Question 1

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 2

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 DVDs?

Accepted Answer

A)   an increase in the price of DVDs
B)   a decrease in the price of DVD players
C)   a change in consumer preferences toward watching movies in movie theaters rather than at home
D)   an expectation by buyers that their incomes will increase in the very near future

Question 3

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 4

When an increase in the price of one good lowers the demand for another good,the two goods are called complements.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-8 
-"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)   is referred to as the law of supply.
B)   applies only to a few goods in the economy.
C)   is represented by a downward-sloping supply curve.
D)   All of the above are correct.

Question 6

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.

Question 7

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase,and the equilibrium quantity would decrease.
D)   The equilibrium price would decrease,and the equilibrium quantity would increase.

Question 8

Scenario 4-2
Suppose the demand schedule in a market can be represented by the equation  ,where  is the quantity demanded and  is the price.Also,suppose the supply schedule can be represented by the equation  ,where  is the quantity supplied.
-Refer to Scenario 4-2.Suppose the price is currently equal to 10 in this market.Is there a shortage or suplus in this market,and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 9

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk,which is used to make lattés,increased,and scientists discovered that lattés cause heart attacks?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would decrease,and the effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would decrease,and the effect on equilibrium price would be ambiguous.

Question 10

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 11

Table 4-1
 
-Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.

Question 12

Figure 4-13 
-Refer to Figure 4-13.If the supply curves that are drawn represent supply curves for single-family residential houses,then the movement from S to S' could be caused by a(n)

Accepted Answer

A)   increase in the price of apartments which are a substitute for single-family houses for many people looking for a place to live.
B)   newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months.
C)   decrease in the price of lumber.
D)   All of the above are correct.

Question 13

Figure 4-15 
-Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.

Question 14

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities. A to SB. D)  SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-20.All else equal,the return of college students to campus in the fall would cause a move from

Accepted Answer

A)   x to y.
B)   y to x.
C)   SA to SB.
D)   SB to SA.

Question 15

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

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 D

Question 16

Table 4-7
 
-Refer to Table 4-7.The equilibrium price and quantity,respectively,are

Accepted Answer

A)   $2 and 50 units.
B)   $6 and 30 units.
C)   $6 and 60 units.
D)   $12 and 30 units.

Question 17

Table 4-2
 
-Refer to Table 4-2.Whose demand does not obey the law of demand?

Accepted Answer

A)   William's
B)   Fergie's
C)   Taboo's
D)   apl.de.ap's

Question 18

Figure 4-10 
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?

Accepted Answer

A)   an increase in the price of tennis balls
B)   an expectation by firms that the price of tennis racquets will increase in the very near future
C)   a decrease in the price of tennis racquet strings
D)   a decrease in the number of firms selling tennis racquets

Question 19

In a given market,how are the equilibrium price and the market-clearing price related?

Accepted Answer

A)   There is no relationship.
B)   They are the same price.
C)   The market-clearing price exceeds the equilibrium price.
D)   The equilibrium price exceeds the market-clearing price.

Question 20

Which of the following would not shift the supply curve for mp3 players?

Accepted Answer

A)   an increase in the price of mp3 players
B)   a decrease in the number of sellers of mp3 players
C)   an increase in the price of plastic,an input into the production of mp3 players
D)   an improvement in the technology used to produce mp3 players

Exam 4: The Market Forces of Supply and Demand

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There is a...
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Most studies indicate that tobacco and marijuana tend to be

Correct Answer
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When an increase in the price of one good lowers the demand for another good,the two goods are called complements.

Correct Answer
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Figure 4-15 -Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Correct Answer
verified

Figure 4-13 -Refer to Figure 4-13.If the supply curves that are drawn represent supply curves for single-family residential houses,then the movement from S to S' could be caused by a(n)

Correct Answer
verified

Sellers respond to a shortage by cutting their prices.

Correct Answer
verified

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

Correct Answer
verified

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct Answer
verified

Table 4-7 -Refer to Table 4-7.The equilibrium price and quantity,respectively,are

Correct Answer
verified

Table 4-1 -Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Correct Answer
verified

Which of the following would not shift the supply curve for mp3 players?

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 DVDs?

Correct Answer
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In a given market,how are the equilibrium price and the market-clearing price related?

Correct Answer
verified

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,the return of college students to campus in the fall would cause a move from

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk,which is used to make lattés,increased,and scientists discovered that lattés cause heart attacks?

Correct Answer
verified

Table 4-2 -Refer to Table 4-2.Whose demand does not obey the law of demand?

Correct Answer
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Figure 4-8 -"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Correct Answer
verified

Local cable television companies frequently are monopolists.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedThere is a...View AnswerShow Answer

Most studies indicate that tobacco and marijuana tend to be

Correct AnswerverifiedShow Answer

When an increase in the price of one good lowers the demand for another good,the two goods are called complements.

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.If the supply curves that are drawn represent supply curves for single-family residential houses,then the movement from S to S' could be caused by a(n)

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

Correct AnswerverifiedShow Answer

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7.The equilibrium price and quantity,respectively,are

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Which of the following would not shift the supply curve for mp3 players?

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 DVDs?

Correct AnswerverifiedShow Answer

In a given market,how are the equilibrium price and the market-clearing price related?

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,the return of college students to campus in the fall would cause a move from

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk,which is used to make lattés,increased,and scientists discovered that lattés cause heart attacks?

Correct AnswerverifiedShow Answer

Table 4-2 -Refer to Table 4-2.Whose demand does not obey the law of demand?

Correct AnswerverifiedShow Answer

Figure 4-8 -"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Correct AnswerverifiedShow Answer

Local cable television companies frequently are monopolists.

Correct AnswerverifiedShow Answer

Correct Answer
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There is a...
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