Question 1

If, at the current price, there is a surplus of a good, then

Accepted Answer

A)  sellers are producing more than buyers wish to buy.
B)  the market must be in equilibrium.
C)  the price is below the equilibrium price.
D)  quantity demanded equals quantity supplied.E) B) and C)
F) B) and D)

Question 2

The highest form of competition is called

Accepted Answer

A)  absolute competition.
B)  cutthroat competition.
C)  perfect competition.
D)  market competition.E) A) and D)
F) None of the above

Question 3

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' is called a(n)

Accepted Answer

A)  decrease in supply.
B)  decrease in quantity supplied.
C)  increase in supply.
D)  increase in quantity supplied.E) A) and B)
F) B) and D)

Question 4

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A)  a smaller quantity of labor to be used.
B)  the supply of cars to increase.
C)  the firms' costs to fall.
D)  individual car manufacturers to move up and to the right along their individual supply curves.E) A) and D)
F) None of the above

Question 5

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)  the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
B)  the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
C)  there is a surplus of blue jeans at the $30 price.
D)  All of the above are correct.E) A) and D)
F) None of the above

Question 6

An increase in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve.
B)  results in a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.E) A) and B)
F) A) and C)

Question 7

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-20 
-Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

Accepted Answer

A)  The market is in equilibrium.
B)  Equilibrium price is equal to equilibrium quantity.
C)  There is no pressure for price to change.
D)  The quantity of the good that is bought and sold is 600 units.E) None of the above
F) B) and D)

Question 9

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A)  decreases.
B)  increases.
C)  remains constant, but we observe a movement downward and to the right along the demand curve.
D)  remains constant, but we observe a movement upward and to the left along the demand curve.E) B) and D)
F) B) and C)

Question 10

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

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 equilibrium quantity would decrease.
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.E) All of the above
F) C) and D)

Question 11

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 12

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​ 
-Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 13

Table 4-1 
-Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)  2 units.
B)  3 units.
C)  4 units.
D)  5 units.E) None of the above
F) A) and B)

Question 14

Figure 4-28
​ 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

Accepted Answer

The answer of Figure 4-28
​ 
-Refer to Figure 4-28. Using...

Question 15

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand...

Question 16

Figure 4-4
Yasmine
Mercedes  
-Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Accepted Answer

A)  6 units.
B)  9 units.
C)  12 units.
D)  15 units.E) A) and B)
F) C) and D)

Question 17

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Accepted Answer

A)  a decrease in the price of mattresses
B)  a decrease in the price of custom wooden sleigh bed frames
C)  a change in consumer tastes away from wooden bedroom furniture
D)  a decrease in the number of people in the United StatesE) B) and C)
F) A) and B)

Question 18

Figure 4-18 
-Refer to Figure 4-18. At a price of $20, there would be a(n)

Accepted Answer

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

Question 19

If something happens to alter the quantity supplied at any given price, then

Accepted Answer

A)  we move along the supply curve.
B)  the supply curve shifts.
C)  the supply curve becomes steeper.
D)  the supply curve becomes flatter.E) B) and C)
F) B) and D)

Question 20

A decrease in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve.
B)  results in a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.E) B) and D)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

An increase in quantity demanded

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Table 4-1 -Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

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If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins falls?

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A shortage is the same as an excess demand.

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Figure 4-28 ​ -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

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The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

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Figure 4-20 -Refer to Figure 4-20. At a price of $20, which of the following statements is not correct?

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Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

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Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

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A decrease in quantity demanded

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Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

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If something happens to alter the quantity supplied at any given price, then

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The highest form of competition is called

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If, at the current price, there is a surplus of a good, then

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The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

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Figure 4-18 -Refer to Figure 4-18. At a price of $20, there would be a(n)

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Figure 4-16 -Refer to Figure 4-16. The shift from S to S' is called 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 $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Correct AnswerverifiedShow Answer

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Correct AnswerverifiedShow Answer

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Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

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The demand...
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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 $6, is there a shortage or surplus, and how large is the shortage/surplus?

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There is a...
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