Question 1

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

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and C)
F) All of the above

Question 2

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 3

An increase in demand is represented by a

Accepted Answer

A)   movement downward and to the right along a demand curve.
B)   movement upward and to the left along a demand curve.
C)   rightward shift of a demand curve.
D)   leftward shift of a demand curve.E) C) and D)
F) All of the above

Question 4

Table 4-7
 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $8 is

Accepted Answer

A)   10 gallons.
B)   20 gallons.
C)   32 gallons.
D)   40 gallons.E) All of the above
F) None of the above

Question 5

Figure 4-13 
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Accepted Answer

A)   8 units.
B)   16 units.
C)   24 units.
D)   32 units.E) None of the above
F) A) and B)

Question 6

Figure 4-1 
-Refer to Figure 4-1. It is apparent from the figure that the

Accepted Answer

A)   good is inferior.
B)   demand for the good decreases as income increases.
C)   demand for the good conforms to the law of demand.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 7

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)   market harmony.
B)   coincidence.
C)   equivalence.
D)   equilibrium.E) A) and B)
F) None of the above

Question 8

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 9

In markets, prices move toward equilibrium because of

Accepted Answer

A)   the actions of buyers and sellers.
B)   government regulations placed on market participants.
C)   increased competition among sellers.
D)   buyers' ability to affect market outcomes.E) A) and B)
F) A) and C)

Question 10

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

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 decrease, and the effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.E) None of the above
F) All of the above

Question 11

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 cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) All of the above
F) A) and B)

Question 12

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

Accepted Answer

A)   a decrease in supply.
B)   an increase in supply.
C)   an increase in the quantity supplied.
D)   a decrease in the quantity supplied.E) A) and D)
F) A) and C)

Question 13

A decrease in the price of a good will

Accepted Answer

A)   increase demand.
B)   decrease demand.
C)   increase quantity demanded.
D)   decrease quantity demanded.E) B) and C)
F) A) and D)

Question 14

Studies show that lower cigarette prices are associated with greater use of marijuana; therefore, tobacco and marijuana are

Accepted Answer

The answer of Studies show that lower cigarette prices are...

Question 15

An early frost in the vineyards of Napa Valley would cause a(n)

Accepted Answer

A)   increase in the demand for wine, increasing price.
B)   increase in the supply of wine, decreasing price.
C)   decrease in the demand for wine, decreasing price.
D)   decrease in the supply of wine, increasing price.E) A) and C)
F) All of the above

Question 16

Figure 4-13 
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Accepted Answer

A)   4 units.
B)   6 units.
C)   12 units.
D)   18 units.E) A) and C)
F) C) and D)

Question 17

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

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) B) and D)
F) A) and D)

Question 18

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Accepted Answer

A) True 
 B)False

Question 19

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 20

What is the difference between a "change in supply" and a "change in quantity supplied?" Graph your answer.
a. For each of the following changes, determine whether there will be a change in quantity supplied or a change in supply.
i. a change in input costs
ii. a change in producer expectations
iii. a change in price
iv. a change in technology
v. a change in the number of sellers

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

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 cars as a result of the adoption of new technology on assembly lines?

Correct Answer
verified

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
verified
There is a...
View Answer

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

Correct Answer
verified

In markets, prices move toward equilibrium because of

Correct Answer
verified

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $8 is

Correct Answer
verified

The unique point at which the supply and demand curves intersect is called

Correct Answer
verified

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

An early frost in the vineyards of Napa Valley would cause a(n)

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

Correct Answer
verified

A decrease in the price of a good will

Correct Answer
verified

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Correct Answer
verified

Correct Answer
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a. A change in supply refers to a shift ...
View Answer

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Correct Answer
verified

Studies show that lower cigarette prices are associated with greater use of marijuana; therefore, tobacco and marijuana are

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

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 a(n)

Correct Answer
verified

An increase in demand is represented by a

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

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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 cars as a result of the adoption of new technology on assembly lines?

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

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

Correct AnswerverifiedShow Answer

In markets, prices move toward equilibrium because of

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $8 is

Correct AnswerverifiedShow Answer

The unique point at which the supply and demand curves intersect is called

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

An early frost in the vineyards of Napa Valley would cause a(n)

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

Correct AnswerverifiedShow Answer

A decrease in the price of a good will

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Correct AnswerverifiedShow Answer

Correct Answerverifieda. A change in supply refers to a shift ...View AnswerShow Answer

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Correct AnswerverifiedShow Answer

Studies show that lower cigarette prices are associated with greater use of marijuana; therefore, tobacco and marijuana are

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

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 a(n)

Correct AnswerverifiedShow Answer

An increase in demand is represented by a

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

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

Correct AnswerverifiedShow Answer

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There is a...
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a. A change in supply refers to a shift ...
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