Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Accepted Answer

A)   -3.
B)   -1/3.
C)   1/3.
D)   3.E) None of the above
F) C) and D)

Question 3

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous.

Accepted Answer

A) True 
 B)False

Question 4

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause an)

Accepted Answer

A)   decrease in the demand for sugar and a decrease in the quantity supplied of sugar.
B)   decrease in the supply of sugar and a decrease in the quantity demanded of sugar.
C)   decrease in the equilibrium price of sugar and an increase in the equilibrium quantity of sugar.
D)   increase in the equilibrium price of sugar and a decrease in the equilibrium quantity of sugar.E) A) and B)
F) A) and C)

Question 5

When we move along a given demand curve,

Accepted Answer

A)   only price is held constant.
B)   income and price are held constant.
C)   all nonprice determinants of demand are held constant.
D)   all determinants of quantity demanded are held constant.E) A) and D)
F) B) and D)

Question 6

Figure 4-17 
-Refer to Figure 4-17. At a price of

Accepted Answer

A)   $2, there is a surplus of 6 units.
B)   $5, there is a surplus of 25 units.
C)   $5, there is a shortage of $25.
D)   $7, there is a surplus of 4 units.E) A) and C)
F) A) and B)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 9

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 10

Surpluses drive price up, while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 11

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Accepted Answer

A)   the price of tennis balls increases.
B)   the price of tennis balls decreases.
C)   the price of tennis balls does not change.
D)   there is no longer a market for tennis balls.E) B) and C)
F) None of the above

Question 12

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for

Accepted Answer

A)   hair gel to increase.
B)   razors to increase.
C)   combs to increase.
D)   shampoo to increase.E) C) and D)
F) None of the above

Question 13

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Accepted Answer

A)   is greater than the quantity that sellers are willing and able to sell.
B)   exactly equals the quantity that sellers are willing and able to sell.
C)   is less than the quantity that sellers are willing and able to sell.
D)   Either a)  or c)  could be correct.E) A) and B)
F) C) and D)

Question 14

Equilibrium quantity must increase when demand

Accepted Answer

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

Question 15

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
     , where  is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Question 16

The supply curve for a good is a line that relates

Accepted Answer

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

Question 17

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Accepted Answer

A)   The number of sellers of mangos increases.
B)   There is an advance in technology that reduces the cost of producing mangos.
C)   The price of fertilizer decreases, and fertilizer is an input in the production of mangos.
D)   The price of mangos rises.E) B) and D)
F) None of the above

Question 18

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 19

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-6 
-Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate the tax as producing a movement from

Accepted Answer

A)   Point A to Point B in Panel 1.
B)   Point B to Point A in Panel 1.
C)   Point A to Point C in Panel 2.
D)   Point C to Point A in Panel 2.E) C) and D)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

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

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause an)

Correct Answer
verified

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous.

Correct Answer
verified

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Correct Answer
verified

Surpluses drive price up, while shortages drive price down.

Correct Answer
verified

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Correct Answer
verified

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for

Correct Answer
verified

The supply curve for a good is a line that relates

Correct Answer
verified

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct Answer
verified

Equilibrium quantity must increase when demand

Correct Answer
verified

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct Answer
verified

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct Answer
verified

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct Answer
verified

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause an)

Correct AnswerverifiedShow Answer

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous.

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Correct AnswerverifiedShow Answer

Surpluses drive price up, while shortages drive price down.

Correct AnswerverifiedShow Answer

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Correct AnswerverifiedShow Answer

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for

Correct AnswerverifiedShow Answer

The supply curve for a good is a line that relates

Correct AnswerverifiedShow Answer

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct AnswerverifiedShow Answer

Equilibrium quantity must increase when demand

Correct AnswerverifiedShow Answer

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct AnswerverifiedShow Answer

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct AnswerverifiedShow Answer

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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