Question 1

Graph 4-1
 
-Refer to Graph 4-1. The movement from point B to point A on the graph shows:

Accepted Answer

A)   a decrease in demand
B)   a decrease in quantity demanded
C)   an increase in demand
D)   an increase in quantity demanded

Question 2

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

Accepted Answer

A)   the equilibrium price would increase but the impact on the amount sold in the market would be ambiguous
B)   the equilibrium price would decrease but the impact on the amount sold in the market would be ambiguous
C)   both equilibrium price and equilibrium quantity would increase
D)   equilibrium quantity would increase but the impact on equilibrium price would be ambiguous

Question 3

When the price is higher than the equilibrium price:

Accepted Answer

A)   suppliers will reduce prices to try to clear the market
B)   suppliers will increase their prices to clear the market
C)   buyers will change their tastes and desire more of the good
D)   more sellers will enter the market as they expect prices to go higher

Question 4

The internet has enabled markets to move towards the competitive model.

Accepted Answer

A) True 
 B)False

Question 5

If mad cow disease causes a beef-scare in Europe, demand for wild meat like deer or kangaroo is likely to shift to the right in that market.

Accepted Answer

A) True 
 B)False

Question 6

Graph 4-2
 1 is called: A)  a decrease in demand B)  an increase in demand C)  a decrease in quantity demanded D)  an increase in quantity demanded" class="answers-bank-image d-inline" rel="preload" >
-Refer to Graph 4-2. On the graph, the movement from D to D1 is called:

Accepted Answer

A)   a decrease in demand
B)   an increase in demand
C)   a decrease in quantity demanded
D)   an increase in quantity demanded

Question 7

Table 4-1
A market is represented by the table below:
Quantities demanded:
 
-Refer to Table 4-1. If the price of the good is $1, the quantity demanded in this market would be:

Accepted Answer

A)   125 units
B)   64 units
C)   51 units
D)   30 units

Question 8

In a competitive market, buyers cannot influence the price because:

Accepted Answer

A)   each buyer purchases a small amount of the product
B)   each buyer purchases a large amount of the product
C)   each buyer is a monopoly
D)   prices are determined by advertisers

Question 9

For each of the following products and industries, determine whether the market structure is perfect competition, monopolistic competition, oligopoly or monopoly.
a. mobile phone services
b. soft drinks
c. local water
d. the automobile industry
e. fast food in a city
f. the textbook industry
g. television networks
h. market for second hand cars

Accepted Answer

a. The local telephone service is usuall...

Question 10

Increasing the number of sellers in a market is demonstrated by a movement along the supply curve.

Accepted Answer

A) True 
 B)False

Question 11

Given the following information about three consumers' monthly demand, construct a market demand curve for potato chips. What would happen to demand if Ryan decided to buy popcorn and not to buy chips? Show this change on your graph.

Accepted Answer

The answer of Given the following information about three consumers'...

Question 12

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 13

What characteristics or requirements must be met for a market to be considered as each of the following?
a. perfectly competitive
b. a monopoly
c. an oligopoly
d. monopolistic competition

Accepted Answer

a. The goods being offered for sale must...

Question 14

Graphically, the market demand curve is:

Accepted Answer

A)   the vertical sum of individual demand curves
B)   steeper than any individual demand curve that comprises it
C)   greater than the sum of the individual supply curves
D)   the horizontal sum of individual demand curves

Question 15

The law of supply states that, other things being equal, when the price of a good rises, the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be an example of a monopoly?

Accepted Answer

A)   a power company that is the sole supplier of electricity to a city
B)   a rice farmer
C)   a salmon fisher
D)   a bank in a domestic market like Australia

Question 17

What is the difference between a change in demand and a change in quantity demanded? Graph your answer.

Accepted Answer

A change in demand refers to a...

Question 18

When supply and demand both increase, equilibrium:

Accepted Answer

A)   price will increase
B)   price will decrease
C)   price may increase, decrease, or remain unchanged
D)   quantity may increase, decrease, or remain unchanged

Question 19

When there is a surplus in a market:

Accepted Answer

A)   there is downward pressure on price
B)   there is upward pressure on price
C)   the market could still be in equilibrium
D)   there are too many buyers chasing too few goods

Question 20

A perfectly competitive market has which of the following characteristics?

Accepted Answer

A)   many buyers
B)   many sellers
C)   the goods sold are all the same
D)   all of the above are correct

Exam 4: The Market Forces of Supply and Demand

The law of supply states that, other things being equal, when the price of a good rises, the quantity supplied of the good falls.

