Question 1

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Accepted Answer

The demand...

Question 2

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Accepted Answer

A)   the CPA to supply more expert tax advice now than she was supplying previously.
B)   the CPA to supply less expert tax advice now than she was supplying previously.
C)   the demand for this CPA's expert tax advice to fall.
D)   no change in the CPA's current supply; instead, future supply will be affected.E) A) and D)
F) None of the above

Question 3

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Accepted Answer

A)   demand for bicycle assembly workers will increase.
B)   supply of bicycles will shift to the right.
C)   supply of bicycles will shift to the left.
D)   firm must increase output to maintain profit levels.E) A) and B)
F) A) and C)

Question 6

Which of the following events must 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) B) and D)
F) B) and C)

Question 7

If the supply of a product decreases, then we would expect equilibrium price

Accepted Answer

A)   to increase and equilibrium quantity to decrease.
B)   to decrease and equilibrium quantity to increase.
C)   and equilibrium quantity to both increase.
D)   and equilibrium quantity to both decrease.E) A) and D)
F) C) and D)

Question 8

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

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

Question 9

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A)   income varies.
B)   price varies.
C)   price of the nearest substitute good varies.
D)   supply varies.E) B) and D)
F) B) and C)

Question 10

Whenever a determinant of supply other than price changes, the supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 11

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 12

A decrease in the price of a complement will shift the demand curve for a good to the left.

Accepted Answer

A) True 
 B)False

Question 13

Two goods are substitutes when a decrease in the price of one good

Accepted Answer

A)   decreases the demand for the other good.
B)   decreases the quantity demanded of the other good.
C)   increases the demand for the other good.
D)   increases the quantity demanded of the other good.E) A) and B)
F) C) and D)

Question 14

In a market economy, who or what determines who produces each good and how much is produced?

Accepted Answer

A)   the government
B)   lawyers
C)   lotteries
D)   pricesE) A) and B)
F) C) and D)

Question 15

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 16

A decrease in the price of baseball bats will decrease the demand for baseballs.

Accepted Answer

A) True 
 B)False

Question 17

Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase?

Accepted Answer

A)   Price will rise.
B)   Price will fall.
C)   Price will stay exactly the same.
D)   The price change will be ambiguous.E) A) and D)
F) B) and C)

Question 18

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Accepted Answer

A)   The Green Bay Packers make it to the Super Bowl.
B)   The price of the jerseys increases by $15.
C)   The technology of sewing machines use to make the jerseys improves.
D)   The cost of the fabric used to make the jerseys increases.E) A) and B)
F) None of the above

Question 19

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Accepted Answer

A)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2.
B)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5.
C)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2.
D)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5.E) All of the above
F) A) and D)

Question 20

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Correct Answer
verified

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Correct Answer
verified

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Two goods are substitutes when a decrease in the price of one good

Correct Answer
verified

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Correct Answer
verified

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct Answer
verified

Whenever a determinant of supply other than price changes, the supply curve shifts.

Correct Answer
verified

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Correct Answer
verified

A market demand curve shows how the total quantity demanded of a good varies as

Correct Answer
verified

A decrease in demand shifts the demand curve to the left.

Correct Answer
verified

Correct Answer
verified

The market demand curve

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 supply of a product decreases, then we would expect equilibrium price

Correct Answer
verified

Which of the following events must cause equilibrium price to rise?

Correct Answer
verified

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct Answer
verified

A decrease in the price of a complement will shift the demand curve for a good to the left.

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

Correct Answer
verified

In a market economy, who or what determines who produces each good and how much is produced?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Correct AnswerverifiedShow Answer

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Correct AnswerverifiedShow Answer

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Two goods are substitutes when a decrease in the price of one good

Correct AnswerverifiedShow Answer

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Correct AnswerverifiedShow Answer

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct AnswerverifiedShow Answer

Whenever a determinant of supply other than price changes, the supply curve shifts.

Correct AnswerverifiedShow Answer

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Correct AnswerverifiedShow Answer

A market demand curve shows how the total quantity demanded of a good varies as

Correct AnswerverifiedShow Answer

A decrease in demand shifts the demand curve to the left.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The market demand curve

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 supply of a product decreases, then we would expect equilibrium price

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium price to rise?

Correct AnswerverifiedShow Answer

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct AnswerverifiedShow Answer

A decrease in the price of a complement will shift the demand curve for a good to the left.

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

Correct AnswerverifiedShow Answer

In a market economy, who or what determines who produces each good and how much is produced?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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The demand...
View Answer

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