Question 1

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

Accepted Answer

A)   a decrease in demand.
B)   an increase in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.E) C) and D)
F) None of the above

Question 2

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.E) C) and D)
F) B) and C)

Question 3

If the demand for a good falls when income falls, then the good is called a(n)

Accepted Answer

A)   normal good.
B)   regular good.
C)   luxury good.
D)   inferior good.E) A) and B)
F) C) and D)

Question 4

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A)   income varies.
B)   price varies.
C)   price of the nearest substitute good varies.
D)   supply varies.E) A) and D)
F) B) and C)

Question 5

Figure 4-3
 
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Accepted Answer

A)   0 units.
B)   5 units.
C)   8.33 units.
D)   25 units.E) B) and C)
F) A) and C)

Question 6

In a market economy, supply and demand are important because they

Accepted Answer

A)   play a critical role in the allocation of the economy's scarce resources.
B)   determine how much of each good gets produced.
C)   can be used to predict the impact on the economy of various events and policies.
D)   All of the above are correct.E) A) and D)
F) A) and C)

Question 7

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)   a decrease in the price of gasoline
B)   an increase in consumer income, assuming gasoline is a normal good
C)   an increase in the price of cars, a complement for gasoline
D)   a decrease in the expected future price of gasolineE) A) and B)
F) A) and C)

Question 8

In a market economy, prices are the signals that guide the allocation of scarce resources.

Accepted Answer

a.
b.
The equilibrium price (Pe) is $4 a...

Question 9

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 10

A surplus exists in a market if

Accepted Answer

A)   there is an excess demand for the good.
B)   quantity demanded exceeds quantity supplied.
C)   the current price is above its equilibrium price.
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 11

Figure 4-7
 
-Refer to Figure 4-7. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Accepted Answer

A)   Tobacco and marijuana are complements, and the price of marijuana decreased.
B)   Tobacco is a "gateway drug," and the price of marijuana increased.
C)   The price of cigarettes increased.
D)   The arrows are consistent with all of these events.E) A) and C)
F) A) and B)

Question 12

A movement upward and to the left along a given demand curve is called a decrease in demand.

Accepted Answer

A) True 
 B)False

Question 13

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Accepted Answer

A) True 
 B)False

Question 14

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 15

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 16

A market demand curve shows

Accepted Answer

A)   the relationship between price and the number of buyers in a market.
B)   how quantity demanded changes when the number of sellers changes.
C)   the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good.
D)   how much of a good all buyers are willing and able to buy at each possible price.E) A) and B)
F) A) and C)

Question 17

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
 
-Refer to Table 4-8. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)   $10
B)   $15
C)   $20
D)   $25E) A) and B)
F) A) and C)

Question 18

A shortage exists in a market if

Accepted Answer

A)   there is an excess supply of the good.
B)   quantity supplied exceeds quantity demanded.
C)   the current price is below its equilibrium price.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 19

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Harry's
B)   only Darby's
C)   both Harry's and Darby's
D)   neither Harry's nor Darby'sE) B) and D)
F) All of the above

Question 20

When drawing a demand curve,

Accepted Answer

A)   demand is measured along the vertical axis, and price is measured along the horizontal axis.
B)   quantity demanded is measured along the vertical axis, and price is measured along the horizontal axis.
C)   price is measured along the vertical axis, and demand is measured along the horizontal axis.
D)   price is measured along the vertical axis, and quantity demanded is measured along the horizontal axis.E) B) and C)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct Answer
verified

If the demand for a good falls when income falls, then the good is called a(n)

Correct Answer
verified

A market demand curve shows how the total quantity demanded of a good varies as

Correct Answer
verified

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct Answer
verified

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Correct Answer
verified

In a market economy, prices are the signals that guide the allocation of scarce resources.

Correct Answer
verified
a.
b.
The equilibrium price (Pe) is $4 a...
View Answer

Figure 4-3 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct Answer
verified

When drawing a demand curve,

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Correct Answer
verified

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Correct Answer
verified

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct Answer
verified

A surplus exists in a market if

Correct Answer
verified

In a market economy, supply and demand are important because they

Correct Answer
verified

A shortage exists in a market if

Correct Answer
verified

A market demand curve shows

Correct Answer
verified

A decrease in the number of sellers in the market causes

Correct Answer
verified

Which of the following would shift the demand curve for gasoline to the right?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called a(n)

Correct AnswerverifiedShow Answer

A market demand curve shows how the total quantity demanded of a good varies as

Correct AnswerverifiedShow Answer

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct AnswerverifiedShow Answer

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Correct AnswerverifiedShow Answer

In a market economy, prices are the signals that guide the allocation of scarce resources.

Correct Answerverifieda.b.The equilibrium price (Pe) is $4 a...View AnswerShow Answer

Figure 4-3 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct AnswerverifiedShow Answer

When drawing a demand curve,

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Correct AnswerverifiedShow Answer

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct AnswerverifiedShow Answer

A surplus exists in a market if

Correct AnswerverifiedShow Answer

In a market economy, supply and demand are important because they

Correct AnswerverifiedShow Answer

A shortage exists in a market if

Correct AnswerverifiedShow Answer

A market demand curve shows

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

Which of the following would shift the demand curve for gasoline to the right?

Correct AnswerverifiedShow Answer

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a.
b.
The equilibrium price (Pe) is $4 a...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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