Question 1

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

Question 2

The law of supply states that, other things equal, when the price of a good

Accepted Answer

A)  falls, the supply of the good rises.
B)  rises, the quantity supplied of the good rises.
C)  rises, the supply of the good falls.
D)  falls, the quantity supplied of the good rises.E) A) and D)
F) B) and D)

Question 3

A decrease in supply is represented by a

Accepted Answer

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

Question 4

Figure 4-4 
-Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Accepted Answer

A)  a freeze in Florida
B)  a technological advance that allows oranges to ripen faster
C)  a decrease in the price of apples
D)  an announcement by the FDA that oranges prevent heart diseaseE) All of the above
F) C) and D)

Question 5

The two words most often used by economists are

Accepted Answer

A)  prices and quantities.
B)  resources and allocation.
C)  supply and demand.
D)  efficiency and equity.E) B) and C)
F) A) and C)

Question 6

Suppose that Amanda receives a pay increase. We would expect

Accepted Answer

A)  to observe Amanda moving down and to the right along her given demand curve.
B)  Amanda's demand for inferior goods to decrease.
C)  Amanda's demand for each of two goods that are complements to increase.
D)  Amanda's demand for normal goods to decrease.E) B) and C)
F) A) and D)

Question 7

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase.
B)  willing and able to purchase.
C)  willing, able, and need to purchase.
D)  able to purchase.E) B) and C)
F) None of the above

Question 8

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

Question 9

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)  demand for gasoline
B)  price of gasoline
C)  number of producers of gasoline
D)  price of oil, an input into the production of gasolineE) B) and C)
F) A) and B)

Question 10

A competitive market is one in which there

Accepted Answer

A)  is only one seller, but there are many buyers.
B)  are many sellers, and each seller has the ability to set the price of his product.
C)  are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market.
D)  are so many buyers and so many sellers that each has a negligible impact on the price of the product.E) B) and D)
F) A) and B)

Question 11

The market for ice cream is a

Accepted Answer

A)  monopolistic market.
B)  highly competitive market.
C)  highly organized market.
D)  Both b)  and c)  are correct.E) B) and D)
F) All of the above

Question 12

Table 4-2
   Price  Willim’s  Quantity  Denanded  Ferpie’s  Quantity  Dennanded  Tabod’s  Quantity  Denanded  apl de.ap’s  Quantity  Denanded $122134$104445$86756$68847$410938$2121029\begin{array} { | c | c | c | c | c } \hline 	ext { Price } & \begin{array} { c } 	ext { Willim&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { Ferpie&#x27;s } \	ext { Quantity } \	ext { Dennanded }\end{array} & \begin{array} { c } 	ext { Tabod&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { apl de.ap&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} \\hline \$ 12 & 2 & 1 & 3 & 4 \\hline \$ 10 & 4 & 4 & 4 & 5 \\hline \$ 8 & 6 & 7 & 5 & 6 \\hline \$ 6 & 8 & 8 & 4 & 7 \\hline \$ 4 & 10 & 9 & 3 & 8 \\hline \$ 2 & 12 & 10 & 2 & 9 \\hline\end{array} Price $12$10$8$6$4$2​ Willim’s  Quantity  Denanded ​24681012​ Ferpie’s  Quantity  Dennanded ​1478910​ Tabod’s  Quantity  Denanded ​345432​ apl de.ap’s  Quantity  Denanded ​456789​​ 
-Refer to Table 4-2. Whose demand does not obey the law of demand?

Accepted Answer

A)  William's
B)  Fergie's
C)  Taboo's
D)  apl.de.ap's E) B) and C)
F) A) and B)

Question 13

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A)  a change in income
B)  a change in the price of the good or service
C)  a change in expectations about the future price of the good or service
D)  a change in the price of a related good or serviceE) B) and D)
F) A) and C)

Question 14

The market demand curve

Accepted Answer

A)  is found by vertically adding the individual demand curves.
B)  slopes upward.
C)  represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
D)  represents the sum of the quantities demanded by all the buyers at each price of the good.E) A) and B)
F) None of the above

Question 15

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Accepted Answer

A)  applies to most goods in the economy.
B)  is represented by a downward-sloping demand curve.
C)  is referred to as the law of demand.
D)  All of the above are correct.E) All of the above
F) A) and D)

Question 16

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges.
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes.
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges.
D)  All of the above are correct.E) B) and C)
F) B) and D)

Question 17

In a competitive market, each seller has limited control over the price of his product because

Accepted Answer

A)  other sellers are offering similar products.
B)  buyers exert more control over the price than do sellers.
C)  these markets are highly regulated by the government.
D)  sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.E) A) and B)
F) A) and C)

Question 18

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

Question 19

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 20

When we move along a given demand curve,

Accepted Answer

A)  only price is held constant.
B)  income and price are held constant.
C)  all nonprice determinants of demand are held constant.
D)  all determinants of quantity demanded are held constant.E) C) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

The quantity demanded of a good is the amount that buyers are

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

Correct Answer
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Suppose that Amanda receives a pay increase. We would expect

Correct Answer
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Figure 4-4 -Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Correct Answer
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Which of the following events would cause the price of oranges to fall?

Correct Answer
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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
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"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct Answer
verified

A decrease in supply is represented by a

Correct Answer
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In a competitive market, each seller has limited control over the price of his product because

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

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

The law of supply states that, other things equal, when the price of a good

Correct Answer
verified

A competitive market is one in which there

Correct Answer
verified

The two words most often used by economists are

Correct Answer
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The market demand curve

Correct Answer
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The market for ice cream is a

Correct Answer
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When we move along a given demand curve,

Correct Answer
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Which of the following changes would not shift the demand curve for a good or service?

Correct Answer
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When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The quantity demanded of a good is the amount that buyers are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that Amanda receives a pay increase. We would expect

Correct AnswerverifiedShow Answer

Figure 4-4 -Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Correct AnswerverifiedShow Answer

Which of the following events would cause the price of oranges to fall?

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

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct AnswerverifiedShow Answer

A decrease in supply is represented by a

Correct AnswerverifiedShow Answer

In a competitive market, each seller has limited control over the price of his product because

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

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

The law of supply states that, other things equal, when the price of a good

Correct AnswerverifiedShow Answer

A competitive market is one in which there

Correct AnswerverifiedShow Answer

The two words most often used by economists are

Correct AnswerverifiedShow Answer

The market demand curve

Correct AnswerverifiedShow Answer

The market for ice cream is a

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

Which of the following changes would not shift the demand curve for a good or service?

Correct AnswerverifiedShow Answer

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Correct AnswerverifiedShow Answer

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