Question 1

Table 4-6 
-Refer to Table 4-6. 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)  7.5 units.
C)  10 units.
D)  30 units.E) C) and D)
F) All of the above

Question 2

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. A to DB. B) DB to DA. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-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.E) B) and D)
F) A) and D)

Question 3

Which of the following events must cause equilibrium quantity 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 increaseE) A) and C)
F) A) and B)

Question 4

Table 4-9 
-Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) A) and D)
F) A) and C)

Question 5

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)  decreases, and the supply of tires increases.
B)  is unaffected, and the supply of tires decreases.
C)  is unaffected, and the supply of tires increases.
D)  None of the above is necessarily correct.E) B) and C)
F) C) and D)

Question 6

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 and the country club sets the ticket price at $30, then there will be

Accepted Answer

A)  a shortage of 300 tickets.
B)  a surplus of 300 tickets.
C)  600 tickets sold.
D)  600 tickets unsold.E) A) and C)
F) B) and D)

Question 7

Figure 4-1 
-Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

Accepted Answer

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

Question 8

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) C) and D)
F) All of the above

Question 9

When the price of a good is higher than the equilibrium price,

Accepted Answer

A)  a shortage will exist.
B)  buyers desire to purchase more than is produced.
C)  sellers desire to produce and sell more than buyers wish to purchase.
D)  quantity demanded exceeds quantity supplied.E) B) and C)
F) None of the above

Question 10

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)  substitutes.
B)  complements.
C)  unrelated because one good is legal while the other one is illegal.
D)  inferior goods.E) A) and C)
F) C) and D)

Question 11

When quantity demanded has increased at every price, it might be because

Accepted Answer

A)  the number of buyers in the market has decreased.
B)  income has increased, and the good is an inferior good.
C)  the costs incurred by sellers producing the good have decreased.
D)  the price of a complementary good has decreased.E) None of the above
F) A) and C)

Question 12

When the price of a good or service changes,

Accepted Answer

A)  the demand curve shifts in the opposite direction.
B)  the supply curve shifts in the opposite direction.
C)  the supply curve shifts in the same direction.
D)  there is a movement along a given supply curve.E) B) and D)
F) A) and B)

Question 13

Table 4-16
The following table shows the supply and demand schedules in a market. 
-Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Accepted Answer

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

Question 14

Table 4-9 
-Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) B) and C)
F) All of the above

Question 15

Figure 4-16 
-Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Accepted Answer

A)  decrease in the number of commercial bakers.
B)  improvement in oven technology.
C)  decrease in the price of butter.
D)  decrease in the price of chocolate cake.E) C) and D)
F) B) and D)

Question 16

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 17

Figure 4-20 
-Refer to Figure 4-20. At a price of $15,

Accepted Answer

A)  quantity demanded exceeds quantity supplied.
B)  there is a shortage.
C)  there is an excess demand.
D)  All of the above are correct.E) All of the above
F) A) and D)

Question 18

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Accepted Answer

A)  both the equilibrium price and quantity to decrease.
B)  both the equilibrium price and quantity to increase.
C)  the equilibrium price to increase and the equilibrium quantity to decrease.
D)  the equilibrium price to decrease and the equilibrium quantity to increase.E) B) and D)
F) A) and D)

Question 19

In a market economy, supply and demand are important because they

Accepted Answer

A)  are direct policy tools used by government agencies to regulate the economy.
B)  illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium.
C)  can be used to predict the impact on the economy of various events and policies.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 20

Figure 4-1 
-Refer to Figure 4-1. The movement from point A to point B on the graph is caused by a(n)

Accepted Answer

A)  increase in price.
B)  decrease in price.
C)  decrease in the price of a substitute good.
D)  increase in income.E) None of the above
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Correct Answer
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Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Correct Answer
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Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by a(n)

Correct Answer
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When the price of a good or service changes,

Correct Answer
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Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct Answer
verified

In a market economy, supply and demand are important because they

Correct Answer
verified

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct Answer
verified

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

Correct Answer
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When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Correct Answer
verified

Most studies indicate that tobacco and marijuana tend to be

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

Correct Answer
verified

When quantity demanded has increased at every price, it might be because

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. At a price of $2, will there be a surplus or shortage of units in this market?

Correct Answer
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Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Correct Answer
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Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Correct Answer
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When the price of a good is higher than the equilibrium price,

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
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Figure 4-20 -Refer to Figure 4-20. At a price of $15,

Correct Answer
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Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by a(n)

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct AnswerverifiedShow Answer

In a market economy, supply and demand are important because they

Correct AnswerverifiedShow Answer

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Correct AnswerverifiedShow Answer

Most studies indicate that tobacco and marijuana tend to be

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

Correct AnswerverifiedShow Answer

When quantity demanded has increased at every price, it might be because

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Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

When the price of a good is higher than the equilibrium price,

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

Figure 4-20 -Refer to Figure 4-20. At a price of $15,

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Correct AnswerverifiedShow Answer

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