Question 1

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

Accepted Answer

A)   The price of marijuana,a complement to cigarettes,increased.
B)   Mandatory health warnings were placed on cigarette packages.
C)   Several foreign countries banned U.S.cigarettes in their countries.
D)   A tax was placed on cigarettes.E) A) and B)
F) A) and C)

Question 2

Table 4-1
 
-Refer to Table 4-1.For whom is the good a normal good?

Accepted Answer

A)   Aaron
B)   Austin
C)   all of the four demanders
D)   This cannot be determined from the table.E) B) and C)
F) B) and D)

Question 3

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)   market harmony.
B)   coincidence.
C)   equivalence.
D)   equilibrium.E) A) and B)
F) C) and D)

Question 4

Which of the following events will definitely cause equilibrium price to rise?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) A) and C)
F) B) and D)

Question 5

Figure 4-12
The diagram below pertains to the demand for turkey in the United States. A to DB. B)  from DB to DA. C)  from x to y. D)  from y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-12.All else equal,a large number of people becoming vegetarians would cause a move

Accepted Answer

A)   from DA to DB.
B)   from DB to DA.
C)   from x to y.
D)   from y to x.E) C) and D)
F) B) and D)

Question 6

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 B)

Question 7

A decrease in the price of a good will

Accepted Answer

A)   increase supply.
B)   decrease supply.
C)   increase quantity supplied.
D)   decrease quantity supplied.E) A) and C)
F) All of the above

Question 8

The demand curve for hot dogs

Accepted Answer

A)   shifts when the price of hot dogs changes because the price of hot dogs is measured on the vertical axis of the graph.
B)   shifts when the price of hot dogs changes because the quantity demanded of hot dogs is measured on the horizontal axis of the graph.
C)   does not shift when the price of hot dogs changes because the price of hot dogs is measured on the vertical axis of the graph.
D)   does not shift when the price of hot dogs changes because the quantity demanded of hot dogs is measured on the horizontal axis of the graph.E) B) and C)
F) A) and C)

Question 9

Figure 4-14
Panel (a) Panel (b)    Panel (c) Panel (d)   
-Refer to Figure 4-14.Panel (b) shows which of the following?

Accepted Answer

A)   a decrease in demand and a decrease in quantity supplied
B)   a decrease in demand and a decrease in supply
C)   a decrease in quantity demanded and a decrease in quantity supplied
D)   a decrease in quantity demanded and a decrease in supplyE) A) and B)
F) C) and D)

Question 10

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Accepted Answer

A)   is greater than the quantity that sellers are willing and able to sell.
B)   exactly equals the quantity that sellers are willing and able to sell.
C)   is less than the quantity that sellers are willing and able to sell.
D)   (a) and (c) could both be correct.E) B) and D)
F) C) and D)

Question 11

Table 4-3
 
-Refer to Table 4-3.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

Accepted Answer

A)   4 units.
B)   7.5 units.
C)   10 units.
D)   30 units.E) A) and B)
F) A) and C)

Question 12

When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Figure 4-8 
-Refer to Figure 4-8.Equilibrium price and quantity are,respectively,

Accepted Answer

A)   $15 and 200.
B)   $25 and 600.
C)   $25 and 400.
D)   $35 and 200.E) B) and C)
F) None of the above

Question 15

When Mario's income decreases,he buys more pasta.For Mario,pasta is a normal good.

Accepted Answer

A) True 
 B)False

Question 16

A decrease in income will shift the demand curve for an inferior good to the right.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 since the price of Milky Ways fell to $0.50 per Milky Way.E) A) and B)
F) B) and C)

Question 20

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)   substitutes.
B)   complements.
C)   not related since one is legal and one is illegal.
D)   inferior goods.E) A) and B)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

The demand curve for hot dogs

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At the equilibrium price,the quantity of the good that buyers are willing and able to buy

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Table 4-3 -Refer to Table 4-3.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

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Which of the following demonstrates the law of demand?

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Figure 4-8 -Refer to Figure 4-8.Equilibrium price and quantity are,respectively,

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When Mario's income decreases,he buys more pasta.For Mario,pasta is a normal good.

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Most studies indicate that tobacco and marijuana tend to be

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

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Which of the following events will definitely cause equilibrium price to rise?

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Which of the following statements is correct?

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When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

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A decrease in income will shift the demand curve for an inferior good to the right.

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A decrease in the price of a good will

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Figure 4-12 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-12.All else equal,a large number of people becoming vegetarians would cause a move

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

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Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Panel (b) shows which of the following?

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The unique point at which the supply and demand curves intersect is called

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

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

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Table 4-1 -Refer to Table 4-1.For whom is the good a normal good?

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