Question 1

A market demand curve shows

Accepted Answer

A)   the relationship between price and the number of buyers in a market.
B)   how quantity demanded changes when the number of buyers changes.
C)   the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good.
D)   how much of a good all buyers are willing and able to buy at each possible price.

Question 2

A leftward shift of a demand curve is called

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.

Question 3

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Question 4

Table 4-7
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-7.Regarding Charlie and Maxine,whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Charlie's
B)   only Maxine's
C)   both Charlie's and Maxine's
D)   neither Charlie's nor Maxine's

Question 5

A leftward shift of a supply curve is called

Accepted Answer

A)   an increase in supply.
B)   a decrease in supply.
C)   a decrease in quantity supplied.
D)   an increase in quantity supplied.

Question 6

In a perfectly competitive market,buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 7

Figure 4-9 
-Refer to Figure 4-9.If there is currently a shortage of 20 units of the good,then

Accepted Answer

A)   the law of demand predicts that the price will rise by $2 to eliminate the shortage.
B)   the law of supply predicts that the price will rise by $2 to eliminate the shortage.
C)   the law of supply and demand predicts that the price will rise by $2 to eliminate the shortage.
D)   the law of supply and demand predicts that the price will fall by $2 to eliminate the shortage.

Question 8

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell

Accepted Answer

A)   at prices at and above the equilibrium price.
B)   at prices at and below the equilibrium price.
C)   at prices above and below the equilibrium price,but not at the equilibrium price.
D)   at the equilibrium price,but not above or below the equilibrium price.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The forces that make market economies work are

Accepted Answer

A)   work and leisure.
B)   politics and religion.
C)   supply and demand.
D)   taxes and government spending.

Question 11

Figure 4-8 
-Refer to Figure 4-8.At a price of $20,

Accepted Answer

A)   there would be a shortage and the law of supply and demand predicts that the price will fall from $20 to a lower price.
B)   there would be a surplus and the law of supply and demand predicts that the price will rise from $20 to a higher price.
C)   there would be an excess demand and the law of supply and demand predicts that the price will rise from $20 to a higher price.
D)   there would be an excess supply and the law of supply and demand predicts that the price will fall from $20 to a lower price.

Question 12

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   a single buyer.
B)   a single seller.
C)   one buyer and one seller working together.
D)   all buyers and all sellers.

Question 13

A movement downward and to the right along a demand curve is called

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.

Question 14

Today,producers changed their expectations about the future.This change

Accepted Answer

A)   can cause a movement along a supply curve.
B)   can affect future supply,but not today's supply.
C)   can affect today's supply.
D)   cannot affect either today's supply or future supply.

Question 15

A demand schedule is a table that shows the relationship between

Accepted Answer

A)   quantity demanded and quantity supplied.
B)   income and quantity demanded.
C)   price and quantity demanded.
D)   price and income.

Question 16

When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

A)   technology
B)   expectations
C)   input prices
D)   the number of sellers

Question 18

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive,digital cameras become cheaper,the cost of the resources needed to manufacture traditional film falls,and more firms decide to manufacture traditional film?

Accepted Answer

A)   Price will fall and the effect on quantity is ambiguous.
B)   Price will rise and the effect on quantity is ambiguous.
C)   Quantity will fall and the effect on price is ambiguous.
D)   Quantity will rise and the effect on price is ambiguous.

Question 19

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

Accepted Answer

A)   4 units.
B)   5 units.
C)   20 units.
D)   80 units.

Question 20

What will happen in the rice market now if buyers expect higher rice prices in the near future?

Accepted Answer

A)   The demand for rice will increase.
B)   The demand for rice will decrease.
C)   The demand for rice will be unaffected.
D)   The supply of rice will increase.

Exam 4: The Market Forces of Supply and Demand

Today,producers changed their expectations about the future.This change

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A leftward shift of a demand curve is called

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In a perfectly competitive market,buyers and sellers are price setters.

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

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Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

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The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

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In a competitive market,the quantity of a product produced and the price of the product are determined by

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What will happen in the rice market now if buyers expect higher rice prices in the near future?

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Table 4-7 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-7.Regarding Charlie and Maxine,whose demand for sandwiches conforms to the law of demand?

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Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell

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Figure 4-9 -Refer to Figure 4-9.If there is currently a shortage of 20 units of the good,then

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The forces that make market economies work are

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When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

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What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive,digital cameras become cheaper,the cost of the resources needed to manufacture traditional film falls,and more firms decide to manufacture traditional film?

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A movement downward and to the right along a demand curve is called

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A demand schedule is a table that shows the relationship between

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Figure 4-8 -Refer to Figure 4-8.At a price of $20,

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A market demand curve shows

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

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A leftward shift of a supply curve is called

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