Question 1

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A)   a decrease in the price of mp3 players
B)   a fad that makes mp3 players more popular among 12-25 year olds
C)   an increase in the price of digital music downloads, a complement for mp3 players
D)   a decrease in the price of satellite radio, a substitute for mp3 playersE) All of the above
F) None of the above

Question 2

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Accepted Answer

A)   Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
C)   Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)   Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.E) A) and C)
F) A) and B)

Question 3

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) All of the above

Question 4

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 5

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Accepted Answer

A)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­5/2.
B)   the slope of Jake's demand curve is ­1/2, and the slope of the market demand curve is ­2/5.
C)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­5/2.
D)   the slope of Jake's demand curve is ­2, and the slope of the market demand curve is ­2/5.E) B) and C)
F) All of the above

Question 6

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 7

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-27

-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) None of the above
F) All of the above

Question 10

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

The answer of A group of buyers and sellers of...

Question 12

Figure 4-4
Yasmine 
 
Mercedes 
-Refer to Figure 4-4. If Yasmine and Mercedes are the only two consumers in the market, then the market quantity demanded at a price of $12 is

Accepted Answer

A)   3 units.
B)   6 units.
C)   9 units.
D)   12 units.E) A) and B)
F) A) and C)

Question 13

Individual demand curves are summed vertically to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 14

Table 4-2
 
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Accepted Answer

A)   4 units.
B)   6 units.
C)   24 units.
D)   32 units.E) B) and D)
F) C) and D)

Question 15

"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." This relationship between price and quantity demanded is referred to as

Accepted Answer

A)   equilibrium.
B)   the law of demand.
C)   the relationship between supply and demand.
D)   the definition of an inferior good.E) None of the above
F) B) and C)

Question 16

The law of demand is true for most goods in the economy.

Accepted Answer

A) True 
 B)False

Question 17

Table 4-6
 
-Refer to Table 4-6. Which supply schedules obey the law of supply?

Accepted Answer

A)   Firm A's only
B)   Firm B's, Firm C's, and Firm D's only
C)   Firm A's and Firm C's only
D)   Firm B's and Firm D's onlyE) B) and C)
F) A) and B)

Question 18

In a market economy, who or what determines who produces each good and how much is produced?

Accepted Answer

A)   the government
B)   lawyers
C)   lotteries
D)   pricesE) B) and D)
F) B) and C)

Question 19

Figure 4-2 
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $10, then the market quantity demanded is

Accepted Answer

A)   0 units.
B)   2 units.
C)   4 units.
D)   6 units.E) B) and C)
F) C) and D)

Question 20

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 C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

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

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Which of the following would cause price to decrease?

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In a market economy, who or what determines who produces each good and how much is produced?

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Individual demand curves are summed vertically to obtain the market demand curve.

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At the equilibrium price, quantity demanded is equal to quantity supplied.

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Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $10, then the market quantity demanded is

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

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Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

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An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

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If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

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Table 4-6 -Refer to Table 4-6. Which supply schedules obey the law of supply?

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When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

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"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." This relationship between price and quantity demanded is referred to as

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Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. If Yasmine and Mercedes are the only two consumers in the market, then the market quantity demanded at a price of $12 is

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The law of demand is true for most goods in the economy.

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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 wedding cakes resulting from a decrease in the number of pastry chefs?

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Which of the following would not shift the demand curve for mp3 players?

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Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

Correct AnswerverifiedShow Answer

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