Question 1

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Accepted Answer

A)   -3.
B)   -1/3.
C)   1/3.
D)   3.E) A) and B)
F) A) and C)

Question 2

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A)   substitutes.
B)   complements.
C)   unrelated because one good is legal while the other one is illegal.
D)   inferior goods.E) None of the above
F) All of the above

Question 3

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 4

The term price takers refers to buyers and sellers in

Accepted Answer

A)   perfectly competitive markets.
B)   monopolistic markets.
C)   markets that are regulated by the government.
D)   markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.E) B) and C)
F) All of the above

Question 5

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
     , where  is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Question 6

In a competitive market, the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   a single buyer.
B)   a single seller.
C)   one buyer and one seller working together.
D)   all buyers and all sellers.E) A) and C)
F) All of the above

Question 7

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)   decreases, and the supply of tires increases.
B)   is unaffected, and the supply of tires decreases.
C)   is unaffected, and the supply of tires increases.
D)   None of the above is necessarily correct.E) A) and C)
F) C) and D)

Question 8

A movement downward and to the right along a demand curve is called an)

Accepted Answer

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

Question 9

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)   Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
C)   Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)   None of the above is correct.E) A) and D)
F) B) and C)

Question 10

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 11

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 12

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

Question 13

Which of the following might cause the supply curve for an inferior good to shift to the right?

Accepted Answer

A)   an increase in input prices
B)   a decrease in consumer income
C)   an improvement in production technology that makes production of the good more profitable
D)   a decrease in the number of sellers in the marketE) B) and C)
F) B) and D)

Question 14

An example of a perfectly competitive market would be the

Accepted Answer

A)   cable TV market.
B)   soybean market.
C)   breakfast cereal market.
D)   shampoo market.E) None of the above
F) All of the above

Question 15

Figure 4-27
Panel a)  Panel b) 
   Panel c)  Panel d) 
  
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Accepted Answer

A)   Panel a) 
B)   Panel b) 
C)   Panel c) 
D)   Panel d) E) All of the above
F) A) and B)

Question 16

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. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Accepted Answer

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

Question 17

When the price of a good or service changes,

Accepted Answer

A)   the supply curve shifts in the opposite direction.
B)   the demand curve shifts in the opposite direction.
C)   the demand curve shifts in the same direction.
D)   there is a movement along a given demand curve.E) C) and D)
F) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

When we move along a given demand curve,

Accepted Answer

A)   only price is held constant.
B)   income and price are held constant.
C)   all nonprice determinants of demand are held constant.
D)   all determinants of quantity demanded are held constant.E) All of the above
F) A) and B)

Question 20

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Accepted Answer

A)   granite countertops to shift to the left.
B)   granite countertops to shift to the right.
C)   substitute products such as marble countertops to shift to the right.
D)   substitute products such as marble countertops to be unaffected by buyers' preferences for granite.E) B) and C)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

An example of a perfectly competitive market would be the

Correct Answer
verified

A movement downward and to the right along a demand curve is called an)

Correct Answer
verified

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct Answer
verified

Most studies indicate that tobacco and marijuana tend to be

Correct Answer
verified

Correct Answer
verified

Which of the following might cause the supply curve for an inferior good to shift to the right?

Correct Answer
verified

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct Answer
verified

Which of the following would cause price to decrease?

Correct Answer
verified

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

Correct Answer
verified

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Correct Answer
verified

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct Answer
verified

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

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
verified

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

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. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Correct Answer
verified

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Correct Answer
verified

The term price takers refers to buyers and sellers in

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

An example of a perfectly competitive market would be the

Correct AnswerverifiedShow Answer

A movement downward and to the right along a demand curve is called an)

Correct AnswerverifiedShow Answer

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct AnswerverifiedShow Answer

Most studies indicate that tobacco and marijuana tend to be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following might cause the supply curve for an inferior good to shift to the right?

Correct AnswerverifiedShow Answer

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct AnswerverifiedShow Answer

Which of the following would cause price to decrease?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Correct AnswerverifiedShow Answer

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct AnswerverifiedShow Answer

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

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

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

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. If the four families listed in the table are the only demanders of Mt. Dew in the market, which of the following is a correct graph of the market demand?

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

The term price takers refers to buyers and sellers in

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified