Question 1

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 3

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
     , where  is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 18 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 4

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

A)   x to y.
B)   y to x.
C)   SA to Sc.
D)   SB to SA.E) None of the above
F) A) and B)

Question 6

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Accepted Answer

A)   The demand for shotgun-shell ammunition will increase.
B)   The demand for shotgun-shell ammunition will decrease.
C)   The demand for shotgun-shell ammunition will be unaffected.
D)   The supply of shotgun-shell ammunition will increase.E) A) and D)
F) All of the above

Question 7

The supply curve for stand up paddle boards

Accepted Answer

A)   shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
B)   shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph.
C)   does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
D)   does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.E) C) and D)
F) B) and D)

Question 8

If the number of sellers in a market increases, then the

Accepted Answer

A)   demand in that market will increase.
B)   supply in that market will increase.
C)   supply in that market will decrease.
D)   demand in that market will decrease.E) A) and B)
F) All of the above

Question 9

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Accepted Answer

A)   Point A to Point B
B)   Point C to Point B
C)   Point C to Point D
D)   Point A to Point DE) None of the above
F) A) and B)

Question 10

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?

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

Question 11

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
     , where  is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 10 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 12

Figure 4-7 
-Refer to Figure 4-7. If the demand curve for Good X shifts from Db to Da, then

Accepted Answer

A)   firms would be willing to supply more of Good X than before at each possible price.
B)   people are willing to buy less of Good X than before at each possible price.
C)   people's incomes must have increased.
D)   the price of Good X has increased.E) A) and C)
F) All of the above

Question 13

Which of the following would cause a movement along the supply curve for cupcakes?

Accepted Answer

A)   an improvement in technology for commercial mixers
B)   a decrease in the price of cupcakes
C)   an increase in the price of cake flour
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 14

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a

Accepted Answer

A)   shortage to exist and the market price of chocolate-dipped strawberries to increase.
B)   shortage to exist and the market price of chocolate-dipped strawberries to decrease.
C)   surplus to exist and the market price of chocolate-dipped strawberries to increase.
D)   surplus to exist and the market price of chocolate-dipped strawberries to decrease.E) A) and C)
F) B) and C)

Question 15

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 increases from $12 to $15, 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) C) and D)

Question 16

Figure 4-4
Yasmine Mercedes
  
-Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Accepted Answer

A)   6 units.
B)   9 units.
C)   12 units.
D)   15 units.E) All of the above
F) C) and D)

Question 17

Table 4-4
 
-Refer to Table 4-4. Suppose the market consists of Barb and Carl only. If the price falls by $2, the quantity demanded in the market increases by

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   10 units.E) B) and D)
F) B) and C)

Question 18

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-9
Panel (a)  Panel (b) 
  
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Accepted Answer

A)   an increase in the price of cigarettes
B)   placing a tax on cigarettes
C)   the prohibition of cigarette advertisements on television
D)   decreasing the price of marijuana, given that tobacco and marijuana are complementsE) B) and D)
F) All of the above

Question 20

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Correct Answer
verified

Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Correct Answer
verified

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct Answer
verified

Sellers respond to a shortage by cutting their prices.

Correct Answer
verified

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Barb and Carl only. If the price falls by $2, the quantity demanded in the market increases by

Correct Answer
verified

Correct Answer
verified
There is a...
View Answer

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. If the demand curve for Good X shifts from Db to Da, then

Correct Answer
verified

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Correct Answer
verified

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a

Correct Answer
verified

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct Answer
verified

Correct Answer
verified
There is a...
View Answer

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?

Correct Answer
verified

The supply curve for stand up paddle boards

Correct Answer
verified

Which of the following would cause a movement along the supply curve for cupcakes?

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Correct Answer
verified

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Correct Answer
verified

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Correct Answer
verified

If the number of sellers in a market increases, then the

Correct Answer
verified

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 increases from $12 to $15, quantity supplied will

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Correct AnswerverifiedShow Answer

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Barb and Carl only. If the price falls by $2, the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is a...View AnswerShow Answer

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. If the demand curve for Good X shifts from Db to Da, then

Correct AnswerverifiedShow Answer

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a

Correct AnswerverifiedShow Answer

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is a...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

The supply curve for stand up paddle boards

Correct AnswerverifiedShow Answer

Which of the following would cause a movement along the supply curve for cupcakes?

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Correct AnswerverifiedShow Answer

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Correct AnswerverifiedShow Answer

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Correct AnswerverifiedShow Answer

If the number of sellers in a market increases, then the

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 increases from $12 to $15, quantity supplied will

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There is a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There is a...
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