Question 1

Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Accepted Answer

A)  an increase in the price of DVDs
B)  a decrease in the price of DVD players
C)  a change in consumer preferences toward watching movies in movie theaters rather than at home
D)  an expectation by buyers that their incomes will increase in the very near futureE) C) and D)
F) All of the above

Question 3

Which of the following would cause price to decrease?

Accepted Answer

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

Question 4

Suppose John and Wayne are the only two demanders of cowboy movies. Each month, John buys six cowboy movies when the price is $10 each, and he buys four cowboy movies when the price is $15 each. Each month, Wayne buys four cowboy movies when the price is $10 each, and he buys two cowboy movies when the price is $15 each. Which of the following points is on the market demand curve?

Accepted Answer

A)  quantity demanded = 2; price = $15
B)  quantity demanded = 4; price = $25
C)  quantity demanded = 10; price = $10
D)  quantity demanded = 16; price = $25E) None of the above
F) B) and C)

Question 5

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, if the size of the shift of the demand curve is larger than the size of the shift of the supply curve, then the equilibrium quantity rises.

Accepted Answer

A) True 
 B)False

Question 6

Buyers and sellers who have no influence on market price are referred to as

Accepted Answer

A)  market pawns.
B)  monopolists.
C)  price takers.
D)  price setters.E) A) and D)
F) None of the above

Question 7

A movement downward and to the left along a supply curve is called a(n)

Accepted Answer

A)  increase in supply.
B)  decrease in supply.
C)  decrease in quantity supplied.
D)  increase in quantity supplied.E) B) and C)
F) All of the above

Question 8

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 9

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Accepted Answer

A)  shifts to the right.
B)  shifts to the left.
C)  shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information.
D)  will not shift; rather, the demand curve for Mustangs will shift to the right next month.E) All of the above
F) B) and D)

Question 10

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A)  Leo has a limited number of sellers from which to buy coffee beans.
B)  Leo will negotiate with sellers whenever he buys coffee beans.
C)  Leo cannot influence the price of coffee beans even if he buys a large quantity of them.
D)  None of the above is correct.E) A) and B)
F) B) and C)

Question 11

Whenever a determinant of supply other than price changes, the supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 12

The law of supply and demand asserts that

Accepted Answer

A)  demand curves and supply curves tend to shift to the right as time goes by.
B)  the price of a good will eventually rise in response to an excess demand for that good.
C)  when the supply curve for a good shifts, the demand curve for that good shifts in response.
D)  the equilibrium price of a good will be rising more often than it will be falling.E) A) and B)
F) A) and C)

Question 13

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, the approach of Thanksgiving would cause a move from

Accepted Answer

A)  DA to DB.
B)  DB to DA.
C)  x to y.
D)  y to x.E) C) and D)
F) B) and C)

Question 14

Figure 4-21 
-Refer to Figure 4-21. At a price of $4, there is a

Accepted Answer

A)  surplus of 1 unit.
B)  surplus of 3 units.
C)  shortage of 1 unit.
D)  shortage of 3 units.E) C) and D)
F) B) and C)

Question 15

When supply and demand both increase, equilibrium

Accepted Answer

A)  price will increase.
B)  price will decrease.
C)  quantity may increase, decrease, or remain unchanged.
D)  price may increase, decrease, or remain unchanged.E) None of the above
F) B) and D)

Question 16

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 17

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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Accepted Answer

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

Question 18

Table 4-16
The following table shows the supply and demand schedules in a market. 
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

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

Question 19

Which of the following characteristics is required for a perfectly competitive market?

Accepted Answer

A)  The goods offered for sale are exactly the same.
B)  There are so many buyers and sellers that no single buyer or seller has any influence over the market price.
C)  It is difficult for new sellers to enter the market.
D)  Both a and b are correct.E) None of the above
F) All of the above

Question 20

Equilibrium price must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
B)  increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
C)  decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
D)  decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.E) B) and C)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct Answer
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Correct Answer
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Equilibrium price must decrease when demand

Correct Answer
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Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Correct Answer
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Assume Leo buys coffee beans in a competitive market. It follows that

Correct Answer
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A movement downward and to the left along a supply curve is called a(n)

Correct Answer
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Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Correct Answer
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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?

Correct Answer
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Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct Answer
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Buyers and sellers who have no influence on market price are referred to as

Correct Answer
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The law of supply and demand asserts that

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, the approach of Thanksgiving would cause a move from

Correct Answer
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When supply and demand both increase, equilibrium

Correct Answer
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Which of the following would cause price to decrease?

Correct Answer
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Local cable television companies frequently are monopolists.

Correct Answer
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Whenever a determinant of supply other than price changes, the supply curve shifts.

Correct Answer
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Correct Answer
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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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Correct Answer
verified

Which of the following characteristics is required for a perfectly competitive market?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Equilibrium price must decrease when demand

Correct AnswerverifiedShow Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Correct AnswerverifiedShow Answer

Assume Leo buys coffee beans in a competitive market. It follows that

Correct AnswerverifiedShow Answer

A movement downward and to the left along a supply curve is called a(n)

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct AnswerverifiedShow Answer

Buyers and sellers who have no influence on market price are referred to as

Correct AnswerverifiedShow Answer

The law of supply and demand asserts that

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, the approach of Thanksgiving would cause a move from

Correct AnswerverifiedShow Answer

When supply and demand both increase, equilibrium

Correct AnswerverifiedShow Answer

Which of the following would cause price to decrease?

Correct AnswerverifiedShow Answer

Local cable television companies frequently are monopolists.

Correct AnswerverifiedShow Answer

Whenever a determinant of supply other than price changes, the supply curve shifts.

Correct AnswerverifiedShow Answer

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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Correct AnswerverifiedShow Answer

Which of the following characteristics is required for a perfectly competitive market?

Correct AnswerverifiedShow Answer

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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?

Correct Answer
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