Question 1

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)  a decrease in the price of gasoline
B)  an increase in consumer income,assuming gasoline is a normal good
C)  an increase in the price of cars,a complement for gasoline
D)  a decrease in the expected future price of gasolineE) A) and D)
F) A) and C)

Question 2

What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

Accepted Answer

A)  The demand for artichokes will increase.
B)  The demand for artichokes will decrease.
C)  The demand for artichokes will be unaffected.
D)  The supply of artichokes will increase.E) A) and C)
F) None of the above

Question 3

A decrease in income will shift the demand curve for an inferior good to the right.

Accepted Answer

A) True 
 B)False

Question 4

Table 4-1   Price  Quantity Demanded  by Michelle  Quantity Demanded  by Laura  Quantity Demanded  by Hillary $55411$46613$37815$281017$191219$0101421\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Michelle }\end{array} & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Laura }\end{array} & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Hillary }\end{array} \\hline \$ 5 & 5 & 4 & 11 \\hline \$ 4 & 6 & 6 & 13 \\hline \$ 3 & 7 & 8 & 15 \\hline \$ 2 & 8 & 10 & 17 \\hline \$ 1 & 9 & 12 & 19 \\hline \$ 0 & 10 & 14 & 21 \\hline\end{array} Price $5$4$3$2$1$0​ Quantity Demanded  by Michelle ​5678910​ Quantity Demanded  by Laura ​468101214​ Quantity Demanded  by Hillary ​111315171921​​ 
-Refer to Table 4-1.Which of the following illustrates the market demand curve?

Accepted Answer

A)   
B)   
C)   
D)    E) A) and B)
F) C) and D)

Question 5

In markets,prices move toward equilibrium because of

Accepted Answer

A)  the actions of buyers and sellers.
B)  government regulations placed on market participants.
C)  increased competition among sellers.
D)  buyers' ability to affect market outcomes.E) A) and B)
F) None of the above

Question 6

The difference between a supply schedule and a supply curve is that a supply schedule

Accepted Answer

A)  incorporates demand and a supply curve does not.
B)  incorporates profit and a supply curve does not.
C)  can shift,but a supply curve cannot shift.
D)  is a table,and a supply curve is drawn on a graph.E) A) and C)
F) A) and B)

Question 7

An increase in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve.
B)  results in a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.E) C) and D)
F) B) and D)

Question 8

Figure 4-2
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 4-2.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) C) and D)
F) All of the above

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 12

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises.

Accepted Answer

A) True 
 B)False

Question 13

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) None of the above
F) A) and B)

Question 14

A market is a group of buyers and sellers of a particular good or service.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 17

Soup is an inferior good if the demand

Accepted Answer

A)  for soup falls when the price of a substitute for soup rises.
B)  for soup rises when the price of soup falls.
C)  curve for soup slopes upward.
D)  for soup falls when income rises.E) All of the above
F) B) and C)

Question 18

The quantity supplied of a good is the amount that

Accepted Answer

A)  buyers are willing and able to purchase.
B)  sellers are able to produce.
C)  buyers and sellers agree will be brought to market.
D)  sellers are willing and able to sell.E) B) and C)
F) A) and C)

Question 19

In a competitive market,the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Accepted Answer

A) True 
 B)False

Question 20

In a perfectly competitive market,at the market price,buyers

Accepted Answer

A)  cannot buy all they want,and sellers cannot sell all they want.
B)  cannot buy all they want,but sellers can sell all they want.
C)  can buy all they want,but sellers cannot sell all they want.
D)  can buy all they want,and sellers can sell all they want.E) B) and D)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

Which of the following would cause price to decrease?

Correct Answer
verified

What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

Correct Answer
verified

An increase in the price of ink will shift the supply curve for pens to the left.

Correct Answer
verified

In markets,prices move toward equilibrium because of

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

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

Correct Answer
verified

In a perfectly competitive market,at the market price,buyers

Correct Answer
verified

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Correct Answer
verified

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises.

Correct Answer
verified

Which of the following would shift the demand curve for gasoline to the right?

Correct Answer
verified

A decrease in income will shift the demand curve for an inferior good to the right.

Correct Answer
verified

The difference between a supply schedule and a supply curve is that a supply schedule

Correct Answer
verified

A market is a group of buyers and sellers of a particular good or service.

Correct Answer
verified

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

The quantity supplied of a good is the amount that

Correct Answer
verified

Correct Answer
verified

Soup is an inferior good if the demand

Correct Answer
verified

An increase in quantity demanded

Correct Answer
verified

In a competitive market,the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Which of the following would cause price to decrease?

Correct AnswerverifiedShow Answer

What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

Correct AnswerverifiedShow Answer

An increase in the price of ink will shift the supply curve for pens to the left.

Correct AnswerverifiedShow Answer

In markets,prices move toward equilibrium because of

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a perfectly competitive market,at the market price,buyers

Correct AnswerverifiedShow Answer

Figure 4-2 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-2.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

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises.

Correct AnswerverifiedShow Answer

Which of the following would shift the demand curve for gasoline to the right?

Correct AnswerverifiedShow Answer

A decrease in income will shift the demand curve for an inferior good to the right.

Correct AnswerverifiedShow Answer

The difference between a supply schedule and a supply curve is that a supply schedule

Correct AnswerverifiedShow Answer

A market is a group of buyers and sellers of a particular good or service.

Correct AnswerverifiedShow Answer

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

The quantity supplied of a good is the amount that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Soup is an inferior good if the demand

Correct AnswerverifiedShow Answer

An increase in quantity demanded

Correct AnswerverifiedShow Answer

In a competitive market,the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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