Question 1

Which of the following statements is correct?

Accepted Answer

A)   Buyers determine supply, and sellers determine demand.
B)   Buyers determine demand, and sellers determine supply.
C)   Buyers determine both demand and supply.
D)   Sellers determine both demand and supply.E) C) and D)
F) A) and C)

Question 2

Figure 4-9
 
-Refer to Figure 4-9.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) C) and D)
F) None of the above

Question 3

Figure 4-22

-Refer to Figure 4-22 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) A) and B)
F) A) and C)

Question 4

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

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

Question 5

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

Accepted Answer

A)   demand for flour to increase.
B)   demand for flour to decrease.
C)   supply of flour to increase.
D)   supply of flour to decrease.E) All of the above
F) B) and C)

Question 6

At the equilibrium price,quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

Figure 4-6
 
-Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Accepted Answer

A)   decrease in the price of potato chips.
B)   decrease in income, assuming that potato chips are a normal good.
C)   announcement by the FDA that potato chips cause cancer.
D)   increase in the price of a pretzels.E) A) and B)
F) B) and D)

Question 8

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 5.
• The slope of the supply curve is 1.
Then there is currently a

Accepted Answer

A)   shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
B)   shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.
C)   surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
D)   surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.E) B) and C)
F) A) and D)

Question 9

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

Question 10

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Accepted Answer

A) True 
 B)False

Question 11

Figure 4-21
 
-Refer to Figure 4-21.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?

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) A) and D)
F) C) and D)

Question 12

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

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) C) and D)
F) B) and C)

Question 13

Suppose buyers of computers and printers regard the two goods as complements.Then an increase in the price of computers will cause a(n)

Accepted Answer

A)   decrease in the demand for printers and a decrease in the quantity supplied of printers.
B)   decrease in the supply of printers and a decrease in the quantity demanded of printers.
C)   decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers.
D)   increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers.E) A) and D)
F) A) and B)

Question 14

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 15

Figure 4-22

-Refer to Figure 4-22.Panel (c) shows which of the following?

Accepted Answer

A)   an increase in demand and an increase in quantity supplied
B)   an increase in demand and an increase in supply
C)   an increase in quantity demanded and an increase in quantity supplied
D)   an increase in quantity demanded and an increase in supplyE) A) and B)
F) C) and D)

Question 16

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities.
 
-Refer to Figure 4-20.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 SB.
D)   SB to SA.E) All of the above
F) A) and C)

Question 17

If a determinant of demand other than price changes,the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-22

-Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity demanded?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and C)
F) A) and B)

Question 19

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Accepted Answer

A)   decreases, and the supply of tires increases.
B)   is unaffected, and the supply of tires decreases.
C)   is unaffected, and the supply of tires increases.
D)   None of the above is necessarily correct.E) All of the above
F) B) and C)

Question 20

Music compact discs are normal goods.What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties,compact disc players become cheaper,more firms start producing music compact discs,and music lovers experience an increase in income?

Accepted Answer

A)   Price will fall, and the effect on quantity is ambiguous.
B)   Price will rise, and the effect on quantity is ambiguous.
C)   Quantity will fall, and the effect on price is ambiguous.
D)   Quantity will rise, and the effect on price is ambiguous.E) A) and D)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand.

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct Answer
verified

Music compact discs are normal goods.What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties,compact disc players become cheaper,more firms start producing music compact discs,and music lovers experience an increase in income?

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.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?

Correct Answer
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Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity demanded?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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At the equilibrium price,quantity demanded is equal to quantity supplied.

Correct Answer
verified

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Correct Answer
verified

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph is called

Correct Answer
verified

Correct Answer
verified

A very hot summer in Atlanta will cause

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22 Which of the four panels represents the market for winter coats as we progress from winter to spring?

Correct Answer
verified

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

Correct Answer
verified

If a determinant of demand other than price changes,the demand curve shifts.

Correct Answer
verified

Suppose buyers of computers and printers regard the two goods as complements.Then an increase in the price of computers will cause a(n)

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22.Panel (c) shows which of the following?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand.

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct AnswerverifiedShow Answer

Music compact discs are normal goods.What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties,compact disc players become cheaper,more firms start producing music compact discs,and music lovers experience an increase in income?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.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?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity demanded?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

At the equilibrium price,quantity demanded is equal to quantity supplied.

Correct AnswerverifiedShow Answer

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Correct AnswerverifiedShow Answer

Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A very hot summer in Atlanta will cause

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22 Which of the four panels represents the market for winter coats as we progress from winter to spring?

Correct AnswerverifiedShow Answer

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

Correct AnswerverifiedShow Answer

If a determinant of demand other than price changes,the demand curve shifts.

Correct AnswerverifiedShow Answer

Suppose buyers of computers and printers regard the two goods as complements.Then an increase in the price of computers will cause a(n)

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Panel (c) shows which of the following?

Correct AnswerverifiedShow Answer

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