Question 1

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.E) B) and C)
F) A) and D)

Question 2

Table 4-8
 
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

Accepted Answer

A)   decrease by 6 units.
B)   decrease by 12 units.
C)   increase by 6 units.
D)   increase by 12 units.E) A) and D)
F) A) and C)

Question 3

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Accepted Answer

A)   prices at and above the equilibrium price.
B)   prices at and below the equilibrium price.
C)   prices above and below the equilibrium price, but not at the equilibrium price.
D)   the equilibrium price but not above or below the equilibrium price.E) A) and B)
F) A) and C)

Question 4

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 5

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)   the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
B)   the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
C)   there is a surplus of blue jeans at the $30 price.
D)   All of the above are correct.E) A) and D)
F) A) and B)

Question 6

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Accepted Answer

A)   be willing and able to produce less jewelry than before at each possible price.
B)   be willing and able to produce more jewelry than before at each possible price.
C)   face a greater demand for your jewelry.
D)   face a weaker demand for your jewelry.E) All of the above
F) A) and B)

Question 7

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

A)   increase in the price of the good.
B)   improvement in production technology.
C)   increase in income.
D)   increase in input prices.E) B) and C)
F) A) and D)

Question 8

Figure 4-7 
-Refer to Figure 4-7. The shift from Da to Db is called

Accepted Answer

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

Question 9

When quantity demanded increases at every possible price, the demand curve has

Accepted Answer

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

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 D)
F) None of the above

Question 11

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)   decreases, and the supply of tires increases.
B)   is unaffected, and the supply of tires decreases.
C)   is unaffected, and the supply of tires increases.
D)   None of the above is necessarily correct.E) None of the above
F) All of the above

Question 12

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

Accepted Answer

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

Question 13

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 14

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Accepted Answer

A)   rise.
B)   fall.
C)   stay the same.
D)   could rise, fall, or remain unchanged.E) A) and B)
F) A) and C)

Question 15

The term price takers refers to buyers and sellers in

Accepted Answer

A)   perfectly competitive markets.
B)   monopolistic markets.
C)   markets that are regulated by the government.
D)   markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.E) C) and D)
F) A) and B)

Question 16

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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

Question 17

Figure 4-28 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

The answer of Figure 4-28 
-Refer to Figure 4-28. Using...

Exam 4: The Market Forces of Supply and Demand

The two words most often used by economists are

Correct Answer
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Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

Correct Answer
verified

When quantity demanded increases at every possible price, the demand curve has

Correct Answer
verified

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Correct Answer
verified

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

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

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

Correct Answer
verified

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct Answer
verified

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Correct Answer
verified

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

Correct Answer
verified

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

Correct Answer
verified

The term price takers refers to buyers and sellers in

Correct Answer
verified

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

Correct Answer
verified

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Correct Answer
verified

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The two words most often used by economists are

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

Correct AnswerverifiedShow Answer

When quantity demanded increases at every possible price, the demand curve has

Correct AnswerverifiedShow Answer

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Correct AnswerverifiedShow Answer

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

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

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

Correct AnswerverifiedShow Answer

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct AnswerverifiedShow Answer

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be an)

Correct AnswerverifiedShow Answer

The term price takers refers to buyers and sellers in

Correct AnswerverifiedShow Answer

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

Correct AnswerverifiedShow Answer

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Correct AnswerverifiedShow Answer

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Correct AnswerverifiedShow Answer

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