Question 1

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

Accepted Answer

Equilibrium price de...

Question 2

A market supply curve shows

Accepted Answer

A)  the total quantity supplied at all possible prices.
B)  the average quantity supplied by producers at all possible prices.
C)  how quantity supplied changes when consumer income changes.
D)  suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.E) B) and C)
F) B) and D)

Question 3

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.E) None of the above
F) B) and D)

Question 4

The equilibrium price is the same as the market-clearing price.

Accepted Answer

A) True 
 B)False

Question 5

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 B)
F) B) and C)

Question 6

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)  substitutes.
B)  complements.
C)  unrelated because one good is legal while the other one is illegal.
D)  inferior goods.E) A) and B)
F) B) and C)

Question 7

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A)  price-quantity schedule.
B)  buyer schedule.
C)  demand schedule.
D)  demand curve.E) A) and C)
F) All of the above

Question 8

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 increases from $4.00 to $5.00, what is the change in the market quantity demanded?

Accepted Answer

decreases ...

Question 9

The quantity supplied of a good is the amount that

Accepted Answer

A)  buyers are willing and able to purchase.
B)  sellers are able to produce.
C)  buyers and sellers agree will be brought to market.
D)  sellers are willing and able to sell.E) B) and C)
F) None of the above

Question 10

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, 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) C) and D)

Question 11

A decrease in the number of sellers in the market causes

Accepted Answer

A)  the supply curve to shift to the left.
B)  the supply curve to shift to the right.
C)  a movement up and to the right along a stationary supply curve.
D)  a movement downward and to the left along a stationary supply curve.E) A) and B)
F) A) and C)

Question 12

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 13

Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase?

Accepted Answer

A)  Price will rise.
B)  Price will fall.
C)  Price will stay exactly the same.
D)  The price change will be ambiguous.E) B) and C)
F) A) and D)

Question 14

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 15

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A)  price in the market increases.
B)  price in the market decreases.
C)  price in the market does not change.
D)  market is no longer a competitive market.E) None of the above
F) A) and D)

Question 16

Suppose roses are currently selling for $40 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) A) and B)
F) A) and C)

Question 17

Which of these statements does not apply to market economies?

Accepted Answer

A)  Prices prevent decentralized decision making from degenerating into chaos.
B)  Prices coordinate the actions of millions of people with varying abilities and desires.
C)  Prices ensure that anyone who wants a product can get it.
D)  Prices ensure that what needs to get done does in fact get done.E) C) and D)
F) A) and D)

Question 18

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A)  income varies.
B)  price varies.
C)  price of the nearest substitute good varies.
D)  supply varies.E) A) and C)
F) A) and B)

Question 19

Figure 4-20 
-Refer to Figure 4-20. If the price is $25, then there would be an excess

Accepted Answer

A)  supply of 100 units, and price would fall.
B)  supply of 300 units, and price would fall.
C)  demand of 100 units, and price would fall.
D)  demand of 300 units, and price would fall.E) None of the above
F) All of the above

Question 20

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Most studies indicate that tobacco and marijuana tend to be

Correct Answer
verified

The quantity supplied of a good is the amount that

Correct Answer
verified

A decrease in the number of sellers in the market causes

Correct Answer
verified

Correct Answer
verified

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

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Correct Answer
verified

A surplus is the same as an excess demand.

Correct Answer
verified

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Correct Answer
verified

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct Answer
verified

A market supply curve shows

Correct Answer
verified

The equilibrium price is the same as the market-clearing price.

Correct Answer
verified

A market demand curve shows how the total quantity demanded of a good varies as

Correct Answer
verified

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Correct Answer
verified

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
Equilibrium price de...
View Answer

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

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

Which of these statements does not apply to market economies?

Correct Answer
verified

Correct Answer
verified
decreases ...
View Answer

Exam 4: The Market Forces of Supply and Demand

Most studies indicate that tobacco and marijuana tend to be

Correct AnswerverifiedShow Answer

The quantity supplied of a good is the amount that

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

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, an increase in the productivity of turkey farmers would cause a move from

Correct AnswerverifiedShow Answer

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Correct AnswerverifiedShow Answer

A surplus is the same as an excess demand.

Correct AnswerverifiedShow Answer

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Correct AnswerverifiedShow Answer

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct AnswerverifiedShow Answer

A market supply curve shows

Correct AnswerverifiedShow Answer

The equilibrium price is the same as the market-clearing price.

Correct AnswerverifiedShow Answer

A market demand curve shows how the total quantity demanded of a good varies as

Correct AnswerverifiedShow Answer

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Correct AnswerverifiedShow Answer

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedEquilibrium price de...View AnswerShow Answer

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

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

Which of these statements does not apply to market economies?

Correct AnswerverifiedShow Answer

Correct Answerverifieddecreases ...View AnswerShow Answer

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verified

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

Correct Answer
verified
Equilibrium price de...
View Answer

Correct Answer
verified

Correct Answer
verified
The demand...
View Answer

Correct Answer
verified

Correct Answer
verified
decreases ...
View Answer