Question 1

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 only 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 2

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 3

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)   40.
B)   35.
C)   30.
D)   All of the above could be correct.

Question 4

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

A)   law of supply.
B)   law of demand.
C)   difference between normal and inferior goods.
D)   difference between substitute and complement goods.

Question 5

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Accepted Answer

A)   crystal to be unaffected.
B)   crystal to decrease.
C)   crystal to increase.
D)   lead to increase.

Question 6

A rightward shift of a demand curve is called an)

Accepted Answer

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

Question 7

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Accepted Answer

The demand...

Question 8

The belief that tobacco is a "gateway drug" is consistent with

Accepted Answer

A)   the idea that tobacco and marijuana are substitutes.
B)   the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana.
C)   the idea that lower cigarette prices are associated with less use of marijuana.
D)   most of the available evidence.

Question 9

Equilibrium quantity must decrease when demand

Accepted Answer

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

Question 10

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 11

Figure 4-21 
-Refer to Figure 4-21. At a price of $16, there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 3 units.
C)   shortage of 1 unit.
D)   shortage of 3 units.

Question 12

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)   willing to purchase.
B)   willing and able to purchase.
C)   willing, able, and need to purchase.
D)   able to purchase.

Question 13

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 14

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

Accepted Answer

A)   a change in production technology
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 input prices

Question 15

In a market economy, prices are the signals that guide the allocation of scarce resources.

Accepted Answer

A) True 
 B)False

Question 16

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 17

Assume Diana buys computers in a competitive market. It follows that

Accepted Answer

A)   Diana has a limited number of sellers to turn to when she buys a computer.
B)   Diana will find herself negotiating with sellers whenever she buys a computer.
C)   if Diana buys a large number of computers, the price of computers will rise noticeably.
D)   None of the above is correct.

Question 18

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Accepted Answer

A) True 
 B)False

Question 19

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Accepted Answer

A)   substitute good.
B)   normal good.
C)   inferior good.
D)   complementary good.

Question 20

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

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

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
verified

A rightward shift of a demand curve is called an)

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct Answer
verified

The belief that tobacco is a "gateway drug" is consistent with

Correct Answer
verified

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct Answer
verified

In a market economy, prices are the signals that guide the allocation of scarce resources.

Correct Answer
verified

Correct Answer
verified

A decrease in the price of a complement will shift the demand curve for a good to the left.

Correct Answer
verified

Correct Answer
verified

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct Answer
verified

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

Correct Answer
verified

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

Equilibrium quantity must decrease when demand

Correct Answer
verified

Baseballs and baseball bats are substitute goods.

Correct Answer
verified

The quantity demanded of a good is the amount that buyers are

Correct Answer
verified

Assume Diana buys computers in a competitive market. It follows that

Correct Answer
verified

Most studies have found that tobacco and marijuana are complements rather than substitutes.

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

A rightward shift of a demand curve is called an)

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct AnswerverifiedShow Answer

The belief that tobacco is a "gateway drug" is consistent with

Correct AnswerverifiedShow Answer

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are an)

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. At a price of $16, there is a

Correct AnswerverifiedShow Answer

In a market economy, prices are the signals that guide the allocation of scarce resources.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

Equilibrium quantity must decrease when demand

Correct AnswerverifiedShow Answer

Baseballs and baseball bats are substitute goods.

Correct AnswerverifiedShow Answer

The quantity demanded of a good is the amount that buyers are

Correct AnswerverifiedShow Answer

Assume Diana buys computers in a competitive market. It follows that

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Correct AnswerverifiedShow Answer

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The demand...
View Answer

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