Question 1

Once the demand curve for a product or service is drawn, it

Accepted Answer

A)   remains stable over time.
B)   can shift either rightward or leftward.
C)   is possible to move along the curve, but the curve will not shift.
D)   tends to become steeper over time.E) A) and D)
F) B) and C)

Question 2

Figure 4-2 
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Accepted Answer

A)   0 units.
B)   2 units.
C)   4 units.
D)   6 units.E) A) and D)
F) None of the above

Question 3

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 4

If there is a shortage of farm laborers, we would expect

Accepted Answer

A)   the wage of farm laborers to increase.
B)   the wage of farm laborers to decrease.
C)   the price of farm commodities to decrease.
D)   a decrease in the demand for substitutes for farm labor.E) All of the above
F) A) and B)

Question 5

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)   Sellers set the price of the product.
B)   There are many sellers.
C)   Buyers must accept the price the market determines.
D)   All of the above are characteristics of a perfectly competitive market.E) A) and B)
F) B) and C)

Question 6

A decrease in the price of a good would

Accepted Answer

A)   increase the supply of the good.
B)   increase the quantity demanded of the good.
C)   give producers an incentive to produce more to keep profits from falling.
D)   shift the supply curve for the good to the left.E) B) and D)
F) None of the above

Question 7

A leftward 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.E) A) and B)
F) A) and C)

Question 8

Figure 4-27
Panel a)  Panel b) 
   Panel c)  Panel d) 
  
-Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Accepted Answer

A)   Panel a) 
B)   Panel b) 
C)   Panel c) 
D)   Panel d) E) A) and D)
F) C) and D)

Question 9

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Accepted Answer

A)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2.
B)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5.
C)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2.
D)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5.E) A) and B)
F) B) and D)

Question 10

Figure 4-28 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

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

Question 11

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) None of the above

Question 12

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) All of the above
F) C) and D)

Question 13

If a good is normal, then an increase in income will result in an)

Accepted Answer

A)   increase in the demand for the good.
B)   decrease in the demand for the good.
C)   movement down and to the right along the demand curve for the good.
D)   movement up and to the left along the demand curve for the good.E) A) and D)
F) All of the above

Question 14

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

A)   encourage marijuana use, and the evidence supports this argument.
B)   encourage marijuana use, but the evidence does not support this argument.
C)   discourage marijuana use, and the evidence supports this argument.
D)   discourage marijuana use, but the evidence does not support this argument.E) A) and B)
F) A) and C)

Question 15

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A)   today's price of gasoline.
B)   the expected future price of gasoline.
C)   the number of buyers of gasoline.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 16

Today's demand curve for gasoline could shift in response to a change in

Accepted Answer

A)   today's price of gasoline.
B)   the expected future price of gasoline.
C)   the number of sellers of gasoline.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 17

Table 4-8
 
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Accepted Answer

A)   decrease by 6 units.
B)   decrease by 12 units.
C)   increase by 6 units.
D)   increase by 12 units.E) A) and D)
F) A) and B)

Question 18

If a increase in income decreases the demand for a good, then the good is an)

Accepted Answer

A)   substitute good.
B)   complementary good.
C)   normal good.
D)   inferior good.E) All of the above
F) C) and D)

Question 19

Once the supply curve for a product or service is drawn, it

Accepted Answer

A)   remains stable over time.
B)   can shift either rightward or leftward.
C)   is possible to move along the curve, but the curve will not shift.
D)   tends to become steeper over time.E) C) and D)
F) A) and C)

Question 20

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)   is referred to as the law of supply.
B)   applies only to a few goods in the economy.
C)   is represented by a downward-sloping supply curve.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

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A leftward shift of a demand curve is called an)

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If a good is normal, then an increase in income will result in an)

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If there is a shortage of farm laborers, we would expect

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Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

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If a increase in income decreases the demand for a good, then the good is an)

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Which of the following is not a characteristic of a perfectly competitive market?

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Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

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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 represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

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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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An increase in demand shifts the demand curve to the left.

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"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

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Today's supply curve for gasoline could shift in response to a change in

Correct AnswerverifiedShow Answer

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Today's demand curve for gasoline could shift in response to a change in

Correct AnswerverifiedShow Answer

A decrease in the price of a good would

Correct AnswerverifiedShow Answer

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

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Once the demand curve for a product or service is drawn, it

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Once the supply curve for a product or service is drawn, it

Correct AnswerverifiedShow Answer

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