Question 1

A decrease in the number of sellers in the market causes

Accepted Answer

A)   the supply curve to shift to the left.
B)   the supply curve to shift to the right.
C)   a movement up and to the right along a stationary supply curve.
D)   a movement downward and to the left along a stationary supply curve.

Question 2

The supply of a good or service is determined by

Accepted Answer

A)   those who buy the good or service.
B)   the government.
C)   those who sell the good or service.
D)   both those who buy and those who sell the good or service.

Question 3

If the number of sellers in a market increases, then the

Accepted Answer

A)   demand in that market will increase.
B)   supply in that market will increase.
C)   supply in that market will decrease.
D)   demand in that market will decrease.

Question 4

Which of the following events must cause equilibrium price to rise?

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 increase

Question 5

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.

Question 6

A movement along the demand curve might be caused by a change in

Accepted Answer

A)   income.
B)   the prices of substitutes or complements.
C)   expectations about future prices.
D)   the price of the good or service that is being demanded.

Question 7

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A demand schedule is a table that shows the relationship between

Accepted Answer

A)   quantity demanded and quantity supplied.
B)   income and quantity demanded.
C)   price and quantity demanded.
D)   price and income.

Question 10

In a market economy, who or what determines who produces each good and how much is produced?

Accepted Answer

A)   the government
B)   lawyers
C)   lotteries
D)   prices

Question 11

Figure 4-16 
-Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Accepted Answer

A)   decrease in the number of commercial bakers.
B)   improvement in oven technology.
C)   decrease in the price of butter.
D)   decrease in the price of chocolate cake.

Question 12

Figure 4-3
Consumer 1 Consumer 2
  
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Accepted Answer

A)   12 units.
B)   14 units.
C)   19 units.
D)   21 units.

Question 13

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 and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price, what is the equilibrium price?

Accepted Answer

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

Question 14

Table 4-3
 
-Refer to Table 4-3. 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.

Question 15

When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.

Accepted Answer

A) True 
 B)False

Question 16

A likely example of substitute goods for most people would be

Accepted Answer

A)   tables and chairs.
B)   bicycles and helmets.
C)   apple juice and orange juice.
D)   coffee and sugar.

Question 17

If the demand for a product increases, then we would expect equilibrium price

Accepted Answer

A)   to increase and equilibrium quantity to decrease.
B)   to decrease and equilibrium quantity to increase.
C)   and equilibrium quantity both to increase.
D)   and equilibrium quantity both to decrease.

Question 18

A decrease in demand is represented by a

Accepted Answer

A)   movement downward and to the right along a demand curve.
B)   movement upward and to the left along a demand curve.
C)   rightward shift of a demand curve.
D)   leftward shift of a demand curve.

Question 19

A movement upward and to the right along a supply curve is called an)

Accepted Answer

A)   increase in supply.
B)   decrease in supply.
C)   decrease in quantity supplied.
D)   increase in quantity supplied.

Question 20

Figure 4-2 
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   12 units.

Exam 4: The Market Forces of Supply and Demand

Correct Answer
verified

A movement along the demand curve might be caused by a change in

Correct Answer
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A decrease in demand is represented by a

Correct Answer
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If the number of sellers in a market increases, then the

Correct Answer
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A likely example of substitute goods for most people would be

Correct Answer
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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Correct Answer
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If the demand for a product increases, then we would expect equilibrium price

Correct Answer
verified

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Correct Answer
verified

In a market economy, who or what determines who produces each good and how much is produced?

Correct Answer
verified

Which of the following events must cause equilibrium price to rise?

Correct Answer
verified

The supply of a good or service is determined by

Correct Answer
verified

A demand schedule is a table that shows the relationship between

Correct Answer
verified

Monopolists are price takers.

Correct Answer
verified

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Correct Answer
verified

When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.

Correct Answer
verified

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

Correct Answer
verified

Table 4-3 -Refer to Table 4-3. 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

A decrease in the number of sellers in the market causes

Correct Answer
verified

A movement upward and to the right along a supply curve is called an)

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedShow Answer

A movement along the demand curve might be caused by a change in

Correct AnswerverifiedShow Answer

A decrease in demand is represented by a

Correct AnswerverifiedShow Answer

If the number of sellers in a market increases, then the

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Correct AnswerverifiedShow Answer

If the demand for a product increases, then we would expect equilibrium price

Correct AnswerverifiedShow Answer

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Correct AnswerverifiedShow Answer

In a market economy, who or what determines who produces each good and how much is produced?

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium price to rise?

Correct AnswerverifiedShow Answer

The supply of a good or service is determined by

Correct AnswerverifiedShow Answer

A demand schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

Monopolists are price takers.

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Correct AnswerverifiedShow Answer

When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. 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

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

A movement upward and to the right along a supply curve is called an)

Correct AnswerverifiedShow Answer

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