Question 1

Table 4-6
 
-Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Accepted Answer

A)   3 units.
B)   11 units.
C)   25 units.
D)   44 units.E) All of the above
F) A) and D)

Question 2

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

Accepted Answer

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

Question 3

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Accepted Answer

The supply...

Question 4

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

Accepted Answer

A) True 
 B)False

Question 5

Assume the market for pork is perfectly competitive. When one pork buyer exits the market,

Accepted Answer

A)   the price of pork increases.
B)   the price of pork decreases.
C)   the price of pork does not change.
D)   there is no longer a market for pork.E) B) and C)
F) C) and D)

Question 6

The actions of buyers and sellers naturally move markets toward equilibrium.

Accepted Answer

A) True 
 B)False

Question 7

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

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 C)
F) B) and D)

Question 8

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Accepted Answer

A)   substitute good.
B)   normal good.
C)   inferior good.
D)   complementary good.E) B) and C)
F) A) and B)

Question 9

An increase in supply is represented by a

Accepted Answer

A)   movement downward and to the left along a supply curve.
B)   movement upward and to the right along a supply curve.
C)   rightward shift of a supply curve.
D)   leftward shift of a supply curve.E) None of the above
F) B) and C)

Question 10

The sum of all the individual supply curves for a product is called

Accepted Answer

A)   total supply.
B)   market supply.
C)   aggregate supply.
D)   total output.E) A) and D)
F) B) and D)

Question 11

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 D)
F) B) and C)

Question 12

Which of the following would most likely serve as an example of a monopoly?

Accepted Answer

A)   a restaurant in a large city
B)   a dry cleaners in a large city
C)   a local gas station
D)   a local electrical companyE) None of the above
F) A) and C)

Question 13

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 14

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Accepted Answer

A)   an increase in demand for brown rice and a decrease in demand for white rice.
B)   a decrease in demand for brown rice and an increase in demand for white rice.
C)   an increase in demand for both brown and white rice.
D)   no change in demand for either type of rice because weight loss is not a determinant of demand.E) B) and C)
F) All of the above

Question 15

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) A) and D)
F) None of the above

Question 16

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

Accepted Answer

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

Question 17

Figure 4-30 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the changes) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price de...

Question 18

The law of demand states that, other things equal, when the price of a good

Accepted Answer

A)   falls, the demand for the good rises.
B)   rises, the quantity demanded of the good rises.
C)   rises, the demand for the good falls.
D)   falls, the quantity demanded of the good rises.E) B) and C)
F) A) and D)

Question 19

Pizza is a normal good if the demand

Accepted Answer

A)   for pizza rises when income rises.
B)   for pizza rises when the price of pizza falls.
C)   curve for pizza slopes upward.
D)   curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.E) A) and D)
F) None of the above

Question 20

Which of the following events must result in a lower price in the market for Snickers?

Accepted Answer

A)   Demand for Snickers increases, and supply of Snickers decreases.
B)   Demand for Snickers and supply of Snickers both decrease.
C)   Demand for Snickers decreases, and supply of Snickers increases.
D)   Demand for Snickers and supply of Snickers both increaseE) All of the above
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the changes) in the equilibrium price and quantity.

Correct Answer
verified
Equilibrium price de...
View 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, an increase in the productivity of turkey farmers would cause a move from

Correct Answer
verified

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

Pizza is a normal good if the demand

Correct Answer
verified

Which of the following would most likely serve as an example of a monopoly?

Correct Answer
verified

Assume the market for pork is perfectly competitive. When one pork buyer exits the market,

Correct Answer
verified

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Correct Answer
verified

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

The sum of all the individual supply curves for a product is called

Correct Answer
verified

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Correct Answer
verified

The law of demand states that, other things equal, when the price of a good

Correct Answer
verified

The actions of buyers and sellers naturally move markets toward equilibrium.

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

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Correct Answer
verified
The supply...
View Answer

Which of the following events must result in a lower price in the market for Snickers?

Correct Answer
verified

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

Correct Answer
verified

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

Correct Answer
verified

Correct Answer
verified

An increase in supply is represented by a

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the changes) in the equilibrium price and quantity.

Correct AnswerverifiedEquilibrium price de...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, an increase in the productivity of turkey farmers would cause a move from

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

Pizza is a normal good if the demand

Correct AnswerverifiedShow Answer

Which of the following would most likely serve as an example of a monopoly?

Correct AnswerverifiedShow Answer

Assume the market for pork is perfectly competitive. When one pork buyer exits the market,

Correct AnswerverifiedShow Answer

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

The sum of all the individual supply curves for a product is called

Correct AnswerverifiedShow Answer

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Correct AnswerverifiedShow Answer

The law of demand states that, other things equal, when the price of a good

Correct AnswerverifiedShow Answer

The actions of buyers and sellers naturally move markets toward equilibrium.

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

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Correct AnswerverifiedThe supply...View AnswerShow Answer

Which of the following events must result in a lower price in the market for Snickers?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in supply is represented by a

Correct AnswerverifiedShow Answer

Correct Answer
verified
Equilibrium price de...
View Answer

Correct Answer
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There is a...
View Answer

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The supply...
View Answer

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