Question 1

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 $5.00.
• The market quantity supplied of sandwiches is 10.
• The law of supply applies to the supply of sandwiches.
Then there is a

Accepted Answer

A)   shortage of 5 sandwiches,and the price would be expected to rise from its current level of $5.00.
B)   shortage of 5 sandwiches,and the price would be expected to fall from its current level of $5.00.
C)   surplus of 5 sandwiches,and the price would be expected to rise from its current level of $5.00.
D)   surplus of 5 sandwiches,and the price would be expected to fall from its current level of $5.00.E) B) and C)
F) C) and D)

Question 2

When a seller expects the price of its product to decrease in the future,the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 3

Good X and good Y are substitutes.If the price of good Y increases,then the

Accepted Answer

A)   demand for good X will decrease.
B)   quantity demanded of good X will decrease.
C)   demand for good X will increase.
D)   quantity demanded of good X will increase.E) All of the above
F) B) and C)

Question 4

If toast and butter are complements,then which of the following would increase the demand for toast?

Accepted Answer

A)   a decrease in the price of toast
B)   a decrease in the price of butter
C)   an increase in the price of butter
D)   Both a and b are correct.E) A) and C)
F) All of the above

Question 5

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

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) All of the above
F) B) and C)

Question 6

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a determinant of demand?

Accepted Answer

A)   the price of a resource that is used to produce the good
B)   the price of a complementary good
C)   the price of the good next month
D)   the price of a substitute goodE) B) and D)
F) A) and B)

Question 8

When quantity demanded increases at every possible price,the demand curve has

Accepted Answer

A)   shifted to the left.
B)   shifted to the right.
C)   not shifted;rather,we have moved along the demand curve to a new point on the same curve.
D)   not shifted;rather,the demand curve has become steeper.E) All of the above
F) A) and B)

Question 9

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

Accepted Answer

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

Question 10

Figure 4-18 
-Refer to Figure 4-18.At a price of $4,there is a

Accepted Answer

A)   surplus of 3 units.
B)   surplus of 6 units.
C)   shortage of 3 units.
D)   shortage of 6 units.E) B) and D)
F) All of the above

Question 11

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A)   a decrease in the price of mp3 players
B)   a fad that makes mp3 players more popular among 12-25 year olds
C)   an increase in the price of digital music downloads,a complement for mp3 players
D)   a decrease in the price of satellite radio,a substitute for mp3 playersE) A) and B)
F) All of the above

Question 12

The market demand curve

Accepted Answer

A)   is the sum of all individual demand curves.
B)   is the demand curve for every product in an industry.
C)   shows the average quantity demanded by individual demanders at each price.
D)   is always flatter than an individual demand curve.E) All of the above
F) A) and D)

Question 13

Suppose consumers expect the price of a good to be higher in the future than it is today.Would the current demand for the good increase or decrease?

Accepted Answer

The curren...

Question 14

When quantity supplied decreases at every possible price,we know that the supply curve has

Accepted Answer

A)   shifted to the left.
B)   shifted to the right.
C)   not shifted;rather,we have moved along the supply curve to a new point on the same curve.
D)   not shifted;rather,the supply curve has become flatter.E) A) and B)
F) C) and D)

Question 15

Most markets in the economy are highly competitive.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

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

Question 18

Figure 4-15 
-Refer to Figure 4-15.At a price of $15,there would be a

Accepted Answer

A)   surplus of 400 units.
B)   shortage of 200 units.
C)   shortage of 400 units.
D)   shortage of 600 units.E) A) and D)
F) All of the above

Question 19

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Question 20

Suppose scientists provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it.We would expect to see

Accepted Answer

A)   no change in the demand for chocolate pudding.
B)   a decrease in the demand for chocolate pudding.
C)   an increase in the demand for chocolate pudding.
D)   a decrease in the supply of chocolate pudding.E) B) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

Which of the following is not a determinant of demand?

Correct Answer
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Suppose consumers expect the price of a good to be higher in the future than it is today.Would the current demand for the good increase or decrease?

Correct Answer
verified
The curren...
View Answer

Good X and good Y are substitutes.If the price of good Y increases,then the

Correct Answer
verified

When a seller expects the price of its product to decrease in the future,the seller's supply curve shifts left now.

Correct Answer
verified

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
verified

When quantity demanded increases at every possible price,the demand curve has

Correct Answer
verified

Most markets in the economy are highly competitive.

Correct Answer
verified

Which of the following would not shift the demand curve for mp3 players?

Correct Answer
verified

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Correct Answer
verified

When quantity supplied decreases at every possible price,we know that the supply curve has

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Correct Answer
verified

If toast and butter are complements,then which of the following would increase the demand for toast?

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15.At a price of $15,there would be a

Correct Answer
verified

Suppose scientists provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it.We would expect to see

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The market demand curve

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18.At a price of $4,there is a

Correct Answer
verified

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Which of the following is not a determinant of demand?

Correct AnswerverifiedShow Answer

Suppose consumers expect the price of a good to be higher in the future than it is today.Would the current demand for the good increase or decrease?

Correct AnswerverifiedThe curren...View AnswerShow Answer

Good X and good Y are substitutes.If the price of good Y increases,then the

Correct AnswerverifiedShow Answer

When a seller expects the price of its product to decrease in the future,the seller's supply curve shifts left now.

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

When quantity demanded increases at every possible price,the demand curve has

Correct AnswerverifiedShow Answer

Most markets in the economy are highly competitive.

Correct AnswerverifiedShow Answer

Which of the following would not shift the demand curve for mp3 players?

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Correct AnswerverifiedShow Answer

When quantity supplied decreases at every possible price,we know that the supply curve has

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Correct AnswerverifiedShow Answer

If toast and butter are complements,then which of the following would increase the demand for toast?

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At a price of $15,there would be a

Correct AnswerverifiedShow Answer

Suppose scientists provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it.We would expect to see

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The market demand curve

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18.At a price of $4,there is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The curren...
View Answer

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Correct Answer
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