Question 1

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)  40.
B)  35.
C)  30.
D)  All of the above could be correct.E) B) and C)
F) A) and D)

Question 2

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

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 lower cholesterol.
D)  increase in the price of a pretzels.E) A) and B)
F) A) and C)

Question 3

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

Accepted Answer

A)  the government
B)  prices
C)  subsidies
D)  the Federal ReserveE) All of the above
F) B) and C)

Question 4

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand...

Question 5

Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Accepted Answer

A)  shortage to exist and the market price of roses to increase.
B)  shortage to exist and the market price of roses to decrease.
C)  surplus to exist and the market price of roses to increase.
D)  surplus to exist and the market price of roses to decrease.E) C) and D)
F) A) and C)

Question 6

The following table contains a demand schedule for a good.  If the law of demand applies to this good, then A could be

Accepted Answer

A)  0.
B)  100.
C)  200.
D)  400.E) B) and C)
F) A) and D)

Question 7

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 8

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) All of the above
F) B) and D)

Question 9

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Accepted Answer

A)  and quantity both decrease.
B)  and quantity both increase.
C)  increases, and the equilibrium quantity decreases.
D)  decreases, and the equilibrium quantity increases.E) C) and D)
F) A) and C)

Question 10

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.E) A) and C)
F) None of the above

Question 11

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A)  the prices of related goods
B)  income
C)  tastes
D)  the prices of the inputs used to produce the goodE) None of the above
F) A) and D)

Question 13

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph represents

Accepted Answer

A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)  an increase in the number of suppliers.
C)  a decrease in the price of a relevant input.
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change.E) None of the above
F) A) and B)

Question 15

When quantity supplied decreases at every possible price, we know that the supply curve has

Accepted Answer

A)  shifted to the left.
B)  shifted to the right.
C)  not shifted; rather, we have moved along the supply curve to a new point on the same curve.
D)  not shifted; rather, the supply curve has become flatter.E) A) and C)
F) B) and C)

Question 16

In a competitive market, each seller has limited control over the price of his product because

Accepted Answer

A)  other sellers are offering similar products.
B)  buyers exert more control over the price than do sellers.
C)  these markets are highly regulated by the government.
D)  sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.E) A) and D)
F) B) and D)

Question 17

An increase 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.E) All of the above
F) A) and D)

Question 18

Table 4-14
The table below shows the quantities demanded of milk per month by four families at various prices.
-Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Accepted Answer

The answer of Table 4-14
The table below shows the quantities...

Question 19

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 20

Soup is an inferior good if the demand

Accepted Answer

A)  for soup falls when the price of a substitute for soup rises.
B)  for soup rises when the price of soup falls.
C)  curve for soup slopes upward.
D)  for soup falls when income rises.E) B) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

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

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 along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

Correct Answer
verified

Sellers respond to a shortage by cutting their prices.

Correct Answer
verified

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct Answer
verified

The following table contains a demand schedule for a good. If the law of demand applies to this good, then A could be

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

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, buyers expecting paper to be more expensive in the future would cause a current move from

Correct Answer
verified

An increase in demand is represented by a

Correct Answer
verified

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Correct Answer
verified

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

Correct Answer
verified

In a competitive market, each seller has limited control over the price of his product because

Correct Answer
verified

Which of the following is not a determinant of the demand for a particular good?

Correct Answer
verified

Correct Answer
verified

When quantity supplied decreases at every possible price, we know that the supply curve has

Correct Answer
verified

Soup is an inferior good if the demand

Correct Answer
verified

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Correct Answer
verified

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Correct Answer
verified

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Correct Answer
verified
The demand...
View Answer

Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

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 along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct AnswerverifiedShow Answer

The following table contains a demand schedule for a good. If the law of demand applies to this good, then A could be

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

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, buyers expecting paper to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

An increase in demand is represented by a

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Correct AnswerverifiedShow Answer

Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?

Correct AnswerverifiedShow Answer

In a competitive market, each seller has limited control over the price of his product because

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of the demand for a particular good?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When quantity supplied decreases at every possible price, we know that the supply curve has

Correct AnswerverifiedShow Answer

Soup is an inferior good if the demand

Correct AnswerverifiedShow Answer

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Correct AnswerverifiedShow Answer

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Correct AnswerverifiedShow Answer

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Correct AnswerverifiedShow Answer

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The demand...
View Answer

Correct Answer
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