Question 1

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

Question 2

Holding the nonprice determinants of supply constant,a change in price would

Accepted Answer

A)   result in either a decrease in supply or an increase in supply.
B)   result in a movement along a stationary supply curve.
C)   result in a shift of demand.
D)   have no effect on the quantity supplied.E) None of the above
F) A) and D)

Question 3

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following demonstrates the law of demand?

Accepted Answer

A)   After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise.
B)   Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.
C)   Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal.
D)   Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.E) None of the above
F) All of the above

Question 5

Figure 4-16
 
-Refer to Figure 4-16.If price in this market is currently $14,then there would be a(n)

Accepted Answer

A)   surplus of 20 units. The law of supply and demand predicts that the price will rise from $14 to a higher price.
B)   excess supply of 20 units. The law of supply and demand predicts that the price will fall from $14 to a lower price.
C)   surplus of 40 units. The law of supply and demand predicts that the price will rise from $14 to a higher price.
D)   excess supply of 40 units. The law of supply and demand predicts that the price will fall from $14 to a lower price.E) None of the above
F) B) and C)

Question 6

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

Accepted Answer

A)   buyers.
B)   sellers.
C)   both buyers and sellers.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 7

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

Question 8

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

Question 9

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Question 10

Figure 4-22

-Refer to Figure 4-22.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) C) and D)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A improvement in production technology will shift the

Accepted Answer

A)   supply curve to the right.
B)   supply curve to the left.
C)   demand curve to the right.
D)   demand curve to the left.E) A) and D)
F) B) and C)

Question 13

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.E) None of the above
F) A) and C)

Question 14

Figure 4-7

-Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a) ,the arrows are consistent with which of the following events?

Accepted Answer

A)   Tobacco and marijuana are complements, and the price of marijuana decreased.
B)   Tobacco is a "gateway drug," and the price of marijuana increased.
C)   The price of cigarettes increased.
D)   The arrows are consistent with all of these events.E) A) and B)
F) None of the above

Question 15

In a given market,how are the equilibrium price and the market-clearing price related?

Accepted Answer

A)   There is no relationship.
B)   They are the same price.
C)   The market-clearing price exceeds the equilibrium price.
D)   The equilibrium price exceeds the market-clearing price.E) A) and D)
F) A) and C)

Question 16

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Accepted Answer

A)   increase in the demand for bagels.
B)   decrease in the demand for bagels.
C)   increase in the demand for muffins.
D)   decrease in the demand for muffins.E) B) and C)
F) C) and D)

Question 17

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-2

-Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $10 is

Accepted Answer

A)   0 units.
B)   4 units.
C)   10 units.
D)   12 units.E) A) and B)
F) None of the above

Question 19

Figure 4-16
 
-Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Accepted Answer

A)   demand predicts that the price will rise by $2 to eliminate the shortage.
B)   supply predicts that the price will rise by $2 to eliminate the shortage.
C)   supply and demand predicts that the price will rise by $2 to eliminate the shortage.
D)   supply and demand predicts that the price will fall by $2 to eliminate the shortage.E) B) and C)
F) A) and D)

Question 20

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Harry's
B)   only Darby's
C)   both Harry's and Darby's
D)   neither Harry's nor Darby'sE) B) and C)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand.

A improvement in production technology will shift the

Correct AnswerverifiedShow Answer

Holding the nonprice determinants of supply constant,a change in price would

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Soup is an inferior good if the demand

Correct AnswerverifiedShow Answer

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Correct AnswerverifiedShow Answer

The two words most often used by economists are

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates an increase in quantity demanded?

Correct AnswerverifiedShow Answer

A shortage is the same as an excess demand.

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $10 is

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

In a given market,how are the equilibrium price and the market-clearing price related?

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16.If price in this market is currently $14,then there would be a(n)

Correct AnswerverifiedShow Answer

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct AnswerverifiedShow Answer

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Correct AnswerverifiedShow Answer

Which of the following demonstrates the law of demand?

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a) ,the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Correct AnswerverifiedShow Answer

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

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

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