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Exam 4: The Market Forces of Supply and Demand

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Question 61

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Figure 4-6 -Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. If the warning labels are successful, we could illustrate the plan as producing a movement from

A) Point A to Point B in Panel 1.
B) Point B to Point A in Panel 1.
C) Point A to Point C in Panel 2.
D) Point C to Point A in Panel 2.

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

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Question 62

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In a perfectly competitive market, at the market price, buyers

A) cannot buy all they want, and sellers cannot sell all they want.
B) cannot buy all they want, but sellers can sell all they want.
C) can buy all they want, but sellers cannot sell all they want.
D) can buy all they want, and sellers can sell all they want.

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

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Question 63

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for sail boats?

At the equilibrium price, buyers have bought all they want to buy, but sellers have not sold all they want to sell.

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards SUPs) at each price of SUPs, then

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents an)

If a good or service has only one seller, then the seller is called a monopoly.

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then when the price increases from $6 to $8, the market quantity supplied

If textbooks and study guides are complements, then an increase in the price of textbooks will result in

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?

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

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for

When quantity demanded has increased at every price, it might be because

In competitive markets, buyers

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Scenario 4-1 Suppose the demand schedule in a market can be represented by the equation , where is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied. -Refer to Scenario 4-1. What is the equilibrium price in this market?

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