Question 1

An increase in the price of a good will

Accepted Answer

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

Question 2

Which of the following relationships reflect the law of supply?

Accepted Answer

A)  ​an increase in QS => a decrease in Price
B)  ​a decrease in Price => an increase in supply
C)  ​an increase in Price => an increase in QS
D)  ​a decrease in Price => an increase in QSE) A) and D)
F) B) and C)

Question 3

Which of the following would cause an increase in the demand curve for oranges?

Accepted Answer

A)  ​a freeze in Florida (a major orange producing state) 
B)  ​a new machine that allows orange growers to harvest oranges faster
C)  ​a decrease in the price of apples
D)  ​an announcement by the FDA that oranges lowers cholesterolE) A) and B)
F) A) and C)

Question 4

Which of the following is true?

Accepted Answer

A)  ​According to the law of supply, the higher the price of the good, the greater the quantity supplied.
B)  ​An individual supply curve is a graphical representation that shows the negative relationship between the price and the quantity an individual is willing and able to supply.
C)  ​The market supply curve is the vertical summation of the individual firm supply curves.
D)  ​An increase in supply is illustrated by an upward shift in the supply curve.E) B) and C)
F) A) and C)

Question 5

Either an increase in the number of buyers or an increase in tastes or preferences for a good or service will increase the market demand for that good or service.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in the price of a good would

Accepted Answer

A)  ​increase the supply of the good.
B)  ​increase the quantity demanded of the good.
C)  ​give producers an incentive to produce more to keep profits from falling.
D)  ​shift the supply curve for the good to the left.E) All of the above
F) B) and C)

Question 7

Buyers who were originally willing to buy 800 units of a good at $4 per unit are now willing to buy 1200 units at $4 per unit. That change would be described as:

Accepted Answer

A)  ​an increase in demand.
B)  ​a decrease in demand.
C)  ​an increase in quantity demanded.
D)  ​a decrease in quantity demanded.E) None of the above
F) All of the above

Question 8

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) None of the above
F) All of the above

Question 9

Which of the following would cause an increase in demand for golf balls?

Accepted Answer

A)  ​a decrease in the price of golf balls
B)  ​an increase in the price of green fees
C)  ​an expectation by buyers that their incomes will increase in the very near future
D)  ​a change in consumer tastes away from golf and toward tennisE) None of the above
F) C) and D)

Question 10

​Exhibit 4-5 
-Refer to Exhibit 4-5. A change from Point A to Point E represents a(n) :

Accepted Answer

A)  ​increase in supply.
B)  ​decrease in supply
C)  ​increase in quantity supplied.
D)  ​decrease in quantity supplied.E) A) and C)
F) B) and C)

Question 11

Which of the following would not shift the supply curve for halibut?

Accepted Answer

A)  ​a reduction in the number of available fishing boats
B)  ​unusually stormy weather during fishing season
C)  ​the development of innovative new fishing equipment that makes it easier to catch halibut
D)  ​an increase in the price of halibutE) A) and B)
F) A) and C)

Question 12

Two goods are substitutes when a decrease in the price of one good

Accepted Answer

A)  ​decreases the demand for the other good.
B)  ​decreases the quantity demanded of the other good.
C)  ​increases the demand for the other good.
D)  ​increases the quantity demanded of the other good.E) C) and D)
F) B) and C)

Question 13

Which of the following is not a determinant of supply?

Accepted Answer

A)  ​input prices
B)  ​technology
C)  ​tastes
D)  ​expectationsE) A) and B)
F) All of the above

Question 14

Today's demand curve for gasoline could shift in response to

Accepted Answer

A)  ​a change in today's price of gasoline.
B)  ​a change in the expected future price of gasoline.
C)  ​a change in the number of sellers of gasoline.
D)  ​All of the above are correct.E) None of the above
F) A) and B)

Question 15

A movement along the demand curve might be caused by a change in

Accepted Answer

A)  ​income.
B)  ​the prices of substitutes or complements.
C)  ​expectations about future prices.
D)  ​the price of the good or service that is being demanded.E) C) and D)
F) B) and C)

Question 16

If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then:

Accepted Answer

A)  ​the selling price is higher than the equilibrium price.
B)  ​the equilibrium price is higher than the selling price.
C)  ​the quantity demanded is less than the quantity supplied.
D)  ​the shortage could be eliminated by lowering the price.E) B) and D)
F) All of the above

Question 17

If the price of ice cream increases and the quantity demanded decreases, economists would describe this as:

Accepted Answer

A)  ​a change in demand.
B)  ​a change in quantity demanded.
C)  ​a change in consumer income.
D)  ​a change in one of the variables that shift demand.E) All of the above
F) A) and B)

Question 18

Suppose roses are currently selling for $20 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) A) and B)

Question 19

An increase in the price of Product X leads to a decrease in demand for Product Y. The price increase also increases the demand for Product Z, a related good. Discuss the relationship between these products.

Accepted Answer

Product X and Produc...

Question 20

Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed and what effect does it have on supply?

Accepted Answer

A)  ​future expectations; supply decreases
B)  ​future expectations; supply increases
C)  ​input prices; supply decreases
D)  ​input prices; supply increasesE) A) and D)
F) A) and B)

Exam 4: Demand, Supply, and Market Equilibrium

A movement along the demand curve might be caused by a change in

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Antonio's makes the greatest pizza and delivers it hot to all the dorms around campus. Last week Antonio's supplier of pepperoni informed him of a 25% increase in price. Which variable determining the position of the supply curve has changed and what effect does it have on supply?

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An increase in the price of a good will

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Which of the following is true?

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Which of the following would cause an increase in demand for golf balls?

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An increase in the price of Product X leads to a decrease in demand for Product Y. The price increase also increases the demand for Product Z, a related good. Discuss the relationship between these products.

Correct AnswerverifiedProduct X and Produc...View AnswerShow Answer

If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then:

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Buyers who were originally willing to buy 800 units of a good at $4 per unit are now willing to buy 1200 units at $4 per unit. That change would be described as:

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Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

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Two goods are substitutes when a decrease in the price of one good

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Today's demand curve for gasoline could shift in response to

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​Exhibit 4-5 -Refer to Exhibit 4-5. A change from Point A to Point E represents a(n) :

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In markets, prices move toward equilibrium because of

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Which of the following is not a determinant of supply?

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Which of the following relationships reflect the law of supply?

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Which of the following would not shift the supply curve for halibut?

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If the price of ice cream increases and the quantity demanded decreases, economists would describe this as:

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Which of the following would cause an increase in the demand curve for oranges?

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A decrease in the price of a good would

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Either an increase in the number of buyers or an increase in tastes or preferences for a good or service will increase the market demand for that good or service.

Correct AnswerverifiedShow Answer

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Product X and Produc...
View Answer

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Exhibit 4-5 -Refer to Exhibit 4-5. A change from Point A to Point E represents a(n) :

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