Question 1

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

A)  Demand for cigars increases, and supply of cigars decreases.
B)  Demand for cigars and supply of cigars both decrease.
C)  Demand for cigars decreases, and supply of cigars increases.
D)  Demand for cigars and supply of cigars both increaseE) A) and C)
F) B) and C)

Question 2

Table 4-2 
-Refer to Table 4-2. Whose demand does not obey the law of demand?

Accepted Answer

A)  Abby's
B)  Brandi's
C)  Carrie's
D)  DeeDee'sE) B) and D)
F) None of the above

Question 3

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Accepted Answer

A) True 
 B)False

Question 4

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 winter coats as we progress from winter to spring?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) E) None of the above
F) All of the above

Question 5

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 6

An increase in quantity supplied

Accepted Answer

A)  results in a movement downward and to the left along a fixed supply curve.
B)  results in a movement upward and to the right along a fixed supply curve.
C)  shifts the supply curve to the left.
D)  shifts the supply curve to the right.E) A) and D)
F) A) and B)

Question 7

A surplus exists in a market if

Accepted Answer

A)  there is an excess demand for the good.
B)  quantity demanded exceeds quantity supplied.
C)  the current price is above its equilibrium price.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 8

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-2  
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Accepted Answer

A)  0 units.
B)  2 units.
C)  4 units.
D)  6 units.E) All of the above
F) A) and D)

Question 10

Each of the following is a determinant of demand except

Accepted Answer

A)  tastes.
B)  production technology.
C)  expectations.
D)  the prices of related goods.E) A) and D)
F) B) and D)

Question 11

Table 4-2 
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Accepted Answer

A)  4 units.
B)  6 units.
C)  24 units.
D)  32 units.E) B) and D)
F) B) and C)

Question 12

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​ 
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 13

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A)  a smaller quantity of labor to be used.
B)  the supply of cars to increase.
C)  the firms' costs to fall.
D)  individual car manufacturers to move up and to the right along their individual supply curves.E) A) and D)
F) C) and D)

Question 14

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 15

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

Accepted Answer

A) True 
 B)False

Question 16

An example of a perfectly competitive market would be the market for

Accepted Answer

A)  electricity.
B)  soybeans.
C)  coffee shops.
D)  restaurants.E) B) and C)
F) A) and D)

Question 17

Which of the following is not an example of a market?

Accepted Answer

A)  A small town has only one seller of electricity.
B)  In the United States, a sick person cannot legally purchase a kidney.
C)  In Florida, there are many buyers and sellers of key lime pie.
D)  The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.E) B) and C)
F) C) and D)

Question 18

In a market, to find the total amount supplied at a particular price, we must

Accepted Answer

A)  sum the quantities that individual firms are willing and able to supply at that price.
B)  calculate the average of the quantities that individual firms are willing and able to supply at that price.
C)  sum the costs that individual firms incur to supply the product at that price.
D)  account for all determinants of demand.E) A) and B)
F) B) and D)

Question 19

If a decrease in income increases the demand for a good, then the good is a(n)

Accepted Answer

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

Question 20

If the supply of a product decreases, then we would expect equilibrium price

Accepted Answer

A)  to increase and equilibrium quantity to decrease.
B)  to decrease and equilibrium quantity to increase.
C)  and equilibrium quantity to both increase.
D)  and equilibrium quantity to both decrease.E) B) and C)
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

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An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

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The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

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Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

Which of the following events must result in a higher price in the market for cigars?

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Each of the following is a determinant of demand except

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If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

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An increase in quantity supplied

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An example of a perfectly competitive market would be the market for

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Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

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If the supply of a product decreases, then we would expect equilibrium price

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If a decrease in income increases the demand for a good, then the good is a(n)

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Table 4-2 -Refer to Table 4-2. Whose demand does not obey the law of demand?

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In a market, to find the total amount supplied at a particular price, we must

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Which of the following is not an example of a market?

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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 represents the market for winter coats as we progress from winter to spring?

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If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

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A surplus exists in a market if

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A reduction in an input price will cause a change in quantity supplied but not a change in supply.

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An increase in the price of ink will shift the supply curve for pens to the left.

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Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

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There is a...
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