Question 1

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Accepted Answer

A)  supply curve for Matthew's pies will increase.
B)  supply curve for Matthew's pies will decrease.
C)  demand curve for Matthew's pies will increase.
D)  demand curve for Matthew's pies will decrease.E) C) and D)
F) B) and C)

Question 2

When all market participants are price takers who have no influence over prices, the markets have

Accepted Answer

A)  only a few buyers and sellers.
B)  numerous sellers but only a few buyers.
C)  numerous buyers but only a few sellers.
D)  numerous buyers and sellers.E) B) and C)
F) A) and D)

Question 3

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Accepted Answer

A)  The number of people who purchase olives decreases.
B)  Consumer income decreases, and olives are a normal good.
C)  The price of pickles decreases, and pickles are a substitute for olives.
D)  The price of olives rises.E) None of the above
F) B) and C)

Question 4

Good X and good Y are substitutes. If the price of good Y increases, then the

Accepted Answer

A)  demand for good X will decrease.
B)  quantity demanded of good X will decrease.
C)  demand for good X will increase.
D)  quantity demanded of good X will increase.E) A) and C)
F) B) and C)

Question 5

Which of the following events must cause equilibrium quantity 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 increaseE) A) and B)
F) A) and C)

Question 6

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Accepted Answer

A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef.
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef.
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce.
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.E) B) and C)
F) C) and D)

Question 7

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.   Price  Harry’s  Quantity  Demanded  Darby’s  Quantity  Denanded  Jake’s  Quantity  Denanded $3343$512x\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Harry&#x27;s } \	ext { Quantity } \	ext { Demanded }\end{array} & \begin{array} { c } 	ext { Darby&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { Jake&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} \\hline \$ 3 & 3 & 4 & 3 \\hline \$ 5 & 1 & 2 & x \\hline\end{array} Price $3$5​ Harry’s  Quantity  Demanded ​31​ Darby’s  Quantity  Denanded ​42​ Jake’s  Quantity  Denanded ​3x​​ 
-Refer to Table 4-9. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Accepted Answer

A)  the slope of Jake's demand curve is -1/2, and the slope of the market demand curve is -5/2.
B)  the slope of Jake's demand curve is -1/2, and the slope of the market demand curve is -2/5.
C)  the slope of Jake's demand curve is -2, and the slope of the market demand curve is -5/2.
D)  the slope of Jake's demand curve is -2, and the slope of the market demand curve is -2/5. E) All of the above
F) A) and B)

Question 8

Equilibrium quantity must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.E) All of the above
F) A) and C)

Question 9

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.E) A) and D)
F) A) and C)

Question 10

Figure 4-17 
-Refer to Figure 4-17. If price is $25, then quantity demanded and quantity supplied, respectively, are

Accepted Answer

A)  500 units and 500 units.
B)  500 units and 800 units.
C)  600 units and 600 units.
D)  800 units and 500 units.E) B) and C)
F) None of the above

Question 11

Table 4-6
   An Ineatse in Supply  A Decrense in Supply  An Inerease in Denend  A B A Decrense in Denand  C  D \begin{array} { | c | c | c | } \hline & 	ext { An Ineatse in Supply } & 	ext { A Decrense in Supply } \\hline 	ext { An Inerease in Denend } & 	ext { A } & \mathbf { B } \\hline 	ext { A Decrense in Denand } & 	ext { C } & 	ext { D } \\hline\end{array} An Inerease in Denend  A Decrense in Denand ​ An Ineatse in Supply  A  C ​ A Decrense in Supply B D ​​ 
-Refer to Table 4-6. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

A)  A
B)  B
C)  C
D)  D E) A) and B)
F) A) and C)

Question 12

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Accepted Answer

A) True 
 B)False

Question 13

The highest form of competition is called

Accepted Answer

A)  absolute competition.
B)  cutthroat competition.
C)  perfect competition.
D)  market competition.E) C) and D)
F) A) and D)

Question 14

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 15

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 16

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 17

Figure 4-22
 
-Refer to Figure 4-22. Which of the four panels illustrates an increase in quantity supplied?

Accepted Answer

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

Question 18

A leftward shift of a supply curve is called a(n)

Accepted Answer

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

Question 19

A supply schedule is a table that shows the relationship between

Accepted Answer

A)  price and quantity supplied.
B)  input costs and quantity supplied.
C)  quantity demanded and quantity supplied.
D)  profit and quantity supplied.E) B) and C)
F) B) and D)

Question 20

Figure 4-22
 
-Refer to Figure 4-22. Panel (b)  shows which of the following?

Accepted Answer

A)  a decrease in demand and a decrease in quantity supplied
B)  a decrease in demand and a decrease in supply
C)  a decrease in quantity demanded and a decrease in quantity supplied
D)  a decrease in quantity demanded and a decrease in supplyE) B) and D)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Correct Answer
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Good X and good Y are substitutes. If the price of good Y increases, then the

Correct Answer
verified

A decrease in demand shifts the demand curve to the left.

Correct Answer
verified

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct Answer
verified

The highest form of competition is called

Correct Answer
verified

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Correct Answer
verified

Equilibrium quantity must decrease when demand

Correct Answer
verified

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Correct Answer
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Correct Answer
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Local cable television companies frequently are monopolists.

Correct Answer
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Correct Answer
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Figure 4-22 -Refer to Figure 4-22. Panel (b) shows which of the following?

Correct Answer
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Figure 4-22 -Refer to Figure 4-22. Which of the four panels illustrates an increase in quantity supplied?

Correct Answer
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When all market participants are price takers who have no influence over prices, the markets have

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17. If price is $25, then quantity demanded and quantity supplied, respectively, are

Correct Answer
verified

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Correct Answer
verified

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

Correct Answer
verified

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Correct Answer
verified

A leftward shift of a supply curve is called a(n)

Correct Answer
verified

A supply schedule is a table that shows the relationship between

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Correct AnswerverifiedShow Answer

Good X and good Y are substitutes. If the price of good Y increases, then the

Correct AnswerverifiedShow Answer

A decrease in demand shifts the demand curve to the left.

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct AnswerverifiedShow Answer

The highest form of competition is called

Correct AnswerverifiedShow Answer

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Correct AnswerverifiedShow Answer

Equilibrium quantity must decrease when demand

Correct AnswerverifiedShow Answer

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Local cable television companies frequently are monopolists.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. Panel (b) shows which of the following?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. Which of the four panels illustrates an increase in quantity supplied?

Correct AnswerverifiedShow Answer

When all market participants are price takers who have no influence over prices, the markets have

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17. If price is $25, then quantity demanded and quantity supplied, respectively, are

Correct AnswerverifiedShow Answer

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Correct AnswerverifiedShow Answer

A leftward shift of a supply curve is called a(n)

Correct AnswerverifiedShow Answer

A supply schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

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