Question 1

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A)   a change in income
B)   a change in the price of the good or service
C)   a change in expectations about the future price of the good or service
D)   a change in the price of a related good or service

Question 2

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. What is the equilibrium price in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 3

Table 4-1
 
-Refer to Table 4-1. Which of the following illustrates the market demand curve?

Accepted Answer

A)   
B)   
C)   
D)

Question 4

Soup is an inferior good if the demand

Accepted Answer

A)   for soup falls when the price of a substitute for soup rises.
B)   for soup rises when the price of soup falls.
C)   curve for soup slopes upward.
D)   for soup falls when income rises.

Question 5

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.

Question 6

A market supply curve shows how the total quantity supplied of a good varies as

Accepted Answer

A)   production technology varies.
B)   price varies.
C)   input prices vary.
D)   demand varies.

Question 7

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.

Question 8

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 9

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
 
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)   $10
B)   $15
C)   $20
D)   $25

Question 10

When the price of peaches changes, the demand curve for peaches

Accepted Answer

A)   shifts because the price of peaches is measured on the vertical axis of the graph.
B)   shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph.
C)   does not shift because the price of peaches is measured on the vertical axis of the graph.
D)   does not shift because the price of peaches is measured on the horizontal axis of the graph.

Question 11

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices.
 
-Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Accepted Answer

A)   market quantity demanded decreases by 10.
B)   market quantity demanded increases by 10.
C)   Adams family increases its quantity demanded by more than the Smith family.
D)   Jones family increases its quantity demanded by more than the Williams family.

Question 12

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

Accepted Answer

A) True 
 B)False

Question 13

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?

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 D

Question 14

Which of the following would cause a movement along the supply curve for cupcakes?

Accepted Answer

A)   an improvement in technology for commercial mixers
B)   a decrease in the price of cupcakes
C)   an increase in the price of cake flour
D)   All of the above are correct.

Question 15

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.

Question 16

The sum of all the individual demand curves for a product is called

Accepted Answer

A)   income demand.
B)   equilibrium demand.
C)   complementary demand.
D)   market demand.

Question 17

A likely example of substitute goods for most people would be

Accepted Answer

A)   peanut butter and jelly.
B)   tennis balls and tennis rackets.
C)   televisions and subscriptions to cable television services.
D)   pencils and pens.

Question 18

If toast and butter are complements, then which of the following would increase the demand for toast?

Accepted Answer

A)   a decrease in the price of toast
B)   a decrease in the price of butter
C)   an increase in the price of butter
D)   Both a and b are correct.

Question 19

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)   demand for gasoline
B)   price of gasoline
C)   number of producers of gasoline
D)   price of oil, an input into the production of gasoline

Question 20

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.

Exam 4: The Market Forces of Supply and Demand

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

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

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

The sum of all the individual demand curves for a product is called

Correct Answer
verified

Which of the following changes would not shift the demand curve for a good or service?

Correct Answer
verified

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

Correct Answer
verified

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Correct Answer
verified

Which of the following would cause a movement along the supply curve for cupcakes?

Correct Answer
verified

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

Correct Answer
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Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct Answer
verified

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?

Correct Answer
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Correct Answer
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When the price of peaches changes, the demand curve for peaches

Correct Answer
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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, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct Answer
verified

Soup is an inferior good if the demand

Correct Answer
verified

A likely example of substitute goods for most people would be

Correct Answer
verified

A market supply curve shows how the total quantity supplied of a good varies as

Correct Answer
verified

If toast and butter are complements, then which of the following would increase the demand for toast?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Correct AnswerverifiedShow Answer

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

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

The sum of all the individual demand curves for a product is called

Correct AnswerverifiedShow Answer

Which of the following changes would not shift the demand curve for a good or service?

Correct AnswerverifiedShow Answer

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

Correct AnswerverifiedShow Answer

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Correct AnswerverifiedShow Answer

Which of the following would cause a movement along the supply curve for cupcakes?

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the price of peaches changes, the demand curve for peaches

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct AnswerverifiedShow Answer

Soup is an inferior good if the demand

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

A market supply curve shows how the total quantity supplied of a good varies as

Correct AnswerverifiedShow Answer

If toast and butter are complements, then which of the following would increase the demand for toast?

Correct AnswerverifiedShow Answer

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