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Exam 4: The Market Forces of Supply and Demand

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Question 131

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If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

A) Both the equilibrium price and quantity would increase.
B) Both the equilibrium price and quantity would decrease.
C) The equilibrium price would increase, and the equilibrium quantity would decrease.
D) The equilibrium price would decrease, and the equilibrium quantity would increase.

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

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Question 132

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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity supplied?

A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)

E) B) and C)
F) None of the above

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Question 133

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Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

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

In competitive markets, which of the following is not correct?

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Two goods are substitutes when a decrease in the price of one good

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

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 and that the market demand violates the law of demand. Then, in the table, the value of x must be

If a increase in income decreases the demand for a good, then the good is a(n)

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Figure 4-18 -Refer to Figure 4-18. At a price of $15, there would be a

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

In competitive markets,

The quantity supplied of a good is the amount that

If a good or service has only one seller, then the seller is called a monopoly.

Figure 4-6 -Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. If the warning labels are successful, we could illustrate the plan as producing a movement from