Question 1

The supply curve for portable charcoal grills shifts

Accepted Answer

A)   only when production technology changes.
B)   when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes.
C)   when any determinant of the supply of portable charcoal grills changes.
D)   only when the number of sellers of portable charcoal grills changes.E) B) and C)
F) B) and D)

Question 2

Surpluses drive price up, while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 3

Table 4-1
 
-Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.E) B) and D)
F) B) and C)

Question 4

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 and that the market demand violates the law of demand. Then, in the table, the value of x must be

Accepted Answer

A)   less than or equal to 5.
B)   greater than or equal to 5.
C)   greater than or equal to 7.
D)   greater than or equal to 10.E) A) and B)
F) A) and C)

Question 5

Figure 4-21 
-Refer to Figure 4-21. What is the equilibrium price in this market?

Accepted Answer

A)   $0
B)   $5
C)   $10
D)   $20E) None of the above
F) All of the above

Question 6

Table 4-7
 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Accepted Answer

A)   2.5 gallons.
B)   4 gallons.
C)   10 gallons.
D)   50 gallons.E) None of the above
F) B) and D)

Question 7

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)   1 percent reduction in the quantity demanded of cigarettes.
B)   4 percent reduction in the quantity demanded of cigarettes.
C)   10 percent reduction in the quantity demanded of cigarettes.
D)   12 percent reduction in the quantity demanded of cigarettes.E) B) and C)
F) A) and C)

Question 8

Figure 4-22 
-Refer to Figure 4-22. What is the equilibrium quantity in this market?

Accepted Answer

A)   4 units
B)   8 units
C)   12 units
D)   16 unitsE) B) and C)
F) A) and C)

Question 9

If a firm is a price taker, it operates in a

Accepted Answer

A)   competitive market.
B)   monopoly market.
C)   oligopoly market.
D)   monopolistically competitive market.E) A) and B)
F) A) and C)

Question 10

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

Question 11

Which of the following is not held constant in a supply schedule?

Accepted Answer

A)   production technology
B)   the price of the good
C)   the prices of inputs
D)   expectationsE) B) and C)
F) C) and D)

Question 12

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Accepted Answer

A)   fall in six months but not now.
B)   increase in six months when the price goes up.
C)   fall now.
D)   increase now to meet as much demand as possible.E) B) and D)
F) A) and B)

Question 13

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Accepted Answer

A)   and quantity both decrease.
B)   and quantity both increase.
C)   increases, and the equilibrium quantity decreases.
D)   decreases, and the equilibrium quantity increases.E) A) and B)
F) A) and C)

Question 14

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices.
 
-Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Accepted Answer

A)   The price of sugar decreases.
B)   All four family incomes increase, and Mt. Dew is a normal good.
C)   A major university study reveals that drinking Mt. Dew can cause diabetes.
D)   The technology for bottling carbonated beverages improves.E) A) and B)
F) A) and C)

Question 15

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Accepted Answer

A)   demand for bicycle assembly workers will increase.
B)   supply of bicycles will shift to the right.
C)   supply of bicycles will shift to the left.
D)   firm must increase output to maintain profit levels.E) B) and D)
F) B) and C)

Question 16

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)

Accepted Answer

A)   increase in the demand for Nooks.
B)   decrease in the demand for Nooks.
C)   increase in the demand for Kindles.
D)   decrease in the demand for Kindles.E) A) and B)
F) A) and C)

Question 17

A demand schedule is a table that shows the relationship between

Accepted Answer

A)   quantity demanded and quantity supplied.
B)   income and quantity demanded.
C)   price and quantity demanded.
D)   price and income.E) C) and D)
F) All of the above

Question 18

Table 4-14
The table below shows the quantities demanded of milk per month by four families at various prices.
 
-Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk increases from $4.00 to $5.00, what is the change in the market quantity demanded?

Accepted Answer

decreases ...

Question 19

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Accepted Answer

A) True 
 B)False

Question 20

Who gets scarce resources in a market economy?

Accepted Answer

A)   the government
B)   whoever the government decides gets them
C)   whoever wants them
D)   whoever is willing and able to pay the priceE) All of the above
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

Surpluses drive price up, while shortages drive price down.

Correct Answer
verified

If a firm is a price taker, it operates in a

Correct Answer
verified

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium quantity in this market?

Correct Answer
verified

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)

Correct Answer
verified

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Correct Answer
verified

A demand schedule is a table that shows the relationship between

Correct Answer
verified

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Correct Answer
verified

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct Answer
verified

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Correct Answer
verified

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct Answer
verified

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct Answer
verified

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Correct Answer
verified

Correct Answer
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decreases ...
View Answer

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium price in this market?

Correct Answer
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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

Correct Answer
verified

The supply curve for portable charcoal grills shifts

Correct Answer
verified

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 and that the market demand violates the law of demand. Then, in the table, the value of x must be

Correct Answer
verified

Which of the following is not held constant in a supply schedule?

Correct Answer
verified

Who gets scarce resources in a market economy?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Surpluses drive price up, while shortages drive price down.

Correct AnswerverifiedShow Answer

If a firm is a price taker, it operates in a

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium quantity in this market?

Correct AnswerverifiedShow Answer

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)

Correct AnswerverifiedShow Answer

For teenagers, a 10 percent increase in the price of cigarettes leads to a

Correct AnswerverifiedShow Answer

A demand schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Correct AnswerverifiedShow Answer

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct AnswerverifiedShow Answer

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Correct AnswerverifiedShow Answer

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct AnswerverifiedShow Answer

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Correct AnswerverifiedShow Answer

Correct Answerverifieddecreases ...View AnswerShow Answer

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The supply curve for portable charcoal grills shifts

Correct AnswerverifiedShow Answer

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 and that the market demand violates the law of demand. Then, in the table, the value of x must be

Correct AnswerverifiedShow Answer

Which of the following is not held constant in a supply schedule?

Correct AnswerverifiedShow Answer

Who gets scarce resources in a market economy?

Correct AnswerverifiedShow Answer

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decreases ...
View Answer

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