Question 1

When the price of a good or service changes,

Accepted Answer

A)   the demand curve shifts in the opposite direction.
B)   the supply curve shifts in the opposite direction.
C)   the supply curve shifts in the same direction.
D)   there is a movement along a given supply curve.E) C) and D)
F) B) and D)

Question 2

A supply schedule is a table that shows the relationship between

Accepted Answer

A)   price and quantity supplied.
B)   input costs and quantity supplied.
C)   quantity demanded and quantity supplied.
D)   profit and quantity supplied.E) B) and D)
F) A) and C)

Question 3

Which of the following statements is correct?

Accepted Answer

A)   Buyers determine supply, and sellers determine demand.
B)   Buyers determine demand, and sellers determine supply.
C)   Buyers determine both demand and supply.
D)   Sellers determine both demand and supply.E) B) and D)
F) C) and D)

Question 4

Figure 4-13 
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Accepted Answer

A)   8 units.
B)   16 units.
C)   24 units.
D)   32 units.E) A) and D)
F) None of the above

Question 5

Figure 4-29 
-Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Accepted Answer

The answer of Figure 4-29 
-Refer to Figure 4-29. If...

Question 6

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 7

Figure 4-20 
-Refer to Figure 4-20. If the price is $25, then there would be an excess

Accepted Answer

A)   supply of 100 units, and price would fall.
B)   supply of 300 units, and price would fall.
C)   demand of 100 units, and price would fall.
D)   demand of 300 units, and price would fall.E) All of the above
F) A) and D)

Question 8

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Accepted Answer

A) True 
 B)False

Question 9

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Accepted Answer

A) True 
 B)False

Question 10

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 $15 is

Accepted Answer

A)   0 units.
B)   10 units.
C)   15 units.
D)   25 units.E) None of the above
F) C) and D)

Question 11

Figure 4-20 
-Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

Accepted Answer

A)   500 units and 500 units.
B)   500 units and 800 units.
C)   600 units and 600 units.
D)   800 units and 500 units.E) None of the above
F) All of the above

Question 12

The market demand curve

Accepted Answer

A)   is found by vertically adding the individual demand curves.
B)   slopes upward.
C)   represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
D)   represents the sum of the quantities demanded by all the buyers at each price of the good.E) B) and C)
F) A) and B)

Question 13

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

A)   total demand
B)   market demand
C)   equilibrium demand
D)   aggregate demandE) A) and B)
F) A) and C)

Question 14

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

Accepted Answer

A)   luxury good.
B)   inferior good.
C)   normal good.
D)   complementary good.E) B) and C)
F) A) and D)

Question 15

If the number of sellers in a market increases, then the

Accepted Answer

A)   demand in that market will increase.
B)   supply in that market will increase.
C)   supply in that market will decrease.
D)   demand in that market will decrease.E) B) and C)
F) A) and D)

Question 16

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

Accepted Answer

A)   The number of sellers of mangos decreases.
B)   There is an advance in technology that reduces the cost of producing mangos.
C)   The price of mangos falls.
D)   The price of fertilizer increases, and fertilizer is an input in the production of mangos.E) B) and D)
F) None of the above

Question 17

Which of the following is an example of a highly organized market?

Accepted Answer

A)   the market for textbooks
B)   the market for spa services
C)   the market for soybeans
D)   the market for ice creamE) B) and C)
F) All of the above

Question 18

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

Question 19

Holding the nonprice determinants of demand constant, a change in price would

Accepted Answer

A)   result in either a decrease in demand or an increase in demand.
B)   result in a movement along a stationary demand curve.
C)   result in a shift of supply.
D)   have no effect on the quantity demanded.E) A) and C)
F) C) and D)

Question 20

The line that relates the price of a good and the quantity demanded of that good is called the demand

Accepted Answer

A)   schedule, and it usually slopes upward.
B)   schedule, and it usually slopes downward.
C)   curve, and it usually slopes upward.
D)   curve, and it usually slopes downward.E) A) and B)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

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 $15 is

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Figure 4-29 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

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When the price of a good or service changes,

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A supply schedule is a table that shows the relationship between

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A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

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Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

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If the number of sellers in a market increases, then the

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Figure 4-20 -Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

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The market demand curve

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Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

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When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

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Holding the nonprice determinants of demand constant, a change in price would

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Which of the following is not an expression for the sum of all the individual demand curves for a product?

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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

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Which of the following is an example of a highly organized market?

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

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The line that relates the price of a good and the quantity demanded of that good is called the demand

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You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

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Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

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Which of the following statements is correct?

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