Question 1

Price will rise to eliminate a surplus.

Accepted Answer

A) True 
 B)False

Question 2

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-22 
-Refer to Figure 4-22. At a price of $8, there is a

Accepted Answer

A)   surplus of 4 units.
B)   surplus of 8 units.
C)   shortage of 4 units.
D)   shortage of 8 units.E) A) and D)
F) A) and C)

Question 4

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) All of the above
F) None of the above

Question 5

Figure 4-30 
-Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the changes) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price is...

Question 6

The supply of a good or service is determined by

Accepted Answer

A)   those who buy the good or service.
B)   the government.
C)   those who sell the good or service.
D)   both those who buy and those who sell the good or service.E) None of the above
F) All of the above

Question 7

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and B)
F) All of the above

Question 8

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

Accepted Answer

A)   inferior goods.
B)   normal goods.
C)   perfectly competitive goods.
D)   durable goods.E) A) and B)
F) A) and C)

Question 9

Figure 4-3 
Consumer 1
  
Consumer 2 
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Accepted Answer

A)   12 units.
B)   14 units.
C)   19 units.
D)   21 units.E) A) and B)
F) A) and C)

Question 10

An increase in the price of a good will

Accepted Answer

A)   increase demand.
B)   decrease demand.
C)   increase quantity demanded.
D)   decrease quantity demanded.E) B) and C)
F) A) and C)

Question 11

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

A)   The number of sellers of ceiling fans increases.
B)   There is an increase in the price of air conditioners, and consumers regard air conditioners and ceiling fans as substitutes.
C)   There is an increase in the price of the motor that powers ceiling fans.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 13

Figure 4-12

-Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

Accepted Answer

A)   14 units.
B)   15 units.
C)   16 units.
D)   29 units.E) B) and D)
F) A) and B)

Question 14

A market is a group of buyers and sellers of a particular good or service.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   sweatpants will increase.
B)   sweatpants will decrease.
C)   shorts will increase.
D)   shorts will decrease.E) All of the above
F) C) and D)

Question 16

To obtain the market demand curve for a product, sum the individual demand curves

Accepted Answer

A)   vertically.
B)   diagonally.
C)   horizontally.
D)   and then average them.E) A) and C)
F) C) and D)

Question 17

Figure 4-14 
-Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Accepted Answer

A)   There is an improvement in the technology used to produce this good.
B)   The cost of an input to the production of this good increases.
C)   This good becomes very popular.
D)   The price of a substitute good decreases.E) B) and C)
F) All of the above

Question 18

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 19

An increase in the number of college scholarships issued by private foundations would

Accepted Answer

A)   increase the supply of education.
B)   decrease the supply of education.
C)   increase the demand for education.
D)   decrease the demand for education.E) A) and B)
F) A) and D)

Question 20

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

A market is a group of buyers and sellers of a particular good or service.

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Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

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

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

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

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Correct AnswerverifiedShow Answer

Which of the following events could cause an increase in the supply of ceiling fans?

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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a

Correct AnswerverifiedShow Answer

Price will rise to eliminate a surplus.

Correct AnswerverifiedShow Answer

To obtain the market demand curve for a product, sum the individual demand curves

Correct AnswerverifiedShow Answer

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies, the equilibrium price for movies will increase, but the effect on the equilibrium quantity of movies is ambiguous.

Correct AnswerverifiedShow Answer

An increase in the number of college scholarships issued by private foundations would

Correct AnswerverifiedShow Answer

The supply of a good or service is determined by

Correct AnswerverifiedShow Answer

Figure 4-30 -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the changes) in the equilibrium price and quantity.

Correct AnswerverifiedEquilibrium price is...View AnswerShow Answer

Figure 4-12 -Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

Correct AnswerverifiedShow Answer

Suppose that when income rises, the demand curve for doctor's visits shifts to the right. In this case, we know doctor's visits are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

An increase in the price of a good will

Correct AnswerverifiedShow Answer

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Equilibrium price is...
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