Question 1

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 B)
F) A) and C)

Question 2

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 3

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 $4 is

Accepted Answer

A)   4 units.
B)   7.5 units.
C)   10 units.
D)   30 units.E) B) and C)
F) All of the above

Question 4

a. What is the difference between a "change in demand" and a "change in quantity demanded?" Graph your answer.
 b. For each of the following changes, determine whether there will be a change in quantity demanded or a change in demand.
i. a change in the price of a related good
ii. a change in tastes
iii. a change in the number of buyers
iv. a change in price
v. a change in consumer expectations
vi. a change in income

Accepted Answer

a. A change in demand refers to a shift ...

Question 5

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Accepted Answer

The demand...

Question 6

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 7

Figure 4-16 
-Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Accepted Answer

A)   decrease in the number of commercial bakers.
B)   improvement in oven technology.
C)   decrease in the price of butter.
D)   decrease in the price of chocolate cake.E) A) and C)
F) None of the above

Question 8

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Accepted Answer

A)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2.
B)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5.
C)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2.
D)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5.E) A) and B)
F) A) and C)

Question 9

When the price of a good is lower than the equilibrium price,

Accepted Answer

A)   a surplus will exist.
B)   buyers desire to purchase more than is produced.
C)   sellers desire to produce and sell more than buyers wish to purchase.
D)   quantity supplied exceeds quantity demanded.E) All of the above
F) B) and C)

Question 10

If, at the current price, there is a surplus of a good, then

Accepted Answer

A)   sellers are producing more than buyers wish to buy.
B)   the market must be in equilibrium.
C)   the price is below the equilibrium price.
D)   quantity demanded equals quantity supplied.E) B) and C)
F) A) and D)

Question 11

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Accepted Answer

A)   no change in the demand for energy drinks.
B)   a decrease in the demand for energy drinks.
C)   an increase in the demand for energy drinks.
D)   a decrease in the supply of energy drinks.E) A) and C)
F) B) and C)

Question 12

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Accepted Answer

A)   each good she purchases to remain unchanged.
B)   normal goods to decrease.
C)   substitute goods to increase.
D)   inferior goods to decrease.E) None of the above
F) A) and B)

Question 13

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) All of the above
F) None of the above

Question 14

Once the demand curve for a product or service is drawn, it

Accepted Answer

A)   remains stable over time.
B)   can shift either rightward or leftward.
C)   is possible to move along the curve, but the curve will not shift.
D)   tends to become steeper over time.E) B) and C)
F) A) and C)

Question 15

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) A) and C)
F) A) and B)

Question 16

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Accepted Answer

A)   supply curve for Matthew's pies will increase.
B)   supply curve for Matthew's pies will decrease.
C)   demand curve for Matthew's pies will increase.
D)   demand curve for Matthew's pies will decrease.E) None of the above
F) A) and C)

Question 17

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) B) and D)

Question 18

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   income demand.
B)   equilibrium demand.
C)   complementary demand.
D)   market demand.E) A) and D)
F) A) and B)

Question 20

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

Once the demand curve for a product or service is drawn, it

Correct Answer
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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
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There is a...
View Answer

Correct Answer
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a. A change in demand refers to a shift ...
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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 $4 is

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

Correct Answer
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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
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Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Correct Answer
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The sum of all the individual demand curves for a product is called

Correct Answer
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Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

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

Correct Answer
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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Correct Answer
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An increase in supply will cause a decrease in price, which will cause an increase in demand.

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

Correct Answer
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Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Correct Answer
verified

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Correct Answer
verified

If, at the current price, there is a surplus of a good, then

Correct Answer
verified

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Correct Answer
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When the price of a good is lower than the equilibrium price,

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Once the demand curve for a product or service is drawn, it

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

Correct Answerverifieda. A change in demand refers to a shift ...View AnswerShow 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 $4 is

Correct AnswerverifiedShow Answer

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

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

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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, a sale on chicken would cause a move from

Correct AnswerverifiedShow Answer

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by an)

Correct AnswerverifiedShow Answer

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Correct AnswerverifiedShow Answer

If, at the current price, there is a surplus of a good, then

Correct AnswerverifiedShow Answer

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Correct AnswerverifiedShow Answer

When the price of a good is lower than the equilibrium price,

Correct AnswerverifiedShow Answer

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There is a...
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a. A change in demand refers to a shift ...
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The demand...
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