Question 1

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. A to DB. B) DB to DA. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive 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.E) A) and D)
F) A) and B)

Question 2

Figure 4-7 
-Refer to Figure 4-7. If the demand curve for Good X shifts from Da to Db, then

Accepted Answer

A)  firms would be willing to supply less of Good X than before at each possible price.
B)  people are willing to buy more of Good X than before at each possible price.
C)  people's incomes must have decreased.
D)  the price of Good X has decreased.E) B) and C)
F) C) and D)

Question 3

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Accepted Answer

A)  Point A to Point B
B)  Point C to Point B
C)  Point C to Point D
D)  Point A to Point DE) A) and B)
F) A) and C)

Question 4

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

Accepted Answer

A)  inferior goods.
B)  normal goods.
C)  perfectly competitive goods.
D)  durable goods.E) A) and B)
F) A) and C)

Question 5

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 6

Table 4-2 
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Accepted Answer

A)  4 units.
B)  6 units.
C)  24 units.
D)  32 units.E) A) and B)
F) None of the above

Question 7

If the supply of pencils, a substitute for pens, increases, what will happen to the equilibrium price of pencils and to the equilibrium price of pens?

Accepted Answer

The equilibrium pric...

Question 8

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A)  a change in income
B)  a change in the price of the good or service
C)  a change in expectations about the future price of the good or service
D)  a change in the price of a related good or serviceE) None of the above
F) A) and B)

Question 9

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

Accepted Answer

A)  shortage to exist and the market price of chocolate-dipped strawberries to increase.
B)  shortage to exist and the market price of chocolate-dipped strawberries to decrease.
C)  surplus to exist and the market price of chocolate-dipped strawberries to increase.
D)  surplus to exist and the market price of chocolate-dipped strawberries to decrease.E) A) and B)
F) C) and D)

Question 10

If macaroni and cheese is an inferior good, then an increase in

Accepted Answer

A)  the price will cause the demand curve for macaroni and cheese to shift to the left.
B)  the price will cause the demand curve for macaroni and cheese to shift to the right.
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left.
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.E) A) and B)
F) C) and D)

Question 11

Figure 4-29
​ 
-Refer to Figure 4-29. The movement from S1 to S2 is a

Accepted Answer

The answer of Figure 4-29
​ 
-Refer to Figure 4-29. The...

Question 12

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

A)  production technology
B)  expectations
C)  input prices
D)  the number of sellersE) A) and D)
F) B) and D)

Question 13

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Accepted Answer

A)  granite countertops to shift to the left.
B)  granite countertops to shift to the right.
C)  substitute products such as marble countertops to shift to the right.
D)  substitute products such as marble countertops to be unaffected by buyers' preferences for granite.E) A) and D)
F) A) and C)

Question 14

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

Accepted Answer

A)  Point A to Point B
B)  Point C to Point B
C)  Point C to Point D
D)  Point A to Point DE) C) and D)
F) A) and C)

Question 15

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)  the government makes shortages illegal.
B)  resources are abundant in market economies.
C)  prices adjust to eliminate shortages.
D)  quantity supplied is always greater than quantity demanded in market economies.E) C) and D)
F) None of the above

Question 16

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 $15 is

Accepted Answer

A)  0 units.
B)  10 units.
C)  15 units.
D)  25 units.E) A) and C)
F) All of the above

Question 17

The demand curve is the upward-sloping line relating price and quantity demanded.

Accepted Answer

A) True 
 B)False

Question 18

If a good is inferior, then an increase in income will result in a(n)

Accepted Answer

A)  increase in the demand for the good.
B)  decrease in the demand for the good.
C)  movement down and to the right along the demand curve for the good.
D)  movement up and to the left along the demand curve for the good.E) B) and C)
F) All of the above

Question 19

Price will rise to eliminate a shortage.

Accepted Answer

A) True 
 B)False

Question 20

The forces that make market economies work are

Accepted Answer

A)  work and leisure.
B)  politics and religion.
C)  supply and demand.
D)  taxes and government spending.E) B) and D)
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct AnswerverifiedShow Answer

Figure 4-29 ​ -Refer to Figure 4-29. The movement from S1 to S2 is a

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Figure 4-7 -Refer to Figure 4-7. If the demand curve for Good X shifts from Da to Db, then

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The demand curve is the upward-sloping line relating price and quantity demanded.

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

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If the supply of pencils, a substitute for pens, increases, what will happen to the equilibrium price of pencils and to the equilibrium price of pens?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow 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, buyers expecting turkey to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Which of the following changes would not shift the demand curve for a good or service?

Correct AnswerverifiedShow Answer

If macaroni and cheese is an inferior good, then an increase in

Correct AnswerverifiedShow Answer

There is no shortage of scarce resources in a market economy because

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Price will rise to eliminate a shortage.

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Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

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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 $15 is

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

Correct AnswerverifiedShow Answer

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

Correct AnswerverifiedShow Answer

If a good is inferior, then an increase in income will result in a(n)

Correct AnswerverifiedShow Answer

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

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Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

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The forces that make market economies work are

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Figure 4-29 -Refer to Figure 4-29. The movement from S1 to S2 is a

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The equilibrium pric...
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