Question 1

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)   x to y.
B)   y to x.
C)   SA to SB.
D)   SB to SA.E) A) and B)
F) A) and C)

Question 2

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Accepted Answer

A) True 
 B)False

Question 3

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

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) None of the above
F) All of the above

Question 4

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 5

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 6

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 7

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Accepted Answer

A)   an increase in demand for brown rice and a decrease in demand for white rice.
B)   a decrease in demand for brown rice and an increase in demand for white rice.
C)   an increase in demand for both brown and white rice.
D)   no change in demand for either type of rice because weight loss is not a determinant of demand.E) B) and D)
F) A) and B)

Question 8

Figure 4-7 
-Refer to Figure 4-7. The movement from Db to Da could be caused by

Accepted Answer

A)   a decrease in price.
B)   an increase in the price of a complement.
C)   a technological advance.
D)   an increase in the price of a substitute.E) A) and B)
F) None of the above

Question 9

Figure 4-7 
-Refer to Figure 4-7. If the demand curve for Good X shifts from Da to Db, then

Accepted Answer

A)   firms would be willing to supply less of Good X than before at each possible price.
B)   people are willing to buy more of Good X than before at each possible price.
C)   people's incomes must have decreased.
D)   the price of Good X has decreased.E) A) and D)
F) All of the above

Question 10

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 C)
F) B) and C)

Question 11

Which of the following statements is correct?

Accepted Answer

A)   Buyers determine supply, and sellers determine demand.
B)   Buyers determine demand, and sellers determine supply.
C)   Buyers determine both demand and supply.
D)   Sellers determine both demand and supply.E) A) and B)
F) A) and C)

Question 12

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 13

When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Accepted Answer

A)   The number of sellers of mangos increases.
B)   There is an advance in technology that reduces the cost of producing mangos.
C)   The price of fertilizer decreases, and fertilizer is an input in the production of mangos.
D)   The price of mangos rises.E) All of the above
F) A) and C)

Question 15

Figure 4-28 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if consumer incomes increase and this is an inferior good.

Accepted Answer

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

Question 16

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 17

In a perfectly competitive market, buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

A)   total demand
B)   market demand
C)   equilibrium demand
D)   aggregate demandE) None of the above
F) A) and C)

Question 19

Which of the following would cause price to increase?

Accepted Answer

A)   an increase in supply
B)   a decrease in demand
C)   a surplus of the good
D)   a shortage of the goodE) All of the above
F) A) and D)

Question 20

A decrease in the price of a good will

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

A decrease in the price of a good will

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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 consumer incomes increase and this is an inferior good.

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Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

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Figure 4-7 -Refer to Figure 4-7. The movement from Db to Da could be caused by

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Which of the following statements is correct?

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Which of the following is not an expression for the sum of all the individual demand curves for a product?

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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 $3, is there a shortage or surplus, and how large is the shortage/surplus?

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What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

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Which of the following would cause price to increase?

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In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

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Figure 4-7 -Refer to Figure 4-7. If the demand curve for Good X shifts from Da to Db, then

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When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

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In a perfectly competitive market, buyers and sellers are price setters.

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Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

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If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

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

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Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

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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, an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

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A market includes

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There is a...
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