Question 1

Figure 4-17 
-Refer to Figure 4-17.At a price of $15,

Accepted Answer

A)   quantity demanded exceeds quantity supplied.
B)   there is a shortage.
C)   there is an excess demand.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 2

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 3

If sellers expect higher basket prices in the near future,the current

Accepted Answer

A)   supply of baskets will increase.
B)   supply of baskets will decrease.
C)   supply of baskets will be unaffected.
D)   demand for baskets will decrease.E) A) and B)
F) C) and D)

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

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

Question 7

The current price of neckties is $30,but the equilibrium price of neckties is $25.As a result,

Accepted Answer

A)   the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price.
B)   the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price.
C)   there is a surplus of neckties at the $30 price.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 8

Which of the following might cause the demand curve for an inferior good to shift to the left?

Accepted Answer

A)   a decrease in income
B)   an increase in the price of a substitute
C)   an increase in the price of a complement
D)   None of the above is correct.E) A) and B)
F) B) and C)

Question 9

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A)   the prices of related goods
B)   income
C)   tastes
D)   the prices of the inputs used to produce the goodE) C) and D)
F) A) and B)

Question 10

A movement upward and to the left along a demand curve is called a(n)

Accepted Answer

A)   increase in demand.
B)   decrease in demand.
C)   decrease in quantity demanded.
D)   increase in quantity demanded.E) All of the above
F) A) and B)

Question 11

Table 4-5
 
-Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $8 is

Accepted Answer

A)   10 units.
B)   20 units.
C)   32 units.
D)   40 units.E) C) and D)
F) None of the above

Question 12

Figure 4-3

-Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?

Accepted Answer

A)   (quantity demanded = 2,price = $1.50) 
B)   (quantity demanded = 4,price = $2.50) 
C)   (quantity demanded = 10,price = $1.00) 
D)   (quantity demanded = 16,price = $2.50) E) None of the above
F) A) and B)

Question 13

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 14

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

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 increase,and the equilibrium quantity would decrease.
D)   The equilibrium price would decrease,and the equilibrium quantity would increase.E) A) and B)
F) B) and D)

Question 15

Figure 4-6 
-An increase in demand is represented by a

Accepted Answer

A)   movement downward and to the right along a demand curve.
B)   movement upward and to the left along a demand curve.
C)   rightward shift of a demand curve.
D)   leftward shift of a demand curve.E) None of the above
F) A) and B)

Question 16

If the demand for a good falls when income falls,then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 17

The term price takers refers to buyers and sellers in

Accepted Answer

A)   perfectly competitive markets.
B)   monopolistic markets.
C)   markets that are regulated by the government.
D)   markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.E) A) and B)
F) B) and D)

Question 18

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 19

Table 4-6
 
-Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

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

Question 20

Scenario 4-1
The following table shows the supply and demand schedules in a market.
 
-Refer to Scenario 4-1.What is the equilibrium price in this market?

Accepted Answer

The answer of Scenario 4-1
The following table shows the supply...

Exam 4: The Market Forces of Supply and Demand

Figure 4-6 -An increase in demand is represented by a

Correct Answer
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Table 4-6 -Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct Answer
verified

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

Correct Answer
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Which of the following is not a determinant of the demand for a particular good?

Correct Answer
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The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Correct Answer
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Figure 4-17 -Refer to Figure 4-17.At a price of $15,

Correct Answer
verified

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

Correct Answer
verified

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

Correct Answer
verified

If the demand for a good falls when income falls,then the good is called an inferior good.

Correct Answer
verified

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Correct Answer
verified

The term price takers refers to buyers and sellers in

Correct Answer
verified

Scenario 4-1 The following table shows the supply and demand schedules in a market. -Refer to Scenario 4-1.What is the equilibrium price in this market?

Correct Answer
verified

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Correct Answer
verified

Correct Answer
verified

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

Correct Answer
verified

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $8 is

Correct Answer
verified

The current price of neckties is $30,but the equilibrium price of neckties is $25.As a result,

Correct Answer
verified

If sellers expect higher basket prices in the near future,the current

Correct Answer
verified

A movement upward and to the left along a demand curve is called a(n)

Correct Answer
verified

Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-6 -An increase in demand is represented by a

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of the demand for a particular good?

Correct AnswerverifiedShow Answer

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.At a price of $15,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls,then the good is called an inferior good.

Correct AnswerverifiedShow Answer

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops,what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Correct AnswerverifiedShow Answer

The term price takers refers to buyers and sellers in

Correct AnswerverifiedShow Answer

Scenario 4-1 The following table shows the supply and demand schedules in a market. -Refer to Scenario 4-1.What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

Correct AnswerverifiedShow Answer

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $8 is

Correct AnswerverifiedShow Answer

The current price of neckties is $30,but the equilibrium price of neckties is $25.As a result,

Correct AnswerverifiedShow Answer

If sellers expect higher basket prices in the near future,the current

Correct AnswerverifiedShow Answer

A movement upward and to the left along a demand curve is called a(n)

Correct AnswerverifiedShow Answer

Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct AnswerverifiedShow Answer

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