Question 1

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 2

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 3

A decrease in the price of a good will

Accepted Answer

A)   increase demand.
B)   decrease demand.
C)   increase quantity demanded.
D)   decrease quantity demanded.

Question 4

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 consumer income changes.
D)   suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.

Question 5

A competitive market is one in which there

Accepted Answer

A)   is only one seller, but there are many buyers.
B)   are many sellers, and each seller has the ability to set the price of his product.
C)   are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market.
D)   are so many buyers and so many sellers that each has a negligible impact on the price of the product.

Question 6

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Accepted Answer

The equilibrium quan...

Question 7

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?

Accepted Answer

A)   B only
B)   B and D only
C)   A and C only
D)   D only

Question 8

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

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

Question 9

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

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 10

Figure 4-29 
-Refer to Figure 4-29. The movement from S1 to S2 is a

Accepted Answer

The answer of Figure 4-29 
-Refer to Figure 4-29. The...

Question 11

Which of the following sets of events must cause an increase in the price of a new house?

Accepted Answer

A)   higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future
B)   lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future
C)   lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future
D)   higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future

Question 12

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?

Accepted Answer

A)   Price will fall, and the effect on quantity is ambiguous.
B)   Price will rise, and the effect on quantity is ambiguous.
C)   Quantity will fall, and the effect on price is ambiguous.
D)   Quantity will rise, and the effect on price is ambiguous.

Question 13

A improvement in production technology will shift the

Accepted Answer

A)   supply curve to the right.
B)   supply curve to the left.
C)   demand curve to the right.
D)   demand curve to the left.

Question 14

Figure 4-7 
-Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Accepted Answer

A)   decrease in the price of potato chips.
B)   decrease in income, assuming that potato chips are a normal good.
C)   announcement by the FDA that potato chips cause cancer.
D)   increase in the price of a pretzels.

Question 15

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Accepted Answer

The equilibrium pric...

Question 16

If textbooks and study guides are complements, then an increase in the price of textbooks will result in

Accepted Answer

A)   more textbooks being sold.
B)   more study guides being sold.
C)   fewer study guides being sold.
D)   no difference in the quantity sold of either good.

Question 17

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-21 
-Refer to Figure 4-21. At a price of $16, there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 3 units.
C)   shortage of 1 unit.
D)   shortage of 3 units.

Question 19

The sum of all the individual supply curves for a product is called

Accepted Answer

A)   total supply.
B)   market supply.
C)   aggregate supply.
D)   total output.

Question 20

Figure 4-30 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Accepted Answer

Supply shi...

Exam 4: The Market Forces of Supply and Demand

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct Answer
verified

A improvement in production technology will shift the

Correct Answer
verified

A market supply curve shows

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Correct Answer
verified

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Correct Answer
verified

Correct Answer
verified

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct Answer
verified

The sum of all the individual supply curves for a product is called

Correct Answer
verified

Figure 4-29 -Refer to Figure 4-29. The movement from S1 to S2 is a

Correct Answer
verified

Correct Answer
verified

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Correct Answer
verified
The equilibrium quan...
View Answer

A competitive market is one in which there

Correct Answer
verified

A shortage is the same as an excess demand.

Correct Answer
verified

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Correct Answer
verified
Supply shi...
View Answer

A decrease in the price of a good will

Correct Answer
verified

If textbooks and study guides are complements, then an increase in the price of textbooks will result in

Correct Answer
verified

Which of the following sets of events must cause an increase in the price of a new house?

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Correct Answer
verified

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Correct Answer
verified
The equilibrium pric...
View Answer

Exam 4: The Market Forces of Supply and Demand

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct AnswerverifiedShow Answer

A improvement in production technology will shift the

Correct AnswerverifiedShow Answer

A market supply curve shows

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by an)

Correct AnswerverifiedShow Answer

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct AnswerverifiedShow Answer

The sum of all the individual supply curves for a product is called

Correct AnswerverifiedShow Answer

Figure 4-29 -Refer to Figure 4-29. The movement from S1 to S2 is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Correct AnswerverifiedThe equilibrium quan...View AnswerShow Answer

A competitive market is one in which there

Correct AnswerverifiedShow Answer

A shortage is the same as an excess demand.

Correct AnswerverifiedShow Answer

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Correct AnswerverifiedSupply shi...View AnswerShow Answer

A decrease in the price of a good will

Correct AnswerverifiedShow Answer

If textbooks and study guides are complements, then an increase in the price of textbooks will result in

Correct AnswerverifiedShow Answer

Which of the following sets of events must cause an increase in the price of a new house?

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

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The equilibrium quan...
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Supply shi...
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The equilibrium pric...
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