Question 1

Table 4-7
 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Accepted Answer

A)   4 gallons.
B)   5 gallons.
C)   20 gallons.
D)   80 gallons.E) A) and D)
F) A) and C)

Question 2

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

Accepted Answer

A)   increase in the price of peaches.
B)   decrease in the price of pears.
C)   increase in income.
D)   decrease in the labor costs of the workers who pick peaches.E) A) and B)
F) A) and C)

Question 3

Which of the following would increase in response to a decrease in the price of ironing boards?

Accepted Answer

A)   the quantity of irons demanded at each possible price of irons
B)   the equilibrium quantity of irons
C)   the equilibrium price of irons
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 4

Figure 4-30 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi...

Question 5

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 6

An example of a perfectly competitive market would be the market for

Accepted Answer

A)   tennis racquets.
B)   pizzb.
C)   garbage collection.
D)   wheat.E) A) and D)
F) All of the above

Question 7

Figure 4-7 
-Refer to Figure 4-7. The shift from Db to Da is called

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.E) B) and C)
F) B) and D)

Question 8

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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) All of the above

Question 10

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

A)   increase in the price of the good.
B)   improvement in production technology.
C)   increase in income.
D)   increase in input prices.E) B) and C)
F) A) and C)

Question 11

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

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) C) and D)

Question 12

Figure 4-22 
-Refer to Figure 4-22. At a price of $24, there is a

Accepted Answer

A)   surplus of 4 units.
B)   surplus of 8 units.
C)   shortage of 4 units.
D)   shortage of 8 units.E) A) and B)
F) None of the above

Question 13

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

Accepted Answer

A)   a decrease in demand and a decrease in quantity supplied
B)   a decrease in demand and a decrease in supply
C)   a decrease in quantity demanded and a decrease in quantity supplied
D)   a decrease in quantity demanded and a decrease in supplyE) All of the above
F) B) and C)

Question 14

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 15

In competitive markets,

Accepted Answer

A)   firms produce identical products.
B)   buyers can influence the market price more easily than sellers.
C)   markets are more likely to be in equilibrium.
D)   sellers are price setters.E) All of the above
F) B) and D)

Question 16

Figure 4-20 
-Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

Accepted Answer

A)   500 units and 500 units.
B)   500 units and 800 units.
C)   600 units and 600 units.
D)   800 units and 500 units.E) All of the above
F) A) and B)

Question 17

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

Accepted Answer

A)   rise.
B)   fall.
C)   stay the same.
D)   could rise, fall, or remain unchanged.E) A) and D)
F) B) and C)

Question 18

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Accepted Answer

A)   shortage to exist and the market price of roses to increase.
B)   shortage to exist and the market price of roses to decrease.
C)   surplus to exist and the market price of roses to increase.
D)   surplus to exist and the market price of roses to decrease.E) A) and C)
F) All of the above

Question 19

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)   the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
B)   the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
C)   there is a surplus of blue jeans at the $30 price.
D)   All of the above are correct.E) A) and B)
F) A) and D)

Question 20

Figure 4-18 
-Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.E) A) and B)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

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Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then the equilibrium price of a new DVD would

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If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

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Figure 4-22 -Refer to Figure 4-22. At a price of $24, there is a

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

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In competitive markets,

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Figure 4-7 -Refer to Figure 4-7. The shift from Db to Da is called

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Which of the following would increase in response to a decrease in the price of ironing boards?

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If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

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Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

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Figure 4-16 -Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

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Figure 4-20 -Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

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Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

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Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct AnswerverifiedSupply shi...View AnswerShow Answer

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

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Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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An example of a perfectly competitive market would be the market for

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

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Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

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