Question 1

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph represents

Accepted Answer

A)   an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)   an increase in the number of suppliers.
C)   a decrease in the price of a relevant input.
D)   an increase in the price of the good that is being supplied and the suppliers' responses to that price change.E) A) and D)
F) C) and D)

Question 2

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Accepted Answer

The supply...

Question 3

Figure 4-14 
-Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Accepted Answer

A)   There is an improvement in the technology used to produce this good.
B)   The cost of an input to the production of this good increases.
C)   This good becomes very popular.
D)   The price of a substitute good decreases.E) A) and B)
F) A) and C)

Question 4

When a surplus exists in a market, sellers

Accepted Answer

A)   raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
B)   raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.
C)   lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.
D)   lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.E) B) and C)
F) A) and D)

Question 5

To obtain the market demand curve for a product, sum the individual demand curves

Accepted Answer

A)   vertically.
B)   diagonally.
C)   horizontally.
D)   and then average them.E) B) and C)
F) A) and D)

Question 6

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Accepted Answer

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A very hot summer in Atlanta will cause

Accepted Answer

A)   the demand curve for lemonade to shift to the left.
B)   the demand for air conditioners to decrease.
C)   the demand for jackets to decrease.
D)   a movement downward and to the right along the demand curve for tank tops.E) C) and D)
F) None of the above

Question 9

Surpluses drive price up, while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 10

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)   willing to purchase.
B)   willing and able to purchase.
C)   willing, able, and need to purchase.
D)   able to purchase.E) B) and D)
F) None of the above

Question 11

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Accepted Answer

The demand...

Question 12

If the demand for a good falls when income falls, then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 13

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Accepted Answer

A)   shift rightward.
B)   shift leftward.
C)   become flatter.
D)   remain unchanged.E) None of the above
F) A) and B)

Question 14

A decrease 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) A) and B)
F) All of the above

Question 15

Figure 4-20 
-Refer to Figure 4-20. If the price is $10, then there would be a

Accepted Answer

A)   shortage of 400 units, and price would rise.
B)   surplus of 400 units, and price would rise.
C)   shortage of 600 units, and price would rise.
D)   surplus of 600 units, and price would rise.E) C) and D)
F) A) and D)

Question 16

Which of the following is not held constant in a supply schedule?

Accepted Answer

A)   production technology
B)   the price of the good
C)   the prices of inputs
D)   expectationsE) A) and D)
F) All of the above

Question 17

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) C) and D)
F) All of the above

Question 18

Table 4-2
 
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

Accepted Answer

A)   increases by 0.75 units.
B)   increases by 3 units.
C)   increases by 4 units.
D)   decreases by 27 units.E) None of the above
F) All of the above

Question 19

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

Accepted Answer

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

Question 20

A leftward shift of a demand curve is called a(n)

Accepted Answer

A)   increase in demand.
B)   decrease in demand.
C)   decrease in quantity demanded.
D)   increase in quantity demanded.E) All of the above
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct AnswerverifiedThe supply...View AnswerShow Answer

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Correct AnswerverifiedShow Answer

A very hot summer in Atlanta will cause

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To obtain the market demand curve for a product, sum the individual demand curves

Correct AnswerverifiedShow Answer

A leftward shift of a demand curve is called a(n)

Correct AnswerverifiedShow Answer

The quantity demanded of a good is the amount that buyers are

Correct AnswerverifiedShow Answer

A decrease in supply is represented by a

Correct AnswerverifiedShow Answer

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

Correct AnswerverifiedShow Answer

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Correct AnswerverifiedShow Answer

When a surplus exists in a market, sellers

Correct AnswerverifiedShow Answer

Surpluses drive price up, while shortages drive price down.

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Correct AnswerverifiedShow Answer

Which of the following is not held constant in a supply schedule?

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Correct AnswerverifiedShow Answer

Correct Answer
verified
The supply...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The demand...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified