Question 1

The line that relates the price of a good and the quantity demanded of that good is called the demand

Accepted Answer

A)   schedule, and it usually slopes upward.
B)   schedule, and it usually slopes downward.
C)   curve, and it usually slopes upward.
D)   curve, and it usually slopes downward.E) A) and C)
F) A) and B)

Question 2

Figure 4-18 
-Refer to Figure 4-18. At the equilibrium price,

Accepted Answer

A)   200 units would be supplied and demanded.
B)   400 units would be supplied and demanded.
C)   600 units would be supplied and demanded.
D)   600 units would be supplied, but only 200 would be demanded.E) A) and B)
F) B) and D)

Question 3

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Accepted Answer

The answer of Figure 4-31
Consider the market for 2-packs of...

Question 4

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.E) B) and D)
F) B) and C)

Question 5

Figure 4-19 
-Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)   $10 and 30 units.
B)   $10 and 50 units.
C)   $10 and 70 units.
D)   $4 and 50 units.E) A) and B)
F) B) and D)

Question 6

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Accepted Answer

A) True 
 B)False

Question 7

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Accepted Answer

A)   only for Harry
B)   only for Darby
C)   for both Harry and Darby
D)   This cannot be determined from the given information.E) None of the above
F) All of the above

Question 8

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.E) A) and B)
F) None of the above

Question 9

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.E) B) and C)
F) None of the above

Question 10

When we move along a given demand curve,

Accepted Answer

A)   only price is held constant.
B)   income and price are held constant.
C)   all nonprice determinants of demand are held constant.
D)   all determinants of quantity demanded are held constant.E) A) and D)
F) A) and C)

Question 11

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

Accepted Answer

A)   a surplus 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 supplied exceeds quantity demanded.E) B) and C)
F) A) and B)

Question 12

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)   a decrease in the price of gasoline
B)   an increase in consumer income, assuming gasoline is a normal good
C)   an increase in the price of cars, a complement for gasoline
D)   a decrease in the expected future price of gasolineE) None of the above
F) B) and C)

Question 13

If the demand for a product decreases, then we would expect equilibrium price

Accepted Answer

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

Question 14

If, at the current price, there is a shortage 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) A) and B)
F) None of the above

Question 15

For a market for a good or service to exist, there must be a

Accepted Answer

A)   group of buyers and sellers.
B)   specific time and place at which the good or service is traded.
C)   high degree of organization present.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 16

A market supply curve shows

Accepted Answer

A)   the total quantity supplied at all possible prices.
B)   the average quantity supplied by producers at all possible prices.
C)   how quantity supplied changes when consumer income changes.
D)   suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.E) All of the above
F) None of the above

Question 17

If a seller in a competitive market chooses to charge more than the going price, then

Accepted Answer

A)   the sellers' profits must increase.
B)   the owners of the raw materials used in production would raise the prices for the raw materials.
C)   other sellers would also raise their prices.
D)   buyers will make purchases from other sellers.E) A) and B)
F) B) and D)

Question 18

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose x = 1. Then it must be true that

Accepted Answer

A)   Harry and Jake have the same income, which is lower than Darby's income.
B)   if sandwiches and potato chips are complements for Harry, then those two goods are also complements for Jake.
C)   Harry's demand curve is identical to Jake's demand curve.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 19

Figure 4-27
Panel (a)  Panel (b) 
   Panel (c)  Panel (d) 
  
-Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) B) and C)
F) None of the above

Question 20

A market is a group of buyers and sellers of a particular good or service.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

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For a market for a good or service to exist, there must be a

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

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Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then it must be true that

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When we move along a given demand curve,

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Which of the following would shift the demand curve for gasoline to the right?

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Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

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A market includes

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If a seller in a competitive market chooses to charge more than the going price, then

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

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Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

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If the demand for a product decreases, then we would expect equilibrium price

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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

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A market is a group of buyers and sellers of a particular good or service.

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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?

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A market supply curve shows

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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

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The line that relates the price of a good and the quantity demanded of that good is called the demand

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Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

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Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

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