Question 1

Figure 4-17 
-Refer to Figure 4-17. At a price of

Accepted Answer

A)  $2, there is a surplus of 6 units.
B)  $5, there is a surplus of 25 units.
C)  $5, there is a shortage of $25.
D)  $7, there is a surplus of 4 units.E) B) and D)
F) None of the above

Question 2

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-18 
-Refer to Figure 4-18. At what price would there be an excess supply of 200 units of the good?

Accepted Answer

A)  $15
B)  $20
C)  $30
D)  $35E) A) and C)
F) B) and C)

Question 4

Which of the following is the least likely to be a competitive market?

Accepted Answer

A)  ice cream
B)  soybeans
C)  cable television
D)  new housesE) All of the above
F) C) and D)

Question 5

If the price of a good is low,

Accepted Answer

A)  firms would increase profit by increasing output.
B)  the quantity supplied of the good could be zero.
C)  the supply curve for the good will shift to the left.
D)  firms can and should raise the price of the product.E) A) and B)
F) B) and C)

Question 6

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Accepted Answer

A) True 
 B)False

Question 7

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)  40.
B)  35.
C)  30.
D)  All of the above could be correct.E) None of the above
F) A) and C)

Question 8

The law of demand states that, other things equal, when the price of a good

Accepted Answer

A)  falls, the demand for the good rises.
B)  rises, the quantity demanded of the good rises.
C)  rises, the demand for the good falls.
D)  falls, the quantity demanded of the good rises.E) B) and C)
F) A) and D)

Question 9

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

Accepted Answer

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

Question 10

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the number of pastry chefs?

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

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, a sale on chicken would cause a move from

Accepted Answer

A)  DA to DB.
B)  DB to DA.
C)  x to y.
D)  y to x.E) None of the above
F) A) and B)

Question 13

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 only members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)  $10
B)  $15
C)  $20
D)  $25E) None of the above
F) All of the above

Question 14

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Accepted Answer

A)  the ticket price was above the equilibrium price.
B)  the ticket price was below the equilibrium price.
C)  the ticket price was at the equilibrium price.
D)  nothing about the equilibrium price.E) None of the above
F) A) and B)

Question 15

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Panel (c)  shows which of the following?

Accepted Answer

A)  an increase in demand and an increase in quantity supplied
B)  an increase in demand and an increase in supply
C)  an increase in quantity demanded and an increase in quantity supplied
D)  an increase in quantity demanded and an increase in supplyE) A) and B)
F) A) and C)

Question 16

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

Question 17

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b.The equilibrium price (Pe) is $4 a...

Question 18

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

Question 19

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) A) and B)
F) B) and C)

Question 20

An increase in demand is represented by a

Accepted Answer

A)  movement downward and to the right along a demand curve.
B)  movement upward and to the left along a demand curve.
C)  rightward shift of a demand curve.
D)  leftward shift of a demand curve.E) C) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Correct Answer
verified

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

Correct Answer
verified

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Correct Answer
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If the price of a good is low,

Correct Answer
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Which of the following is the least likely to be a competitive market?

Correct Answer
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An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Correct Answer
verified

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (c) shows which of the following?

Correct Answer
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Correct Answer
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Figure 4-18 -Refer to Figure 4-18. At what price would there be an excess supply of 200 units of the good?

Correct Answer
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If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Correct Answer
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a. b.The equilibrium price (Pe) is $4 a...
View Answer

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

Correct Answer
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The law of demand states that, other things equal, when the price of a good

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

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
verified

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Correct Answer
verified

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

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the number of pastry chefs?

Correct Answer
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Figure 4-17 -Refer to Figure 4-17. At a price of

Correct Answer
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An increase in demand is represented by a

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates

Correct AnswerverifiedShow Answer

If the price of a good is low,

Correct AnswerverifiedShow Answer

Which of the following is the least likely to be a competitive market?

Correct AnswerverifiedShow Answer

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (c) shows which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. At what price would there be an excess supply of 200 units of the good?

Correct AnswerverifiedShow Answer

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Correct Answerverifieda. b.The equilibrium price (Pe) is $4 a...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The law of demand states that, other things equal, when the price of a good

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

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 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the number of pastry chefs?

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct AnswerverifiedShow Answer

An increase in demand is represented by a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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a. b.The equilibrium price (Pe) is $4 a...
View Answer

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