following events will definitely cause equilibrium price to fall?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) A) and D)
F) A) and C)

Question 19

Table 4-1
 
-Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Accepted Answer

A)   decreases by 1.75 units.
B)   increases by 2 units.
C)   decreases by 7 units.
D)   decreases by 24 units.E) A) and B)
F) All of the above

Question 20

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

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

Correct Answer
verified

Most markets in the economy are

Correct Answer
verified

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct Answer
verified

Correct Answer
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If buyers and sellers in a certain market are price takers,then individually

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10.At a price of $15,

Correct Answer
verified

Individual supply curves are summed vertically to obtain the market supply curve.

Correct Answer
verified

A market supply curve shows

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10.If the price is $10,then there would be a

Correct Answer
verified

Prices allocate a market economy's scarce resources.

Correct Answer
verified

The market supply curve

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10.In this market,equilibrium price and quantity,respectively,are

Correct Answer
verified

A higher price for batteries would result in a(n)

Correct Answer
verified

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then the market quantity demanded at a price of $2 is

Correct Answer
verified

Which of the following events will definitely cause equilibrium price to fall?

Correct Answer
verified

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Correct Answer
verified

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Correct Answer
verified

Equilibrium price will unambiguously increase when

Correct Answer
verified

Which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

There is no shortage of scarce resources in a market economy because

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

Correct AnswerverifiedShow Answer

Most markets in the economy are

Correct AnswerverifiedShow Answer

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If buyers and sellers in a certain market are price takers,then individually

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10.At a price of $15,

Correct AnswerverifiedShow Answer

Individual supply curves are summed vertically to obtain the market supply curve.

Correct AnswerverifiedShow Answer

A market supply curve shows

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10.If the price is $10,then there would be a

Correct AnswerverifiedShow Answer

Prices allocate a market economy's scarce resources.

Correct AnswerverifiedShow Answer

The market supply curve

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10.In this market,equilibrium price and quantity,respectively,are

Correct AnswerverifiedShow Answer

A higher price for batteries would result in a(n)

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then the market quantity demanded at a price of $2 is

Correct AnswerverifiedShow Answer

Which of the following events will definitely cause equilibrium price to fall?

Correct AnswerverifiedShow Answer

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Correct AnswerverifiedShow Answer

Equilibrium price will unambiguously increase when

Correct AnswerverifiedShow Answer

Which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

There is no shortage of scarce resources in a market economy because

Correct AnswerverifiedShow Answer

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