Correct Answer
verified

The internet has enabled markets to move towards the competitive model.

Correct Answer
verified

Graphically, the market demand curve is:

Correct Answer
verified

Graph 4-2 -Refer to Graph 4-2. On the graph, the movement from D to D₁ is called:

Correct Answer
verified

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

Correct Answer
verified

When supply and demand both increase, equilibrium:

Correct Answer
verified

When the price is higher than the equilibrium price:

Correct Answer
verified

Correct Answer
verified
a. The local telephone service is usuall...
View Answer

Table 4-1 A market is represented by the table below: Quantities demanded: -Refer to Table 4-1. If the price of the good is $1, the quantity demanded in this market would be:

Correct Answer
verified

Which of the following would be an example of a monopoly?

Correct Answer
verified

When there is a surplus in a market:

Correct Answer
verified

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct Answer
verified

A perfectly competitive market has which of the following characteristics?

Correct Answer
verified

Graph 4-1 -Refer to Graph 4-1. The movement from point B to point A on the graph shows:

Correct Answer
verified

What is the difference between a change in demand and a change in quantity demanded? Graph your answer.

Correct Answer
verified
A change in demand refers to a...
View Answer

What characteristics or requirements must be met for a market to be considered as each of the following? a. perfectly competitive b. a monopoly c. an oligopoly d. monopolistic competition

Correct Answer
verified
a. The goods being offered for sale must...
View Answer

Given the following information about three consumers' monthly demand, construct a market demand curve for potato chips. What would happen to demand if Ryan decided to buy popcorn and not to buy chips? Show this change on your graph.

Correct Answer
verified

If mad cow disease causes a beef-scare in Europe, demand for wild meat like deer or kangaroo is likely to shift to the right in that market.

Correct Answer
verified

Increasing the number of sellers in a market is demonstrated by a movement along the supply curve.

Correct Answer
verified

In a competitive market, buyers cannot influence the price because:

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The law of supply states that, other things being equal, when the price of a good rises, the quantity supplied of the good falls.

Correct AnswerverifiedShow Answer

The internet has enabled markets to move towards the competitive model.

Correct AnswerverifiedShow Answer

Graphically, the market demand curve is:

Correct AnswerverifiedShow Answer

Graph 4-2 -Refer to Graph 4-2. On the graph, the movement from D to D1 is called:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When supply and demand both increase, equilibrium:

Correct AnswerverifiedShow Answer

When the price is higher than the equilibrium price:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. The local telephone service is usuall...View AnswerShow Answer

Table 4-1 A market is represented by the table below: Quantities demanded: -Refer to Table 4-1. If the price of the good is $1, the quantity demanded in this market would be:

Correct AnswerverifiedShow Answer

Which of the following would be an example of a monopoly?

Correct AnswerverifiedShow Answer

When there is a surplus in a market:

Correct AnswerverifiedShow Answer

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct AnswerverifiedShow Answer

A perfectly competitive market has which of the following characteristics?

Correct AnswerverifiedShow Answer

Graph 4-1 -Refer to Graph 4-1. The movement from point B to point A on the graph shows:

Correct AnswerverifiedShow Answer

What is the difference between a change in demand and a change in quantity demanded? Graph your answer.

Correct AnswerverifiedA change in demand refers to a...View AnswerShow Answer

What characteristics or requirements must be met for a market to be considered as each of the following? a. perfectly competitive b. a monopoly c. an oligopoly d. monopolistic competition

Correct Answerverifieda. The goods being offered for sale must...View AnswerShow Answer

Given the following information about three consumers' monthly demand, construct a market demand curve for potato chips. What would happen to demand if Ryan decided to buy popcorn and not to buy chips? Show this change on your graph.

Correct AnswerverifiedShow Answer

If mad cow disease causes a beef-scare in Europe, demand for wild meat like deer or kangaroo is likely to shift to the right in that market.

Correct AnswerverifiedShow Answer

Increasing the number of sellers in a market is demonstrated by a movement along the supply curve.

Correct AnswerverifiedShow Answer

In a competitive market, buyers cannot influence the price because:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Graph 4-2 -Refer to Graph 4-2. On the graph, the movement from D to D₁ is called:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. The local telephone service is usuall...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A change in demand refers to a...
View Answer

Correct Answer
verified
a. The goods being offered for sale must...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified