Question 1

A market includes

Accepted Answer

A)   buyers only.
B)   sellers only.
C)   both buyers and sellers.
D)   the place where transactions occur but not the people involved.

Question 2

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

Accepted Answer

A)   increase in the demand for bagels.
B)   decrease in the demand for bagels.
C)   increase in the demand for muffins.
D)   decrease in the demand for muffins.

Question 3

Which of the following events must cause equilibrium price to rise?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increase

Question 4

Which of the following characteristics is required for a perfectly competitive market?

Accepted Answer

A)   The goods offered for sale are exactly the same.
B)   There are so many buyers and sellers that no single buyer or seller has any influence over the market price.
C)   It is difficult for new sellers to enter the market.
D)   Both a and b are correct.

Question 5

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

Accepted Answer

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

Question 6

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.

Question 7

Equilibrium price must increase when demand

Accepted Answer

A)   increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
B)   increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
C)   decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
D)   decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.

Question 8

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.

Question 9

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 10

The law of supply and demand asserts that

Accepted Answer

A)   demand curves and supply curves tend to shift to the right as time goes by.
B)   the price of a good will eventually rise in response to an excess demand for that good.
C)   when the supply curve for a good shifts, the demand curve for that good shifts in response.
D)   the equilibrium price of a good will be rising more often than it will be falling.

Question 11

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.

Question 12

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-15. Assuming these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price, what is the equilibrium quantity?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 13

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-7 
-Refer to Figure 4-7. The shift from Db to Da 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 15

Table 4-14
The table below shows the quantities demanded of milk per month by four families at various prices.
 
-Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Accepted Answer

The answer of Table 4-14
The table below shows the quantities...

Question 16

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   increase in the price.
B)   decrease in the quantity supplied.
C)   shift in the supply curve.
D)   Both a and b are correct.

Question 18

Table 4-8
 
-Refer to Table 4-8. If these are the only three sellers in the market, then an increase in the market price from $6 to $12 will increase quantity supplied by

Accepted Answer

A)   12 units.
B)   24 units.
C)   36 units.
D)   48 units.

Question 19

A yard sale is an example of a market.

Accepted Answer

A) True 
 B)False

Question 20

A monopoly is a market with one

Accepted Answer

A)   seller, and that seller is a price taker.
B)   seller, and that seller sets the price.
C)   buyer, and that buyer is a price taker.
D)   buyer, and that buyer sets the price.

Exam 4: The Market Forces of Supply and Demand

Correct Answer
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Today, people changed their expectations about the future. This change

Correct Answer
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Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Correct Answer
verified

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then an increase in the market price from $6 to $12 will increase quantity supplied by

Correct Answer
verified

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Correct Answer
verified

A yard sale is an example of a market.

Correct Answer
verified

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

Correct Answer
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A surplus is the same as an excess demand.

Correct Answer
verified

A market includes

Correct Answer
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Equilibrium price must increase when demand

Correct Answer
verified

Which of the following characteristics is required for a perfectly competitive market?

Correct Answer
verified

An increase in the price of a good will

Correct Answer
verified

A monopoly is a market with one

Correct Answer
verified

Which of the following events must cause equilibrium price to rise?

Correct Answer
verified

The law of supply and demand asserts that

Correct Answer
verified

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

Correct Answer
verified

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Correct Answer
verified

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

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The shift from Db to Da is called

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Correct AnswerverifiedShow Answer

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then an increase in the market price from $6 to $12 will increase quantity supplied by

Correct AnswerverifiedShow Answer

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Correct AnswerverifiedShow Answer

A yard sale is an example of a market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A surplus is the same as an excess demand.

Correct AnswerverifiedShow Answer

A market includes

Correct AnswerverifiedShow Answer

Equilibrium price must increase when demand

Correct AnswerverifiedShow Answer

Which of the following characteristics is required for a perfectly competitive market?

Correct AnswerverifiedShow Answer

An increase in the price of a good will

Correct AnswerverifiedShow Answer

A monopoly is a market with one

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium price to rise?

Correct AnswerverifiedShow Answer

The law of supply and demand asserts that

Correct AnswerverifiedShow Answer

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

Correct AnswerverifiedShow Answer

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The shift from Db to Da is called

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Correct AnswerverifiedShow Answer

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