Question 1

An increase in the number of college scholarships issued by private foundations would

Accepted Answer

A)  increase the supply of education.
B)  decrease the supply of education.
C)  increase the demand for education.
D)  decrease the demand for education.E) A) and B)
F) None of the above

Question 2

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

Accepted Answer

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

Question 3

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 4

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-18 
-Refer to Figure 4-18. What is the equilibrium quantity in this market?

Accepted Answer

A)  5 units
B)  7.5 units
C)  10 units
D)  The equilibrium quantity cannot be determined from this graph.E) A) and C)
F) B) and D)

Question 6

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A)  price-quantity schedule.
B)  buyer schedule.
C)  demand schedule.
D)  demand curve.E) A) and B)
F) A) and C)

Question 7

Which of the following demonstrates the law of demand?

Accepted Answer

A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise.
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.E) A) and D)
F) C) and D)

Question 8

If a good is inferior, then an increase in income will result in

Accepted Answer

A)  an increase in the demand for the good.
B)  a decrease in the demand for the good.
C)  a movement down and to the right along the demand curve for the good.
D)  a movement up and to the left along the demand curve for the good.E) A) and B)
F) B) and D)

Question 9

A newspaper's classified ads are an example of a market.

Accepted Answer

A) True 
 B)False

Question 10

A group of buyers and sellers of a particular good or service is called a(n)

Accepted Answer

A)  coalition.
B)  economy.
C)  market.
D)  competition.E) None of the above
F) B) and C)

Question 11

When quantity demanded has increased at every price, it might be because

Accepted Answer

A)  the number of buyers in the market has decreased.
B)  income has increased, and the good is an inferior good.
C)  the costs incurred by sellers producing the good have decreased.
D)  the price of a complementary good has decreased.E) None of the above
F) B) and C)

Question 12

If, at the current price, there is a shortage of a good, then

Accepted Answer

A)  sellers are producing more than buyers wish to buy.
B)  the market must be in equilibrium.
C)  the price is below the equilibrium price.
D)  quantity demanded equals quantity supplied.E) None of the above
F) A) and B)

Question 13

Figure 4-11
 
-Refer to Figure 4-11. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

Accepted Answer

A)  6 units.
B)  7 units.
C)  8 units.
D)  14 units.E) C) and D)
F) A) and B)

Question 14

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

Question 15

In competitive markets,

Accepted Answer

A)  firms produce identical products.
B)  no individual buyer can influence the market price.
C)  no individual seller can influence the market price.
D)  All of the above are correct.E) None of the above
F) A) and B)

Question 16

Figure 4-6 
-Refer to Figure 4-6. The movement from D' to D could be caused by

Accepted Answer

A)  a decrease in price.
B)  a decrease in income, assuming the good is inferior.
C)  buyers expecting the price of the good to fall in the near future.
D)  an increase in the price of a complement.E) A) and B)
F) A) and C)

Question 17

The difference between a supply schedule and a supply curve is that a supply schedule

Accepted Answer

A)  incorporates demand and a supply curve does not.
B)  incorporates profit and a supply curve does not.
C)  can shift, but a supply curve cannot shift.
D)  is a table, and a supply curve is drawn on a graph.E) A) and B)
F) None of the above

Question 18

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-20. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) A) and B)
F) A) and C)

Question 19

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 20

Table 4-1
   Price  Qurantit; Demanded  by Michelle  Qurintity Demtanded  by Laura  Quantity Damanded  by Hillary $55411$46613$37815$281017191219$0101421\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Qurantit; Demanded } \	ext { by Michelle }\end{array} & \begin{array} { c } 	ext { Qurintity Demtanded } \	ext { by Laura }\end{array} & \begin{array} { c } 	ext { Quantity Damanded } \	ext { by Hillary }\end{array} \\hline \$ 5 & 5 & 4 & 11 \\hline \$ 4 & 6 & 6 & 13 \\hline \$ 3 & 7 & 8 & 15 \\hline \$ 2 & 8 & 10 & 17 \\hline 1 & 9 & 12 & 19 \\hline \$ 0 & 10 & 14 & 21 \\hline\end{array} Price $5$4$3$21$0​ Qurantit; Demanded  by Michelle ​5678910​ Qurintity Demtanded  by Laura ​468101214​ Quantity Damanded  by Hillary ​111315171921​​ 
-Refer to Table 4-1. Which of the following illustrates the market demand curve?

Accepted Answer

A)  
B)  
C)  
D)   E) None of the above
F) All of the above

Exam 4: The Market Forces of Supply and Demand

Which of the following demonstrates the law of demand?

Correct Answer
verified

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.

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, an increase in the price of the pulp used in the paper production process would cause a move from

Correct Answer
verified

A group of buyers and sellers of a particular good or service is called a(n)

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18. What is the equilibrium quantity in this market?

Correct Answer
verified

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6. The movement from D' to D could be caused by

Correct Answer
verified

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

Correct Answer
verified

If a good is inferior, then an increase in income will result in

Correct Answer
verified

In competitive markets,

Correct Answer
verified

The difference between a supply schedule and a supply curve is that a supply schedule

Correct Answer
verified

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Correct Answer
verified

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Correct Answer
verified

An increase in the number of college scholarships issued by private foundations would

Correct Answer
verified

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Correct Answer
verified

If, at the current price, there is a shortage of a good, then

Correct Answer
verified

A newspaper's classified ads are an example of a market.

Correct Answer
verified

Figure 4-11 -Refer to Figure 4-11. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

Correct Answer
verified

When quantity demanded has increased at every price, it might be because

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Which of the following demonstrates the law of demand?

Correct AnswerverifiedShow Answer

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.

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, an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

A group of buyers and sellers of a particular good or service is called a(n)

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. What is the equilibrium quantity in this market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6. The movement from D' to D could be caused by

Correct AnswerverifiedShow Answer

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

Correct AnswerverifiedShow Answer

If a good is inferior, then an increase in income will result in

Correct AnswerverifiedShow Answer

In competitive markets,

Correct AnswerverifiedShow Answer

The difference between a supply schedule and a supply curve is that a supply schedule

Correct AnswerverifiedShow Answer

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Correct AnswerverifiedShow Answer

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Correct AnswerverifiedShow Answer

An increase in the number of college scholarships issued by private foundations would

Correct AnswerverifiedShow Answer

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Correct AnswerverifiedShow Answer

If, at the current price, there is a shortage of a good, then

Correct AnswerverifiedShow Answer

A newspaper's classified ads are an example of a market.

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

When quantity demanded has increased at every price, it might be because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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